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ANNUAL
REPORT
For the period from
1 January to 31
December 2021
(In accordance with Law
3556/2007)
Athens,
March
31,
2022
TABLE
OF
CONTENTS
Statement by the
Members of Board
of Directors
5
Board of
Directors’ annual
management report
as at 31.12.2021
7
Corporate
Governance
Statement
for
the
year 2021
60
Independent
Auditors’
Report
(on
Group
Financial
Statements)
95
Consolidated Financial
Statements as at
31.12.2021
Consolidated
Income
Statement
107
Consolidated
Statement
of
Comprehensive
Income
108
Consolidated
Balance
Sheet
109
Consolidated
Statement
of
Changes
in
Equity
110
Consolidated
Statement
of
Cash
Flows
112
Notes
to
the
Consolidated
Financial
Statements
113
Accounting policies applied
1.1
Basis of presentation
116
1.1.1
Going concern
116
1.1.2
Adoption of new standards and of
amendments to standards
119
1.2
Accounting
policies
124
1.2.1
Basis of consolidation
124
1.2.2
Operating
Segments
126
1.2.3
Transactions
in foreign
currency
and
translation of foreign operations
126
1.2.4
Cash and
cash equivalents
127
1.2.5
Classification and measurement of
financial instruments
127
1.2.6
Derivative financial instruments and
hedge accounting
134
1.2.7
Fair
Value
Measurement
136
1.2.8
Property,
Plant
and
Equipment
137
1.2.9
Investment property
138
1.2.10
Goodwill and other intangible assets
139
1.2.11
Leases
140
1.2.12
Insurance activities
141
1.2.13
Credit impairment
losses
on loans
and advances
to customers, undrawn loan commitments,
letters of credit
and letters of guarantee
142
1.2.14
Credit impairment losses on due from banks and
bonds
144
1.2.15
Impairment losses on investments and
non-financial assets
146
1.2.16
Income tax
147
1.2.17
Non-current assets held for sale
147
1.2.18
Defined contribution and defined benefit
plans
148
1.2.19
Share options granted to
employees
149
1.2.20
Provisions and contingent liabilities
149
1.2.21
Securities
sale and
repurchase
agreements
and securities
lending
150
1.2.22
Securitization
150
1.2.23
Equity
150
1.2.24
Interest
income
and
expense
151
1.2.25
Fee and
commission
income
151
1.2.26
Dividend
Income
152
1.2.27
Gains less
losses
on financial
transactions
152
1.2.28
Gains less losses
on derecognition
of
financial assets measured at amortised
cost
152
1.2.29
Discontinued
operations
152
1.2.30
Related parties definition
153
1.2.31
Comparatives
153
1.3
Significant accounting judgments and key
sources of estimation uncertainty
153
Corporate Transformation – Hive down
157
Income statement
2
Net interest income
159
3
Net fee and
commission income and
other income
160
4
Dividend income
161
5
Gains less losses on financial transactions
161
6
Gains less losses
on derecognition
of
financial assets measured at amortised
cost
162
7
Other income
163
8
Staff costs and expenses for separation
schemes
163
9
General
administrative
expenses
167
10
Other
expenses
168
11
Impairment
losses
,provisions
to cover
credit risk on
loans and advances to
customers
and related
expenses
169
12
Impairment losses and provisions to
cover credit risk on
other financial
instruments
170
13
Income tax
171
14
Earnings/(losses)
per share
175
Assets
15
Cash and
balances with
Central
Banks
177
16
Due from banks
177
17
Trading securities
177
18
Derivative financial instruments
(assets and
liabilities)
178
19
Loans and advances to customers
185
20
Investment securities
189
21
Investments in associates and joint
ventures
191
22
Investment property
196
23
Property, plant and
equipment
198
24
Goodwill and other intangible assets
199
25
Deferred tax assets
and liabilities
200
26
Other assets
202
Liabilities
27
Due to Banks
203
28
Due to
customers
204
29
Debt securities
in issue
and other
borrowed funds
204
30
Liabilities for current income tax and
other taxes
209
31
Employee defined benefit obligations
209
32
Other liabilities
216
33
Provisions
217
Equity
34
Share capital
219
35
Share premium
219
36
Reserves
220
37
Retained earnings
221
38
Hybrid securities
221
Additional
information
39
Contingent liabilities
and commitments
222
40
Group Consolidated Companies
229
41
Disclosures of Law 4261/5.5.2014
242
42
Operating segments
248
43
Risk Management
252
43.1
Credit Risk
253
43.2
Market Risk
330
a.
Foreign currency risk
331
b.
Interest rate risk
334
43.3
Liquidity Risk
337
43.4
Fair value of financial assets
and liabilities
344
43.5
Transfers of financial
assets
352
43.6
Offsetting financial assets -
liabilities
354
43.7
Disclosures on interest rate reform
355
43.8
Assessment of the impact of the
conflict
between
Russia
and Ukraine
and the ensuing
sanctions
357
44
Capital Adequacy
358
45
Related-party transactions
360
46
Auditors’ fees
362
47
Disclosures of
Law 4151/2013
363
48
Assets held
for sale
363
49
Corporate
events
368
50
Restatement
of financial
statements
371
51
Discontinued
Operations
375
52
Strategic plan
375
53
Events after the reporting period
377
Financial Statements
as at
31.12.2021
Income Statement
381
Statement
of
Comprehensive
Income
382
Balance Sheet
383
Statement of Changes in Equity
384
Statement of Cash Flows
385
Notes to the
Financial Statements
386
Accounting
policies
applied
1.1
Basis of presentation
389
1.1.1
Going concern
390
1.1.2
Adoption of new standards and of
amendments to standards
392
1.2
Accounting
policies
397
1.2.1
Transactions in
foreign currency
and
translation of foreign operations
397
1.2.2
Cash and
cash equivalents
398
1.2.3
Classification and measurement of
financial instruments
398
1.2.4
Derivative financial instruments and
hedge accounting
404
1.2.5
Fair
Value
Measurement
406
1.2.6
Investments
in
subsidiaries,
associates
and joint ventures
408
1.2.7
Property, plant and equipment
408
1.2.8
Investment property
409
1.2.9
Goodwill and other intangible assets
409
1.2.10
Leases
410
1.2.11
Credit impairment losses on loans and
advances to customers, undrawn loan
commitments, letters
of credit and letters
of guarantee
411
1.2.12
Credit impairment losses on due from
banks and bonds
414
1.2.13
Impairment losses on investments and non-
financial assets
415
1.2.14
Income tax
416
1.2.15
Non-current assets held for sale
416
1.2.16
Defined contribution and defined benefit
plans
417
1.2.17
Share options granted to
employees
418
1.2.18
Provisions and contingent liabilities
418
1.2.19
Securities
sale and
repurchase
agreements
and securities
lending
419
1.2.20
Securitization
419
1.2.21
Equity
420
1.2.22
Interest
income
and
expense
420
1.2.23
Fee and
commission
income
421
1.2.24
Gains less
losses
on financial
transactions
421
1.2.25
Gains less losses
on derecognition
of
financial assets measured at amortised
cost
421
1.2.26
Discontinued
operations
422
1.2.27
Related parties definition
422
1.2.28
Comparatives
422
1.3
Significant accounting judgments and key
sources of estimation uncertainty
422
Corporate Transformation – Hive down
425
Income statement
2
Net interest income
428
3
Net fee and
commission income
428
4
Dividend
income
429
5
Gains less
losses
on financial
transactions
429
6
Gains less losses
on derecognition
of
financial assets measured at amortised
cost
429
7
Other
income
430
8
Staff
costs
and
expenses
430
9
General
administrative
expenses
430
10
Impairment
losses,
provisions
to cover
credit risk
and related
expenses
431
11
Impairment losses,
provisions to
cover
credit risk
and related
expenses
on other
financial instruments
431
12
Income tax
432
13
Earnings/(losses)
per share
434
Assets
14
Due from banks
436
15
Loans
and
advances
to customers
436
16
Investment securities
443
17
Investments
in
subsidiaries,
associates
and joint ventures
445
18
Property, plant and equipment
448
19
Goodwill and other intangible assets
449
20
Deferred tax assets and liabilities
450
21
Other assets
451
Liabilities
22
Debt securities
in issue
and other
borrowed funds
452
23
Liabilities for current income tax and
other taxes
455
24
Employee defined benefit obligations
455
25
Other liabilities
459
26
Provisions
460
Equity
27
Share capital
461
28
Share
premium
461
29
Reserves
462
30
Retained
earnings
463
Additional
information
31
Contingent liabilities
and commitments
464
32
Risk
Management
465
32.1
Credit Risk
465
32.2
Market
Risk
478
a.
Foreign currency risk
478
b.
Interest rate risk
478
32.3
Liquidity
Risk
481
32.4
Fair value of financial assets and liabilities
485
32.5
Transfers of
financial assets
492
33
Related-party
transactions
493
34
Auditors’ fees
496
35
Assets held
for sale
497
36
Awarding of stock options rights to
employees
498
37
Corporate
events
500
38
Restatement
of financial
statements
501
39
Discontinued
Operations
504
40
Events after the balance sheet date
506
Report on use of Funds raised through
payment in cash
and disapplication
of the
pre-emption
rights
of
the
existing
ordinary
registered shares,
with voting
rights
507
Report on
factual findings
from the
agreed-upon
procedures
on
the
Report
of
Use of Funds Raised
509
Appendix of the Board of Directors’ Annual
Management
Report
511
Disclosures of
Law 4374/2016
513
Availability of Annual
Financial Report
525
Statement
by
the
Members
of
Board
of
Directors
(in accordance
with article
4 paragraph
2 of Law
3556/2007)
To the best of our knowledge, the annual financial statements that have been prepared in accordance with the applicable
accounting standards, give a true view of the assets, liabilities, equity and financial performance of Alpha
Services and
Holdings S.A. and of
the group of
companies included in the
consolidated financial statements taken as
a whole, as
provided
in article 4 paragraphs 3 and 4 of Law 3556/2007, and the Board of Directors’ Annual Management Report presents fairly
the evolution, performance and financial
position of Company, and
group of companies included in
the consolidated financial
statements taken as a whole, including the analysis of the
main risks and uncertainties that they face.
Athens, March 31, 2022
THE CHAIRMAN
OF THE BOARD OF DIRECTORS
THE CHIEF
EXECUTIVE OFFICER
EXECUTIVE
MEMBER
OF THE BOARD OF DIRECTORS
VASILEIOS T.
RAPANOS
ID. No ΑΙ
666242
VASSILIOS E. PSALTIS
ID No AΙ 666591
SPIROS N. FILARETOS
ID. No AK022255
7
ANNUAL FINANCIAL REPORT
Board
of
directors’
annual
management
report
as at 31.12.2021
INTRODUCTION
NOTE
Under the context of the demerger performed on 16 April
2021, Alpha
Bank S.A.
was renamed
to “Alpha
Services and
Holdings S.A.” (“Alpha
Holdings”) and has
transferred its
banking sector (“hive down”) to a newly established credit
institution
under the
corporate
name “Alpha
Bank S.A.”
(the
“Bank” ).
Alpha Holdings
is the
parent company
of the
Bank
and retains the insurance intermediary activity and the
provision of accounting and tax services to affiliates and
third parties, as well as the issuance of securities to raise
regulatory capital. More information are presented in the
section (“The Hive
Down”).
Alpha Holdings has been
licensed and is supervised
as
Financial Holdings Institution
by ECB according to the
provisions of
article 22a of
Law 4261/2014
from 18.1.2022.
This license does not impose any other supervisory
obligation on Alpha Holdings other than the obligation
to ensure at Group level that the Group’s supervised and
consolidated companies comply with their obligations under
Regulation 575/2013 and the rest Legislation on Financial
Institutions.
GREEK
ECONOMY
The swift and strong recovery of economic activity in the
2021, recouped a significant part of the losses registered in
2020, as GDP
at constant prices
increased by 8.3%
on an
annual basis, compared to a decrease of 9%
in 2020.
The European Commission
(European Economic
Forecast,
Winter 2022) expects a further increase of 4.9% in 2022
and 3.5% in 2023. Furthermore, according to the latest
projections
by the
Bank of
Greece (Interim
Monetary
Policy
Report,
December
2021),
the GDP
growth rate
is estimated
to reach 5%
in 2022 and
3.9% in 2023.
The steep rebound of GDP in 2021 can be attributed,
firstly
,
to the strong increase
of private consumption, driven by the
sharp increase
in savings
accumulated
during
the pandemic
and the significant gains in employment
secondly
,
to
the
rise
in
investment,
especially
in
machinery
and
technological
equipment and,
thirdly
, to the higher-than-expected
performance of exports of services, due to the remarkable
recovery of tourism in the summer of 2021. .The rebound
of economic activity in Greece in 2021 was in line with the
evolution
of the
Economic
Sentiment
Indicator
(ESI),
which
is a leading indicator of economic activity and stood at 110
points in December 2021, compared to 91.5 points in the
same month of
2020.
Fiscal support remained in place in
2021, as the
government
adopted additional fiscal measures of EUR 17 billion,
whereas the 2022 State Budget incorporates fiscal
interventions, to address the pandemic impact of EUR 3.3
billion.
The Greek
Government
securities
were eligible
for purchase
under the European Central Bank’s (ECB) Pandemic
Emergency Purchase Program (PEPP),
which contributed
to the formation of favorable borrowing conditions. The
decision of the ECB (December 2021) to continue buying
Greek Government Bonds (GGBs), after the end of the PEPP
in March 2022, is expected to sustain favorable lending
conditions for the Greek State, as well as for the private
sector.
In 2021, Greece has successfully tapped the international
debt capital markets in January,
March, May, June and
September, through a 10-year, a 30-year and a 5-year bond
issuances,
as well
as, through
the reopening
of all
the above,
raising in
total Euro
14 billion.
In April 2021, Standard & Poor’s upgraded Greece’s
sovereign credit rating by one notch from BB- to BB while
maintaining a positive outlook. In parallel, the Athens Stock
Exchange (ASE) General
Index recorded an increase
in 2021,
by 10.4%.
According
to the
2022
State
Budget,
Greece’s
primary
deficit
(following the enhanced surveillance definition) reached
7.9% of GDP in 2020 and is estimated to drop to 7.3% of
GDP in 2021 and 1.2% of GDP in 2022. Furthermore, the
General Government Debt rose to 206.3% in 2020, before
re-entering a downward trend, reaching 197.1%
of GDP
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
8
ANNUAL FINANCIAL REPORT
(estimation) in 2021 and
189.6% in 2022, as a result,
mainly, of the
economic rebound.
Residential property prices growth recouped their strong
dynamics in 2021. According to the latest available
provisional
data by
the Bank
of Greece,
nominal house
prices
accelerated following a steeper uphill trajectory in Q32021,
rising by 7.9% y-o-y from 6.2% y-o-y in the previous quarter
and 4.3% in
Q1 2021.
Inflation, as measured with the Harmonized Index of
Consumer Prices (HICP),
followed an upward trend
in the
second half of 2021, mainly due to the rising energy prices
globally, the supply
chain disruptions and the shortages in
raw materials.
In December
2021, HICP
increased by
4.4%
y-o-y, compared to -2.2%, respectively, in the same month
of 2020, whereas the average index rose by 0,6% in 2021,
compared to the
previous year.
In 2022, HICP
is forecast
to rise
by 3.1%
according
to the
the European
Commission
(European Economic
Forecast, Winter
2022) and by
3%
according
to the
European
Central
Bank (Eurosystem
staff
macroeconomic projections for the euro area countries,
December 2021).
The seasonally adjusted unemployment rate in December
2021 was equal to 12.8% compared to 15.5% in December
2020.
According
to the
Interim
Monetary
Policy Report
(December
2021) of the Bank of Greece, the Greek banks, in the first
nine months of 2021, recorded losses, mainly due
to
the provisions related to the non-performing loans (NPL)
transactions.
The Capital
Adequacy
ratio for
the Greek
banks,
on a consolidated basis, stood at 15.1% in September 2021,
whereas the corresponding
Common Equity Tier 1
(CET1)
ratio reached 12.6%.
The private sector’s deposits amounted to Euro
180 billion in
December 2021, of which Euro
135.1 billion were household
deposits and Euro 44.8 billion deposits of corporates. Net
inflow of deposits by the private sector rose by Euro 16.2
billion in 2021, due to the increase of “forced” savings (due
to lockdown measures in force in the first few months of
2021), as well as the increase of “precautionary” savings
(due to high uncertainty for the future). In addition, the
measures adopted by the Greek government to support the
economy, as well as the rise in employment in the second
half of 2021, contributed to the rise of the deposit base.
The outstanding amount of total credit granted to the
private sector amounted to Euro 109.6 billion at the end of
December 2021, while the annual rate of change stood at
1.3%. More specifically, the annual rate of credit to non-
financial corporations stood at 3.8% in December 2021.
According to
the latest
data by the
Bank of
Greece, NPLs
at the end of September 2021 amounted to Euro 20.9
billion, reduced by 26.3 billion compared to December 2020,
primarily due to the loans’ sales, under the state guarantee
scheme regarding the securitization of the NPLs
of the credit
institutions (“Hercules” program). In terms of key quality
indicators of NPLs, the total NPL ratio remained high (15%)
at the end of September 2021. The respective ratio for
mortgages (11.8%) performed better compared to business
(15.2%) and consumer loans portfolios (24.8%).
THE PROSPECTS
OF
THE
GREEK
ECONOMY
IN
2022
The deteriorating epidemiological situation
in the last few
months of 2021, the emergence of new mutations, the
emerging inflationary pressures and the geopolitical risks,
are the main sources of
uncertainty in the short term, which
may slow down the
recovery of the
Greek economy.
The causes of inflationary pressures in 2021 were primarily
the rising
energy prices,
the supply
chains disruptions,
which
led to shortages of raw materials and increased production
costs, as well as the increased demand, which was largely
supported by the fiscal measures in effect, to address the
negative effects of the pandemic. It should
also be noted
that the support
measures - part of
which was phased
out
in 2021 - are
associated with additional
medium-term fiscal
risks (e.g. potential loan defaults for which the state has
provided guarantees).
The geopolitical risks and in particular the conflict between
Russia and
Ukraine
in early
2022,
are further
pushing
energy
prices upwards, due to the fact that Russia is currently the
main supplier of natural gas to
the European Union.
The Greek economy might be impacted by the geopolitical
developments through two additional channels: the tourism
sector (directly,
as regards
tourist arrivals
from Russia
and
Ukraine
and indirectly,
through
the expected
reduction
in the
purchasing
power of
consumers
in the origin
countries, as
a
consequence
of the
increasing
energy prices)
and a
possible
disruption of the
financial markets.
The accumulation of savings
in the
last two years,
however,
combined with the tax cuts and the fiscal interventions
in effect from 2022,
are estimated to
partially offset the
negative impact of inflation on the disposable income and
therefore on
consumption.
In particular, in 2022, a favorable environment is being
created for a change in the composition of economic
growth, which
is expected
to be
driven mainly
by the
rise
in investment. The increase of investment in the short-
term, will be determined by the evolution of the country’s
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ANNUAL FINANCIAL REPORT
sovereign credit rating towards the so-called “investment
grade”, the disbursement of funds in the context of the
Recovery and Resilience
Facility (RRF), the
centerpiece of
the recovery
plan of the
European Union
(Next Generation
EU), with the aim to deal with the negative impact of the
pandemic-as well as the implementation of structural
reforms
that will establish a business-friendly environment.
The National Recovery and Resilience Plan (NRRP) refers
to the utilization of the RRF funds and incorporates
investments and reforms aiming at the green and digital
transition of the Greek economy, the
strengthening of the
infrastructure, as well as
its exporting orientation. According
to the NRRP, the RRF funds are expected
to mobilize new
investments of around EUR 57.5 billion in 2021-2026,
covering to a large extent the investment gap that was
created in Greece
in the previous
decade. Furthermore,
the
Greek government has already planned a structural reform
agenda,
which,
combined
with
an improved
debt risk
profile,
is expected to attract
Foreign Direct Investment (FDI).
Risks however,
may also
arise from
delays in
the absorption
of the RRF funds, which would deteriorate business
sentiment.
INTERNATIONAL
ECONOMY
In 2021, the international economy recovered strongly,
despite the significant challenges it faced, such as
coronavirus
variants,
inflationary
pressures,
the
energy
crisis and supply
chain disruptions
.
However, based
on the
available economic data, the economic recovery is not
expected to be equal among countries, as it is linked to the
progress of vaccination programs and to the expansionary
policies implemented in the fiscal and monetary field, in
each
country.
Some
countries
recovered
faster
compared
to
others. The explanation for the different rate of
economic
growth is largely attributed to the accessibility
of vaccines of
each country. Advanced economies outperformed
emerging
and low-income economies, as vaccination programs have
covered a large proportion of the population, allowing for
a faster recovery from
pandemic losses, in terms of
gross
domestic product
(GDP).
Global GDP
shrank by
3.1% in
2020, while
according
to
the
International
Monetary
Fund
(World
Economic
Outlook
Update, January 2022) it is expected to increase by 5.9% in
2021 and by 4.4% in 2022, supported by additional fiscal
support in some economies, the
strengthening of vaccination
programs and the continued adjustment of economic
activity.
The volume of the international trade decreased in 2020
by 8.2%, while in 2021 is
estimated to increase by 9.3%.
According to the International Monetary Fund (World
Economic Outlook Update, January 2022), the volume of
the international trade of goods and services is
expected to
increase by 6%
in 2022.
In 2022, the
international economy
is expected to
return to
a new normal, as the pandemic either accelerated major
changes that were expected to take place at a later stage, or
triggered risks and highlighted significant opportunities.
The main uncertainties for 2022 are related to both the
future pandemic path and inflationary pressures, especially
in energy prices.
The Omicron
variant, first identified in November 2021,
confirms that the Covid-19 pandemic remains among
the threats to global economic growth. Some countries
have been forced to
reintroduce restrictive measures to
mitigate the spread of the new variant. Despite the growing
adjustment of economies to restrictive measures, this
development is expected to slow down,
to some extent,
the economic activity, especially
in countries vulnerable to
disruptions in international demand.
Global inflation rose, in
2021, mainly in
advanced economies
and especially in the US. The sharp rise in inflation was
caused by the imbalance between demand and supply,
causing excess demand. The gradual normalization of
economic activity, in 2021, led
to a rapid increase
in demand
for goods and
services, resulting in a
rise in the
general
level of prices (Demand-pull inflation). In addition, this
increase is largely attributed to rising energy costs, as the
inability of supply to meet the growing demand for oil and
natural gas -which is considered as an intermediate fuel
in the transition to renewable energy
sources-
has led to
a large increase
in their prices,
burdening businesses
and
households.
Furthermore,
the
global
supply
chain
disruptions
have resulted in shortages of intermediate goods, while
rising commodity and raw material prices have led to rising
production costs, part of which has been passed on to final
product prices (cost-push inflation).
Globally, addressing inflationary pressures
is
crucial,
as
rising prices
for basic
goods and
especially
energy decrease
disposable income
and, consequently,
consumption.
The
central banks seek to choose the appropriate monetary
policy, in order to reconcile the support of the economic
recovery and a high
inflation, so that it
does not exceed
its target. The Bank of England was the first major central
bank to raise interest
rates, in December 2021,
while
other major central
banks, such
as the US Federal
Reserve,
are expected to raise interest rates in 2022. A change in
monetary policy in advanced economies due to faster
growth rate and growing inflationary pressures could
lead to
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
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negative changes in the
financing conditions of emerging
economies, causing capital outflows.
Additional uncertainties
that could affect the
international
economy are:
First, the French
presidential election.
The election
result,
combined with the
new governing coalition in
Germany, will
shape the trends within the European Union on a number
of important issues, including the need for a reform of the
EU fiscal rules,
as their current
form is obsolete,
given the
new fiscal situation, especially due to the
pandemic.
Second, the possible slowdown
in China’s economy. The
liquidity
crisis
of the
property
developer
Evergrande
Group
has plunged
into a
crisis the
Chinese real estate sector.
In addition, electricity shortages, in the autumn of 2021,
slowed down industrial production, undermining the
growth
prospects of the world’s second
largest economy.
Third, the economic implications of the full-scale invasion
and sanctions against Russia are basically
related with a
longer period
of inflation
in Eurozone
fueled by
gas, oil
and
food prices over the medium term, as well as increased
uncertainty from the disruption in financial markets.
Additionally, a weaker
increase
in
private
consumption
is expected, because of the
large impact of high
energy
prices on
households’
real incomes
and industries
supply
lines. At the
same
time, geopolitical tensions are
observed
in various areas worldwide, the escalation of which could
have adverse economic impact, due to strong economic
interactions. The US-China geopolitical competition
in various fields (trade, technological) may lead to an
increase in protectionist policies (eg tariff increases),
adversely affecting free trade and economic activity
worldwide. Relations between the two countries could
deteriorate
sharply,
if tensions
between
China
and
Taiwan
escalate.
Fourth, the evolution and intensity of the energy crisis in
2022 may slow down or accelerate the “green” transition,
i.e the shift of production towards renewable energy
sources. In 2022, the urgent need to take action on
the effects of climate change will once again be in the
spotlight. Extreme weather events (drought, fires) occur
more often due to global warming, with high economic and
social costs. It is
therefore an urgent need to
accelerate the
adoption of more environmental policies, despite the high
transition costs.
EURO
AREA
The occurence of the third wave of the pandemic caused
the contraction of GDP
in Euro area
in the first quarter of 2021 by 1.1%
on an annual basis
according to Eurostat. However,
GDP
increased
by
14.4%, 3.9% and 4.6% in the second, third and fourth
quarter of 2021
respectively, as
the effectiveness
of the
restrictive measures and the progress
of the vaccination
programs,
has led
the
European
Union
Member
States
to
reopen their economies, mainly for the benefit of service
companies. An important development
is the recovery of
consumption, which is also fueled by the accumulated
deposits, during the
pandemic.
GDP in
Euro area
increased
by 5.2%
in 2021,
while
the
European
Commission
(Winter
2022
Economic
Forecast) forecasts growth
of 4% in 2022, with private
consumption being the driving force,
while investment and
exports are projected to record stronger momentum. The
disbursement of the funds, under the “Next Generation
EU (NGEU)”
program, is
crucial for
the economic
growth,
as it is expected to mobilize
additional investment. It
is reminded that the European Commission adopted, in
July 2020, the “Next Generation
EU” program, i.e. of a
Development
Fund (or
Recovery
Fund), amounting
to Euro
750 billion, with the
aim of recovering and strengthening
the resilience of the European economy after the
pandemic crisis, through a combination of grants and
loans to the Member States of the European Union. A
significant part of the resources
will be directed to actions
focused on the
green and digital
transitions.
The unemployment rate in the Eurozone stood at 7.2%
in November 2021, the lowest level recorded since the
outbreak of the pandemic crisis. The unemployment
rate stood at 7.7% on average, in the period January-
November 2021, while
it is projected to decrease
to 7.3%
in 2022 (European Central Bank, December 2021).
The European
Central Bank
(ECB), at its
December 2021
meeting, decided to slow,
in the first quarter of 2022, the
asset-buying program, in the context of the Pandemic
Emergency Purchase
Program (PEPP),
with the aim of
ending the program at the end of March 2022. The
amounts from the
repayment of securities
acquired under
this program will be reinvested, at
least, up to the end of
2024. At the same time, net purchases under the asset
purchase program
(APP) will
expand by Euro
40 billion
per month, in the second quarter of 2022, Euro 30 billion
per month, in the third quarter and Euro 20 billion per
month, from the
fourth quarter of 2022.
The key interest
rate remained unchanged at 0%, in 2021, while according
to the ECB’s president, it is not expected to increase in
2022, as in such a case, the economic growth might be
undermined. In addition, the escalation
of inflationary
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pressures,
according to
the ECB,
is temporary.
Inflation, as
measured by the harmonized index of consumer prices,
increased from
0.3% in 2020, to
2.6% in 2021,
with 39%
attributed to
rising energy
prices. According
to the ECB,
inflation is expected to rise to 3.2% in 2022, exceeding
the
2% target for most
of the year, but following
a downward
trend. According to the new
ECB’s single monetary
policy strategy,
price stability is
better maintained,
with
a medium-term inflation
target of 2%. This target
is
symmetric, meaning
negative and
positive deviations
of
inflation from the target are equally undesirable.
COUNTRIES
WHERE
THE
GROUP
OPERATES
Cyprus
Economic activity in Cyprus, according to the available data
from the Statistical
Authority (CYSTAT),
increased by 5.6%
(annual change, seasonally adjusted figures) in the third
quarter of 2021, against an increase of 13.4% in the second
quarter and a decrease of 2.1% in the first quarter of 2021.
The European Commission (Autumn 2021 Economic
Forecast) estimates GDP growth rate to stand at 5.4% in
2021 and by 4.2% in 2022. The recovery is expected to be
mainly based on domestic demand and
the increased tourist
arrivals. It is noted, however, that tourism will gradually
recover, returning to pre-pandemic level by the end of 2023.
Investment is expected, in 2022, to exceed the 2019-level,
boosted by funds from
the Recovery and
Resilience Plan
(RRP).
Annual harmonised inflation, according
to the CYSTAT,
increased from
-1.1% in
2020, to
2.3% in
2021, mainly
due to
the rise
in energy
prices,
non-energy industrial
goods
and services
prices. According
to the European
Commission
(Autumn
2021 Economic
Forecast),
it is
forecast
to increase
to 1.7% in
2022.
Although
public debt increased significantly from 91.1% of
GDP in 2019, to 115.3% in 2020, due to fiscal measures
to support the economy, it is expected to fall to 104.1% in
2021 and further to 97.6% in 2022 (European Commission,
Autumn 2021 Economic
Forecast).
The current
account deficit,
according to
the Central
Bank of
Cyprus,
decreased
to EUR
144.7
million in
the third
quarter
of 2021, from EUR 616.9
million in the corresponding period
of the previous year, due to the significant increase in the
services surplus, while the
trade deficit marginally declined.
According to the European Commission (Autumn 2021
Economic
Forecast),
the current
account
deficit is
expected
to decline from 10.1% of GDP in 2020, to 9.1% in 2021 and
7.3% in 2022.
Romania
GDP, according to available data from the Statistical
Authority (INSSE),
increased by 8.2%,
on an annual basis,
in the third quarter of 2021 (seasonally adjusted figures),
compared with a larger increase of
13.8% in the second
quarter and a decrease of 0.4% in the first quarter of 2021.
According to the European Commission (Autumn 2021
Economic Forecast), GDP
is expected to increase by 7% in
2021, exceeding pre-pandemic level and recording one of
the strongest GDP growth rate among EU member states.
Private consumption, construction activity
and investment
are expected to perform strongly, while net exports are
forecast to
have a
negative
contribution
to GDP,
despite the
expected increase
in exports.
Regarding
2022, the
European
Commission
estimates
GDP
growth rate
to increase
by 5.1%.
Private consumption is forecast to increase further, driven
by the
expected
increase
in employment
and wage
growth,
while the implementation of the Recovery and Resilience
Plan (RRP) is expected
to support investment
activity.
Annual harmonised inflation,
according
to
INSSE,
increased
to 4.1% in 2021 from 2.3% in 2020, while the European
Commission
(Autumn
2021
Economic
Forecast)
predicts
that
harmonised inflation will
rise to
4% in 2022.
According to the European Commission (Autumn 2021
Economic
Forecast),
the
government
debt-to-GDP
ratio
is estimated to increase
from 47.4% in 2020,
to 49.3%
in 2021 and to rise further to 51.8%
in 2022, due to high
primary budget deficits.
Additionally,
the current
account
deficit
increased
by 57%,
on
an annual basis, to EUR 15.3 billion, in the period January-
November 2021, according to the Central Bank of Romania
(BNR). Significant
deterioration
of Euro 3.9 billion
and Euro
800 million, was recorded in the balances of goods and
primary incomes, while the surpluses of the balances of
secondary incomes
and services decreased.
The European
Commission (Autumn 2021 Economic Forecast) estimates
that the current account deficit will rise from 5.5% of GDP in
2020, to
6.5% in 2021
and decline to
6.3% in
2022.
Albania
According to the available data of the Statistical
Authority
(INSTAT), GDP increased by 7%, on an annual basis, in the
third quarter of 2021 (non-seasonally adjusted data).
Overall for 2021, the European
Commission (Autumn 2021
Economic Forecast)
estimates GDP
to rise by
6.9%, mainly
due to increased investment, private consumption and
tourist arrivals from neighbouring countries.
The European
Commission
(Autumn
2021 Economic
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
12
ANNUAL FINANCIAL REPORT
Forecast) estimates annual inflation to rise from 1.6% in
2020 to 2.2% in
2021 and 2.8%
in 2022.
With regard
to public
debt ratio,
the European
Commission
(Autumn 2021 Economic Forecast) predicts that it will
increase from 75.7% of GDP in 2020 to 77.6% in 2021 and
decline to 74.9% in 2022.
The current account deficit
is also projected to
decrease from
8.7% of GDP in 2020 to 7.7% in 2021 and 7.3% in 2022
(European Commission,
Autumn 2021
Economic Forecast).
United
Kingdom
GDP increased by 6.8%, on
an annual basis, in the third
quarter of 2021, compared with a larger increase
of 24.2%
in the second quarter and a decrease of 5.1% in the first
quarter of 2021. Private and public consumption as well as
investment contributed positively to the change in GDP in
the third quarter, while net exports contributed negatively.
Τhe International
Monetary
Fund
(World Economic
Outlook
Update, January
2022) predicts
GDP to increase
by 7.2%
in 2021 and 4.7% in 2022. It is noted that, in 2020, the UK
economy has received one of
the strongest blows among the
world’s major economies, as GDP shrank by 9.4%.
In December 2021, the
Bank of England
raised its base rate
by 15 basis points to 0.25%. The decision was catalytically
affected by the sharp rise in inflation. Inflation in the United
Kingdom rose to 5.4% on an annual basis, in December
2021, while the Bank of England estimates that it will
remain at these levels, during the winter months, to peak
around 6%, in April 2022. Inflation is expected to decline in
the second half
of 2022.
The
Hive
Down
On 12.3.2021, the Board of Directors of Alpha Services and
Holdings S.A. (former
Alpha Bank S.A.) decided
the convening
of the
Extraordinary
General
Meeting
of the
Shareholders
on
2.4.2021, with agenda items, among others, the approval of
the demerger of the société anonyme under the corporate
name “Alpha
Bank S.A.”
by way of
hive-down of
its banking
business sector with the incorporation of a new entity and
of the Draft Demerger Deed dated 15.9.2020, including the
transformation Balance Sheet of
30.6.2020 of the hived-
down banking
Business
sector, as
well as
the approval
of the
Articles of Incorporation of the beneficiary new entity.
Following the resolutions of the Extraordinary General
Meeting of the Shareholders held on 2.4.2021, along
with the receipt of the required regulatory approvals, on
16 April 2021, the demerger of the former Alpha Bank
S.A., then authorized to operate as a credit institution
(under
G.E.MI.
number
223701000
and
Tax
Identification
Number 094014249), which has been already renamed
to “Alpha Services and Holdings
S.A.”, (“Alpha Holdings”)
was announced pursuant to the Decision of the Ministry
of Development and Investments under protocol no
45089/16.4.2021 by
way of hive-down of the
banking
business sector with the
incorporation of a
new company,
which was licensed to operate as a credit institution
under the name “Alpha Bank S.A.” (under G.E.MI. number
159029160000
and
Tax
Identification
Number
996807331)
(the “Bank”), in accordance to
the provisions of Article
16
of Greek law 2515/1997,
as well as Articles 54 paragraph
3, Article 57 paragraph 3, Articles 59-74 and Article 140
paragraph 3 of Greek law 4601/2019
and Article 145 of
Greek law 4261/2014, as in force (the “Hive
Down”). As a
consequence
of the
Hive Down,
the Bank
substituted
Alpha
Holdings by
operation of
Greek law,
as universal
successor,
in all of its assets and liabilities, rights and obligations and
in general its legal
relationships within the banking business
sector. Moreover, the Bank continues
its
operation
through
the existing organizational structure, network of branch
offices and
premises.
Alpha Holdings,
which on
19 April
2021
ceased to operate as a financial institution, maintains the
assets and activities not related to the banking business
sector, while its shares remain
listed on the Main
Market
of the Athens Exchange (the “ATHEX”). Alpha Holdings
maintains direct and indirect participation in all companies
that are included in its consolidated financial statements,
while it retains the insurance intermediary activity and the
provision of accounting and tax services to affiliates and
third parties.
Furthermore,
Alpha
Holdings
may
proceed
with the issuance of instruments in order to raise regulatory
capital. The Hive Down is
a transaction of entities under
common control that involves the set-up of a new company.
As such the Hive Down falls
outside
the
scope
of
IFRS 3
and in the absence
of specific provisions
in IFRS regarding
the accounting treatment of respective transactions, the
Bank has
adopted
an accounting
policy according
to which,
the transfer of assets and liabilities to the new Bank takes
place at the book values of these items in the books of the
former Alpha Bank S.A. as
at April 16,
2021. That treatment
is supported by the fact that the transaction is an intragroup
capital reorganization and as such there is no substantial
financial change
in the
Group. The
reorganisation
had also
no
impact
on the Group’s consolidated financial statements.
THE
SHARE
AND
SHAREHOLDER
STRUCTURE
Share
Alpha Services and Holdings S.A. (“former
Alpha Bank S.A.”)
has been listed
on the Athens
Exchange since 1925 and
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
13
ANNUAL FINANCIAL REPORT
is consistently classified as one of the largest companies
in terms of market capitalization. At the end of December
2021, the capitalization of the Alpha Services and Holdings
shareholders
on 31.12.2021 was, for descriptive (non-
regulatory) purposes, as
follows:
S.A. (“former
Alpha Bank
S.A.”) stood
at Euro
2,527 million
and represented
4.95% and
32.92% of
the capitalization
of the Athens Exchange’s
General and Banking
Indexes
companies respectively, while the participation of its share in
the FTSE/Athex Large Cap
Index was 8.92%.
In addition to the Greek stock exchange, the share is also
traded over-the-counter on the New
York
exchange
in
the
form of American Depository
Receipts (ADRs). The
share is
included in international
indexes such
as the FTSE
All-World
Index, the FTSE Med 100 Index and the FTSE4Good Emerging
Index, while starting from 14/7/2021 Alpha Services and
Holdings S.A. is also included to the MSCI
Global Standard.
The share’s average daily trading volume for 2021
Legal and
Private
Investors
12%
HFSF
9%
Greek Institutional
Investors
7%
Institutional
Investors
79%
Foreign Institutional
Investors
72%
amounted to an average of 9,385,487 shares per session,
increased by
3% versus
previous
year, with
an average
daily
value of transactions
of Euro 9,932,558.
Share information
for the Alpha
Services and Holdings S.A
2021
2020
Closing Price (year end, in
Euro)
1.08
0.95
Highest Price (period, in Euro)
1.35
1.91
Lowest price (period, in Euro)
0.72
0.42
Market Cap (year end, in billion Euro)
2.5
1.5
Share’s average
daily trading
volume
9,385,487
9,119,370
Average daily
value of
transactions (in
Euro)
9,932,558
6,535,263
Shareholder
Structure
On July 2
nd
2021, Alpha Services and Holdings S.A.,
announced that it successfully completed the offering of
800,000,000 new ordinary shares
each of a nominal value
of Euro0.30 to institutional investors pursuant
to a private
placement outside of Greece and a public offering retail and
qualified investors
in Greece at
Euro 1.00 per
New Share.
As
a result, the new share capital amounts to € 703,794,329
million divided into 2,345,981,097 shares, which are listed
for trading on the Securities Market of the Athens Stock
Exchange of which 2,134,842,798 are common, nominal,
paperless shares with voting rights, of a nominal value of
Euro0.30 each
and 211,138,299
are owned by the
HFSF.
From the
shares owned
by HFSF,
169,174,167
are subject
to
the restrictions foreseen in the provision of article 7a of Law
3864/2010. The proceeds have been used in accordance
with the purpose of the
Share Capital Increase.
The shares in circulation on 31.12.2021 were held by
approximately 112,000
Individual
and
Institutional
Investors. The
breakdown
of the
Alpha Servic
es and
Holdings
SHARE
CAPITAL
INCREASES
Increase of share capital
following the exercise
of the
Stock Options
Rights
On 11.2.2021 in the context
of implementation of the
approved Performance Incentive Program – PIP and
following
the exercise
of the
Stock Options
Rights
during
the first Exercise
Period, the Alpha
Services and
Holdings
S.A. (former Alpha Bank
S.A.) proceeded to
an increase of
its share capital by the amount of Euro
684,514.80 with
payment in cash and the issuance of 2,281,716 new shares
of a nominal value of Euro 0.30 each and an exercise price
of Euro
0.30 per
share as
well.
Extraordinary
General
Meeting
of
Shareholders
of
Alpha Services and Holdings S.A.
On 15.6.2021 the Extraordinary General Meeting of
Shareholders of Alpha
Services and Holdings
S.A. resolved,
among other matters,
on the
following:
•
Approved the raising
of common share capital
(the
“Share Capital
Increase”)
amounting
up to
Euro 0.8
billion,
through payment in cash, the abolition of the preemption
rights of existing Shareholders and the issuance of new
common, registered,
voting,
dematerialized
shares,
each
of a nominal value
of Euro 0.30 (the
“New Shares”).
•
The net amount of the Share Capital Increase (i.e. the
total amount of the Share Capital Increase less the
issuance expenses) will be applied for the purpose of
further enhancing
the capital adequacy
ratios of the
Alpha Holdings
and its
Group of
Companies,
in the
context
of facilitating the execution of its already announced
strategic plan.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
14
ANNUAL FINANCIAL REPORT
Βoard
of
Directors’
decisions
On June 24, 2021 the Board of Directors, by virtue of the
authority given to it
pursuant to the resolution
of the General
Meeting held
on June 15,
2021 resolved
on various terms
and
conditions of the Combined
Offering, including
among others
the following:
•
The Offer Price to be determined by the Board of Directors
on the basis of
the outcome of an
international book
building process, to be run by the Joint Global Coordinators
and will be the
same for the whole
of the Combined
Offering, subject however
to a maximum price
of Euro 1.2
(the “Maximum Price”); and
•
the record
date for
the Combined Offering
was set
at 28
June, 2021 (the “Record Date”).
Following
the completion
of the
above-mentioned
Combined
Offering and pursuant to
the resolution of
the Board of
Directors dated 30 June 2021, the Offer
Price of the Share
Capital Increase was set, at the recommendation Global
Coordinators and Bookrunners, at Euro 1 per New Share and
the final number
of New Shares
to be issued in the
context of
the Share Capital Increase was set at 800,000,000.
The Combined Offering was fully
subscribed for. On 8 July
2021 the
verification by
the Board of
Directors of the
payment
of the Share
Capital Increase
amount took
place, of the
amount of Euro
eight hundred
million (Euro 800,000,000)
which corresponds
to the
amount of
the nominal
amount
of the New
Shares and
paid-in capital,
aggregating
to Euro
two hundred
and forty million (Euro 240,000,000),
and the
above par amount of Euro five hundred
and sixty million
(Euro 560,000,000)
which was
credited to
the special
account
under the title “issuance of shares above par value”.
Following the above, the Alpha Services and Holdings’
fully paid-up
share capital,
on July 8,
2021, amounts to
Euro 703,794,329.10, divided into
2,345,981,097 common,
registered, dematerialised
shares with
voting rights,
each with
a nominal value of Euro 0.30. The New Shares commenced
trading on the Main
Market (regulated
market under
Greek law
4514/2018) of the Athens
Exchange on 13
July 2021.
SIGNIFICANT
CORPORATE
EVENTS
OF YEAR
2021
On 22.6.2021, the Alpha Services and Holdings S.A.
announced
the completion
of the
Galaxy Transaction,
in accordance
with the
definitive
agreement
entered on
22.2.2021 with certain entities
managed and advised by
Davidson Kempner Capital Management LP (“Davidson
Kempner”). The transaction
includes: a. the sale of
80% of its
loan servicing Subsidiary, Cepal Services and Holdings Single
Member S.A. (“New Cepal”), and b. the sale of 51% of
the
Mezzanine and
Junior securitization
notes of
Non-Performing
Exposures (NPEs) portfolio (the “Galaxy Securitizations”)
(together with the sale of Cepal,
the “Transaction”). Upon the
completion of the Transacti
on, Alpha Bank S.A.
entered into
an exclusive long-term servicing
agreement (the “SLA”) with
New Cepal for the management of its existing
Retail and
Wholesale NPEs in Greece, as well
as of any
future NPE flows.
The term of the SLA, (including Key Performance
Indicators –
KPIs, indemnities, etc.), is 13 years with an option to extend.
On 30.7.2021, in the
context of its updated
strategic plan,
Project Tomorrow, as part of its business development
initiatives through
joint ventures
with international
partners,
the Bank announced the initiation of a process for the
selection of a strategic partner
to pursue a joint venture.,
in the Greek real estate market (“Project Skyline”), which is
expected to be completed in the second half of 2022 and
the transaction to be
carried out by the end
of the same year.
Within the framework of Project Skyline, as announced on
15.3.2022
the group’s
subsidiary
“Alpha Astika
Akinita
S.A.”
is expected to be transformed into
a company for the sole
purpose of providing services
and for this purpose to acquire
the corresponding
service activity from
the Group’s subsidiary
company, “Alpha Real
Estate Management
and Investments
S.A.”. Accordingly, it is
expected that “Alpha Astika Akinita S.A.”
will transfer all its properties
to a Group company,
which will
be the entity
of the Consortium that will
be formed. Based on
the available data, there isn’t sufficient data to estimate any
impact on the
Group’s results.
On 3.8.2021 Alpha Services
and Holdings S.A., and
Nexi S.p.A
(“Nexi”) announced
that they have signed
Memorandum of
Understanding, (“MoU”)
for the establishment
of a strategic
partnership in respect of:
-
the carve-out of
the merchant
acquiring Business
by Alpha
Bank
by way of a spin-off to a newly-incorporated entity
(the “NewCo”); in which Nexi will hold a
51% stake.
-
the execution of a
long-term marketing
and distribution
agreement by the parties,
providing the NewCo
with access
to Alpha Bank’s network, in order to distribute payment
acceptance products
and services to corporate
Customers
of Alpha Bank
in Greece.
As part of the transaction,
Alpha Bank will proceed
with the
carve-out of
the merchant
acquiring business
by way
of spin-
off to NewCo, whereas
all the required actions
in order for the
new company to receive
the payment institute license
will
take place. Consequently, Nexi will acquire
the 51% of the
share capital of NewCo.
It is noted that on 15.11.2021 the
100% subsidiary company
of Alpha Bank S.A. with
company
name Alpha Payment Services S.M.S.A.was established.
On 11.11.2021, the signing
of a definitive agreement was
announced between
the Bank and
Nexi to establish
a strategic
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
15
ANNUAL FINANCIAL REPORT
partnership in respect of Alpha Bank’s merchant acquiring
business in Greece, which among
others include: i) The spin-
off of Alpha Bank’s merchant
acquiring business
sector into a
new entity which was
established on 15.11.2021 under the
name Alpha Payment
Services SMSA (“NewCo”),
ii) the sale
of a 51% of NewCo to Nexi contingent on the fulfilment of
certain conditions
precedent, and
iii) entering
into a long-term
distribution agreement, providing
the NewCo with access
to Alpha Bank’s Network in order to distribute payment
acceptance products and services
to business customers of
Alpha Bank in Greece. On 24.11.2021 Alpha Bank and NewCo
initiated the
process for
the spin-off
of the
merchant acquiring
business sector of the Bank for its
contribution to NewCo and
on 29.11.2021 both companies
approved the relevant Draft
Demerger Agreement,
which was executed
on the same date
and published pursuant to the law.
On 18.10.2021 in the
context of its updated
Strategic Plan,
Alpha Services and Holdings S.A., entered into a binding
agreement with certain
entities managed
and advised by
Davidson Kempner Capital Management
LP,
in
relation
to
the sale and transfer of 51%
of the Junior
and Mezzanine
securitization of a Euro 3.4 billion
Gross Book Value portfolio
of primarily Non-Performing Exposures (NPEs) (the “Cosmos
Transaction”). The Group
will retain 100% of the Senior
Notes, using the
benefit from the
provisions of the
“Hercules”
program, and 45% of the Mezzanine and Junior notes. On
17.12.2021 the transaction was completed.
On 6.12.2021
Alpha International
Holdings Single
Member
S.A., a fully owned subsidiary of the Group, entered into
a binding agreement with OTP
Bank Plc in relation to the
acquisition of Alpha Bank Albania SH.A.
On 17.12.2021 Alpha Services and Holdings SA. proceeded
with the award
of Stock Options
Rights in the
framework of
the Performance Incentive Program (PIP) for the fiscal year
2020 to Material Risk Takers (MRTs) of the Company and its
Affiliated Companies.
On 28.12.2021 Alpha Bank S.A. entered into a binding
agreement with Hoist Finance AB (publ) in relation
to the
disposal of a Portfolio of Retail Unsecured
NonPerforming
Loans of total
gross book
value amounting
to Euro1,2
billion
as at 31.12.2021 («Project Orbit»)
POST
BALANCE
SHEET
EVENTS
•
On 14.1.2022, Alpha Group Jersey,
a subsidiary of Alpha
Services and Holdings S.A., resolved the redemption
of the entire nominal amount outstanding of its Euro
600,000,000 Series B CMS-Linked Non-cumulative
Guaranteed Non-voting Preferred Securities
(ISIN:
DE000A0DX3M2)
which have
the benefit
of a
subordinated
guarantee of Alpha Services and Holdings S.A., on
the
Preferred Dividend
Payment Date
falling on 18th February,
2022 (subject
to the terms of
the Preferred Securities
set
out in Alpha Group Jersey’s Articles of Association and the
Law) at the Redemption Price. Following the above
Alpha
Group Jersey has repaid on 18.2.2022
the outstanding
nominal amount of Euro
15.5 million.
•
Alpha Services and Holdings
S.A. former “Alpha
Bank S.A.”
announced that on February
10, 2022 is the
first trading
day on the Athens Exchange of 1,430,168
new, common,
registered, dematerialized shares
of Alpha Services and
Holdings S.A derived from the recent increase of its share
capital by the amount of Euro 429,050.40, due to the
exercise of the Stock Options Rights by eighty eight (88)
Beneficiaries - Material Risk Takers (MRTs) of the Company
and its Affiliated Companies, at an offer price of Euro
0.30 per share, pursuant
to the resolution of
the Ordinary
General Meeting
of Shareholders
dated July 31,
2020 and
to the relevant resolutions
of the Board of
Directors of the
Alpha Holdings dated
December 30, 2020,
December 16,
2021 and January
28, 2022.. It
is noted that,
following the
above
share
capital
increase,
the share
capital
amounts
to Euro 704,223,379.50, divided into 2,347,411,265
common, nominal
shares with
voting rights
and a nominal
value of Euro
0.30 each.
•
On 14.2.2022 Alpha Services and Holdings S.A. announced
that Alpha Services and Holdings S.A. (together with its
subsidiaries the “Group”) has reached an agreement
with an affiliate of Cerberus Capital Management, L.P.
(“Cerberus”) for the sale of a portfolio of Cypriot non
performing loans and real
estate properties with a total
gross book value as at
31.12.2021 of c.
Euro 2.4 billion The
Portfolio will
be sold
by the
100% (indirect)
subsidiary
of
the Group, Alpha International
Holdings S.M.S.A. Project Sky
forms part of Alpha
Bank Group’s
strategy for the
reduction
of its stock of
non-performing loans and is
the culmination
of a series of similar successful
transactions completed
by the Group over the previous years.). Completion of the
transaction is
expected to
take place
in Q3 2022,
subject to
the receipt of customary regulatory approvals.
•
Russia’s invasion in Ukraine on 24 February 2022 has
created uncertainties
in the
markets
and in
the evolution
of macroeconomic conditions, while in addition the
subsequent sanctions imposed by United States, the
European Union, the
United Kingdom and
others affected
the transactions
with the
parties involved
in the sanctions.
Looking at the Group’s data both in terms of direct
exposure to Russia/Ukraine
as well as of funds transfers
from/to Ukraine & Russia, the numbers are relatively
immaterial. It is noted
that the Group has
direct exposure
to Russia and Ukraine from loans to customers of circa
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
16
ANNUAL FINANCIAL REPORT
Euro 43 million.
Nevertheless
,
the Group is monitoring
the
unfolding crisis and assesses the impact on its business,
financial position and profitability.
•
Within the framework of Project
Skyline, as announced on
15.3.2022 the group’s
subsidiary “Alpha Astika
Akinita S.A.”
is expected to be transformed
into a company for
the sole
purpose of providing
services. More information
is provided
in the section
“Significant corporate
events of year
2021”.
•
On 24.3.2022,
the sale
of the Retail
Non-Performing
and
uncollateralized Loan Portfolio
(Orbit Transaction) was
completed.
NUMBER
OF
BRANCHES
On 31.12.2021
the Group
was operating
with 450
branches,
out of which 299
were established
in Greece and 151
were
established abroad. Additionally,
Alpha Bank Albania which
has been classified as discontinued
operation, operates
34
branches as at
31.12.2021.
ANALYSIS
OF
GROUP
FINANCIAL
INFORMATION
1
As of 31.12.2021, the Group’s
Total Assets have increased
by
Euro 3.3
billion or
4.7% compared
to 31.12.2020,
amounting
to Euro 73.4
billion. The balance
of Due to
Banks amounted
to Euro 14.0 billion, presenting an increase
of Euro 0.9 billion
or 6.7% compared to 31.12.2020, as in March 2021 the
Bank raised liquidity
of Euro 1 billion over
a three-year period
through TLTRO III program. Due to customers amounted
to Euro 47.0 billion, increased by Euro 3.1 billion or 7.2%
compared to
31.12.20, driving
the loans
and advances
to
customers-to-deposit ratio at 78% (31.12.2020: 90%).
Moreover, during the year of 2021, the Bank issued a new
subordinated debt at a nominal value of € 500 million and
two new senior bonds with total nominal value of € 900
million, resulting
to the balance
of Debt securities
in issue and
other borrowed funds being increased by Euro 1.4 billion or
112.0% in comparison with
31.12.2020.
The balance of Cash and Balances to Central Banks on
31.12.2021 amounted
to Euro 11.8
billion, increased
by Euro
4.3 billion
as a
result of
raising additional
funding through
the issuance of Debt securities, the TLTRO III program, the
increase of the customer
deposits and the share
capital
increase performed in July 2021.
The balance of loans
and advances to customers
decreased
by Euro 2.5 billion and amounted to Euro 36.9 billion,
compared to Euro 39.4 billion on 31.12.2020,
mainly:
1
According to
European
Securities and
Markets
Authority guidelines
(ESMA), the definitions
and precise calculations
of the ratios are
presented in the Appendix
of the Annual Financial Report.
•
Due to the completion
of the Galaxy transaction
in which
51% of the mezzanine and junior bonds issued by Orion
Securitisation Designated Activity Company,
Galaxy II
Funding Designated Activity Company and Galaxy IV
Funding Designated Activity Company were
sold and a
securitized loan portfolio with
a book value of €
5.8 billion
was derecognized. After the
completion of the sale, the
Group retained in its
possession 100%
of senior notes and
5% of the
mezzanine and junior notes
with a total
value of
Euro 3.8 billion,which were classified
in the caption Loans
and advances to customers.
•
Furthermore , due to the completion of the Cosmos
transaction which included the sale of 51% of the
mezzanine and junior
bonds issued by the securitized
loan portfolio with book
value of Euro 1.6
billion was
derecognized. After
the completion of
the sale, the Group
retained in its possession
100% of the high
repayment
bonds and 5%
of the medium
and low repayment
bonds
with a
total book
of value
of Euro
1.7 billion,
which
were classified in the
category Loans and
Advances to
customers.
The rest
of the
investment portfolio
securities amounted
to Euro 10.6 billion, increased by Euro 0.6 billion or 5.9%
compared
to 31.12.2020,
mainly
due to
purchases
of Greek
Government
bonds
and other
bonds
as well
as mutual
fund
purchases.
Assets held for sale amounted
to Euro 1.4 billion,
increased
by Euro
1.1 billion
compared to
31.12.2020,
mainly due
to
the sale process of the
subsidiary Alpha Bank
Albania as well
as portfolios
and non-performing
loans of retail banking
and
business credit
and the properties
related to these
portfolios
that were transferred during
31.12.2021.
The Group’s Total Equity amounted
to Euro 6.1 billion as
at 31.12.2021,
decreased by
Euro 2.3
billion compared
to
31.12.2020,
mainly due
to the
losses recognized
in year
2021
and negative valuation of the bonds valued at fair value
through the other comprehensive
income recorded directly
in
equity and positively
by the share capital
increase that took
place in July 2021.The Total Capital Adequacy Ratio
of the
Group decreased by 230 Base Units and reached 16.1% on
31.12.2021.
Regarding the results of the year, the Group’s Net loss for the
period after income
tax amounted to Euro 2.9 billion.
Since the Company
has committed
to specific objectives
for the period 2021-2024 through the announcements
of the
updated strategic
plan, the
Management monitors
the normalized gains/losses
of the Group compared
to the
objectives it has set.
Normalized gains/losses
do not include
gains/losses that have been designated
as non-recurring,
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
17
ANNUAL FINANCIAL REPORT
gains/losses recognized
either in the context of planned
transactions or
the transformation
plan of the
Group. More
specifically they do not include:
a.
Gain less losses on derecognition
of financial assets
measured at amortized cost,
b.
Gain less losses on financial transactions,
c.
the effect of incorporating sales scenarios on the
estimation of Expected
Credit Risk Losses
from the line of
impairment losses and provisions,
d.
the results
from discontinued
operations and
e.
expenses that
either relate to the
transformation plan, or
are not recurring,
or do not relate
to the ordinary
activity of
the Group.
For 2021, the analysis is
presented below:
•
the result of the Project Galaxy
amounting to Euro 2.1
billion. Project Galaxy losses comprise of (a) losses related
to Galaxy securitisation of Euro 2.2 billion, included
in Gains
less losses
on derecognition
of financial
assets measured
at amortised cost, (b) gains
related to Cepal Transaction
of
Euro 111 million, included in Gains less losses on financial
transactions and (c) tax expenses related to the above
transactions of Euro 12.3 million, included in Income Tax.
•
the result of Project Cosmos
amounting
to
Euro
22.1
million that have been recognized
in the Gains less losses
on derecognition
of financial
assets measured
at amortised
cost
•
expenses amounting
to Euro 265 million, related to (a)
provision for employees
separation schemes
of Euro 97.7
million, (b) impairment
of Euro 16.2
million on intangible
assets relating
to customer
relationships
from the
acquired
credit card operations of Diners in 2015, as well as the
acquired deposit
base of
Citibank in
2014, (c)
impairment
of Euro 10.4 million
related to computer applications
whose use ceased during the year of 2021,
in order to be
replaced by other existing
systems; (d) impairment
of Euro
15.1 relating to computer
applications which in the
context
of the Transformation Program
were
considered
that
do
not meet any longer the new business requirements, (e)
impairments and sales of
real estate assets
amounting to
Euro 65.7 million
related to the
Project Sky (f)
impairments
and sales of
fixed assets amounting
to Euro 9.3
million and
(g) total expenses
of amount Euro 50.2
million included
in the captions
of General
administrative
expenses, Staff
costs and Other expenses.
•
impairment losses of Euro
1,038 million related to the
finalization of transactions and
incorporation of sales
scenarios in the expected credit losses calculation, for
specific transactions included in the Bank’s NPE Business
Plan (Cosmos, Orbit,
Sky, Leasing
and Solar projects).
•
the results of financial
operations that amounted to profits
of Euro 107
million.
•
the results
concerning
the estimated
loss from
the sale
of the subsidiary Bank in Albania
amounting to Euro 34
million, included
in Net
profit/(loss) after
income tax
from
discontinued operations.
After excluding the above
,
the normalized net profit
after
income tax
for the year
amounts to
Euro 330 million
(including
tax expense of amount Euro 75
million).
Normalized net profit for 1.1.2021-31.12.2021
after income tax
(amounts in million
Euro)
Amount of gains/
losses included in the
condensed interim
income statement of
the period
Excluded gain/
losses
Normalized gain/
losses of the
period
Net interest
income
1,376
1,376
Net income from fees
and commissions
400
400
Other income
32
32
Gains less losses on derecognition
of financial assets measured
at amortised cost
(2,248)
(2,248)
Gains less losses on financial transactions
218
218
Staff expenses
(407)
(6)
(401)
Expenses for separation schemes
(98)
(98)
General administrative expenses
(480)
(31)
(449)
Depreciation and
amortisation
(157)
(157)
Other expenses
(132)
(130)
(2)
Impairment losses and provisions to cover
credit risk
(1,433)
(1,038)
(395)
Profit/(loss)
before
income
tax from
continuing
operations
(2,929)
(3,333)
404
Income tax
56
131
(75)
Net profit/(loss) from discontinued
operations
(33)
(34)
1
Net profit/(loss) for the period
after income tax
(2,906)
(3,236)
330
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
18
ANNUAL FINANCIAL REPORT
Adjusted results.1.2020
-31.12.2020
after income tax
(amounts in million
Euro)
Amount of gains/
losses included in the
condensed interim
income statement of
the period
Excluded gain/losses
Normalized gain/
losses of the
period
Net interest income
1,527
1,527
Net income from fees and commissions
332
332
Other income
24
24
Gains less losses on derecognition of
financial assets measured
at
amortised cost
173
173
Gains less losses on financial transactions
516
516
Staff expenses
(454)
(26)
(428)
Expenses for separation schemes
(26)
(26)
General administrative expenses
(464)
(23)
(441)
Depreciation and
amortisation
(159)
(7)
(152)
Other expenses
(39)
(36)
(2)
Impairment losses and provisions to cover
credit risk
(1,319)
(602)
(717)
Profit/(loss)
before income
tax
111
(31)
143
Income tax
(10)
48
(58)
Net profit/(loss) from discontinued
operations
3
1
2
Net profit/(loss) for the period
after income tax
104
17
87
Adjusted Net profit
for the year 2021 increased
by Euro
243 million compared to Euro 87 million
for the year 2020
and was mainly affected by the recognition (a) of reduced
interest income by Euro 151 million mainly due to the
reduction of
the overdue loan
portfolio partially
offset by
the improvement in Eurosystem borrowing costs and the
use of an interest rate of -1% for the TLTRO III program for
the period from 24.6.2020 to 31.12.2021, (b) increased
commissions
on bond
loans, mutual
funds and
cards and
(c)
in reduced
credit risk impairments that do not relate to loan
sale scenarios
included
in the
transactions
envisaged
by the
strategic plan.
CHANGE
IN
BUSINESS
MODEL
OF
BOND
PORTFOLIO
In December 2021, following:
-
The significant change in the capital
base of the Bank
as
a result of the management actions for the reduction
of
NPEs,
-
The supervisory
expectations,
as depicted
in the
decisions
for the
Supervisory
Valuation
(SREP) from
2019 onwards
with respect to the use of business models that could
have an impact on the regulatory capital and the Capital
Adequacy ratio of
the Bank,
-
The new
regulatory limits
for MREL
liabilities,
with which
the Bank needs to comply from 1. 1.2022, and the
minimum Capital Adequacy with the supervisory limits of
the Pillar II
Guidance (P2G)
with which the
Bank needs to
comply from 1.1.2023,
The Executive
Committee
of the
Bank took
the decision
to minimize the usage of the FVOCI portfolio towards
the utmost operational needs of the Bank’s Capital
Markets, and long-term securities to be used
to collect
interest income which is also consistent with the Strategic
decision of the Bank and
to reclassify bonds amounting to
€ 4.16 billion to the hold to collect category.
The above decision was
assessed that meets
the criteria
for a change in the business model in accordance with
the provisions of IFRS 9 and
therefore from 1.1.2022
the relevant investment portfolio is reclassified to the
portfolio of investment securities
measured at amortized
cost. The securities will be reclassified at their fair value
on 1.1.2022 which however will be adjusted
for the cumulative losses of € 6.98 million that have
been recognized in equity, and as a result the value of
the bonds will be as they had always been measured at
amortised cost. Their original
interest rate and
expected
credit losses that have
already been recognized are
not
affected.
RISK MANAGEMENT
The Group has established a framework of thorough
management of risks, based on best practice and
supervisory
requirements.
This
framework,
based
on the
common European legislation
and the current system
of common
banking rules,
principles and
standards, is
improving continuously over time in order
to be applied in
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a coherent and effective
way in the daily conduct
of the
Group’s
activities
within
and
across
borders,
and
making
the corporate governance of the Group
effective.
Since November 2014, the Group falls within the Single
Supervisory
Mechanism
(SSM)
- the
financial
supervision
system which involves the European
Central
Bank
and
the Bank of Greece - and as a major banking institution
is directly supervised
by the European Central
Bank.
The Single Supervisory
Mechanism
is
working
with
the European Banking
Authority (EBA),
the European
Parliament,
the Eurogroup,
the European
Commission
and the European
Systemic Risk
Board (ESRB) within
their
respective competences.
Moreover, since
January 1st,
2014, the
EU Directive
2013/36/EU of the European Parliament and of
the Council dated June 26, 2013 along with the EU
Regulation
575/2013/EU
dated
June 26,
2013
(“CRD
IV”),
are effective. The Directive and the Regulation gradually
introduce the new capital adequacy framework (Basel
III) of credit institutions, as amended with the Directive
2019/878 and the Regulation
2019/876.
In addition, according to its press release of 27.10.2021,
the European Commission has adopted a
review of
the Capital Requirements Regulation and the Capital
Requirements
Directive.
The proposed
package
finalises
the implementation
of the Basel III agreement
in the
EU. This agreement
was reached by the
EU and its G20
partners
in the
Basel
Committee
on Banking
Supervision
and marks the final step in the reform of the banking
rules, aiming to ensure that EU banks become more
resilient to potential future economic shocks, while
contributing to
Europe’s recovery
from the COVID
-19
pandemic and the transition to climate neutrality.
In this regulatory and supervisory risk management
framework, the Group continuously strengthens
its
internal governance and its risk management
strategy,
in order to achieve full compliance within the increased
regulatory requirements and the extensive guidelines.
The initiatives are related to the governance of data
risks, the collection of such data and their integration in
the required reports of the management and supervisory
authorities.
The Group’s approach constitutes a solid foundation for
the continuous redefinition of Risk Management strategy
through (a) the determination of the extent to which
the Group
is willing
to undertake
risks (risk
appetite),
(b)
the assessment
of potential
impacts of
activities in
the
development strategy
by defining the risk management
limits, so that the relevant decisions to combine the
anticipated profitability
with the potential
losses and
(c)
the development
of appropriate procedures
for the
implementation
of this
strategy through
a mechanism
which allocates
risk management
responsibilities and
accountability between the Group units.
More specifically, the Group, taking into account the
nature, the scale and the complexity of its activities and
risk profile, has developed a risk management strategy
based on the following three lines of defense, which are
the key factors for its efficient operation:
•
Business Units of
retail, wholesale, wealth banking
and
NPEs Remedial Management, constitute the first line
of defense and risk ‘ownership’ which identifies and
manages the risks that arise when conducting banking
business.
•
Risk management, monitoring and control and
regulatory compliance Units, which are independent
from each other as well as from the first line of
defense. They constitute the second line of defense
and their function is complementary in conducting
banking business of the first line of defense in order
to
ensure
the
objectivity
in
decision-making
process,
to measure the effectiveness of these decisions in
terms of risk conditions and to comply with the existing
legislative and institutional framework,
by monitoring
the internal regulations and ethical standards as well
as the total view and evaluation
of the total exposure
of the Bank
and the
Group to
risk, based
on established
quidelines.
•
Internal Audit, constitutes the third line of defense.
Internal Audit is an independent function, reporting to
the Audit Committee of the Board of Directors, and
audits the internal control activities of the Bank and
the Group,
including the
Risk Management
function.
CREDIT
RISK
Credit risk arises from the potential
weakness of debtors’
or counterparties to meet all or part of their payment
obligations to the
Group.
The primary objective of the Group’s strategy for credit
risk management, in order to achieve
the maximization
of the adjusted to risk performance is the continuous,
timely and systematic
monitoring of the loan portfolio
and the maintenance of credit risks within the framework
of acceptable overall risk limits. At the same time,
the conduct of daily business within
a clearly defined
framework of granting credit is ensured.
The framework of the
Group’s credit risk management is
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developed
based on
a series
of credit
policy procedures,
systems and models for measuring, monitoring and
validating credit risk. These models are
subject to
an ongoing review process on order to ensure full
compliance with the current institutional
and regulatory
framework and their adaptation to the respective
economic conditions and to the nature and extent of the
Group’s business.
Under this perspective and with main objective to further
strengthen and improve the credit risk management
framework during 2021, the following actions have been
implemented:
•
Update of Credit
Policy Manuals
for Wholesale
Banking and
Retail Banking
in Greece and
abroad,
taking into account the supervisory guidelines for
credit risk management issues and the Group’s
business strategy.
•
Continuous strengthening of the second line of
defense control mechanisms in order to ensure
compliance with Credit
Risks Policies at Bank
and
Group level, focusing on
the management of the
Bank
and the Group’s Customers who have been affected
by the crisis
due to Covid-19.
•
Ongoing validation of the risk models in order
to ensure their
accuracy, reliability, stability and
predictive capacity.
•
Update of the Concentration Risk and Credit
Threshold Policy
which includes
the principles and
procedures that the Bank follows so as to manage
the concentration risk, at Sector and Borrower/
Group of Borrowers level
in the
context of the
Bank’s
participation
in the
Hellenic Recovery
and Resilience
Facility (RRF).
•
Support for borrowers with short-term liquidity
constraints due to the pandemic Covid-19, based
on the Bank’s
participation in broader government
schemes during 2021. These
schemes allow the
Group to provide liquidity to performing borrowers at
favourable financing terms, while taking on materially
lower risk, thus containing the impact of the crisis on
credit quality deterioration.
•
Amendment
of the
Group
Loan
Impairment
Policy,
regarding the identification of Default and
the
Significant Increase in Credit Risk identification
criteria of exposures under payment moratoria
due to COVID
-19 pandemic,
since the
respective
EBA Guidelines
“on legislative
and non-legislative
moratoria on loan repayments applied in the light
of the
Covid-19
crisis”
(EBA/GL/2020/02)
are
not
applicable from 1.4.2021
onwards.
•
Amendment of the Group Default Classification
Policy, regarding the
Forbearance
Classification,
the
Unlikeliness-to-pay
(UTP)
assessment
and
the
identification of Default of exposures
under payment
moratoria due to COVID-19 pandemic, since the
respective EBA Guidelines
“on legislative and
non-
legislative moratoria on loan repayments applied
in the
light of the Covid-19 crisis” (EBA/GL/2020/02) are not
applicable from 1.4.2021 onwards.
•
Completion of the Project for compliance with the
EBA Guidelines
on loan origination
and monitoring
(EBA/GL/2020/06).
The
guidelines
are
applicable
from 30 June
2021 and apply
to institutions’
internal
governance arrangement and procedures
in relation to
credit-granting processes, and throughout the life cycle
of credit facilities. Furthermore, these guidelines apply
to the risk management practices,
policies,
processes
and procedures for loan origination and monitoring
of
performing exposures, and their integration into
the risk
management frameworks.
•
Integration of the digitalization of retail credit
decisioning project, through all retail
banking product
distribution
channels
for Consumer
Loans and
Credit
Cards portfolios.
•
Implementation
of
the
digitalization
of
retail
credit
decisioning
project,
for
Housing
and
Small
Business
Loans portfolios.
•
Update of the Wholesale Banking and Retail Banking
Arrears and
Forbearance
Policies in
the context
of the
implementation
of
Law 4738/2020
for the
settlement
of debts and the provision of a second chance to
Physical Persons
and Legal
Entities
facing problems
of
over-indebtedness
•
Periodic stress test exercises as a
tool
for
assessing
the impact of various macroeconomic scenarios on
business strategy formulation, business
decisions
and
the Group’s
capital
position.
Crisis simulation
exercises
are conducted in accordance with
the requirements
of the supervisory framework
and constitute a key
component of the Group’s credit risk management
strategy.
Additionally,
the
following
actions
are
in
progress
in
order
to enhance and develop the internal system
of credit risk
management:
•
Continuous
upgrade
of
databases
for
performing
statistical tests in the
Group’s credit risk rating
models.
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•
Upgrade and automation of the aforementioned
process
in relation
to the
Wholesale
and Retail
banking
by using specialized statistical software.
•
Reinforcing the completeness and quality control
mechanism of crucial fields of Wholesale and Retail
Credit for monitoring, measuring and controlling of
the
credit risk.
•
A project for the transition from the existing Rating
Systems
to the
new, single
and efficient
Group Credit
Rating Platform, of Moody’s company.
CLIMATE
-RELATED,
ENVIRONMENTAL
- SOCIAL
AND GOVERNANCE
(ESG) RISKS
The Group acknowledging the potential implications of
climate change in economic activity, which in turn affects
the financial system, has developed a comprehensive
action plan, submitted to ECB in May 2021, presenting
how the climate risk assessment
will be incorporated in
its operations and in the
risk management process. In that
direction and in alignment with the ECB expectations and
in the context of the Action Plan submitted to the ECB in
May 2021, the
Group has incorporated in
its Risk Appetite
Framework, the following qualitative statements
on
climate risks in the context
of Credit Risk:
•
The Group
is committed to integrate climate risks into
its overall risk management framework. In this
context,
the Bank regularly
monitors its exposure
concentration
in climate-sensitive sectors and areas of its loan
portfolio.
•
The Group aims
to enhance its
due diligence process
with respect to the assessment of its clients’ ESG/
climate risk profile, through the collection of relevant
information. In this setting,
the Bank will take
initiatives to encourage its clients to clearly define and
communicate their client related
commitments and to
develop and execute effective strategies
to mitigate
climate risks.
•
The Group aims to finance its counterparties’ green /
sustainable transition both in the short
-term and in the
long-term.
•
The Group, to the extent possible, will start collecting
EPC rating certificates from its clients, in order to
monitor the energy performance class of its real estate
secured exposures.
•
The Group
already applies
an exclusion
list in
line with
the Environmental
and Social
Exclusion
List developed
by the European Bank for Reconstruction
and
Development
(EBRD), for
the avoidance
of financing,
directly or
indirectly,
specific activities
considered
as
harmful to the environment and society, i.e thermal
coal mining or coal-fired electricity generation
capacity, upstream oil exploration, upstream oil
development
projects,
except
in
rare
and
exceptional
circumstances where the proceeds of the project
exclusively target
the reduction
of GHG
emissions or
flaring from existing
producing fields.
Regarding the impact of climate risk on the calculation
of Expected Credit Risk
Loss,
detailed
information
on
the location of collateral as well as information on
energy performance
certificates
is being
collected.
The
information will be
incorporated into the
respective
data systems and methodological approaches
will be
developed in order to adapt the models for calculating
expected
credit
risk loss.
More
specifically,
the following
are in progress:
•
Perform enhancements or additions
to the current
set of models used for risk parameter estimation and
prediction, in order to
integrate ESG risks.
•
Identify ESG-related data needs leveraging on
the data that will be collected for the borrower’s
assessment and supplementing with additional
information where needed.
•
Examine alternative
methodological approaches
for
the quantification and integration of ESG risks in the
credit risk parameters.
•
Enhance
the Credit
Risk Model
Validation
framework
so as to review and validate whether environmental
risks are
captured in
the risk
parameters,
or whether
sectoral / geographical segmentations have been
addressed during the model development phase.
Additionally, the Bank
established an ESG
governance
structure, to provide proactive management of all ESG
topics, ensure internal alignment
and enable effective
dispersal
of expertise
into the
bank’s units.
In this
respect
the Corporate Governance and Nominations Committee,
was renamed as “Corporate Governance,
Sustainability
and Nominations Committee” and was assigned the
central role in ESG
oversight, while
at executive level,
a
“Group Sustainability Committee” was established,
with
responsibility for steering and management of all ESG
and sustainability issues. The Committee’s main tasks
are the
following:
•
Streers the Bank’s strategy and direction on
sustainability
and ESG
related
topics,
including
environmental and social
matters
•
Agrees
and proposes
for approval
by the BoD
the
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ANNUAL FINANCIAL REPORT
banks ESG
policy and
its targets
including Financial
and
Non-Financial KPIs.
•
Monitors the Group’s sustainability performance against
policy targets and
benchmarks
•
Provides guidance
on sustainability
and ESG
related
topics.
•
Defines criteria for sustainable credit approval, debt
issuances
and
investments,
which
will be
incorporated
in
the relevant policies
•
Monitors
alignment
with
ESG
requirements,
including
regulatory expectations
Implementation of the plan began
in June 2021 and will,
continue throughout 2022-2023.
MANAGEMENT OF
NON-PERFORMING EXPOSURES
(NPEs)
The Group has set as paramount objective the effective
management of NPEs, as this will lead not only to the
improvement of the Group’s financial
strength but also to
the restoration of liquidity in the
real economy, households
and productive business sectors, contributing to the
development of the Greek economy in
general.
In this context, the Group further accelerated the NPE
reduction effort in 2021 even compared with the revised
NPE Business Plan (submitted on
April 2021).
Total NPE securitizations and transactions within 2021
amounted to Euro 16.3bn and this was the result of a
dedicated effort towards achieving
more than the initial
NPE reduction
target.
Moreover, the dedicated
efforts on the organic NPE
management resulted to a contained net NPE formation
of Euro 0.1bn. And this was the outcome of the following
combined actions and initiatives within 2021:
•
Operationalisation of the SLA with Cepal (ie. set of
Committees and regular convention of
these, agreement
on the operating model, KPIs
monitoring).
•
Continuous
monitoring
of Moratoria
in
order
to secure
that any new NPEs will
be contained.
•
Encourage borrowers
through focused
campaigns to
participate in subsidy programs
(ie Gefyra I
& Gefyra II).
•
Coordinated actions with Ministry of Finance and
Hellenic
Bank’s
Association
for
new
restructuring
options
available to borrowers following the completion of
GEFYRA I & GEFYRA
II subsidy periods.
•
Effective human resources management focusing
on know-how and training, which
is further improved
through attracting specialized executives.
The further successful implementation of the Group’s
NPE Strategy within 2022 is also affected by a number of
external/systemic factors that include, among others, the
following:
•
Improvement of the economic environment
at post
Covid-19 era.
•
Acceleration of Household Insolvency Law
(L.3869/2010) court
hearings, through
the e-platform
that have been created for this
purpose.
The Group’s full commitment towards the active
management
and reduction
of NPEs
over the
Business
Plan period is reinforced through the constant review
and calibration
of the
Group’s
strategies,
products,
and
processes
to
the
evolving
macroeconomic
environment.
MANAGEMENT OF NON
-PERFORMING ASSETS
(NPAs)
In addition to the efficient and effective
management of
its NPEs, during
the latest
years the Bank
has captured
within its strategic priorities the successful
management
of NPAs as well. In this context the Bank during 2021
continued its strategy adopted historically as follows:
Ongoing implementation of a uniform management
strategy for repossessed real estate properties through
the roll
out of
AREMI, with the
aim to:
•
Monitor the repossession procedure (asset on-
boarding)
and its
assignment
to the
Group’s
subsidiary
Alpha Astika
Akinita A.E.
or to other
appropriate
asset
management agencies.
•
Monitor the asset management operations through the
Group’s special purpose vehicles (SPVs).
•
Supervise
and
coordinate
asset
management
and
development.
•
Supervise
and
coordinate
asset
commercialization.
•
Monitor the appropriate KPIs for the asset
management agencies (internal units and external
collaborators).
With regards to the asset commercialization it should be
noted that AREMI
has launched
its own website
which
promotes both
REOs and Bank’s
(as a lender)
auctioned
properties.
Further to the above, the Group has launched within
2021 the Project Skyline which entails the set-up of a
Joint Venture with an international partner in the real
estate market. This is expected to lead to the creation of
a unique large-scale real estate investment
platform in
Greece.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
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ANNUAL FINANCIAL REPORT
RISKS
ARISING
FROM
INVASION
IN
UKRAINE
In the context of the Russia and Ukraine conflict impact,
markets, excluding
Russian assets,
have so far
reacted in
an orderly manner. “Safe-haven” assets are performing
well, while commodities and Russian equities, bonds and
currency continue
to be
severely
impacted.
On the
back of
the recent developments, outflows from
investment funds
have been reported. Overall,
market participants are trying
to assess the negative implications of the war, sanctions,
trade disruptions and the mitigating actions. It is worth
highlighting however, that capital markets both
in terms of
pricing
and liquidity
are currently
quite challenging.
Hence,
the Group’s timetable and funding mix may change to
accommodate for these new developments.
Prolonged uncertainty will affect consumer’s confidence.
Higher commodity prices on the back of
the war and trade
disruptions will be headwinds to growth dynamics for
Eurozone and Greece. ECB’s chief
Economist has already
been commenting a downward revision to the region’s
2022 growth by 0.4%. On the other hand, it is reasonable
to expect that the fiscal and monetary policy will be
tweaked accordingly to mitigate those risks. European
officials have been discussing to extend fiscal easing
measures due to the pandemic and ECB, in front of this
new threat, may delay the expected gradual monetary
tightening.
Banks from
France, Italy
and Austria
are expected
to
have the greater share of direct exposure to Russia
but in an interconnected financial world the impact
can spread out
to other financial
geographies and/or
industries. Undoubtfully for Greece, the impact from
higher commodities prices, especially energy,
will
affect
the consumer’s disposable income and the businesses’
balance
sheets.
For tourism
in particular,
a potential
loss
from Russian flow is anticipated to be manageable. The
bigger threat for tourism would be an overall uncertain
macro environment.
The new
order in
geopolitics
and a
subsequent negative economic
backdrop may
change
structurally the global consumer behavior in the near to
medium term. Bookings from rest of Europe and the US
will be the determining factor for the upcoming summer
season.
The Group’s
direct exposure
to Russia/Ukraine
as well
as of funds
transfers from/to Ukraine and
Russia, are
relatively immaterial. It is noted that the Group has direct
exposure to
Russia and
Ukraine
from loans
to customers
of circa Euro
43 million.
The Group closely monitors the
ripple effects of the
conflict and the subsequent sanctions to assess the
medium-term implications for the country, the clients and
financial system. At household level,
the available income
is expected to be affected by the inflationary pressures
due to the overall increase of energy prices that will
consequently lead in an increase of production costs of
consumer goods.
Regarding Group’s
preparedness
and ability
to apply
the
sanctions and comply with the terms of the restrictive
measures which vary based on the type of transactions,
range, currency, country, banks,
customers, and the
organization that imposes them, the competent Divisions
of the Group ensure that operational procedures have
been adapted within a short timeframe, in order for the
Group to fully comply with the relevant obligations and
directives.
Moreover,
after examining
Bank’s
suppliers
list
and active contracts as they exist in its repository, there
is no supplier side dependency with any firm from the
countries directly involved in the conflict.
Regarding possible Cyber risk
incidents,
the
Bank
has intensified its monitoring and alert analysis both
internally
and
through
services
including
receipt,
analysis
and response to cybersecurity incidents with increased
sensitivity for elements related to the invasion in
Ukraine. The Bank is in regular communication with the
National authorities as well as its commercial Threat
Intelligence services
and memberships
(FS-ISAC and
Forum of Incident Response and
Security Teams).
Relevant information is shared
with the Group
companies
as well as the other Greek Banks for mutual update and
coordinated activity if
required.
As the Russia/Ukraine conflict is still evolving, any
assessment of its impact is premature. However, the
Group has an established
and robust UTP process
to
assess the viability of borrowers and their long-term
ability to pay. The UTP
process takes place
during the
periodic review of existing limits, upon request of a new
loan exposure, upon ad-hoc
requests,
upon
notification
of
the Credit
Committee
for Wholesale
Banking,
or upon
the
examination of a modification request and the
respective implementation status for Retail Banking.
The UTP process in conjunction
with the Early Warning
System Mechanism
that is in
place, ensure
the Group’s
early identification of events, at borrower (corporate and
individuals) and portfolio level, as well as the relevant
actions that must be taken in order to manage the
borrowers concerned.
In the following paragraphs specific information are
presented per region.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
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ANNUAL FINANCIAL REPORT
Romania
Alpha Bank Romania has a very limited exposure
towards the respective region. From a transactional
perspective Alpha Bank Romania has no correspondent
bank relationship
with entities
in Russia
or Ukraine.
The
payment flows (incoming and outgoing) are not material,
representing 0.37%
of the total number
of payments
and 0.96% of the total payment volumes. The overall
deposit amounts to Euro 1.83 million
representing roughly
0.10% of
the bank’s
deposit base.
From a
credit exposure
perspective, the overall amount is around Euro 13.14
million representing roughly 0.48% of the bank’s loan
portfolio.
Cyprus
Cypriot economy will be affected at a moderate to a
marginally significant degree, since:
•
The financial (majority of local Banks)
and corporate
industry maintain strong ties with Russia related
customers, whereas
•
there is also a significant reliance to Russian and
Ukrainian markets in connection to
the recovery of the
tourism industry in
2022.
The level of the impact from the Russia and Ukraine
conflict depends on the level of escalation and duration
of the conflict as well as from the degree of international
reaction to resolve
it.
Alpha Bank
Cyprus exposure
to Russian
and Ukrainian
Borrowers
is
not
considered
material
(Euro
6.7
million
Project Sky).
London
Alpha Bank London does not conduct business in the
respective
region,
therefore
the Russia/Ukraine
conflict
has
no direct impact.
Albania
Alpha
Bank Albania has a very limited exposure towards
the respective
region and
also has
been classified
as “Held
for sale”. Thus, the Russia
and Ukraine conflict
has no
direct impact.
LIQUIDITY
RISK
Liquidity Risk comprises both funding liquidity risk and
asset liquidity risk, although these two dimensions of
liquidity risk are closely related. Funding Liquidity risk
refers to the inability of a financial institution
to raise the
cash necessary to roll
over its debt,
fulfill the cash,
margin,
or collateral requirements of counterparties; or to meet
capital withdrawals. Asset – market liquidity
risk, results
from the
Group’s
failure to
recognize
or address
changes
in market conditions that affect the
ability to liquidate
assets quickly and with minimal loss in
value.
During 2021,
customer
deposits
increased
by Euro
3.6 billion. This is an 8.29 % increase compared to
31.12.2020.
Direct
Greek
Government
deposits,
which
are monitored
separately,
decreased
by Euro
0.4 billion
in
2021, thus amounted
to zero 31.12.2021.
During 2021, the
subsidiaries continued to have
increased
liquidity. Their buffer,
comprising of
Cash and Reserves
to
Central Bank, government securities both acceptable
and
non-acceptable as collateral by the Central Bank, senior
securities issued by financial institutions, subordinated
securities both non-acceptable as collateral by the
Central
Bank, etc., on 31.12.2021 stood at the level Euro 1.28
billion for Cyprus and
Euro 0.55 billion
for Romania.
The decision
of the European
Central Bank
(on 7.4.2020
and on 22.4.2020) to accept Greek sovereign debt
instruments as collateral in Eurosystem credit operations
even though they do not meet minimum ECB rating
requirements was sustained through 2021. With this
decision, the
European
Central Bank
recognizes the
recent
progress achieved by
the Hellenic Republic
and helps
common confrontation among states in the Eurozone.
Already from 24.6.2020, the Bank participated in the
TLTRO III
program which
provides long
-term financing
with
a conventional negative
interest rate -0.5%.
It is noted
that the financing rate of this program can be set at -1%
for the period from June 2020 to June
2022, provided that
specific goals have achieved, regarding the amount of the
Bank’s loans
granted for
individual periods.
In particular:
•
If the amount of loans granted under the program, for
the period March 2020 - March 2021, remains at the
levels of March 2020, the interest
rate will be -1% for
the period June 2020 - June 2021 and -0.5%
for the
remaining duration of
the financing.
•
In addition, if the loans granted for the period October
2020 - December 2021
remain at the levels of October
2020, the borrowing rate can be set at -1% for the
period June
2021 -
June 2022.
Moreover, following the announcement of 10.12.2020,
three additional dates for participation in this program
were added
(June,
September
and December
2021)
and
the borrowing allowance
under TLTRO III
was increased
from 50%
to 55%
of eligible
loans.
In this
context,
the Bank’s
financing
from the
Eurosystem,
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25
ANNUAL FINANCIAL REPORT
which stood at Euro 13.0 billion
on 31.12.2021, increased
compared to 31.12.2020 by 1.1 billion. Since specific
goals, regarding the amount of the Bank’s loans granted
for individual
periods, Euro 2 billion of the programme
have been renewed in December 2021, giving the Bank
the benefit of receiving the increased negative rate of
-1% .
This increased access
to ECB funding,
led to a decrease
of
the
more
expensive
interbank
repurchase
agreements
(repos) by
Euro 0.32
billion. Through
the financing
of this
program, the Bank managed to extend the duration of
long term financing, as well as to improve the pricing
conditions in relation to the
repurchase agreements.
In order to ensure that the Banks are prepared to confront
the
crisis
of
the
pandemic
of
Covid-19,
Single
Supervisory
Mechanism
requested
an exceptional
liquidity monitoring
exercise
conducted
on a
monthly
basis. From
this exercise,
SSM has
not up to
this point
identified any
specific issues.
In the context of the Internal liquidity Adequacy
Assessment
Process,
the Bank
reviewed the
policies and
procedures of the liquidity stress test
scenarios.
The interbank financing (short, medium to long-term) and
the Early Warning
Indicators of the
Bank, and of Group’s
subsidiaries
are monitored
on a
daily basis,
and analysis
is
performed in order to capture daily variations.
Taking into consideration the instability of the Greek
economy and the new conditions due to the Covid-19
pandemic, liquidity stress tests are
conducted on a
regular
basis in order to assess potential outflows (contractual or
contingent). The purpose of this process is to determine
whether the existing
liquidity buffer is
adequate in order
to cover Bank needs. These exercises
are carried out
in accordance with the approved Liquidity Buffer and
Liquidity Stress Scenario Group
policies Alpha Bank
successfully overcomes the liquidity short term stress
scenarios
(idiosyncratic,
systemic
and
combined),
retaining
a high
liquidity buffer.
During 2021, the Contingency Funding Plan was
updated to incorporate an increased liquidity buffer.
The Contingency
Funding
Plan
is
complementary
to
the Recovery
Plan. Its
purpose
is to
facilitate
increased
awareness in the beginning of
a possible liquidity crisis
in
order to perform remedial actions, in a timely manner, to
mitigate a reduction
in liquidity buffer.
INTEREST RATE
RISK IN THE BANKING
BOOK
Interest Rate Risk in the Banking Book (IRRBB) is the
risk that examines how
a change in
base interest rates
(i.e. Euro swap
curve) will affect
Net Interest Income of
the Group and the Fair
Value of Assets and Liabilities
(Economic Value of
Equity).
The change in net interest income and the change in
economic value of equity, which
results from a change
in base interest rates, are calculated for internal and
prudential stress scenarios
on a regular basis.
The
relevant IRRBB
stress results
are presented to
Asset
Liability Management Committee and Board Risk
Management Committee.
During 2021, interest rate risk of the banking book
decreased significantly
due to the Non-performing
loan portfolio decrease that carried fixed interest rates.
Specifically, a significant
decrease of NPE
was realized
through Galaxy
& Cosmos
securitization
and Orbit
& Sky
sale. Furthermore,
IRRBB remained
within risk appetite
framework limits. This also
includes subsidiary level limits.
The system used for IRRBB analysis is Sendero
Data
Management and Risk Manager system. The Bank
finalized the upgrading of Sendero to a newer version
which is on production from January 2021. Furthermore,
the automated process of
inclusion foreign Subsidiaries in
the Sendero system has been finalized.
The upgraded version resulted to better support for
regulatory reports &
KRIs, Dynamic
Gap, DV01 by time
bucket and Fair Value Gap. Moreover,
it enhanced the
Earning at
Risk calculation.
Finally, the
subsidiaries
Banks
in Cyprus
and Romania
have already
been integrated
into
the Sendero system, resulting in better data quality for the
subsidiaries, due to the automatic
integration of their data
into the application.
IBOR reform
The London Interbank
Offered Rate (LIBOR),
one of the
main and most important interest rate benchmarks
used in global financial markets ceased to exist or lost
its representativeness
since
January
1
st
, 2022.
Specific
GBP and JPY
settings, following
guidance from the
UK
Financial Conduct
Authority,
continued to
be published
under a changed
methodology known as “synthetic”
for
a short period of time to
facilitate with the transition.
Furthermore, the continuation
of some USD LIBOR
settings through June 30
th
, 2023, is intended only to
support the maturity
of legacy
products.
Despite its
importance,
LIBOR’s
shortcomings
have led
regulators to opt for a transition away from LIBOR to
alternative reference rates known as Risk-Free-Rates
(RFRs). National Working
Groups developed
new rates,
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
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ANNUAL FINANCIAL REPORT
based on recommendations of the Financial Stability
Board, an international body monitoring the global
financial system. Financial Institutions across the globe
switched smoothly
to RFRs. The changes
affected LIBOR
and EONIA (Euro Overnight Index Average) while EURIBOR
(Euro Interbank Offered Rate) was fundamentally
reformed and compliant with Regulation
(EU) 2016/1011
(“Benchmark Regulation”) which has established
a common framework to ensure the accuracy and
integrity of the indices
used as benchmarks in
financial
instruments.
In October
2021
the European
Commission
has
adopted
the option provided in paragraph 8 of article 23b of
the Benchmark Regulation on the designation of a
replacement for a benchmark that will cease to be
provided
and issued
the Implementing
Regulation
(EU)
2021/1847 on
the designation of
replacement rates
for certain settings
of CHF LIBOR
and the fixed spread
adjustments that should be added to
them, accordingly. In
addition,
European
Commission
adopting
the
same
option
of the Benc
hmark Regulation
as described
above, issued
the Implementing Regulation (EU) 2021/1848 on the
designation of
replacement for
the benchmark
EONIA.
The Group
took all
the necessary
steps and
complied
with
the above Regulations. A detailed action plan has been
formulated and the internal Working Group, representing
several workstreams, identified dependencies
to
LIBORs
and
implemented
the
necessary
amendments.
A
Steering
Committee was also closely monitored the Bank’s
transition to
the new
RFRs on
a bi-weekly
basis, informing
the Assets and
Liabilities Management
Committee for
the progress and challenges the Group faced during the
transition.
The Group informed well in advance its clientele on
the LIBOR transition by uploading on its
web site all
the relevant information. Furthermore, dedicated
correspondence was sent to clients with direct
exposure to
LIBOR reform.
MARKET,
FOREIGN
CURRENCY
AND
COUNTERPARTY
RISK
The Group
has developed
a strong
control environment,
applying
policies
and procedures
in accordance
with
the
regulatory framework and international best practices,
in order to
meet business needs involving market
and
counterparty risk while limiting adverse impact on results
and equity. The framework of
methodologies and systems
for the effective management of those risks is evolving
on a
continuous
basis in
accordance
with the
changing
circumstances in the markets and in
order to meet
customer requirements.
Market risk is the risk of losses arising from unfavorable
changes in the price or volatility of products with
underlying interest
rates, foreign
exchange rates,
stock
exchange indices,
equity prices and
commodities. The
valuation of bonds and derivative positions are monitored
on an ongoing basis. Stress tests are conducted on a
regular basis
using extreme
scenarios in
order to assess
the impact for each scenario on
profit and loss and capital
adequacy, in the markets
where the Group
operates.
A detailed structure for trading limits, investment
limits and counterparty limits has been adopted and
implemented. This structure involves regularly monitoring
trigger events that could signal increased volatility in
certain markets. This increased volatility means that a
limit decrease is applied in these markets. The limits
above are monitored on an ongoing basis and any limit
breaches identified are reported officially.
For the mitigation of interest rate and
foreign currency risk
of the banking portfolio, hedging strategies are applied
using derivatives and hedge effectiveness is tested on a
regular basis.
During 2021
Trading book
risk, as measured
by Value at
Risk, fluctuated between Euro 3,7 million and Euro 5,4
million. Value at Risk is
the maximum loss that could
take
place in one
day with
99% Confidence
level. Value
at Risk
captures foreign
currency risk,
interest rate
risk price
risk
and commodity risk
in the
trading book.
As of 01/07/2021 the risk engine KVAR was replaced
by MX3, for the calculation of capital requirements for
general
market
risk under
the Internal
Model
Approach
(IMA) and
for market
risk management
purposes.
During
the third quarter 2021 the project for the calculation
of market risk capital requirements according to the
Standardized
Approach
in scope
of the
FRTB framework
(FRTB-SA) concluded and
report production started
with reference date September 30, 2021, according to
regulatory requirements.
OPERATIONAL
RISK
Operational Risk is defined as the risk of financial or
qualitative negative effects
resulting from inadequate
or
failed
internal
processes,
IT
systems,
people
(intentionally
or unintentionally) and external events. Operational
Risk
includes legal risk.
In the context of its capital calculation process for
Operational
Risk,
the
Group
implements
the Standardized
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
27
ANNUAL FINANCIAL REPORT
Approach and meets all the qualitative criteria required
by this Approach.
During year 2021, the Group implemented its
Information
and Communication
Technology
(ICT) Risk
Management Framework responding
to the increased
regulatory focus
on this Operational
Risk category.
Furthermore, the Group continued with the
implementation of the new operational risk (GRC)
system which is expected to be completed within the
first quarter of
2022.
The development
of Key Risk Indicators
(KRIs) as a
control monitoring
mechanism has
been continued at
the Group
level. Concurrently,
the operational
risk events
management
processes
have
been
further
strengthened.
In line with the Group’s established Operational Risk
framework, the
Risk and Control
Self-Assessment
(RCSA)
procedure
was implemented
across
the Group,
according
to the
year 2021 annual
plan. The RCSA
procedure
aims to identify and assess risks that may affect the
operations and processes of the Banks’ Units/Group
Companies,
recognize
potential
control gaps,
as well
as
design and implement action plans for their remediation.
The evolution of Operational
Risk Events, the RCSA
results,
and all
other Operational
Risk related
issues
are closely monitored
by the Group’s
responsible
Operational
Risk and
Internal
Control
Committees,
which
are empowered to monitor and review the Group’s
Operational
Risk exposures
and ensure
that appropriate
measures for their mitigation are adopted.
CAPITAL
ADEQUACY
The Group’s Capital Strategy
commits to maintain strong
capital adequacy both from economic and regulatory
perspective. It aims at monitoring and adjusting
Group’s capital levels, taking into consideration capital
markets’ demand and supply, in an
effort to achieve the
optimal balance between the economic and regulatory
considerations.
The overall Group’s Risk and
Capital
Strategy
sets
specific
risk
limits,
based
on
management’s
risk
appetite,
as well as thresholds to monitor whether actual risk
exposure deviates from the
limits set.
The objectives of the
Group’s capital management policy
are to ensure that the Group has sufficient capital to
cover the risks of
its business, to support its
strategy and
to comply with regulatory capital requirements, at all
times.
1.
Supervisory Review and
Evaluation Process
(SREP)
According to
the SREP Decision
of the 28th
December
2020, since 31st
January 2021 the
minimum limit for
the Overall
Capital Requirement
(OCR) stood
at 14%,
and remained unchanged from 2020. On 2 February
2022 the ECB informed the Group that from 1 March
2022 the minimum limit
for the consolidated
Overall
Capital Requirement (OCR) is 14.25%.
The OCR is composed by the minimum
own funds
requirements (8%), according to article 92(1) of the
CRR, the additional
Pillar II own funds requirements
(P2R), according to article 16(2) (a) of the Regulation
1024/2013/EU which corresponds to 3%, and the
combined
buffer requirements
(CBR),
according
to article
128(6) of the Directive 2013/36/EU which correspond
to
3%, for 2021
and 3.25%
for 2022 due
to the increase
of the O-SII buffer by 0.25%. The minimum ratio should
be maintained on a phase-in basis under applicable
transitional rules of the CRR/CRD IV, at all times
The capital adequacy
requirements set
by the SSM /
ECB
and economic
capital are
used by
the Group
as the basis
for its capital management. The
Group seeks to maintain
sufficient capital to ensure that these requirements are
met.
2.
Measures for
Covid-19.
As the
economic
effects of
the coronavirus
(COVID-19)
started becoming apparent,
the ECB, the European
Banking Authority
(EBA) and
the European
Commission
(EC), announced
a number
of measures
to ensure that
the banks they supervise will continue to fulfil their role
in funding
the real
economy.
Specifically, starting from March 2020, the ECB and
the EBA
announced
the
following
relaxation
measures
for the minimum capital requirements for Banks in the
Eurozone:
•
Banks are temporarily allowed to operate below the
level of capital defined by the Capital Conservation
Buffer and the Countercyclical Buffer. In addition,
on July 2020, the
ECB announce
d
through a press
release that financial institutions are allowed
to
operate below the aforementioned
thresholds at least
up to
the end of
2022.
•
Furthermore, the change expected in January 2021
under CRD
V regarding
the composition
of the Pillar
2 requirement
(P2R) buffer was brought forward
allowing the
(P2R) to
be covered
by Additional
Tier 1
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ANNUAL FINANCIAL REPORT
(AT1) capital by 18.75%
and Tier 2
(T2) capital by 25%
and not only
by CET 1.
•
In parallel ECB issued a recommendation to banks to
limit the payment of dividends and share buy-backs.
According to a press release issued
by the ECB on 23
July 2021 this recommendation remained applicable
until 30 September 2021. In addition, on 23 July 2021,
the ECB announced that it
expects that banks will adopt
a prudent and forward-looking approach when deciding
on remuneration
policies.
The European
Commission decided
to revise the
existing
regulatory framework by bringing forward regulations
that
would normally
come with the
CRR2/CRDV
framework as
well as provide a greater flexibility to the phase-in of the
impact of the IFRS 9 on capital. The revised framework
was published
in the
Official Journal
of the
European
Union
as at June
22, 2020.
On 26 June 2020, the Bank of Greece under an
Executive Committee Act determined the capital
buffer
of systemically important institutions
(O-SII) at 0,50%,
maintaining stable for 2021 and extending
consequently
the existing phasing-in period. The third and the fourth
phases have been delayed by 12 months each and will
apply starting from
1 January 2022 and
1 January 2023
respectively.
This decision
is in
the context
of the
response
to Covid19 pandemic in order to mitigate the subsequent
financial impact.
On 22 December 2020, the Commission Delegated
Regulation (EU) 2020/2176 of the Council of 12 November
2020, amending Delegated Regulation (EU 241/2014
concerning the deduction of software assets from
CET1items, was published in the Official Journal of the
European Union.
3.
IFRS 9 Capital Impact
Regarding
the
International
Financial
Reporting
Standard
9 (IFRS 9), the Group makes use of Article 473a of the
Regulation No 2395/2017 of the European Parliament
and of
the Council
amended
by
EU
Regulation
873/2020,
and applies the transitional provisions for the calculation
of Capital
Adequacy.
The Group
is adequately
capitalized
to meet the needs arising from the application of the
Standard, which will be fully implemented at 2023. The
impact from the full implementation is estimated at
approximately 2,34 % and the CET1 ratio would stand at
10,9 % as of 31.12.2021, for the
Group.
4.
Capital Ratios
At 31.12.2021, the consolidated Common
Equity Tier
I capital
(CET I)
stood at
Euro 4.7
billion, and
the
RWAs amounted
to Euro
35.3
billion,
resulting
in
a CET1 ratio
of 13.2 %,
down by 404
bps versus
31.12.2020, affected mainly by the application of IFRS9
transitional arrangements for 2021, the recent share
capital increase, and
the Galaxy, Cosmos
and Aurora
transactions.
As part
of the strategic capital management during
2021, Alpha
Services and
Holdings S.A.
has successfully
completed:
•
On 4 March 2021 the placement of a Euro 500
million Tier 2 bond with institutional investors, with
a 10.25-year maturity, callable
anytime between
year 5 and year 5.25 with a coupon of 5.5%, listed on
the Luxembourg
Stock Exchange
– EuroMTFMarket,
further optimising its capital structure, and
•
On 2 July 2021, the offer of Euro 800 million
of new
common shares further strengthening its regulatory
capital and
capital ratios.
•
On 17 December 2021 the conclusion of the
Synthetic Securitization of a Euro 1.9 billion
performing SME/Corporate portfolio
(Project Aurora),
with Christofferson,
Robb & Company (CRC)
as lead
investor, AnaCap
Financial Partners
(AnaCap) and
the
European
Bank for
Reconstruction
and Development
(EBRD).
5.
Deferred Tax
Assets (DTAs)
Deferred Tax Assets
(DTAs)
at
31.12.2021
stood
at Euro 5.4 billion. According to article 5 of Law
4303/17.10.2014
as amended by
article 4 of
Law
4340/1.11.2015 «Recapitalization
of financial
institutions and other provisions of the Ministry of
Finance» deferred
tax assets
that have
been recognized
and are due to the debit difference arising from the PSI
and the
accumulated
provisions
and
other
general
losses
due to credit risk, which were accounted until 30.6.2015,
are converted into final and settled claims against the
Greek State. The above
mentioned are set into
force
in case the accounting result for
the period after taxes
is a loss, according to the audited and approved by
the Ordinary Shareholders’ General Meeting financial
statements.
In accordance with article 39 of CRR 575/2013 of the
European
Parliament
and its
Council,
on precautionary
requirements supervision for credit institutions and
investment companies and the amendment of CRR
648/2012, a risk weight
of 100% will be applied to
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
29
ANNUAL FINANCIAL REPORT
the above-mentioned deferred tax assets that may be
converted into tax credit, instead of being deducted from
regulatory capital.
On 31.12.2021, the amount of deferred tax assets which
is eligible to the scope of the aforementioned Law for the
Bank and the
Group and
is included in
Common Equity
Tier I amounts to Euro 2.9billion and constitutes 61.9 %
of the Group’s Common Equity Tier I and 8.2 % of the
respective weighted assets.
Any change in the above framework that will result
in the
non-recognition of deferred
tax assets as a tax credit will
have
an adverse
effect
on the
Bank’s
and Group’s
capital
adequacy.
6.
Capital Requirements
under Pillar
I
The approaches adopted for the calculation of the capital
requirements under Pillar I
are
determined
by
the
policy
of
the Group in conjunction with factors such as the nature
and type of risks the Group undertakes, the level and
complexity of the Group’s business and other factors
such as the degree of readiness of the information and
software systems.
Capital Requirements
for Credit
Risk are
calculated
using
the Standardized
Approach (STA).
The advanced
method
is used for the valuation of financial collaterals. For the
Operational
Risk
capital
requirements,
the Group
follows
the Standardized Approach (STA). For
the
Market
Risk
the Bank uses
a Value at Risk
(VaR) model
developed at
a bank level for the significant exposures and approved
by the Bank of Greece.
Additionally, the
Bank uses the
Standardized approach to calculate Market Risk for the
remaining, non-significant exposures.
7.
EU-Wide 2021
Stress test
Following the postponement of the 2020 Stress Test
due to the outbreak of COVID – 19 (Coronavirus) and
its global
spread, the
European
Banking Authority
(EBA)
launched the 2021 EU-wide Stress Test on 29 January
2021. The
Stress Test
was conducted
based on
a static
balance sheet
approach
under
a baseline
and
an adverse
macro scenario with a 3-year forecasting horizon (2020-
2023). The exercise will be used as an input in the
Supervisory Evaluation Process (SREP).
The results of
the exercise were published
on 30
July
2021. According to
the results the
Group successfully
concluded
the 2021
EU-wide Stress
Test under
both
scenarios. More specifically:
•
Under the baseline scenario,
the capital generation for
the 3-year period
was 2.8% fully
absorbing 2.4% IFRS
9 phase-in, resulting in 2023 to a CET1 fully loaded
ratio of 17.3% while the 2023 Leverage
ratio (fully
loaded) came
to 13.0%.
•
Under the
adverse
scenario,
the 2023
CET1 fully
loaded
ratio stood at 8.3%, largely driven by the negative
impact of Credit Risk, with the lowest point of CET1
fully loaded at 8.1%, in 2022. The 2023 Leverage ratio
(fully loaded)
resulted in 6.1%.
•
The Stress Test methodology does not take into
account capital strengthening (i.e.
Tier
II
issuance,
Share Capital
Increase) and
balance sheet
de-risking
(i.e. Galaxy
transaction),
events post
December 31st,
2020. Pro-forma1 with the Share Capital Increase for
the baseline scenario, the 2023
CET1 fully loaded ratio
reached 19.1%, while the 2023 Leverage ratio (fully
loaded) came to 14.4%.
Under
the
adverse
scenario,
the 2023 CET1 fully loaded ratio stood at 10.2%, while
the 2023 Leverage ratio (fully loaded) came to 7.6%.
•
The starting point of the exercise was December 31st,
2020, when the Bank had a CET1 transitional ratio of
17.1%, a CET1 fully loaded ratio of
14.6% as well as a
Leverage ratio (transitional) of 12.5% and a Leverage
ratio (fully loaded
of 10.7%.
INTERNAL CAPITAL
ADEQUACY
ASSESSMENT
PROCESS (ICAAP)
AND INTERNAL
LIQUIDITY
ADEQUACY
ASSESSMENT
PROCESS (ILAAP)
The ICAAP and
ILAAP processes
are an integral
part of
the Internal Control
System (ICS) of the
Group. They are
aligned with the best practices and
the general principles
and requirements set by the regulatory Framework,
including the guidelines provided
by SSM and/ or EBA.
These guidelines allow
for:
•
The identification, analysis, monitoring and the overall
assessment of risks to capital and liquidity.
•
The improvement of various systems/ procedures/
policies related to the assessment and management of
risks.
•
The estimation of the necessary level of Internal
Capital required for the
coverage of all risks
and the
determination, managemen
t
and monitoring of the
liquidity buffer.
•
Capital and liquidity planning taking also into
consideration
the Group’s
Risk appetite
and business
plan in a forward-looking assessment.
ICAAP and ILAAP are integrated into the business,
decision-making and risk management processes of
the
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
30
ANNUAL FINANCIAL REPORT
Group, contributing to its continuity by
ensuring its capital
and liquidity adequacy from
different but complementary
perspectives (e.g. the economic perspective and the
normative perspective), while both perspectives
mutually
inform each other and are integrated into all material
business activities and
decisions.
The Board of Directors
has the overall responsibility of
the
ICAAP/ILAAP
implementation
with
a clear
and transparent
assignment of responsibilities to the Risk Management
Committee
and Senior
Management
members.
The Board,
following the Risk Management Committee endorsement,
approves the results
of the ICAAP
and the ILAAP and
signs
the Group’s Capital
Adequacy Statement
(CAS) and the
Liquidity Adequacy Statement (LAS).
The related reports are updated at least annually, or on
a more frequent basis if material changes occur and are
submitted
to the
Single
Supervisory
Mechanism
(SSM)
of
the European Central Bank. ICAAP and ILAAP are assessed
yearly by the ECB
as part of the Supervisory
Review and
Examination Process (SREP).
REGULATORY
LIQUIDITY RATIOS
The Group’s
balance
sheet deleveragin
g, coupled
with the
customer deposits restoration trend, the restored market
access and the issuances
of
Euro
1.4
billion,
improved
the Group’s funding mix and increased its high-quality
liquid assets
(HQLA) buffer.
As of
31 December
2021, the
Group’s Liquidity Coverage
Ratio (LCR) stood
at 183.4%,
increased by 33.1% compared to 31 December 2020.
Moreover, the Net Stable
Funding Ratio (NSFR)
required
threshold of 100% was fully met by the Group on 31
December 2021, as
it stood at
109%.
MREL
The MREL (Minimum
Requirement for Own
Funds and
Eligible Liabilities) constitutes a buffer that the Bank
has to maintain in order to absorb losses in the event
of resolution.
The required
minimum
levels of
MREL are
determined by the
Single Resolution
Board (SRB) on
an
annual basis.
As per the latest official SRB decision, from 01 January
2022, Alpha
Bank S.A.
(resolution
enity) shall
comply,
on
a consolidated basis (referring to consolidated figures of
Alpha Bank
S.A) , with
an intermediate
MREL target
equal
to 14.02% of Total Risk Exposure
Amount (TREA) and
5.91% of Leverage Exposure (LRE).
From 01 January 2026, the consolidated MREL will
become “fully loaded” and will be set
equal to 22.76% of
TREA and 5.91%
of LRE.
With the aim of reinforcing compliance with the above
requirements,
Alpha Bank
SA, successfully
carried
out the
following issuances in
2021:
•
On 16.9.2021 a Euro 500 million senior preferred
notes, in the context of the Euro Medium Term Note
Program of Euro
15 billion. The
Senior Preferred
Bond,
which is listed on the
Luxembourg Stock
Exchange
– EuroMTF Market, has a 6.5-year maturity, and is
callable in year 5.5 with a fixed annual interest rate of
2.5% which is adjusted to a new interest rate from the
reset date
to the
maturity date.
•
On 10.12.2021 a Euro 400 million Senior Preferred
bond issuance. The
Senior
Preferred bond has
a long
2-year maturity (February 2024) and is callable the
first year (February 2023), with
a coupon of 3%.
The
bond
is
listed
on
the
Luxembourg
Stock
Exchange–
EuroMTF Market.
CORPORATE
RESPONSIBILITY
The Group’s
organization
and operation
are governed
by
principles such as integrity and honesty, impartiality and
independence, confidentiality
and
discretion,
as
provided
for in the Bank’s Code of Ethics and in the principles of
Corporate Governance. Particular significance
is
attached
to
the identification, measurement
and management of the
undertaken risk, to the compliance with the applicable
legal and regulatory framework, to transparency and to
the provision of full, accurate
and truthful information to
the Stakeholders.
The Bank acts responsibly to
actively contribute to the
protection of the environment and to the conservation
of natural resources and is committed to addressing
the direct and indirect impacts of its activities on the
environment. Additionally, through its participation
in the
UN Environment
Programme Finance
Initiative (UNEP
FI),
undertaken by financial organizations around the world
to promote sustainable development, it incorporates
the
relevant environmental principles in its financial activities.
In 2019,
the Bank
signed the
six Principles
for Responsible
Banking, which were developed as an international
initiative of the United Nations – Environment
Programme
Finance Initiative (UNEP
FI) and has been committed
to align its operation with the
six
Principles.
To
this
end, the
Bank has
set targets
and seeks
to increase
its
positive effect on
society and the environment,
utilizing
new business opportunities and generating value
for all
stakeholders.
The Bank
follows
specific
policies
for Human
Resources
with respect to the diversity of its Employees and the
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
31
ANNUAL FINANCIAL REPORT
right to union membership and
collective bargaining, while
opposing any form of child labor, forced or compulsory
labor. The Bank respects
and defends the
diversity of
its employees as it promotes a culture that fosters
diversity and inclusion for its workforce and implements
appropriate metrics to monitor diversity at all levels.
All regular Bank
Employees are
covered by the
Sector
Collective Bargaining Agreements and the National
General
Collective
Agreement
at Bank
level
and about
87% are
members
of trade
unions.
Ensures excellent
working conditions and development opportunities
as well as the health and safety of employees in the
workplace.
Provides
fair
remuneration,
based
on
contracts
that are in line with the respective national labor
market, ensuring compliance with the relevant national
regulations on legal minimum wages, working hours,
annual leaves and
ensures the continuous training
and
education of its Employees. During 2021, a revamped
HR intranet webpage was launched contributing to
an enhanced employee experience.
Additionally,
the
direct communication point with employees, via the
#stayconnected platform, that was already
in place
since 2020, was further developed. The platform offered
coaching, parental advising and well-being sessions
during the year with a significant participation rate in
most initiatives. Moreover, there was
a focus on
creating
Communities of Change within there was
a focus on:
•
Establishing
a
prosperous
teamworking
spirit
among
the members of
the Communities
•
Sharing knowledge,
best practices
and experiences
from experts
•
Advancing
collaboration
in order
to achieve
the Bank’s
targets
In addition, the Bank applies the principles of Corporate
Responsibility in the whole range
of its activities
and seeks
the compliance of its Suppliers and Partners with the
values and business principles that
govern its operation.
The Group’s
activities are
directly linked
to society and
citizens. It therefore
seeks to contribute
to the support
of society and citizens through the implementation of
major Programs designed to support society, education,
culture and healthcare. In
2021, Alpha Holding, following
a relative rating received by the FTSE International
Organization, remained
on the Financial
Times Stock
Exchange4Good (FTSE4Good)
Index Series, for the fifth
consecutive
year. Additionally,
in January
2021, Alpha
Holding was included for
the third consecutive year
in the
Bloomberg Gender
-Equality Index (GEI).
This index is a
key source of qualitative information on gender equality
issues and assesses listed
companies from all sectors
of
the economy from
84
countries.
Finally,
Alpha
Holdings
is
among the 35 listed companies included in the new
ATHEX ESG Index which commenced trading
on August 2,
2021, aiming to help investors identify Greek companies
that showcase
substantial
ESG
performance.
It should
be
noted that Alpha Holdings is capturing the Max weight in
the index of
10% (capping process).
DIGITAL
TRANSFORMATION
AND INNOVATION
ACTIVITIES
The Group identified early on, the opportunities and
challenges
posed
by the
new digital
era and
consequently,
began elaborating
on its digital transformation
since
2017. The program includes both operational
levers and
innovation-focused initiatives, whose
implementation
continued steadily in 2021. Alpha Bank’s digital
transformation has focused on enhancing customer
experience, through strengthening the capabilities
of the
Bank’s digital channels, deployment of innovative digital
infrastructure technologies as well as redesigning the
key customer
journeys. The
current heath
pandemic has
significantly accelerated the adoption of digital services
by the customers, as evidenced by the 93% of customer
transactions
being
conducted
through
digital
channels
(as
opposed to the
branches) in 2021.
In 2021, the Bank continued to improve the digital
channels capabilities (web and mobile banking),
supporting the daily transactional needs of the customers
while offering ease of use as well as speed and security
of service. The registration of new users in e-Banking
recorded an increase of 31%, exceeding 400,000 new
subscribers in 2021, with 1 out of 3 completing their
registration exclusively remotely via my Alpha Mobile.
The number and value of transactions via the Bank’s
digital channels recorded an increase of 19%
and 20%
respectively, compared to 2020.
Since May 2021, all customers used the new and
redesigned my Alpha Web for Individuals (the older
optional version was cancelled out), which encompasses
new functionalities and administration capabilities,
such
as, subscriber KYC (Know Your Customer) information
update through the new “gov.gr” service without requiring
any branch visit, immediate activation of inactive
customer accounts, constant online loan instalment
payments as well as
a dark mode version
for even greater
usability and convenience. Another addition
has been
the ability to
issue a prepaid
Bleep Smile Visa
card which
offers unlimited recharges for the
Bank’s customers.
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32
ANNUAL FINANCIAL REPORT
Similarly,
Web banking
for businesses
was strengthened
with new capabilities such as,
the increase in number
of credited accounts in multiple transfers, multiple
payments to organizations, activation
of immediate
transfers with Euro 50 thousand limit, with multiple
other improvement under way in order to enhance my
Alpha web
for businesses
and support
Greek companies
during this challenging period.
In 2021, for the first time, the number of transacting
customers through the Bank’s mobile channel
overtaking the ones via the web channel, marking a
year where digital banking became more mobile-driven
than ever before.
A number of 7 out of 10 bank digital channel
subscribers used my Alpha Mobile app consistently
on a monthly basis, while the number and value of
transactions through the mobile app recorded an
increase of 53% and 57% respectively. Aiming at
enhancing the mobile customer experience, new
features were incorporated in the Bank’s mobile app
such as,
detailed views
on all
card products,
issuing of
new debit cards online, addition of
customer credit and
debit cards to
the bank’s digital
wallets.
Moreover, there has
been impressive
acceptance
recorded among youth between 18-25
years
old
who chose
Alpha Bank
for issuing
their government
-
sponsored Freedom
Pass card,
in the context
of being
rewarded for their covid-19 vaccination, with total cards
issued exceeding the number of 200,000.
The trend
for online
sales was
further enhanced
e.g.
debit
card
issuance
through
e-Banking
for
individuals
recording +130% increase, reaching 40% of total
issues, with mobile contributing 1
in 4 cards
issued.
In terms of customer journeys, the Bank’s mobile
onboarding
service
for individuals
was launched
in
December 2020, offering prospect customers the
ability to open an account, get a debit card as well
as web banking credentials via their mobile phone
in approximately 15mins, without the need for any
branch
visit.
Throughout
2021,
this
service
successfully
delivered approximately 35% of the total new
relationships/accounts opened in the bank.
Similarly, the Bank’s innovative digital onboarding
service
for businesses,
was launched
in February
2021
offering prospect customers the ability to open a
business sight
account and
subscribe to
web banking
through an exclusively online environment, without
requiring the company representative to visit
a branch.
Throughout 2021, approximately
1 out of 3 companies who
started their cooperation with Alpha Bank chose the digital
onboarding channel.
In view of further strengthening the digital product sales
for Alpha Bank, by December 2021, the majority of
design and implementation work for myAlpha QuickLoan
was completed, i.e. the first fully digital consumer loan
offering of the bank via mobile, without documents with
digital signature and immediate
loan disbursement to the
customer account. The full launch is planned for
2022 and
will cover
both a
mobile and web
offering.
Alpha Bank, following the success of its fully redesigned
digital wallet “myAlpha
Wallet” for android
users, offered
to its customers all the available digital wallets (Apple Pay,
Google Pay and
Garmin). Alpha
Bank’s customers
were able
to add their Visa and Mastercard cards to the digital wallet
of their choice and carry out their payments contactless in
an easier, faster,
and more secure
manner. The
acceptance
was significant, with the number of new transactions that
were carried out via the
Bank’s digital wallets exceeding the
number of 13,500,000.
In December 2021, the
Bank’s mobile banking applications
received a number of distinctions at the Mobile Excellence
Awards 2022, in the following categories:
•
Gold Award for the myAlpha Mobile app and the
opening of the first Alpha
Bank account, in the
category
“Integration of Mobile in a Multi-Channel & Omni-
Channel Strategy”
•
Gold Award
for the
myAlpha
Mobile app
and the
opening
of the first account at Alpha Bank, in the “Mobile Digital
Transactions” category.
•
Gold Award
for the
bizpay app,
in the
category “New
Business Services through Mobile”.
•
Bronze Award
for the
myAlpha
Wallet app,
in the
“UI /
UX” category
We also continued the program of replacing off-Site
ATMs with high-tech machines with the ability to deposit
a bundle of banknotes, which resulted in an increase of
27% of the number of deposit transactions and 24%
of their value compared to 2020. At the same time, the
functionality of voice
-guided transactions
for people with
limited vision was extended to 145 ATMs of the network,
first in the market in terms of ATM coverage, giving
customers the opportunity to carry out cash withdrawals
and balance inquiries, by simply connecting their
headphones to the corresponding ATM
jack.
Regarding the network of Automated Cash Transaction
Centres (ACTCs),
94.5% of the
branches had at
least one
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
33
ANNUAL FINANCIAL REPORT
ACTC in 2021, through
which numerous
deposit and
payment transactions are carried out both in cash and
by charging
an Alpha
Bank card.
In November
2021, the
functionality of payments
to assigned loans (from sold/
assigned loan portfolios)
was implemented facilitating
the migration of similar transactions from the branch
tellers.
Alpha Bank
also recorded
significant
growth in
e-commerce services in 2021, i.e. increase of 28% in
new ecommerce
business
customers,
increase
of 37%
in
number of ecommerce transactions and increase of 41%
in value EUR
year-on-year.
In 2021, the Bank also launched the capability to
issue Approv
ed Electronic
Signatures
for its
customers
and staff in
accordance with European Regulation
910/2014 (eIDAS) thereby enabling the remote signing of
documents by the customers and setting the foundation
for a new
era of end-to-end remote
service experiences.
Alpha Bank actively continued to pursue
the development
of an open innovation ecosystem. Its third digital
innovation competition (i
3
), open exclusively to
Bank staff,
launched in April 2021, aiming at soliciting innovative
employee ideas to improve customer or employee
experience through digital technology. I3 2021 welcomed
125 entries from colleagues across the bank nation-wide,
10 teams were formulated which were coached by 21
bank mentors, and resulted in 3 winning ideas for further
detailing.
Finally, the 3
rd
, international digital
innovation
competition,
FinQuest
by Alpha
Bank started
in Dec
2021.
The competition is looking for innovative B2B and B2C
solutions, that (a) use open data in order to improve the
experience of
the Bank’s
customers
or to serve
the Bank’s
partners, (b)
leverage data
analytics to
offer ESG
profiling
of medium or large companies. Finquest has already
received more than 60 entries from 17 different countries,
who will be assessed, accelerated and coached during
2022 under the mentorship of external experts, Alpha
Bank executives
and associates.
This process aspires
to
identify and create some of the future
innovation partners
for Alpha Bank to assist in transforming the value
propositions and deliver value to
the Bank’s customers
OPERATIONAL
PLANNING
AGAINST
PANDEMIC
(COVID-19)
The Group monitors, from the beginning of the pandemic
crisis until today, the Government’s announcements
regarding the restrictive measures and adjusts the way of
working
accordingly
with
consistency
and
responsibility
to
the Employees
and their
Families.
The physical
presence
of the Personnel in the workplaces is fully harmonized
with the instructions
of the competent
authorities in a
way that ensures on the one hand the proper operation of
the Group and on the other hand the reduction of the risk
of spreading
the virus.
In addition, given the high rates of working remotely,
training in new applications and collaboration tools is
constantly expanding. At the same time, the content of
the Intranet is enriched and actions are developed that
aim to make the work from home easier, and to support
the Employees
in general
with advice
on various
issues
such as
health,
finess,
personal
development
and culture
Furthermore,
we have
developed
a special
section
about
coronavirus related news and information.
STRATEGIC
PRIORITIES
UNTIL THE
END OF
2024
In May 2021, the Group announced its updated Strategic
Plan, Project Tomorrow,
which includes a
series of
strategic initiatives which are intended to drive future
performance. The strategic priority (as presented in
Project Tomorrow) is to capture the opportunity to
participate in the anticipated credit growth for the Greek
banking sector, that is expected
to be driven by EU’s
Recovery and Resilience Facility (“RRF”)
funds and the
investments that these funds will mobilize. Capturing a
fair market share of that growth will allow the Group to
reach higher profitability levels sooner, while the
targeted
NPE reduction
under the
Updated Strategic
Plan and
the
transformation plan
will allow achievement
of a low level
of NPEs, a normalized cost of risk and a lean cost base
that will
support reaching
a 10%
RoTBV by
2024. Group’s
Strategic Plan is based on
the following key initiatives:
•
The Revenue
increase
driven by
asset growth
initiative
is based on the Bank’s ambition to support the
anticipated recovery
of
the
Greek
economy,
driven
also by the
EU RRF, and
to capture our
full potential
of
the anticipated credit growth opportunity
stemming
from
this recovery,
enhancing
both
Net
Interest
Income
from performing exposures and Fee and Commission
Income for
the Bank;
•
The NPE Initiatives, aside from Project Galaxy
(completed
in
June
2021),
Project
Cosmos
(completed
in December 2021), and Project SKY (binding
agreement signed in February 2022) include a
series of
other NPE
transactions,
enabling the
Bank
to achieve a NPE ratio of c.7% during 2022, while
targeting an NPE ratio of 2% by the end of 2024. In
addition,
the NPE
initiatives
include Group’s
ongoing
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
34
ANNUAL FINANCIAL REPORT
organic NPE reduction (i.e. cures, debt forgiveness,
collateral
based
recoveries
and other
closing
procedures).
After the successful completion of the NPE Initiatives, the
Group will be able to
achieve significantly reduced cost of
risk levels and improved asset quality levels on par with
other European banks, while maintaining a satisfactory
capital position above applicable minimum capital
requirements;
•
The core operations efficiency enhancements initiative
represents the Group’s aim to achieve operational
excellence by focusing
on core commercial
banking
activities,
executing
on
business
and
retail
banking
growth
strategy, increasing efficiency and reducing operating
costs throughout the Group, targeting a net operating
expenses reduction
of c. Euro 50 million until
the end
of 2024 for the core operations. The further targeted
reduction of NPEs is
also expected to allow
reduction of
the NPE management associated costs, by more than
Euro 100
million, until 2024;
•
The asset-light fees and commissions income growth
initiative is primarily
based on the Group’
s strategy
to grow the fee
income from Wealth
Management
and Bancassurance
products and
services. The Group
expects to benefit from an anticipated growth
in the
affluent segment, supported by macro driven demand
for asset management products and services, while for
Bancassurance products it is expected that the new
exclusive
partnership
with
Generali
will
enable
growth,
in
combination with an anticipated increase in demand for
relevant products;
•
The growth
in international
presence
in Romania
where
the banking sector is relatively
underpenetrated and
has a strong growth outlook (as the country is also a
significant EU
RRF funds’
beneficiary).
Our ambition
is to
further expand our
asset base in
the country, leveraging
all growth options, should these appear with compelling
economics.
Significant
milestones
have
already
been
achieved,
paving
the way for solid performance in
the years ahead:
•
The capital
increase
was successfully
concluded
in July
2021;
•
Decisive progress
on RRF
operationalization
has been
performed, with the Hellenic RRF formalizing our
participation in the
program;
•
Decisive NPE
reduction of
c. Euro 16
billion was
achieved
in 2021, securing c.75% of the total NPE reduction
targets;
•
The observed pick-up in
commercial activity, the growth in
Asset Management along with the
recently announced
business development
initiatives that
strengthened
our franchise
positioning,
allowed the
Group to
record
c. +20% y-o-y increase on fee income reaching the fee
income generation target of c. Euro 0.4 billion for
2021;
•
Transformation program has progressed
swiftly enabling
the Greek operations to reach a more productive and
efficient profile
The main objectives for 2022, that
will allow to remain
aligned with the priorities set through the updated
Strategic Plan
(Project Tomorrow)
for the period
up to
2024, are to:
•
support business
growth
in Greece
with net
new loan
originations of more than Euro 2.0
billion,
•
direct excess
liquidity towards
AuMs and
new loans,
•
achieve double digit growth in
net commission income
mainly driven by loan growth (also supported by the
RRF), higher AuMs and commercial
activity pickup,
•
continue
with
the NPE
reduction
program
executing
the
remaining inorganic transactions of more than Euro
1.0 billion and organic deleveraging through targeted
management actions and
•
conclude the remaining planned capital transactions.
•
The inflationary pressures (in conjunction with the
increase in energy costs) that persisted at the end
of 2021, have been amplified by the invasion of
Russia in
Ukraine,
thus creating
uncertainty
in relation
to the economic activity of both the domestic and
global economy.
For this reason
the Group assesses
on a continuous basis its policy mix to ensure the
achievement of the profitability
and return on equity
targets set by
2024.
TRANSFORMATION
PROGRAM
Alpha Bank’s Transformation program supports the
delivery of the Bank’s strategic plan across three pillars:
customer-centric
growth, organizational
effectiveness,
and operational efficiency. Following the completion of the
bottom-up planning and design phase in May 2021, the
plan is now in the implementation phase. The bottom-up
phase produced detailed implementation plans
for more
than 100 initiatives across 20 workstreams, each of which
has a direct
sponsorship
of one
or more
General Manag
ers.
The plan was delivered with the involvement of more than
150 colleagues over a period of more than 9 months. A
detailed IT delivery plan with more than 70 projects until
2023, underpinning the respective initiatives, has been
defined.
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ANNUAL FINANCIAL REPORT
The program has already started
delivering financial (cost
savings and
revenue growth
enablement)
and non-financial
impact (e.g., capabilities,
platforms, change
management)
and remains
on track to
achieve its
ambitious goals
in 2024.
In Retail Banking, the Bank has shifted
towards a segment-
based organization,
with adjustments
in the
servicing model
to enable better
focus on priority
segments. Administrative
and back-office activities from Branches have been
centralized and automated to free up frontline capacity to
be redeployed in sales activities. In Wholesale Banking,
a
new central team has been
established to monitor
client
profitability and
proactively manage
each account
and the
overall portfolio.
Moreover, a significant
proportion of
branch
transactions from business
customers were migrated
to
digital channels. In Growth
& Innovation, customer experience
improvements (CX)
for the first (pilot)
journey were
completed.
The Bank has launched the digital consumer loan and has
started to actively grow
its sales through digital
channels. In
Operations, the first wave of third
party spend savings was
completed. Furthermore,
efficiency projects
(e.g., automations
and operating model changes)
started delivering impact.
In
organizational effectiveness,
the Bank’s performance
and
talent management framework was strengthened and the
new Employee Value Proposition was defined.
Over the past
6 months, the Transformation
has already built significant
momentum and delivered
significant step changes
to the
Bank’s operating
model and
capabilities.
2022 will
be a
pivotal year
as a
significant number of
projects and
initiatives
will be delivered, enabling a step change for the bank’s
capabilities and competitive positioning.
OTHER
INFORMATION
-APPLICATION
OF
ARTICLE
97(1) PAR.
3 OF
LAW
4548/2018
In application of Article 97, para. 3 of Law 4548/2018, Mr.
D.K. Tsitsiragos,
Independent
Non-Executive
Member of
the
Board of Directors,
did not participate
in two meetings
of
the Board of Directors
of Alpha Services
and Holdings S.A.
regarding the
Galaxy Transaction
in order
to avoid
a possible
conflict of interest
TRANSACTIONS
WITH
RELATED
PARTIES
According to the corresponding regulatory framework, this
report must include the main transactions with related
parties. All the transactions between related parties are
performed in the ordinary course of business, conducted
according to market conditions and are authorized by
corresponding management
personnel. There are no other
material transactions between related
parties beyond those
described in the
following paragraph.
Α. The outstanding balances of the Group transactions with
key management
personnel
which
is composed
by members
of the Board of Directors
and the Executive Committee
of
the Alpha Services and Holdings
S.A., as well as their close
family members and the companies relating to them, as well
as the corresponding results from those transactions are as
follows:
(Amounts
in thousand
of Euro)
31.12.2021
Assets
Loans and
advances to
customers
1,858
Total
1,858
Liabilites
Due to customers
4,352
Employee
defined
benefit
obligations
207
Total
4,559
Letters of guarantee and approved limits
306
From 1
January to
31.12.2021
Income
Interest and similar income
35
Fee and commission
income
10
Other income
1
Total
46
Expenses
Interest expense
and similar
charges
5
Commission expense
1
General and
administrative
expenses
1
Fees paid to key management and close family
members
6,533
Total
6,540
Β. Τhe
outstanding
balances of
Alpha Services
and Hodings
S.A. with
the Group
companies
and the
corresponding
results
are as follows:
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
36
ANNUAL FINANCIAL REPORT
i.
Subsidiaries
(Amounts
in thousand
of Euro)
Name
Assets
Liabilities
Income
Expenses
Letters of
guarantee and
other
guarantees
Banks
1
Alpha Bank S.A.
1,036,262
4,520
37,821
28,098
2
Alpha Bank London
Ltd
117
2,672
3
Alpha Bank Cyprus Ltd
121
22
4
Alpha Bank Romania S.A.
3,457
1,727
5
Alpha Bank Albania SH.A.
139
65
Leasing
1
Alpha Leasing A.E.
1,240
25
2
ABC Factors A.E.
1,358
3
Cepal Hellas Holdings S.A.
2,290
32,904
Investment
Banking
1
Alpha Finance A.E.Π.Ε.Υ.
31
273
455
2
Alpha Ventures A.E.
4
3
Alpha Ventures Capital
Management - AKES
4
Asset Management
1
Alpha Asset Management A.Ε.Δ.A.Κ.
2,615
142
Insurance
1
Alpha Insurance Agents A.E.
4
2
Alphalife A.A.E.Z.
1,180
24,872
5,946
6,109
Real Estate
and hotel
1
Alpha Astika Akinita A.E.
22
1,315
2
Alpha Real
Estate Management
and Investments
S.A.
18
38
820
3
Alpha Real Estate Bulgaria E.O.O.D.
2
4
Alpha Investment
Property Attikis A.E.
7
2
5
Alpha Investment Property
Attikis II A.E.
16
6
APE Fixed Assets A.Ε.
13
4
7
Alpha Investment Property
Neas Kifissias S.A.
8
3
8
Alpha Investment Property
Kallirois A.Ε.
13
2
9
Alpha Investment
Property Levadias
S.A.
8
1
10
Alpha Investment Property
Neas Erythraias S.A.
5
11
AGI-SRE
Participations
1 D.O.O.
83
12
Alpha Investment
Property Spaton S.A.
6
1
13
Alpha Investments
Property Kallitheas
S.A
20
21
14
Alpha Investment
Property Irakleiou
S.A.
1
1
15
AEP Industrial
Property
M.A.E.
9
2
16
Fierton Ltd
51
17
AIP Industrial
Assets ROG
S.M.S.A.
10
2
18
AIP Attica Residential Assets I
S.M.S.A.
10
2
19
AIP
Thessaloniki
Residential
Assets
S.M.S.A.
7
2
20
AIP Cretan
Residential
Assets
S.M.S.A.
4
1
21
AIP Aegean
Residential
S.M.S.A.
6
1
22
AIP Ionian
Residential
Assets
S.M.S.A.
5
1
23
AIP Attica Commercial Assets
S.M.S.A.
9
1
87
24
AIP
Thessaloniki
Commercial
Assets
S.M.S.A.
5
9
25
AIP Commercial
Assets ROG
S.M.S.A.
6
26
AIP Attica Retail
Assets I S.M.S.A.
7
2
37
27
AIP Attica Retail
Assets II S.M.S.A.
5
1
28
AIP Attica Residential Assets II
S.M.S.A
8
8
29
AIP Retail Assets
ROG S.M.S.A.
7
1
30
Alpha Investment Property GI II M.S.A
7
2
31
Reoco Orion X Μ.Α.Ε.
1
32
Reoco Galaxy
IV Μ.A.Ε.
33
Reoco Galaxy
IV Μ.A.Ε.
1
SPEs and
Holding
1
Alpha Group Jersey Ltd
15,300
2
Alpha Group
Investments Ltd
28
3
Alpha Shipping Finance
Ltd
604
615
4
Umera Ltd
1,417
76
5
AGI-Cypre Ermis Ltd
3,050
486
6
Alpha Credit
Acquisition Company
Ltd
5,191
1,975
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
37
ANNUAL FINANCIAL REPORT
Name
Assets
Liabilities
Income
Expenses
Letters of
guarantee and
other
guarantees
7
Alpha International Holdings S.M.S.A.
38
8
Alpha Holdings Single Member S.A.
31
8
Other companies
1
Kafe Alpha A.E.
3
5
11
2
Alpha Supporting Services A.E.
57
91
203
3
Emporiki Management A.Ε.
5
15
4
Alpha Bank Debt Notification
Services S.A.
5
ii.
Joint ventures
(Amounts
in thousand
of Euro)
Name
Assets
Liabilities
Income
Expenses
Letters of
guarantee and
other
guarantees
1
APE Commercial
Property
A.Ε.
1
2
APE Investment Property A.E
15
3
Alpha Investment
Property Commercial
Stores S.A.
1
4
Rosequeens Properties SRL
508
iii.
Associates
(Amounts
in thousand
of Euro)
Name
Assets
Liabilities
Income
Expenses
Letters of
guarantee and
other
guarantees
1
Banking information
Systems A.E.
11
2
Alpha Investment Property Eleona
A.E.
3
Cepal Hellas Holdings S.A.
541
4
Cepal Hellas Holdings S.A.
4,125
Total
1,037,751
44,723
67,163
81,999
C. Other related
party transactions
Τhe outstanding
balances of
Alpha Services
and Holdings
S.A. and
the corresponding
results are
as follows:
(Amounts
in thousand
of Euro)
Name
Assets
Liabilities
Income
Expenses
Letters
of
guarantee
and
other
guarantees
Hellenic Financila Stability
Fund-HFSF
7
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
38
ANNUAL FINANCIAL REPORT
Non
Financial
Report
The Non-Financial Report has been
prepared in accordance
with
Law
4548/2018
and
the General
Electronic
Commercial
Registry’s (GEMI) Circular
62784/2017. In addition,
best
international practices in the issuance of non-financial
information have
been applied,
using recognized
guidelines
and frameworks
(such as the
Global Reporting
Initiative (GRI)
Standards).
Data have been
collected by
either the Alpha
Services and
Holdings, which
is the parent Company
of Alpha Bank,
and
subsidiaries’ systems or
relevant
external
files
prepared
by them. It
should be noted
that Alpha Bank
is the largest
subsidiary of the Group and for this reason, extensive
reference is made to its performance Detailed information
and additional
performance
indicators
for the
Bank,
together
with information on the corporate responsibility activities
of selected Group’s
subsidiaries,
are presented
in the Alpha
Bank Sustainability Report 2021.
Business Model
The Business Model
of Alpha Bank aims to
create value for
its Stakeholders.
Alpha Bank
invests
in its
Employees,
in its
network and infrastructures in order to develop and
place
Financial Capital
Use of financial
capital for
investment in the Group’s
activities,
including reserves
generated through
equity, Customers’ deposits
and
other sources of financing.
Human Capital
Investing in Employees,
in their
management and personal
development, aiming at improving
and developing Products
and
Services that meet
Clients’
requirements.
Manufactured Capital
Investing in infrastructure
for the
operation of the Group (e.g.
Branches, ATMs, information
systems etc.).
Intellectual Capital
Investing in the development
of
innovative Products and
Services.
Natural Capital
Use of natural resources,
including energy for the operation
of the Group.
Social Capital
Cooperation with Stakeholders,
aiming at responsible operation and
support of society.
Code of Ethics
(Commitments, Principles and Obligations)
Activities
Private and Business Banking
Asset Management and Brokerage Services
Investment Banking and Treasury
Other Activities
(Real Estate Management)
Corporate Responsibility
Strategy
Together
for the
Market
Together
for our
People
Together
for
the
Environment
Together
for the
Society
Responsible Operation
Financial Capital
Offering banking and investment
Products and Services, supporting
the Greek Economy.
Human Capital
Providing a healthy work
environment, Employees
with
knowledge, skills and experience.
Manufactured Capital
Better infrastructure
for Customer
service and the
provision of Products
and Services.
Intellectual Capital
Strengthening advisory
services,
extension of
electronic services
to
meet Customers’
changing needs.
Natural Capital
Integrating environmental
criteria in
granting credit; financing investment
projects with environmental benefits,
environmental product
offering,
improving the Group’s
energy
efficiency and reducing
CO₂
emissions.
Social and Relationship Capital
Maintaining Branch
Network
operation in sparsely populated and
economically disadvantaged
areas,
offering social contribution services
and increase
in Employee
volunteering.
Inputs
Value Creation
Outputs
Business Model
Alpha Bank
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
39
ANNUAL FINANCIAL REPORT
on the market high quality services and products. It also
works together with its Stakeholders in order to identify their
requirements in a timely manner, to ensure its responsible
operation and to support the society. Alpha Bank provides a
healthy work environment, in which its Employees broaden
their knowledge and skills and contribute to the development
of new products and
services. Alpha Bank supports the
Greek economy, enhances
its electronic services, offers
products
and
services
with
specific
social
and
environmental
characteristics, and actively contributes to the society.
Covid-19 Response
Value creatio
n
for financial
institutions
is, inherently,
closely
tied to the level of economic activity in the countries it
operates, as well as the overall financial environment. It is
therefore inevitable that exceptional events, such as the
current Covid-19
pandemic,
which cause
a severe
strain on
individual businesses and the economy at large, will also
have a significant impact on the financial institutions. The
deceleration of economic activity caused by the pandemic
has created
a series
of effects,
such as
reduced turnover
and
profits for businesses and/or loss
of income for
employees
in affected sectors, which in turn has impacted the ability of
both businesses and individuals to meet their obligations for
loan repayments.
However, a number of factors ensure that financial
institutions can exhibit resilience against such
impacts.
Alpha Bank has been
consistently performing well in relevant
stress tests, demonstrating the resilience of its business
model and its prudent management of financial resources,
maintaining healthy
capital and
liquidity buffers
and
avoiding exposure to excessive or
uncontrolled risks.
The European Banking Authority has taken decisive
measures to assist Banks in continuing to support their
customers during the Covid-19 pandemic. The issued
guidelines on the implementation
of payment moratoria for
customers affected by the crisis have provided an effective
framework for Banks to assist their customers without
incurring severe losses.
Additionally,
a
temporary
relaxation
of capital requirements has been applied, allowing banks
additional capacity to support businesses and
households to
financially recover.
Overall,
Alpha
Bank
has
exhibited
adaptability
and resilience
during the pandemic, assisted by both State and the
Regulatory authorities, and was able to continue supporting
the economy and its customers under a controlled stress of
its balance sheet and profitability,
without affecting the long-
term viability of
its business
model.
By closely monitoring the international developments
regarding the pandemic, Alpha Bank was able to take a
proactive approach and activated its Business Continuity
Plan (BCP) at
an early stage,
in order to
ensure a coordinated
response to any events that could potentially disrupt its
operations.
It should be noted that the Alpha Services and Holdings
Group initially developed its Pandemic response plan in
2009, at the time of the H1N1 virus outbreak. To ensure
the Group’s pandemic response plan is
sufficiently
robust,
the Business Continuity Managementoffice
reviews the
Pandemic plan
on a regular
basis. As
a result, the
Bank was
well prepared during the Covid-19 outbreak.
For the
areas affected
by Covid-19,
both IT
and Cyberse
curity
Division
have
established
the
necessary
requirements
based
on the relevant risk and operational parameters
to provide
an effective and secure operating environment.
Even though
the Bank
has not
experienced
severe
threats
or incidents due
to Covid-19 related
activities, Phishing and
Fraud campaigns
have increased
as expected.
Alpha Bank
has intensified its awareness
efforts and technical measures
to protect its
Employees and Customers. Additionally, all
the Employees in Alpha
Services and Holdings
Group are
continuously
trained
through
the
Cybersecurity
Awareness
and Training
Program,
which also
includes teleworking
and
remote access security.
In a similar way, Customers
are continuously informed
of the
increased threats
from phishing
and fraud
campaigns
through
the Bank’s Web Banking (pop-ups before and after login),
website portal (dedicated
banner and info pages), Facebook,
Twitter and LinkedIn pages as well
as through newsletters.
Furthermore, Alpha
Bank is continuously
increasing the
readiness of
its Security
Services and
the Bank’s
Computer
Security Incident
Response Team
(CSIRT) collaborates
with
CSIRTs on a global
scale as well
as the Ministry
of Digital
Governance and the Hellenic National
CSIRT, exchanging
threat information related to
Covid-19.
Codes and Policies
Alpha Bank’ s fundamental policies in relation to
environmental, social and
governance
issues
are
presented
in the following table. Further details regarding Alpha Bank
or Alpha Services
and Holdings
Group policies
and corporate
governance are included
in the Corporate Governance
Statement and the Annual Sustainability Report.
It should be
noted that the policies are available
in a dedicated section
at the Group Intranet, Once a new policy or an updated
policy is
published,
a corresponding
circular is
also uploaded
in the
Group’s intranet.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
40
ANNUAL FINANCIAL REPORT
Fundamental Codes Policies and Compliance
Regulations applied
by Alpha Bank S.A.
and Alpha
Services and Holdings Group Companies
●
Code of Ethics
●
Suitability and Nomination Policy for the Members of
the Board
of Directors
●
Diversity Policy
●
Induction
and Training
Policy for
the Members
of the
Board of
Directors
●
Policy for
the Annual
Evaluation
of the
Alpha Bank
Board of
Directors
●
Remuneration Policy of the Members of
the Board of
Directors as per the provisions of Law 4548/2018
●
Remuneration
Policy for
Alpha Bank
and the
other
Group Companies
●
Senior Executives
Severance Payment
Policy
●
Anti-Bribery
and Corruption
Policy
●
Compliance Policy
●
Operational
Risk
Management
Policy
●
Fraud Risk Management
Policy
●
Credit Risk Early Warning Policy
●
Group Credit Risk
Management Policy
●
Group Recovery
Plan Framework
and Manual
●
Group Market
Risk Management
Policy
●
Group Environmental
and Social
Risk Management
Policy on Legal
Entities Lending
●
Concentration Risk
and Credit Threshold
Policy
●
Liquidity Risk Policy
●
Tax Risk Management Group
Policy
●
Information
and
Communication
Technologies
(ICT)
and Security Risk Management Policy
●
Market Abuse
Prevention
Policy and
Procedures
●
Policy on the
Prevention of Conflict of
Interests
●
Policy on Related
Parties Transaction
●
Anti-Money
Laundering
and
Combating
the
Financing
of Terrorism (AML/CFT) Policy
●
Group Business
Continuity
Management
Policy
●
Outsourcing Policy
●
Group Personal
Data Protection
Policy
●
Corporate Responsibility
Policy
●
Policy and
Procedure for
the Provision
of Financial
Assistance (sponsorships)
●
Group
Environmental
Management
Policy
●
Whistleblowing
Policy and
Procedures
●
Bank Secrecy Procedure
●
Main Principles
on Sanctions
or Restrictive
Measures
for Group
Companies
against Countrie
s, Individuals
or
Legal Entities
The Board of Directors with the support of the Corporate
Governance, Sustainability and Nominations
Committee of
Alpha Services
and Holdings
assesses on an
annual basis
its effectiveness as well as that of its Committees. During
2021, the collective evaluation of the Members of the
Board of Directors and its Committees, for the year 2020,
was conducted by a third party, with the assistance of the
Corporate Governance,
Sustainability
and Nominations
Committee. The Individual Evaluation of the Members of
the Board of Directors for the year 2020 was conducted, in
2021, by the Chair of
the Board of Directors.
Further to the aforementioned evaluation
of the Board of
Directors,
an assessment
of the
Board
Members’
collective
suitability in terms of knowledge,
skills and experience
was conducted, based
on the Joint ESMA/EBA
Guidelines
on the Assessment of the Suitability of Members of the
Management Body and Key Function Holders with the
support of the Corporate Governance, Sustainabilit
y
and
Nominations Committee.
Alpha Services and Holdings
Group’s organization
and
operation
are guided
by best
banking and
business
practices,
which are accompanied by certifications
in
accordance
with
the most widely recognized International Standards (ISO
9001 Quality Management System,
ISO 20000 Information
Technology Service Management System, ISO 22301
Business Continuity Management System,
ISO 27001
Information Security Management System, ISO 14001
Environmental Management System etc.) in critical areas
of operations. The certified management systems which
the Group has in
place are designed to enable
it to better
respond to the
ever-changing needs of Customers, in
full
alignment with the applicable
legislative and regulatory
requirements.
In 2021, Alpha Bank managed also to enhance its
Environmental
certifications
by implementing
the ISO
14064
Management System (Greenhouse Gases Emissions)
and
successfully receiving the verification by a third party. In
addition, the Bank successfully developed
and published
its first Environmental Statement
in accordance with the EU
Eco-Management and Audit Scheme (EMAS) and filed the
Statement to the Hellenic
Ministry of Environment
and Energy.
Sustainability
Approach
With a view to ensuring its sustainable development, Alpha
Services
and Holdings
is committed
to operating
responsibly,
taking into account the economic, social and environmental
parameters of its operation, both in Greece and in the other
countries where it is present.
To this end, a “Corporate
Responsibility Policy”, has been developed.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
41
ANNUAL FINANCIAL REPORT
The Corporate
Communications
Division supports
the Bank’s
Management in matters of Sustainability,
by submitting for
approval related policies and strategies and by managing,
coordinating, developing and promoting the Bank’s
Sustainability activities,
seeking to continuously improve its
performance in this area. Executives of the Division meet
on a regular basis
with Members of the
Senior Management
of Alpha Services
and Holdings,
the Board of
Directors and
the Corporate Governance, Sustainability
and Nominations
Committee, to discuss the Bank’s Sustainability
actions
(such as materiality analysis, disclosure of the Bank’s non-
financial information
in accordance
with Greek law,
etc.).
In 2021, a
new comprehensive
ESG Governance
Structure
has been
developed
at a
Group
level, which
demonstrates
the Group’s strong commitment to Sustainability issues.
More specifically, a Sustainability Committee has been
established, which supports the Board of Directors in
overseeing the Sustainable Development processes
and operations. The Committee has a central role in
ESG direction
setting and oversight.
The purpose of
the Committee is to strengthen the Bank’s long-term
commitment in creating value
through the ESG
objectives
and to monitor the effectiveness of Alpha Services and
Holdings to meet its targets and goals in relation to ESG
issues. Furthermore, a Group ESG coordinator
has been
appointed
to oversee
the ESG
objectives
within the
cross-
functional ESG Working Group aiming to facilitate an
efficient internal adoption of ESG practices across the
organization.
Additionally, an extended ESG workplan has been
developed in order not only to capture the opportunity to
engage with our stakeholders and ensure the Company’s
sustainability,
but also
to be able
to manage
any ESG
risks.
Alignment with regulatory obligations regarding Climate
Risk
management,
reduction
of
the Group’s
environmental
footprint, alignment with sustainable finance principles,
further contribution to the Sustainable Development Goals
and creation of an attractive working environment are
among the main
objectives of
the workplan.
The Bank has
recognized as
its Stakeholders
the natural
and/or
legal persons
who/which,
either directly
or indirectly
,
are connected
to, and affect
or are affected
by, the Bank's
decisions and
its operation.
Alpha Services
and Holdings
has identified four different Stakeholder groups (i.e.
Analysts and
Investors,
Customers,
Employees
and Society).
The Bank seeks to engage in an ongoing dialogue and
collaboration
with its Stakeholders. Analysts and investors
are provided with full and prompt information via specific
sections on the Bank’s website, together with the Financial
Statements, Business Review as well
as Sustainability
Report of the Bank. Furthermore, the Bank pays great
attention to ensuring its Customers’ satisfaction, and to
providing high quality
products and services.
The Bank’s
Customer Service
Division is
in charge of
Quality Assurance
and is committed to fulfilling these objectives. Alpha Bank
ensures effective communication with Employees, by
establishing
the role
of Human
Resources
Business
Partners
and visits by Human
Resources
Division Executives
to Bank
Units and Branches.
Finally, the Bank
is often involved
in a
dialogue and in consultations with State authorities, both
in Greece and at European
level. The Bank supports
public
administration services,
local
organizations,
foundations
and
it communicates with representatives
of local communities
on a
regular basis.
Alpha Services
and Holdings,
periodically,
tries to
identify
and assess the ESG issues which are related to its
activities and might impact the Group’s operations and/
or its Stakeholders, through a materiality analysis process.
In 2021, the Company performed a new process for the
identification and
mapping of the
most material
issues for
its responsible operation (materiality analysis).
Stakeholders
and Senior Management Executives were involved in the
process, in accordance with best
practices (i.e. the GRI
Standards) and evaluated the following 17 identified
material issues.
•
Integration of ESG
Criteria in Financing
•
Support
of Green
/ Low-carbon
Investments
•
Financial Inclusion
•
Corporate Governance
•
Business Ethics
and Compliance
•
Customer Privacy
and Data
Security
•
Innovation and Digitalization
•
Risk Management
•
Long-term Financial
and Business
Resilience
•
Transparency
•
Responsible
Procurement
and Outsourcing
•
Human Rights
•
Diversity
and Inclusion
•
Health, Safety and Well-being
•
Talent Management
•
Support of Community
•
Operational
Environmental
Footprint
It should be stressed
that the non-financial
matters
identified in Law 4548/2018
and GEMI Circular 62784/2017
are a subset of the issues assessed by the Bank and its
stakeholders. A mapping is presented
in the following table.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
42
ANNUAL FINANCIAL REPORT
Matters
according to Law
4548/2018 and GEMI
Circular 62784/2017
Sustainability
Issues
as in Alpha Services and
Holdings’s materiality
analysis
Key Performance
Indicators
Reference
Environment
Support of Green / Low-
carbon Investments
Operational Environmental
Footprint
New financing
arrangements
for renewable
energy projects
throughout the year (total amount in
Euro)
Percentage of credit cards for which an electronic monthly bill is sent
(e-statements) as of
31 December
(%)
Amount of paper recycled
throughout the year
(total amount in tons)
Percentage of recycling printer consumables (%)
Electricity consumption
throughout
the year
(in kWh)
Section Environment
-
Performance in 2020
and 2021 of
this Non
Financial Report
Social and
employee
matters
Integration of ESG Criteria
in Financing
Responsible Procurement
and Outsourcing
Financial Inclusion
Human Rights
Diversity and Inclusion
Health, Safety and Well-
being
Talent Management
Support of Community
Corporate Governance
Customer Privacy and
Data
Security
Support of Communty
Innovation and
Digitalization
Risk Management
Long-term Financial and
Business Resilience
Transparency
Employees as of 31 December
(number of employees)
Employees with disabilities
as of 31 December (number of
Employees)
Women Employees
as of 31
December (%)
Gender pay gap in the top 10% of employees by total
compensation
(including part time payments) (% in favor
of men)
Gender pay gap in the bottom 90% of employees by total
compensation
(including part time
payments) (% in favor
of men)
Recruitment of women
Employees throughout
the year (%)
Percentage of women in managerial positions
as of 31 December (%)
Percentage of women in the Board of Directors as of 31 December
2021 (%)
Percentage of
Employees covered
by Collective Labor
Agreements as
of 31 December (%)
Employee training (hours of training throughout the year per
Employee)
Number of fatalities
throughout the year
(number of Employees)
Number of injuries throughout
the year (number of Employees)
Percentage of branches
accessible (ramp
or easily accessible)
by
people with disabil
ities (PwD) as of 31 December
(%)
Percentage of monetary transactions
made through digital networks
throughout the year
(%)
Social Contribution (in Euro)
Section Social and
employee matters
-
Performance in 2020
and 2021 of this
Non
Financial Report
Respect of human
rights
Human Rights
Diversity and Inclusion
Customer Privacy and
Data
Security
Responsible Procurement
and Outsourcing
Transparency
Convictions against
the Senior Management
for any incidents of
human rights violations
throughout the year
(number of incidents)
Total number of Customer
privacy breaches
throughout the year
Percentage of
Employees covered
by Collective Labor
Agreements as
of 31 December (%)
Section Human
rights - Performance
in 2020 and 2021
of this Non Financial
Report
Anti-corruption and
bribery
Business Ethics and
Compliance
Responsible Procurement
and Outsourcing
Convictions against
the Senior
Management
for any
corruption
offences throughout
the year (number of incidents)
Employees
attended
compliance
specific
training
programs
throughout
the year
Section Anti-
corruption and
bribery
- Performance in
2020 and 2021 of
this Non Financial
Report
Supply chain
Responsible Procurement
and Outsourcing
Percentage of payments to domestic suppliers
(%)
Section Supply chain
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
43
ANNUAL FINANCIAL REPORT
In the following pages the primary potential risks for the
five areas (environment, social and employee matters,
human rights, anti-corruption and bribery
and supply chain)
specified by the Greek Law 4548/2018 and the General
Electronic Commercial Registry’s Circular 62784/2017
are presented along with
an outline of Alpha
Services and
Holdings’s management approach.
ENVIRONMENT
Potential
Risks
Alpha
Services
and
Holdings’s
identified
environmental
risks include:
•
Inability to integrate environmental criteria
into the
design of new products
and
services
(e.g.
products
with positive environmental impacts), offer of
environmentally responsible investments,
participate
in the financing of projects
with positive effects on the
environment.
•
Failure to
assess
environmental
risks in
customer
and
project finance, including inadequate monitoring of
risk management during the implementation
of the
financed
projects.
Refraining
to
address
risks
presented
by climate change to
businesses, such as the
impact
of more extreme
weather events. Increased costs
from additional due diligence required, when applying
minimum ESG standards.
•
Failure to meet new requirements (e.g. TCFD, MiFID
II,
guidelines
on non-financial
reporting,
EBA guidelines
on
green lending,
ECB guidelines
on climate-related
and
environmental risks, EU Taxonomy, UNEP FI Principles
for
Responsible Banking, UN PRI Principles for Responsible
Investment etc.).
•
Inability to offer environmentally responsible
investments. Miss the opportunity to offer new
investment opportunities
with better performance.
•
Increased risk of damage to
the Bank's infrastructure
due to increased frequency and intensity of extreme
weather events.
•
Increased energy
use (e.g.
from bank
branches,
buildings
and data centers and consumption during transport and
distribution of mail, information material, employe
e
transportation etc.).
•
Increased environmental footprint (e.g. paper
consumption, water consumption, insufficient
management of hazardous
waste, failure to adopt
circular economy principles).
Alpha
Services
and
Holdings’
Management
Raising awareness on environmental issues
and
protecting
the environment are key priorities for the Group. Alpha
Services and Holdings manages the environmental
dimension of financing through its responsible financing
approach,
as explained
in the
“Responsible
Investments
and
Financing” section of
this Report.
The assessment of climate change risks is a key
priority for Alpha
Services and
Holdings. Following
the
recommendations
of
the
Task
Force
on
Climate-related
Financial Disclosures (TCFD), the Bank assesses the
impeding environmental policies, the legal requirements
and the guidelines associated with the climate, in order to
record and
efficiently
manage
related
risks.
In this
context,
it has proceeded to the insurance
of its infrastructures
and buildings, also including
its offices, Branches
and
warehouses, in order to mitigate the
physical risks
associated with the impact of extreme weather conditions.
In addition,
such incidents
are addressed
within the
Bank’s
Business Continuity Management System
to ensure the
uninterrupted provision of services to Customers and other
Stakeholders.
Alpha Services
and Holdings
seeks to
improve
in terms of measuring, managing and minimizing the risks
associated
with climate
change.
Indicatively,
The Bank
has
reviewed the
European Central
Bank Guidelines
on the risks
associated with climate change and the environment and
has launched a specific project to
harmonize it.
The Bank monitors its environmental impacts related to its
operation and aims to reduce its environmental footprint by
promoting the rational use of lighting, heating and cooling
installations in its buildings, the use of environment
-friendly
class A++ or
higher energy efficiency equipment as
well
as distance training, by implementing initiatives for the
efficient use of raw and other materials and by applying
the “reduce,
reuse, recycle”
principles
of circular
economy
in the
waste
management.
Indicatively,
the Bank
recycles
paper,
batteries,
light
bulbs,
printer
consumables,
electric
and electronic equipment, and donates old office equipment.
The Bank’s
Environmental
Policy and
procedures
according to
the requirements of ISO 14001 Environmental Management
System, improve the management of these issues. Through
these procedures, the Bank identifies
and
assesses
known
and potential environmental risks
and opportunities in a
more formal and detailed manner. Furthermore, the Bank
organizes, supports and participates in environmental
actions to cultivate the ecological conscience of its
Employees and their families and to improve the quality of
the environment.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
44
ANNUAL FINANCIAL REPORT
Performance in 2020 and
2021
Indicators
Alpha BankS.
A.
Alpha Services and Holdings
Group
Year
2020
2021
2020
2021
New financing
arrangements
for renewable
energy
projects1
throughout the year (total amount in Euro)2
€ 179,367,000
€ 161,265,146
7
€ 179,367,000
€ 161,265,146
7
Percentage of credit cards for which an electronic monthly bill is
sent (e-statements) as of 31 December (%)
2
53%
56%
45%
48%
Amount of paper recycled3
throughout the year
(total amount in
tons)
485
710
494
726
Electricity consumption (in kWh)
4
throughout the year
46,837,158
81,012,853
4
Percentage of recycling
printer consumables
(%)
5
as of 31.12.2021
149%
6
32%
5
1
This KPI includes
only corporate loans
monitored by the
following Divisions:
Structured Finance. Division,
Corporate Banking
Division and
Business
Centres Division.
In addition, the amount
of loans for renewable
energy projects
represents the amounts
of loans approved dur
ing the year and
not necessarily
the amounts
disbursed.
2
This KPI is applicable only
to the Bank and AB Romania,
AB Cyprus, AB Albania and
AB London. For the year 2020
and 2021, the index has been
restated so as to include only credit (and not debit) cards for which an e-statement
have been sent are included.
3
Amount of paper recycled (total amount in tons) as verified by the logistic partner. Recycled
paper includes cut and uncut - mashed paper bank
documents.
4
The bank calculates
electricity consumption
in all buildings, offices
& branches. Τhe total amount
of electricity consumption
is based on
measurements
taken at buildings, branches
(network), empty
properties & other facilities
of the Bank. In order to calculate
the electricity
consumption, the
following principles were
applied (where
applicable &
feasible):
•
Cases where
the Bank
is charged
with its
share of
consumption, through
the bills
for shared
consumption
and maintenance
expenses for
the
respective buildings are
included.
•
An estimate of the annual
consumption
of about 3%-5% of the total surface
occupied by the Bank
and the Group Companies
included in the
KPI, for
which data
were not
recorded, has
also been
included.
•
For those
areas for
which no
electricity bills
have been
received from
the supplier,
the consumption
has been
projected to
cover the
whole year.
•
The electricity consumption
of the Bank’s electric
vehicles is not taken
into account in the
calculation of the
consumption.
This indicator is included
for the first time in the
Non-Financial
Report for the year
2021 and is applicable
to the following Group
Companies:
Alpha Bank S.A
(main subsidiary
Bank), ABC Factors,
Alpha Asset Management,
Alpha Finance Investment
Services, Alpha
Leasing, Alpha
Ventures,
Alpha Astika
Akinita, Alpha
Supporting
Services,
AlphaLife,
Real Car
Rental,
Alpha Real
Estate
Management
and Investments,
Alpha
Bank Albania, Alpha
Real Estate
Bulgaria, Alpha Bank
Cyprus, Alpha Credit
Acquisition Company Ltd
(ACAC), Alpha Bank
Romania S.A., Alpha
Real Estate
Services Srl,
Alpha Insurance
Brokers Srl,
Alpha Leasing
Romania, Alpha
Bank London.
Comparatives are
presented pro-forma.
5
Total amount of
printer consumables
recycled divided
by total amount
of printer consumables
purchased
during the reporting
year, as verified
by the logistic partner.
This indicator
is included for
the first time in
the Non-Financial
Report for the
year 202and
is applicable
to the following
Group Companies: Alpha Bank S.A (main subsidiary Bank), AlphaLife, Alpha Asset Management, Alpha Finance Investment Services, Alpha
Supporting Services,
Alpha Ventures,
Astika Akinita,
Real Car
Rental, Alpha
Real Estate
Management and
Investments,
Alpha Bank
Albania,
Alpha Bank Cyprus, Alpha Bank Romania S.A., Alpha Real Estate Services Srl,
Alpha Insurance Brokers Srl, Alpha Bank London.
6
Where no data were
available estimations
have been made
with regard to the toners’
average weight.
Due to premise clearing
of the Bank’s
Buildings and Branches
in the year, the total quantity
of recycled toners
exceeded total consumption
(kg) for 2021.Moreover,
the Bank's
percentage
exceeds 100%,
because
it also
includes the
recycled
amount
of the
subsidiaries
“Alpha
Astika
Akinita
S.A.” and
"Alpha
Real
Estate
Management and Investments
S.A.”
7
The decline in New financing
arrangements
for Renewable
Energy projects
is the result of market variation
due to some significant
size projects
in the previous
year, rather than
a change in
the Bank's focus.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
45
ANNUAL FINANCIAL REPORT
SOCIAL
AND EMPLOYEE
MATTERS
Potential
Risks
Alpha Services
and Holdings’
identified
social
and employee
risks include:
•
Insufficient human resources management (e.g.
resulting
in high
Employee
turnover,
insufficient
incentives
for new
Employees, unsatisfied
and insecure
Employees
/ trade
unions, Employees without a common vision / culture,
limited cooperation between Employees etc.).
•
Existence
of unfair
or discriminatory
labor
practices
(e.g.
resulting in incidents of racial, religious and political
racism in the workplace, unequal treatment of men
and women, lack of job opportunities for people with
disabilities, inefficient complaint
handling mechanisms
for labor practices etc.).
•
Insufficient health and safety management
at the
workplace (e.g. resulting in injuries of Employees /
contractors at work, lost days of work, breaches of
regulations governing workplace health and safety, lack
of Emergency
Plans in
the Bank's
buildings and
branches
etc.).
•
Unable to serve Customers through digital networks.
Physical presence
in Branches
is required.
Failure to
foster
financial inclusion.
•
Failure to manage impacts on society and local
communities (e.g. failure to support local economy,
reduce awareness of local communities' needs and
dynamics, failure to monitor and
reporting Bank's indirect
impacts to
society etc.).
•
Unable to provide social contribution, promote and
support Employee efforts to improve environmental and
social practices.
•
Inability to integrate social criteria into the design of
new products
and
services,
to offer
socially
responsible
investments, to participate in the financing
of projects
with positive impacts
on society.
•
Failure to
assess social
risks in
customer and
project
finance.
Alpha
Services
and Holdings’
Management
Alpha Bank’s Employees constitute its most valuable
asset and its
cornerstone, since
the Group’s growth
and
the achievement of its goals largely depend on their
competence. Alpha Bank implements fair labor practices
and policies with regards to
its Employees, following well
established international guidelines.
It ensures high-quality
work conditions and opportunities
for advancement that
are based on merit and equitable treatment, offers fair
remuneration, reward schemes
and
provides
Employees
with continuous education and
training.
As stated in its Corporate
Responsibility Policy,
Alpha
Services
and Holdings
respects
and defends
the diversity
of its Employees and treats all Employees with respect.
The Bank promotes a culture that fosters diversity and
inclusion for its workforce and implements appropriate
metrics to monitor diversity at all levels. All regular
Bank Employees are covered
by the Sector Collective
Bargaining Agreements and the National General
Collective Agreement at Bank level and about 87% are
members of trade unions. During
the second and the
fourth
quarters of 2021, employee satisfaction pulse surveys
were conducted in order to collect and monitor employee
feedback and address concerns in a timely and effective
manner.
During 2021
the role of
Human Resources
Business
Partners was introduced to Alpha
Bank. HRBPs are
responsible for the development and
implementation
of Human Resources strategies and initiatives for
the
assigned fields
of operations.
They also serve
as change
agents for the projects designed to enhance employee
engagement,
development
and
productivity.
HRBPs
are the
people advocates as they serve as the immediate contact
person for the employees of their assigned Units who can
discuss with them any
issue (work related or
personal) they
have.
During 2021, a revamped HR intranet webpage was
launched contributing to an enhanced employee
experience. Additionally, the direct communication
point
with employees, via the #stayconnected
platform, that
was already in place since
2020, was further developed.
The platform offered coaching, parental advising and
well-being sessions during the year with a
significant
participation rate in most initiatives.
Moreover, there was a
focus on creating Communities of Change within there was
a focus on:
•
Enhancing teamwork and collaboration amongst
Community members
•
Sharing
knowledge,
best
practices
and experiences
from
experts
•
Advancing
collaboration
in order
to achieve
the Bank’s
targets
Last but not least, at the end of the year the revamped
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
46
ANNUAL FINANCIAL REPORT
Learning Brand of the Bank was communicated to all
Εmployees, focusing
on new Learning
Academies that
provide Εmployees with access to curated, state of
the art
learning of
varying modalities.
Employees may report through the Bank’s whistleblowing
mechanism any irregularities, omissions or offences that
came to their attention, such as serious violation of policies
and procedures, acts that arguably offend the code of
ethical practice
of the
Bank and
the Group
Companies,
acts
that endanger the safety of an Employee etc. Disputes of a
labor relations nature are
addressed in accordance with
the
provisions of the Personnel
Regulation of the Bank.
The Bank’s training ensures that the training needs of
the Personnel
are covered,
thus addressing
development
needs amongst employees. Areas of
targeted training need
include those associated with specific fields of knowledge
or experience, as well
as interpersonal skills relevant to
the
workplace.
Health and safety at the workplace are significant for the
Group and its Human
Resources, as
any illnesses, injuries
or other health issues may affect the work environment
and the Employees’
efficiency. The
Group complies
with
the laws in force and ensures the provision of additional
benefits and programs such as training
programs
related to robbery incidents, hostage-taking, fire safety,
earthquake and building evacuation etc.
The development
of a comprehensive and effective Business Continuity
Management Framework ensures, to the maximum
extent possible, the protection of the health and safety
of
Employees,
the
uninterrupted
provision
of
services
to
Customers
and other
Stakeholders
(Shareholders,
business
partners, suppliers, Regulatory and State Authorities
etc.)
and the minimization of the consequences (in terms of
operation, finances, legal issues and
reputation) in case
of an unforeseen event which can affect
its operation.
Alpha Bank is in the process of reviewing its procedures
for the development of an Occupational Health and Safety
Management System in accordance with ISO 45001:2018.
In addition, there
is a permanent
presence of Occupational
Physicians within work premises with large number of
Personnel, while the Bank engages with experts (i.e.
psychologists) and offers Employees the opportunity for
consultation and support services.
Having identified the opportunities and challenges of
the new digital era from
an early stage, Alpha Bank
has
established the Digital Transformation and Innovation
Division to coordinate and implement actions and activities
that promote the Bank's digital transformation. The Bank is
actively fostering financial inclusion through an extensive
network of Branches and
off-site ATMs across Greece.
Indicatively,
the Bank
operates
11 Branches
and 46
ATMs in
sparsely populated areas in Greece with fewer than 2,000
inhabitants.
Alpha Services and Holdings continues to invest in
activities and initiatives that support education, culture,
healthcare and the environment and promotes the concept
of voluntarism by raising the awareness of
Employees
and by increasing the number of the relevant programs
and
initiatives.
To
ensure
the
transparency
of
its
social
investments, the Bank applies an internal evaluation
system,
according
to which
all proposals
are assessed
using
objective performance evaluation criteria (economic,
social
and
environmental)
and
are
approved
or
rejected
depending
on the
evaluation result.
Finally,
the Bank
manages
the social
dimension
of financing
through
its responsible
and financing
approach,
as explained
in the “Responsible Investments and
Financing”
section
of
this Report.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
47
ANNUAL FINANCIAL REPORT
Performance in 2020 and 2021*
Indicators
Alpha Bank S.A.
Alpha Services and Holdings
Group
Year
2020
2021
2020
2021
Employees as
of 31
December (number
of Employees)
6,323
5,570
10,528
8,9396
Employees with disabilities1
as of 31 December (number of Employees)
108
77
6
120
88
6
Women Employees
as of 31
December (%)
55%
56%
60%
62%
Gender pay gap in the top 10% of employees by total
compensation
(including part time payments)(% in favor of
men)
7&9
17.6%
22.2%
Gender pay gap in the bottom
90% of employees by total
compensation
(including part
time payments)
(% in
favor of
men)
8
3.2%
16.9%
Recruitment of women Employees
throughout the year (%)
50%
31%
62%
58%
Percentage of women in the Board of Directors (%) as of 31 December
2021
9
17%
16%
Percentage of women in managerial
positions
2
as of 31 December (%)
37%
37%
43%
43%
Percentage of
Employees covered
by Collective
Labor Agreements
as of
31 December (%)
100%
100%
68%
72%
Employee Training
(hours of
training throughout
the year
per Employee)
9
24
13
28
Number of fatalities
3
throughout the
year (number of Employees)
Number of injuries
3
throughout the year (number of Employees)
1
4
1
6
Percentage of branches
accessible (ramp
or easily
accessible) by
people
with disabilities
(PwD) as
of 31
December (%)
6
65%
67%
74%
76%
Percentage of monetary transactions
made through digital networks
4
throughout the year
(%)
5
92%
94%
90%
93%
Social Contribution throughout
the year
10
2,653,650
2,819,758
1
This KPI relates to all employees with any degree of disability.
2
Managerial positions include Branch Managers, Managers and Assistant Managers of Head Office Divisions and Members of the Senior
Management (General
Managers, Executive
General Managers,
CEO).
3
Excludes incidents caused by pathological causes and relates to incidents during working hours.
4
Alpha Bank’s and
Bank’s abroad digital
networks: ATMs, APSs, myAlpha
Web, myAlpha Phone, myAlpha
Mobile.
5
These KPIs are
applicable only to
the Bank and
AB Romania, AB
Cyprus, AB Albania
and AB London.
6
The reduction is due to the Voluntary Separation Scheme
that took place in 2021.
7
The gender pay gap
for the top 10% of
employees by total compensation is calculated as follows: ((Sum of all yearly base salaries of all male
employees included in the top 10% of
employees, including part time payments / Total number of male employees included in the top 10% of
employees) – (Sum of
all yearly base salaries of
all female employees included in the
top 10% of employees, including part
time payments / Total
number of female employees
included in the top 10% of employees)) / (Sum of all yearly base salaries of all male employees included in the top
10% of employees,
including part time payments
/ Total number of
male employees included in the
top 10% of employees).
8
The gender pay gap
for the bottom 90% of employees by total compensation is calculated as follows: ((Sum of all yearly base salaries of all male
employees included in the bottom
90% of employees, including part time
payments / Total number of
male employees included in the
bottom 90%
of employees) – (Sum
of all yearly
base salaries of all
female employees included in the bottom 90%
of employees, including part time payments /
Total number of
female employees included in the bottom 90% of employees)) / (Sum of
all yearly base salaries of all male employees included in
the bottom 90% of
employees, including part time payments /
Total number of male employees included in
the bottom 90% of employees).
9
This indicator is included for the first time
in the Non-Financial Report for the
year 2021. Comparatives are presented
pro-forma.
10
This indicator is included for
the first time in the Non-Financial
Report for the year 2021. It refers
to financial contributions in support
of society,
culture, education, sport and the environment. Sponsorships given by Group companies that belonged to the Group during the year, are also included.
Comparatives are
presented pro-forma.
*
Any KPIs related
to Employees
apply to
all the regular
Employees.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
48
ANNUAL FINANCIAL REPORT
HUMAN
RIGHTS
Potential
Risks
Alpha Services
and Holdings’s
identified
human rights
risks
include:
•
Violations of human rights (e.g.
freedom of association,
collective bargaining, forced or compulsory labor, child
labor etc.).
•
Inefficient complaint handling
mechanisms for human
rights issues.
•
Incidents
of
discrimination
against
Customers.
Alpha Services
and Holdings’
s Management
Alpha Services
and Holdings
respects
and promotes
human
rights through the business policies it applies, its responsible
supply chain and the
relations it develops with
its Customers.
Alpha Bank’s
Corporate Responsibility
Policy and
its Code
of Ethics describe its approach and commitment to the
management of human rights. At the same time, it applies
the law and follows internationally acclaimed directives,
principles and initiatives to protect human rights, such as
the Core Labour Conventions of the International Labour
Organization
(ILO)
and
the Universal
Declaration
of Human
Rights (UDHR).
The Bank
recognizes
the right
to union
membership
and
collective
bargaining
(see
section
“Social
and
employee
matters –
Alpha Services
and Holdings’
Management
of this Report) and opposes all forms of child, forced or
compulsory labor.
Human
rights
issues
are addressed
through
the Human
Resources Business Partners,
as explained above.
Similarly,
employees,
customers
and suppliers
may
report
any conc
erns
through
the Bank’s
whistleblowing
channels.
The Group grants priority to the satisfaction of their
individual and business needs by providing quality
services for all its Customers without any discriminations,
protecting the Customers’ legitimate interests and human
rights.
in 2020 and 2021
Indicators
Alpha Bank S.A.
Alpha Services and Holdings Group
Year
2020
2021
2020
2021
Convictions against
the Senior
Management
1
for any
incidents
of human rights violations
throughout the year
(numbers of
incidents)
Total number
of incidents
regarding Customer
privacy breaches
throughout the year
2
1
3
3
1
As Senior Management are defined the members of the Board of Directors and the General Managers.
2
This indicator is included for the
first time in the Non-Financial Report
for the year 2021. Comparatives are presented
pro-forma
3
This indicator is applicable to the
following Group Companies: Alpha Bank S.A (main
subsidiary Bank), ABC Factors, Alpha Asset Management, Alpha
Finance Investment Services, Alpha
Leasing, AlphaLife, Alpha Ventures,
Alpha Astika Akinita,
Alpha Supporting Services,
Real Car Rental,
Alpha Real
Estate Management and Ivestments, Alpha Bank Albania, Alpha Real
Estate Bulgaria, Alpha Bank Cyprus, Alpha Credit Acquisition Company Ltd
(ACAC), Alpha
Bank Romania
S.A., Alpha
Real Estate
Services Srl,
Alpha Insurance
Brokers Srl,
Alpha Bank
London, Alpha
Real Estate
Services LLC.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
49
ANNUAL FINANCIAL REPORT
ANTI-CORRUPTION
AND
BRIBERY
Potential
Risks
Alpha
Services
and
Holdings’
identified
anti-corruption
and
bribery risks include:
•
Corruption / bribery
/ fraud
incidents within the
Company
or involving other
entities (e.g. suppliers,
customers,
distributors etc.) that are doing business with Alpha
Services and
Holdings.
•
Legal actions
/ fines
against
Alpha
Services
and
Holdings.
•
Lack of or ineffective operation of anonymous reporting
mechanisms (whistleblowing).
•
Lack of or ineffective operation of grievance
mechanisms
regarding
incidents
of
bribery,
corruption
and fraud etc.
Alpha
Services
and Holdings’
Management
In line with its firm and unwavering position against
corruption, bribery
and fraud, Alpha
Bank has issued
a
GroupAnti Bribery
and Corruption
Policy and
established
relevant control mechanisms in order to mitigate the
relevant risks. Those issues were included in the 2021
Compliance Training Program,
in Alpha Services and
Holdings Group Employees.
The Bank conducts
internal
audits for compliance with the regulatory
framework and
Performance in 2020 and
2021
has put in place specialized control and reporting systems
and works closely with the
competent Regulatory Authorities
to compact money laundering and financial crime.
Bank employees follow annual training programs on money
laundering, bank secrecy and anti-corrupting policies and
procedures, in order to ensure their knowledge remains
current. During
2021, the
AML/CFT enhancement
program,
which launched in 2020 with the aim to strengthen the
effectiveness of the relevant procedures and the control
mechanisms, was successfully completed.
In this context,
two new functions were established in the Compliance
Division, regarding
Customer Periodic
Review for
the risk of
Money Laundering
and Financing
of Terrorism
and Customer
Suspicious Transactions Alerts Monitoring,
aiming to
centralize the relevant
procedures.
Additionally, the Bank has established the position of Anti-
Money Launderi
ng (AML) Officer
in each one
of its Branches.
These Branch AML
Officers are provided
with adequate
training
on AML
and anti
-corruption
policies
and
procedures
as well as with daily telephone support to ensure that they
are able to identify and
handle such incidents.
Employees,
Customers
and suppliers
who become
aware of
serious
irregularities,
omissions
or offences,
may
report
them
in accordance with
the Bank’s
Whistleblowing
Policy and
Procedures. During 2021, seven (7)
reports
were
submitted
via the whistleblowing channels. Following the examination
of the relevant Committee, there were no major
findings.
Indicators
Alpha Bank S.A.
Alpha Services and Holdings Group
Year
2020
2021
2020
2021
Convictions
against the
Senior Management
1
for any
corruption
offences throughout
the year (numbers of incidents)
Employees
attended
compliance
specific
training
programs
throughout the year (number of
employees)
2
300
1,230
3,098
4,225
1
As Senior
Management
are defined
the members
of the
Board
of Directors
and the
General
Managers.
2
It applies to all
regular Employees.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
50
ANNUAL FINANCIAL REPORT
SUPPLY
CHAIN
Potential
Risks
Alpha Services
and Holdings’
identified
supply chain
risks
include:
•
Doing
business
with
suppliers
failing
to address
business
ethics (e.g. corruption and bribery issues), fair labor
practices, human rights as well as having negative
impacts on society and/or the environment.
•
Not supporting the local
economy.
•
Outsourcing agreements with companies
that do not
comply with regulations, Alpha Bank's values and
business
principles
or the
current
market practices
(e.g.
business continuity plans etc.).
Alpha
Services
and Holdings’
Management
Alpha Services and Holdings maintains a register of third-
party suppliers.
The Bank
has
identified
the
Corporate
Social
Responsibility
principles
that
should
be
applied
by
the
Bank,
its
suppliers
and partners in
its Corporate Responsibility Policy.
All suppliers are expected to comply with this Policy
and
operate
responsibly.
When
evaluating
suppliers’
performance,
the Bank
assesses
whether
they
have had
their
management systems certified according to international
standards
such as
ISO 9001,
ISO 45001/
OHSAS 18001
and
ISO 14001.
The Bank has
also established
a Group Outsourcing
Policy,
which sets
specific criteria
for third
party service
providers
aiming to minimize potential risks for the Bank and its
Customers. According
to the Policy,
every third party
and
Performance in 2020 and
2021
service provider
is periodically
evaluated by
Alpha Bank
Outsourcing Functional Area, in collaboration with different
Divisions
of the
Bank.
The initial
or/and
periodic
assessment
of suppliers of Outsourcing services (critical
- noncritical)
is carried out with specifically designed questionnaires
containing many questions and information. Through these
questionnaires,
based on
their competencies
and scope,
the
specific jointly-competent Divisions assess
any risks for the
quality of services, counterparty risk (financial status, long-
term sustainability), information security risk, confidentiality
risk, personal data management risk, business continuity
risk, regulatory/legal and
tax
compliance
risk.
Furthermore,
the cooperation and service agreement contracts contain
contractual terms for compliance with labor and insurance
legalization and for taking
the necessary measures to
ensure
the health and
safety of Employees.
In association with the Market and Operational Risk
Division, in 2022,
the assessment criteria will
be enhanced,
in order to further ensure that the Group and its suppliers
and outsourcing partners are working towards a more
sustainable future.
The Bank has begun as of 2021 a transformation project
concerning
the outsourcing
providers’
scorecards,
which align
the Bank’s demands of its vendors with the appropriate
guidelines. The updated
scorecards/questionnaires
are
to be
presented
and approved
by the
responsible
Group
Outsourcing Unit during
Q1 of
2022.
Finally, Alpha Services
and Holdings seeks
to support
local communities and create added value for the local
economies.
In 2021,
Alpha Services
and Holdings
Group
cooperated
primarily
with
local
suppliers,
whenever
possible.
Indicators
Alpha Bank S.A.
Alpha Services and Holdings Group
Year
2020
2021
2020
2021
Percentage of payments
to domestic suppliers1
90%
88%
1
Total amount
paid* of
procurement
(in Euro
-
including
VAT) from
domestic
suppliers
(defined
as domestic
suppliers
for each
country
according
to the
VAT number)
divided
by total
amount
paid of
procurement
(in Euro
-
including
VAT)
from all
suppliers
(domestic and international). This indicator is included for the first time in the Non-Financial Report
for the year 2021
and includes data
from the following
Group Companies:
Alpha Bank S.A
(main subsidiary
bank), ABC Factors,
Alpha Asset
Management,
Alpha Finance
Investment
Services,
Alpha Leasing,
Alpha Ventures,
Alpha Astika
Akinita,
Alpha Supporting
Services,
Alpha Real
Estate Management
and Investments,
Alpha Bank
Albania,Alpha
Bank Cyprus,
Agi Cypre
Ermis Ltd,
Alpha Bank
Romania S.A., Alpha
Real Estate Services
SRL, Alpha Insurance
Brokers SRL, Alpha
Leasing Romania.
Comparatives
are presented
pro-forma.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
51
ANNUAL FINANCIAL REPORT
RESPONSIBLE
INVESTMENTS
AND
FINANCING
Alpha Services and Holdings actively participates in the
global effort to build a sustainable future for the economy
and the planet. In 2019, the Bank signed the six Principles
for Responsible Banking,
which were developed
as an
international initiative
of the United
Nations – Environment
Programme Finance Initiati
ve (UNEP FI). A year earlier, in
2018, and Alpha Asset
Management M.F.M.C.
became a
signatory
of the
Principles for
Responsible
Investment
(PRI)
Initiative.
For the purpose of implementing the Principles, in 2020,
Alpha Bank conducted an Impact analysis of its portfolio and
submitted
its first
self-assessment
report to
the UNEP
FI. The
Bank identified positive and negative associations between
its portfolio and the 23 environmental, economic and social
areas defined by the UNEP FI Principles for Responsible
Banking (PRB).
For this initial
assessment, the
analysis was
focused on the
Bank’s operations
in Greece, across
its Retail,
Small and Medium Businesses, Wholesale, and Investment
activities.
The most significant impact areas were prioritized based
on Alpha Bank’s
exposure in
different sectors
through its
portfolio and on the priorities and challenges identified at
the national
level in
Greece. To
better capture
Alpha Bank’s
actual impacts, members of the Senior Management as well
as representatives of key
business lines were involved
in the
process.
The four
(4) most
significant
impact
areas
identified
were namely Water,
Employment,
Waste and Climate.
For
these four areas,
Alpha Bank
has set specific
medium and
long-term targets that will increase its positive impacts,
while minimizing negative impacts.
Alpha Bank seeks to increase its positive effect on society
and the environment, utilising new business opportunities
and generating
value for
all stakeholders.
The Bank
offers
thematic investments with a positive direct or indirect
impact on humanity and the environment (Socially
Responsible Investing - SRI) as well as on mutual fund
choices that also take into
account social responsibility and
corporate governance with regards to
the underlying assets
under
management
(Environmental,
Social
and
Governance
-
ESG criteria). Aiming to raise
awareness regarding
ESG
and sustainable investments, Alpha Bank
organizes
informative events and on a regular basis publishes relevant
informative material in reports. It supports households and
business
responsible
investment
choices
and
invests
in large
infrastructure projects and projects that have a positive
environmental
and social
impact.
On this
basis, Alpha
Bank
regularly coordinates internal and external (Customer)
events focused on the merits
of ESG investing.
The Bank’s Project
Finance Unit
works on securing
financing
for investments in projects aiming at benefiting society.
In 2021, the Project Finance Unit continued its successful
activity, providing financing for new investments
in wind
farms and solar parks, while it also undertook or participated
in new financing
arrangements.
Since 2016,
the Group
has incorporated
the "Environmental
and Social Risk Management Policy on Legal Entities
Lending" in the Group’s
existing Credit Risk
Management
Framework and
the Group's
Credit Policy,
thereby enhancing
the effective management of the environmental and
social dimension of financing. The Policy presents the
responsibilities and the approach followed in managing
environmental and social risk at every stage of the lending
process and
also
provides
an
industry-specific
Exclusion
List (i.e. a
list of
sectors that the
Group does not
finance), as
well as a list of
crucial industry sectors/activities associated
with environmental and social risk. All obligors-legal entities
are evaluated, assessed and reviewed against the possible
environmental or social risks in each stage of the Group’s
corporate credit procedure. When
specific
criteria
are
met,
an environmental and social due diligence, i.e. on-site visit
at customer’s
premises,
is conducted
by environmental
and
social specialists in order to assess customer’s compliance
with the respective legislation. Similarly, in order to assess
the investments, the Project Finance team collaborates with
specialized technical advisors on the
projects’ environmental
licensing and environmental due diligence. Following
the
disbursement of credit, adherence to environmental terms
and commitments is obligatory, throughout the long duration
of the
said financings.
In 2021, there were two (2) cases of non-approval of credits
due to issues which occurred during the assessment of
environmental and social risks.
Alpha
Asset
Management
Alpha Asset Management
M.F.M.C. is committed
to the
implementation of the six Principles of the UN-supported
international Principles
for Responsible
Investment (PRI)
Initiative. Alpha Asset Management’s framework
for
responsible investments aims to better allocate capital by
considering
material
environmental
and
social
issues,
as
well
as governance factors in the investment process.
In 2021, the company remained focused on supporting
ESG incorporation into the portfolio management
process
and investment decision making while improving the
capabilities on assessing issuers’ sustainability
credentials
and enhancing risk analysis
with ESG considerations.
On
stewardship, the company strengthened its activities by
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
52
ANNUAL FINANCIAL REPORT
exercising its voting rights in General Meetings and by
engaging with investee companies on their decarbonization
plans, disclosure of climate metrics, human rights, and
compliance with the new law on corporate governance of
listed companies
in Greece.
The ESG
Investment
Committee
was established to govern and oversee the implementation
of ESG incorporation and monitor
ESG risks for financial
products. Emphasis was placed in communicating the
company’s responsible
investment approach
and ESG
developments to its
stakeholders.
The company’s framework to responsible investing as
outlined in the
“Environmental,
Social and Governance
(ESG)
policy” represents the guiding principles to ensure that
information on ESG risks and opportunities is appropriately
incorporated into
the investment
process. ESG
factors are
considered alongside traditional financial analysis and active
ownership to provide a comprehensive and holistic view of
investments, better manage risks and help identify those
investments that have the potential
to deliver sustainable
returns. The methodology for responsible investment
covers equity, fixed income and multi-asset portfolios and
includes ESG due
diligence in fund
of funds’ portfolios.
The
responsible investment approach combines an optimal blend
of ESG strategies, adapted for each fund according to the
specific
characteristics
of its
asset class,
investment
process
and geographical area.
The company
repositioned the
Alpha (LUX)
Global Fund
of
Funds into
an ESG
offering that
promotes environmental
and/or social characteristics.
Moreover, the company
prioritized its efforts to comply with the EU Sustainable
Finance Disclosure
Regulation
(SFDR), effective
from March
10th, 2021 and classified three investment products
in alignment with Article 8 of the SFDR. Disclosure
requirements related to the Regulation (EU) 2019/2088 can
be found in the dedicated Sustainability Investments section
of the
company’s website.
In addition, the company submitted the third annual PRI
Transparency
Report
and completed
an analysis
of the
main
gaps for future development of its responsible investing
practices.
Alpha Asset Management has been awarded the score of
“A” (in an evaluation scale of E – A+) for its approach to
responsible investing.
The score was awarded
by the PRI in
its 2020 assessment report and demonstrates
the level of
Alpha Asset Management’s expertise in terms of
integration
of ESG criteria across
its investment processes.
Alpha Asset Management approach to responsible
investment reflects the best interest of its stakeholders in
delivering enhanced risk-adjusted returns over the
long term
and contributing to
a sustainable world
ESG
PERFORMANCE
RATINGS
Alpha Services
and Holdings
is subject
to assessments
by
international analysts and rating agencies and as shown
in the following table, it is constantly improving its ESG
performance.
ESG Ratings
Alpha Services and Holdings Performance
Year
2017
2018
2019
2020
2021
MSCI ESG Rating
(scale CCC-AAA)
BB
BBB
A
AA
AA
FTSE4Good
Emerging
Index
ü
ü
ü
ü
ü
ISS ESG
Quality
Score
1
(score 1-10, 1 indicates lower risk and better disclosure)
E: 2
S: 2
G: 8
November
2018
E: 1
S: 2
G: 9
October
2019
E: 1
S: 2
G: 4
December
2020
Ε: 1
S: 2
G: 6
December
2021
Vigeo Eiris Best Emerging
Market Performers
ü
ü
ü
Climate Change CDP
C
B
C
C
B
Bloomberg Gender
Equality Index
ü
(Index 2019)
ü
(Index 2020)
ü
(Index 2021)
ü
(Index 2022)
1
The ISS rating is
a comparative rating, which fluctuates due to changes in the
market, rather than the sustainability performance
of Alpha
Services and
Holdings.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
53
ANNUAL FINANCIAL REPORT
EU
TAXONOMY
DISCLOSURE
REQUIREMENTS
Regulation
(EU)
2020/852
(EU
Taxonomy)
was
created
to
meet the need for
a common system
for the classification
of environmentally sustainable economic activities. At
the same time, it forms an integral part of the European
Green Deal, as
well as of the
EU Action Plan
on Sustainable
Finance.
The EU
Taxonomy
Regulation
is effective
since July
12th,
2020, and establishes the following six environmental
objectives:
1.
Climate change mitigation;
2.
Climate change adaptation;
3.
Sustainable use and protection of water and marine
resources;
4.
Transition to
a circular
economy;
5.
Pollution
prevention
and control;
and
6.
Protection and restoration of
biodiversity and ecosystems.
According to the EU Taxonomy
Regulation, an economic
activity is categorized as environmentally sustainable when:
a)
it contributes significantly to the achievement
of one or
more of the aforementioned environmental objectives;
b)
it does not do significant harm to other environmental
objectives;
c)
it is
exercised in accordance with the
minimum
safeguards
1
; and
d)
it complies with the technical control criteria established
by the
Commission.
The 1st Delegated Act (commonly known as the "Climate
Delegated Act") concerning the technical criteria for
economic activities
with a significant contribution
to the first
two objectives, (i.e., the climate change mitigation and the
climate change adaptation), was adopted on July 4th, 2021,
and is effective as from January 1st, 2022. The technical
criteria for the remaining objectives are expected to be
issued within the
first half of
2022.
According to
the Regulation
(EU) 2020/852
(EU Taxonomy),
the term “eligible” is used for economic activities included in
the Climate Delegated Act. However, it should be noted that
even if an economic activity is eligible, it does not mean it is
also environmentally sustainable. The term "environmentally
sustainable activity or investment" is associated with
alignment, which requires greater analysis compared to
eligibility. To be Taxonomy-aligned an economic activity
should comply with all the requirements listed in the
respective technical criteria, should not do significant harm
to other environmental objectives, and should be exercised
in accordance with the minimum safeguards.
Alpha Bank, considering what has been published to date
regarding the
EU Taxonomy
Regulation
and by
making
some
reasonable assumptions,
where necessary,
has begun to
formulate its own strategy to be able to comply with
the
strict EU Taxonomy timetable:
Eligibility reporting
Reference Period:
2021
Alignment reporting
(regarding the provision of
financing)
Reference Period:
2023
Alignment reporting
(incl. trading book and commission
and fees for other
commercial services
and activities than the provision
of financing)
Reference
Period:
2025
01/22
01/23
01/24
01/25
01/26
Eligibility reporting
Reference Period:
2022
Alignment reporting
(regarding the provision of
financing)
Reference Period:
2024
1
Minimum safeguards
(Article 18) are procedures
applied by an undertaking
engaged in an economic
activity in order to ensure compliance
with
the guidelines of the OECD
(Organization
for Economic Cooperation
and Development)
for multinational
companies and the
UN Guiding
Principles on Business,
including the principles
and rights set out in the eight fundamental
conventions identified
in the International
Labour
Organization’s
declaration on Fundamental
Rights and Principles
at Work and the International
Bill of Human Rights.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
54
ANNUAL FINANCIAL REPORT
Eligibility compliance at first and alignment with the EU
Taxonomy
Regulation
as the
next step,
is a
new obligation
for corporations, including credit institutions, even though
the technical criteria under the objectives 3 to 6 have not
been issued yet. Alpha Bank closely monitors all relevant
announcements
to
ensure
transparency
and
completeness
of the information required to be disclosed, both for the
current year as well as
for the upcoming years.
1.
Quantitative
Disclosures
1.1
Contextual
Information
This section describes the
contextual information in support
of the quantitative indicators, including the scope of assets
and activities covered by the KPIs, information on data
sources and limitations.
Eligible economic
activities included
in the
EU Taxonomy
Regulation, based on
the NACE code classification,
are
categorized in 11 sectors for the environmental objective
of climate change mitigation and in 15 sectors for the
environmental objective
of climate change adaptation.
Alpha Bank
proceeded
to the
classification
of its
exposures
in
economic activities that are eligible and economic activities
that are non-eligible according to the provisions of the EU
Taxonomy
Regulation,
by
making
reasonable
assumptions
for the data available for the year 2021. As a result of the
classification exercise,
Alpha Bank concluded
that Bank's
exposures match
against 10
eligible NACE
sectors related
to the environmental
objective of climate
change mitigation
and against 12 NACE sectors related to the environmental
objective of climate change adaptation. Note, though, that
under each
NACE
code there
are numerous
4-digit activity
numbers (at class level), which, based on the Climate
Delegated Act, have been
categorized into eligible and
non-
eligible activities. In other words, a
NACE
sector
contains
both 4-digit eligible and non-eligible sub-codes.
Detailed analysis of this exercise is illustrated in the table
below:
Exposures to eligible
NACE sectors Alpha
Bank - 2021
1
Environmental goals
Regulation (EU)
2020/852 (ΕU
Taxonomy)
Climate change mitigation
Climate
change
adaptation
Sector
Activity
Sector
Activity
C
Manufacturing
C
Manufacturing
D
Electricity, gas,
steam and
air conditioning
supply
D
Electricity, gas,
steam and
air conditioning
supply
E
Water supply; Sewerage,
waste
management and remediation
activities
E
Water supply;
Sewerage,
waste
management
and remediation activities
F
Construction
F
Construction
H
Transportation
and storage
H
Transportation
and storage
J
Information and communication
J
Information and communication
L
Real estate activities
K
Financial and
insurance activities
M
Professional, scientific,
and technical
activities
L
Real estate activities
N
Administrative
and support
service
activities
M
Professional, scientific,
and technical
activities
S
Other service
activities
N
Administrative and support
service activities
P
Education
S
Other service
activities
As regards the KPIs and other ratios presented in this
report, it should be emphasized that the figures have
been calculated based on financial data of the Bank as
of
31.12.2021 and not on the financial data
of the Group as of
31.12.2021.
The proportion (%), nevertheless, of the Bank’s total
assets against the total assets of the Group accounts for
approximately
90%. On
this ground,
the Bank
has proceeded
with the
classification
of exposures
in accordance
with EU
Taxonomy
Regulation
using only
the Bank's
financial
data.
All calculations were carried out based on accounting
balances and other financial data
denominated in Euro (€)
as
at 31.12.2021.
Alpha Bank
proceeded
to the
classification
of its
exposures
to loans and advances, debt securities and equity
instruments in eligible economic activities, considering the
1
The NACE codes shown
in the table below are
in line with Regulation
(EC) No 1893/2006
establishing
the statistical classificatio
n
of economic
activities NACE Revision
2.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
55
ANNUAL FINANCIAL REPORT
eligible NACE
activity codes,
as set
out in Delegated
Act
(EU) 2021/2139.
Based on the
Delegated Act,
exposures
to household
loans,
loans to
central
governments,
central
banks
and
supranational
issuers,
as well
as interbank
loans,
have
been excluded
from the scope for
the determination
of exposure to loans
on eligible economic activities.
Exposures to general public administration activities
(central governments) have been excluded from the
scope for determination of exposure
to securities /
bonds
to eligible economic activities. As regards shares and
mutual funds no need arose to scope out any exposures
for the determination of exceptions to be made from
the calculation of the exposures to eligible economic
activities.
In addition, a
separate assessment has been made
for
the proportion of exposures to eligible and non-eligible
economic activities in undertakings that are obliged to
publish non-financial information (NFRD)
pursuant to
Article 19a or 29a of Directive (EU) 2013/34.
An analysis on the proportions of exposures to loans
and advances, debt securities
and equity instruments
on eligible and non
-eligible economic activities
was
carried out for the two environmental objectives (namely,
climate change mitigation
and climate change adaptation)
separately and for
the total.
1.2
Key
Performance
Indicators
(KPIs)
- 2021
Regarding quantitative disclosures, the proportions
of
exposures to eligible and
non-eligible economic activities,
as described in the EU Taxonomy Regulation,
have
been calculated using the total assets of the Bank as
denominator.
The following
categories
of exposures
have been
included
or
excluded for the calculation
of the KPIs as necessary:
•
exposures
to central
governments,
central
banks,
and
supranational issuers;
•
exposures in
derivatives;
•
exposure
in trading
portfolio
securities;
and
•
exposures to entities that are not obliged to publish non-
financial information pursuant to Article 19a or Article
29a of
Directive (EU) 2013/34.
The following table presents the KPIs
for the year
2021:
Νο.
Key Performance
Indicators (KPIs)
- 2021
1
Exposures to
Taxonomy-eligible
economic activities
(excl. exposures
to central
governments,
central banks,
and supranational
issuers) / Total assets
of the Bank
5.27%
2
Exposures to
Taxonomy non-eligible
economic activities
(excl. exposures
to central
governments, central
banks, and
supranational issuers) /
Total assets of
the Bank
24.70%
3
Exposures to
Taxonomy-eligible
economic activities
(excl. exposures
to central
governments,
central banks,
and supranational
issuers) / Total assets of the Bank (excl. exposures to central governments, central banks
and supranational issuers)
5.87%
4
Exposures to Taxonomy
non-eligible economic
activities (excl. exposures
to central governments,
central banks,
and
supranational issuers)
/ Total
assets of
the Bank
(excl. exposures
to central
governments,
central banks
and supranational
issuers)
27.55%
5
Exposures to
Taxonomy-eligible
economic activities
& non-NFRD
obliged pursuant
to Article
19a or
29a of
Directive (EU)
2013/34 (excl.
exposures to
central governments,
central
banks and
supranational
issuers) /
Total assets
of the
Bank (excl.
exposures to central governments, central banks and supranational issuers)
4.63%
6
Exposures to
Taxonomy non-eligible
economic activities
& non-NFRD
obliged pursuant
to Article
19a or
29a of
Directive (EU)
2013/34 (excl.
exposures to
central governments,
central banks
and supranational
issuers) /
Total assets
of the
Bank (excl.
exposures to central governments, central banks and supranational issuers)
20.79%
7
Exposures to
Taxonomy-eligible
economic
activities (excl.
exposures
to central
governments,
central banks
and supranational
issuers) / Total
covered assets of the
Bank
7.73%
8
Exposures to
Taxonomy non-eligible
economic activities
(excl. exposures
to central
governments, central
banks and
supranational issuers) /
Total covered
assets of the
Bank
36.28%
9
Exposures to
central governments,
central banks
and supranational
issuers /
Total assets
of the
Bank
10.34%
10
Exposures to derivatives
/ Total assets
of the Bank
1.43%
11
Exposures to trading portfolio / Total assets of the Bank
0.01%
12
Exposures to non-NFRD obliged
pursuant to Article 19a or 29a of Directive (EU) 2013/34 / Total assets of the Bank
22.74%
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
56
ANNUAL FINANCIAL REPORT
Νο.
Key Performance
Indicators (KPIs)
- 2021
Without the
deduction
of the non-NFRD obliged
customers
With the deduction of
the non-NFRD obliged
customers
13
Exposures to Taxonomy
-eligible loans
/ Total value
of loans (excl.
exposures
to central governments, credit institutions, households)
17.39%
18.83%
14
Exposures to Taxonomy
non-eligible loans
/ Total value
of loans (excl.
exposures to central governments, credit institutions,
households)
82.61%
81.17%
15
Exposures to Taxonomy
-eligible bonds
/ Total value
of bonds (excl.
exposures
to central governments)
17.98%
9.46%
16
Exposures to Taxonomy
non-eligible bonds
/ Total value
of bonds (excl.
exposures to central
governments)
82.02%
90.54%
17
Exposures to
Taxonomy-eligible shares
/ Total value
of shares
23.23%
2.18%
18
Exposures to Taxonomy
non-eligible shares
/ Total value
of shares
76.77%
97.82%
19
Exposures to Taxonomy-eligible activities / Total value of activities examined
(loans, bonds, shares)
17.57%
3.87%
20
Exposures to Taxonomy non-eligible activities / Total value of activities
examined (loans, bonds,
shares)
82.43%
96.13%
2.
Qualitative
Disclosures
Qualitative data and analyses have been prepared and
presented in accordance with the provisions of Annex 11 to
the Delegated Act pursuant to the Regulation (EU) 2020/852
(EU Taxonomy Regulation) and meet the disclosure
requirements set out in the Regulation for the financial year
2021.
2.1
Business
strategy,
product
design,
engagement
with client and counterparties
As part of its broader ESG strategy, Alpha
Services and
Holdings has recognized the EU
Taxonomy (EU Regulation
2020/852), as
the central
pillar of
its institutional
framework
on climate change, environmental protection, and equitable
development for all. The company has adopted a holistic
approach
to its
ESG strategy,
aiming
to support
its customers
in their transition to sustainability, and ensure the long-term
value of its investors, supporting the objectives of the Paris
Climate Agreement.
Specifically,
Alpha Services
and Holdings
has defined
and is
implementing an
ambitious workplan,
aiming to strengthen
its sustainability performance, enhance its management
of climate and environmental risks, comply with
the EU
Taxonomy timetable
and integrate
ESG criteria,
in the
evaluation of its
loans and investments.
In this way, the
Company will be able to
monitor and analyze
the sustainability of its financing activities
and investments,
throughout their life cycle, in an
objective manner.
The structured collection, management and application
of
relevant sustainability data, for each customer, loan and
investment, will enable the Group, to assess the quality of
its assets,
against the
EU Taxonomy
criteria. Moreover
this
will serve as the basis for target setting and enable directed
actions to
improve the
Group’s
sustainability
KPIs, in
line with
the evolving requirements of investors, regulators, markets
and society.
The cornerstone
of this plan
is Alpha
Services and
Holdings’
Sustainable Finance Strategy, which includes
the design of
specific financial products to enable its customers' transition
to low-carbon business models and carbon-reduction /
climate defense technologies.
In addition to the above financial tools, Alpha Bank is
providing awareness and training, to its employees,
customers and
markets on
ESG and
climate risks,
aiming to
add the power of its brand name to the wider sustainability
transition effort.
Furthermore,
Alpha Services
and Holdings,
will leverage
its large ecosystem of partners and suppliers, to further
promote the implementation of the EU
Taxonomy Regulation
and EU green deal,
via the adoption of
environmental criteria
and minimum social safeguards in the markets in which it
operates.
By integrating ESG criteria in its risk management
mechanisms, credit approvals, investment
decisions,
procurement, as well as the evaluation of its human capital,
Alpha Services and Holdings will be in a position to ensure
the reliability, transparency and completeness of any
sustainability statement and publication,
which will be based
on measurable, comparable, verifiable data. By
ensuring
that investors, civil society and other stakeholders have the
appropriate level of access to the correct information, Alpha
Services and Holdings contributes to the development of a
responsible attitude towards entrepreneurship
and aims to
create security for its investors and to protect them from
"greenwashing" phenomena.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
57
ANNUAL FINANCIAL REPORT
In addition, Alpha Services and Holdings is implementing
international standards and protocols aiming to reduce its
scope 1 and 2 carbon footprint, promote environmental
protection and mitigate climate change.
In addition, in 2021
the Group’s governance model was updated in order to
ensure
more
effective
management
of ESG
and Sustainable
Development issues. Central to this new structure is the
Group Sustainability
Committee,
which
supports
the
Board
of Directors
in overseeing
ESG topics,
steers the Group’s
ESG strategy
and
oversees
its
implementation.
In
addition,
a cross functional
ESG working
group has
been established
and a central ESG Group
Coordinator has
been appointed
to oversee all sustainability
initiatives, aiming at faster and
more effective internal adoption of ESG practices.
2.2
Complementary
information
in
future
support
of Taxonomy-aligned economic activities
Based on the results of the analysis of the data
available for the year 2021 regarding EU Taxonomy
eligibility and the forthcoming issuance of all technical
criteria for EU Taxonomy
alignment,
Alpha
Services
and Holdings will prioritize the nature
and objectives
of Taxonomy-aligned economic activities and their
evolution over time, including the determination
of the
weight of financing of Taxonomy-aligned economic
activities in their
overall activity.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
58
ANNUAL FINANCIAL REPORT
Explanatory
Report
of
the
Board
of
Directors
of
Alpha
Services
and
Holdings
S.A.
for
the
Year
2021
Pursuant to the Decision of the Ministry of Development and
Investments under Protocol Number 45089/16.4.2021,
the
demerger of the credit institution under the corporate name
“ALPHA BANK SOCIETE ANONYME”
(with Registration Code
Number 223701000 in the General Commercial Registry
(G.E.MI.) and T.I.N. 094014249,
which has already been
renamed
“ALPHA
SERVICES
AND HOLDINGS
S.A.”, hereinafter
the “Demerged Entity”) was approved by way of hive-down
of the banking business sector with the incorporation of a
new company-credit institution under the corporate name
“ALPHA BANK S.A.” (with Registration Code Number under
G.E.MI. number 159029160000 in the General Commercial
Registry (G.E.MI.)
and T.I.N. 996807331),
in accordance
with
the provisions of article
16 of Law 2515/1997, articles
54
par. 3, 57
par. 3, 59-74
and 140 par.
3 of Law
4601/2019
as well as in accordance
with article 145 of Law
4261/2014,
as in force (the “Demerger”). As a consequence of the
Demerger, Alpha
Bank S.A.
substituted the
Demerged Entity
by operation of Greek law as universal successor in all its
assets and liabilities, rights and obligations and, in general,
in its legal
relationships within the banking business sector.
The present
Explanatory
Report
of the
Board of
Directors
of Alpha Services and Holdings
S.A. (hereinafter the
“Company”)
to the
Ordinary
General
Meeting
of Shareholders
of the Company for the Year 2021 contains detailed
information, pursuant to the provision of article 4 par. 7 of
Law 3556/2007, the reference
date being 31.12.2021, in
accordance with the order in which they are written in the
provision in question.
In particular:
a.
On 31.12.2021 the share
capital of the Company stood
at the total amount of Euro
703,794,329.10 divided into
2,345,981,097
common,
registered,
dematerialized
shares
with voting
rights, of
a nominal
value of
Euro 0.30
each. All
shares are
listed for
trading on
the Securities
Market of
the
Athens Exchange.
Out of the said common, registered, dematerialized
shares with voting rights, 2,134,842,798 have been
subscribed by Private Investors and 211,138,299 have
been issued
by the
Company
and
have
been
subscribed
by
the
Hellenic
Financial
Stability
Fund,
pursuant
to
Law
3864/2010, governed by virtue of the terms thereof.
The 2,134,842,798 shares that have been subscribed
by Private Investors represent 91% of the total paid-in
share capital of the Company and embody all the rights
and obligations provided for in
the law and
the Company’s
Articles of
Incorporation.
It is noted that, following a relevant
notification from the
Hellenic Financial Stability Fund on 15.7.2021, pursuant
to the provisions of Law 3556/2007,
as in force, the latter
holds, as of 13.7.2021, 211,138,299 common, registered,
dematerialized shares of the Company with voting rights.
The 211,138,299
shares
held
by
the Hellenic
Financial
Stability Fund represent 9% of the total paid-in share
capital of the
Company.
Out of the above
common, registered,
dematerialized
shares with voting rights, 169,174,167 have been issued
by the Company and
have been subscribed
by the Hellenic
Financial Stability Fund, pursuant to
the
provisions
of
article 7a par. 3 of Law 3864/2010. With regard to these
shares, it is
noted that
the Hellenic
Financial Stability
Fund:
•
became
a Shareholder
of the
Company
within
2013,
in the context of the recapitalization of Greek credit
institutions, on the basis of Law
3864/2010, having,
however, restricted
voting rights
at the General
Meeting;
•
may vote at the General Meeting only on resolutions
pertaining to the amendment of the Articles of
Incorporation,
including
the increase
or reduction
of the
share capital or the grant of a relevant authorization
to
the Board
of Directors,
the merger,
split-up,
conversion,
revival, extension of the term of operation or winding-
up of the Company, the transfer of assets, including
the sale of Group Companies, or on any other item for
which an
enhanced
majority is
required in
accordance
with the stipulations
of the
law as in
force;
•
also possesses all the other rights
stipulated by Law
3864/2010, as each time
in force.
BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
59
ANNUAL FINANCIAL REPORT
It is further noted that, pursuant to the resolution of
28.1.2022 of the Board of Directors of the Company, in
accordance with article
113 par. 3 of Law 4548/2018,
in the context of the second year of implementation
of the resolution of the Ordinary General Meeting of
Shareholders of July
31, 2020 on the approval
of a
Stock Options Plan, for the years 2020-2024, the share
capital of the Company has been increased by the
amount of Euro 429,050.40 by issuing and granting to
the Beneficiaries/Employees of the Company and its
Affiliated Companies 1,430,168 common,
registered,
dematerialized shares of the Company with voting rights,
of a nominal value
of Euro 0.30 each.
Following the above
share capital increase, the share capital of the Company
amounts to the total amount
of Euro 704,223,379.50
divided into 2,347,411,265 common, registered,
dematerialized shares with voting rights, of a nominal
value of Euro
0.30 each.
b.
The Articles of Incorporation contain
no restrictions on the
transfer of Company
shares, save as otherwise
provided for
in the law.
c.
According to the Company’s records, on 31.12.2021,
“EUROCLEAR BANK SA/NV” held common
shares
representing 6.971% of the total paid-in share capital of
the Company and the Hellenic
Financial Stability Fund
held
common shares
representing
9% of
the total
paid-in share
capital of the
Company.
d.
There are no shares issued by the Company possessing
special rights
of control,
with the
exception of
the common
shares held by the Hellenic Financial Stability Fund in
reference to the
rights that the
Hellenic Financial
Stability
Fund enjoys by
virtue of Law
3864/2010.
e.
The Articles of Incorporation contain no restrictions on
voting rights and
on the deadlines
for exercising the
same
on shares issued by the Company, save the restrictions
foreseen in Law 3864/2010 with regard to the shares
held by the Hellenic Financial Stability Fund.
f.
To the knowledge of the Company, there are no
shareholder agreements
providing for
restrictions on
share
transfers or restrictions on the exercise of voting rights
on shares issued by the Company, save as otherwise
provided for
in the
provisions of
the laws
stipulating the
rights of the Hellenic Financial Stability Fund.
g.
There are no rules in the Articles of Incorporation for the
appointment and replacement of Members
of the Board
of Directors
as well
as for
the amendment
of the
Articles
of Incorporation of the Company,
which are at variance
with the stipulations of Law
4548/2018 as in force.
h.
The Company may
increase its
share capital by
virtue of
a resolution of
the General Meeting
of Shareholders
or of
the Board of Directors,
in accordance with
the law and the
Articles of Incorporation.
Additionally, for as long
as the Hellenic Financial
Stability
Fund participates
in the share capital
of the Company,
the latter may not
purchase its own shares without the
former’s approval.
The Company does not hold any of its own shares.
i.
The Company
has entered
into no major
agreement,
which
comes into
effect, is amended
or expires
upon a change
of
control of
the Company
following
a public
tender offer.
j.
The Company has entered into no agreeme
nt with
Members of the Board of Directors or its Employees,
providing
for compensation upon their resignation or
dismissal without
just cause
or upon
termination of
tenure
or employment owing to a public
tender offer, except in
accordance with the provisions of the law.
Athens, March 31, 2022
THE CHAIRMAN
OF THE BOARD OF DIRECTORS
VASILEIOS T.
RAPANOS
ID No ΑΙ 666242
THE CHIEF
EXECUTIVE OFFICER
VASSILIOS E. PSALTIS
ID No ΑΙ 666591
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
60
ANNUAL FINANCIAL REPORT
Corporate
Governance
Statement
for the
year 2021
A.
INTRODUCTION
Pursuant to article 152 par. 1 of Law 4548/2018, Law
4706/2020 and the
Hellenic
Corporate
Governance
Code,
the Board of
Directors’ Annual Management Report of
Alpha
Services and Holdings S.A. (the
“Company”) includes the
Corporate Governance
Statement
for the year
2021. The
reference date of the Corporate Governance Statement is
31.12.2021.
Items c), d), f), h), i) of article 10 of
Directive 2004/25/EC
of the European
Parliament and of
the Council, as
they are
incorporated in items c), d), e), g), h) of article 4 par. 7 of
Law 3556/2007, are analyzed
in the Explanatory Report
of the Board of
Directors, which is included in
the Board of
Directors’ Annual Management Report.
By resolution of the Extraordinary General Meeting of
Shareholders held on 2.4.2021 and following the receipt
of the required
regulatory approvals,
the demerger of
the former
Alpha
Bank
S.A.,
then authorized
to operate
as a credit institution (with Registration Code Number
223701000
in the
General
Commercial
Registry
(G.E.MI.)
and Tax Identification Number 094014249), which has
already been renamed
“Alpha Services and
Holdings S.A.”,
was announced on April 16, 2021, pursuant to the Decision
of the Ministry of Development and Investments under
Protocol Number 45089/16.4.2021,
by way of hive-down
of
the banking business sector with the incorporation of a new
company, which has been licensed to operate as a credit
institution under
the corporate
name “Alpha
Bank S.A.”
( the
“Bank”), in accordance with the provisions of article 16 of
Law 2515/1997,
articles 54 par.
3, 57 par. 3,
59-74 and
140 par. 3 of Law 4601/2019 as well
as in accordance with
article 145 of Law 4261/2014,
as in force (the “Demerger”).
As a result
of the Demerger,
the Bank has
substituted Alpha
Services and Holdings S.A. by operation
of Greek law as
universal successor, in all of its assets and liabilities, rights
and obligations and in general in its legal relationships
within the banking business
sector. Moreover,
the Bank
continues its operation through the existing Organizational
Structure, Branch Network and premises.
Alpha Services and
Holdings S.A.,
which on April 19,
2021
ceased to operate as a credit institution, maintains the
assets and activities not related to the banking business
sector, while its shares remain
listed on the Main
Market of
the Athens Stock
Exchange (the “ATHEX”).
B.
CORPORATE
GOVERNANCE
CODE
AND
PRACTICES
1.
Statement of Compliance with
the Corporate
Governance Code
Alpha Services
and Holdings
S.A.,
following
a resolution
of the Board of
Directors and in order
to be in
compliance
with article
17 of
Law 4706/2020,
adopted
the Hellenic
Corporate Governance
Code of the Hellenic Corporate
Governance Council (the “Code”).
The Company
complies with
the Code
which is
posted on
its website (https://www.alphaholdings.gr/en/corporate
-
governance/corporate-governance-code).
The Corporate
Governance,
Sustainability
and
Nominations
Committee of the Company: i) monitors the
compliance
of the Company and the
Group with the pertinent Hellenic
Corporate Governance
Code, ensuring the
appropriate
application of the “comply or
explain” principle required;
ii) provides oversight that the implementation of this
principle aligns with the legislation in force, the regulatory
expectations and the international corporate governance
best practice.
2.
Explanation on Non-Conformities with the Hellenic
Corporate Governance Code
The Company complies with the Hellenic Corporate
Governance
Code,
with the
exception
of the
election
of Vice-
Chair or Senior Independent
Director (par. 2.2.21
“Special
Practice of
the Code”).
In this regard, the Chair of the Board of Directors has been
elected among the Non-Executive Members to coordinate
Independent and Non-Executive Members’
meetings.
Under
the Company’s
Board of
Directors
Charter,
the Non-Executive
Members of the Board of Directors must meet at least
annually, without the presence of
Executive Members.
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
61
ANNUAL FINANCIAL REPORT
In 2021, seven (7) meetings were convened, well above the
minimum requirement.
In addition, it should be noted
that
all four (4) Committees of the
Board of Directors are chaired
by Independent
Non-Executive
Members
(and
the
majority
of their Members are also Independent Non-Executive
Members) and effectively support the Chair to execute his/
her duties
and responsibilities.
The Company
reconsiders
on an
annual basis
the guidance
of the Code
in this regard.
3.
Update
of
Corporate
Governance
Documents
during
2021
During
2021,
the
Company
revised:
•
the
Articles
of
Incorporation,
•
the Charter of
the Board of
Directors,
•
the Charters of the Committees of the
Board of Directors
(i.e. Audit Committee,
Risk Management
Committee,
Remuneration Commi
ttee, Corporate Governance,
Sustainability and Nominations Committee),
•
the Internal
Governance
Regulation
as well
as
•
policies
pertaining
to
corporate
governance
and
in
particular:
-
the Suitability and Nomination Policy for the Members
of the
Board of
Directors,
-
the Diversity Policy,
-
the Induction
and Training
Policy
for the
Members of
the Board
of Directors,
-
the Remuneration Policy of
the Members of the
Board
of Directors,
in order for
them to be
fully aligned with
the current
regulatory framework
and with the most
recent best
practices of corporate governance.
4.
Corporate Governance
at Group
Level
During 2021, the Company conducted a review of the
Corporate
Governance
documents
adopted
by Subsidiaries.
This analysis ensured that the Charters of the Board of
Directors’ Committees
and the
Policies of
the Subsidiaries
which are
relevant to
the Corpora
te Governance
practices
are fully aligned with the legal and the regulatory
requirements and best practices as well as with the
Group’s corporate governance principles,
while taking into
consideration the local regulatory framework.
Additionally, a series of
meetings with Subsidiaries took
place in order to discuss issues relevant to Corporate
Governance.
5.
2022 Goals
The main
Corporate
Governance
goals for
2022, include
but
are not
limited to those
presented below:
-
Further enhancement of gender diversification in the
Board of Directors and in
the Management.
-
Review of
the Company’s
Corporate
Governance
documents.
-
Provision of further specialized training for
the Members
of the
Board of
Directors.
C.
RISK MANAGEMENT
AND INTERNAL CONTROL
SYSTEMS
1.
Risk Management
The Company
places
great
emphasis
on the
identification,
measurement and monitoring of all types of risks. Under
the leadership
of the Group
Chief Risk Officer
(CRO), who
is a General Manager,
an Executive
Committee Member
and a rapporteur to
the Risk Management Committee, the
Risk Management
Unit (RMU)
has developed
an adequate
structure to facilitate the implementation
of the Risk
Management Framework
across the Group. The RMU
exercises effective, functional oversight of risk management
across the Group
legal entities.
The Risk
Management
Framework is
based on
an extensive
set of
risk policies.
The main objective of the Risk Management Framework in
place is to ensure that the outcomes of risk-taking activities
are consistent with the Group’s strategy and risk appetite
and that there is an appropriate balance between risk and
reward in order to
maximize shareholder returns.
The Risk Appetite Framework
(RAF), which constitutes
a
major component of the Risk and Capital Strategy, allows
the Company to combine the corporate and business
strategy with the financial and capi
tal planning and with the
Risk Management Framework.
The Company has fully complied with the provisions of the
institutional framework with respect
to its troubled assets.
The Risk
Management
Committee,
a Committee
of the
Board
of Directors
as described
below,
provides oversight
of all
the
areas of Risk Management of the
Company.
The Audit
Committee
and
the
Risk
Management
Committee,
in a joint
session, provide oversight of certain
key areas
of risk and capital management and
their repercussions
on the Internal Control System and they review issues
relevant to the remediation plans related to regulatory/
supervisory
assessments,
operational
risk
and
other
issues
of importance and
common interest.
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
62
ANNUAL FINANCIAL REPORT
2.
Internal Control System
The
Internal
Control
System,
on
which
the
Company
places
great
emphasis,
comprises
all
mechanisms
and
procedures
relating to all the
activities of the Company
at an individual
and a consolidated level and
is designed to ensure:
-
the consistent implementation
of the business strategy
with an effective utilization of the available
resources,
-
the identification and
management of all
risks
undertaken to achieve business objectives,
-
the completeness and the reliability of the data and
information required for the accurate and timely
determination of the
financial situation of
the Company
and the generation of reliable Financial Statements,
-
the compliance with the current regulatory framework,
the internal regulations, the rules of ethics,
-
the prevention and avoidance of erroneous actions that
could jeopardize the reputation and interests of the
Company,
the Shareholders
and those
transacting
with
it,
-
the effective operation of the IT systems in order to
support
the
business
strategy
and
the secure
circulation,
processing and storage of
critical business information.
The Internal
Control
System is
structured
along the
three
lines of defense model: the
business and operational
or support units (first line); the risk management and
compliance functions (second line) and the internal audit
function (third line).
The Audit Committee is responsible for the monitoring of
financial reporting processes, the effective operation of the
internal control and risk management systems as well as
for the supervision and monitoring of the performance and
independence of the Statutory Certified Auditors.
The Audit Committee cooperates with the Risk
Management Committee regarding the oversight
of certain
key areas of risk and capital management and their
repercussions on the Internal Control System.
The evaluation of the adequacy and effectiveness of the
Internal Control System of
the Company is
conducted:
a.
On a continuous basis through the review of audits
conducted by
the Internal
Audit Unit
at a
Group level,
following a risk-based audit plan, and the activity
performed by
the Compliance
Unit as
well as
the Risk
Management Unit.
b.
On a regular basis
by the Audit
Committee of the Board
of Directors, on the basis of the relevant data and
information received through the year from the Internal
Audit Unit,
the Compliance
Unit, the
Risk Management
Unit and the Management as well as on the basis
of the findings and observations from the External
Auditors and the Regulatory Authorities.
c.
Periodically (every
three years)
by external auditors,
other than the Statutory Certified Auditor: this is
performed by professionals with specific
competencies
in the field of internal control, risk management and
internal audit, who are independent of the
Group.
The Internal Audit Unit
at Group level
performs audits
based on a plan endorsed by the Audit Committee
and subsequently
approved
by the
Board
of Directors,
following a risk-based methodology. The audit
results are
communicated to the Stakeholders and action plans are
agreed upon. The implementation of the action plans is
periodically followed up by the Internal Audit Unit.
The results of the audit engagements and the follow-
up process are communicated regularly to the Audit
Committee, which reports accordingly to the Board of
Directors.
On an annual basis, a report on the Evaluation of the
Internal Control System of the Group is
submitted to the
Board of Directors, through the Audit Committee and
subsequently
to the
Bank of
Greece, in
accordance
with
the legal
and regulatory requirements.
On a three-year basis, as mentioned above, an
assessment of the adequacy of the Internal Control
System
of the
Group
is performed
by independent
external
auditors, in
accordance
with the
Bank of Greece
Governor’s
Act 2577/2006. The latest assessment report was issued
by PwC in June 2020, covering the period 2017-2019, and
it was submitted to the Board of Directors, through the
Audit Committee, and then to
the Bank of
Greece.
With regard to the financial reporting and accounting
processes in particular, the Company has in place
policies
and procedures
established
in accordance
with
the current legislation and the accounting standards in
force, as
defined
in the
International
Financial
Reporting
Standards (IFRS),
that have
been adopted
by the European
Union, pursuant to Regulation (EC) No 1606/2002 of the
European Parliament and of the Council of 19 July 2002.
The primary
procedures
followed by
the Company
in order
to ensure control effectiveness and to prevent errors and
fraud include the segregation of duties and the four-
eye principle,
based on shared
responsibilities
for key
processes to
more than
one persons
or Divisions
and on
the approval of certain activities by
at least two people.
The accounting system of the Company and the Group
is supported
by appropriate
IT systems
which
have been
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
63
ANNUAL FINANCIAL REPORT
adapted to the business requirements of the
Company and
the requirements of the accounting standards.
Accounting and control
procedures
have
been
established
in order to
ensure the
completeness,
correctness
and the
accuracy of the entries in the accounting books as well as
the completeness and validity of the Financial Statements.
D.
SHAREHOLDERS
1.
General
Meeting
of
Shareholders
The General Meeting of Shareholders is the supreme
governing body of the Company and resolves on all
corporate affairs, in accordance with the applicable
legislation.
The resolutions
of the
General
Meeting,
which
are in accordance with
the applicable law, shall
be binding
upon absent and dissenting Shareholders as
well.
During
2021
three
General
Meetings
of Shareholders
were
held.
Extraordinary
General
Meeting
of
Shareholders
on
2.4.2021
An Extraordinary
General Meeting
of Shareholders
was
held on 2.4.2021. With regard to all Items of the Agenda,
353 Shareholders, representing 874,235,593
common,
dematerialized shares,
with voting rights,
out of a total
of 1,545,981,097 common,
dematerialized shares, with
voting rights, including those issued in
favor of the
Hellenic
Financial Stability
Fund (the
HFSF) (article
7a par. 3
of Law
3864/2010, as in force), namely 56.55% of the voting
share capital of the
Bank, participated therein, in person
or
by proxy.
All the items of the agenda were approved by the
Extraordinary General
Meeting of
Shareholders.
The said items were
the following:
1.
(a) Approval of (i) the
demerger of the société anonyme
with the corporate name “ALPHA BANK SOCIETE
ANONYME”, by way of hive-down
of the banking
business sector with the incorporation
of a new
company, pursuant
to article 16 of
Law 2515/1997,
par. 3 of article 54, par. 3 of article 57 and articles 59-
74 and 140 of Law 4601/2019,
as in force and (ii) the
Draft Demerger Deed dated 15.9.2020, including the
Transformation Balance Sheet dated 30.6.2020.
(b)
Approval of the Articles of Incorporation of the
beneficiary new entity, including the appointment of the
first Board of Directors, the first Audit Committee and
the regular Statutory Certified Auditor of the new entity.
(c)
Granting of authorizations.
2.
Amendment of the Articles of Incorporation of the
demerged entity with the corporate name “Alpha Bank
Societe Anonyme”,
as a
result of
the demerger
by way
of hive-down
of the
banking
business
sector. Granti
ng
of authorizations.
The Resolutions
adopted
at the
Extraordinary
General
Meeting of Shareholders held on 2.4.2021 have
been
posted
on the
Company’s
website
(https://www.
alphaholdings.gr/en/investor-relations).
Extraordinary
General
Meeting
of
Shareholders
on
15.6.2021
An Extraordinary General Meeting
of
Shareholders
was
held on 15.6.2021. With regard to the sole item of the
Agenda, 2,271 Shareholders, representing
885,921,816
common, dematerialized shares, with voting rights, out of
a total of 1,545,981,097
common, dematerialized
shares,
with voting rights, including those issued in favor of the
Hellenic Financial
Stability Fund
(the HFSF) (article
7a par.
3 of Law 3864/2010, as in
force), namely 57.30% of
the
voting share capital of the Company, participated therein,
in person or
by proxy.
The sole item of the
agenda was approved by the
Extraordinary General
Meeting of
Shareholders.
The said item was the
following:
Increase
of the share capital of the Company, in
accordance with article 6 of the Company’s Articles of
Association,
through
payment
in cash
and the
issuance
of
new, common, registered, voting, dematerialized
shares.
Abolition of the preemption rights. Authorization pursuant
to article 25 par. 2 of Law 4548/2018
to the Board of
Directors to determine the offer price of the new shares.
Amendment of article 5 (on Share Capital and Share
Capital Historical Evolution) of the Articles of Association
of the Company. Authorization to the Board of Directors
to specify the terms of the share capital increase and
offering of the new shares and complete all relevant
actions.
The Resolutions
adopted
at the
Extraordinary
General
Meeting of Shareholders held on 15.6.2021 have
been posted
on the
Company’s
website
(https://www.
alphaholdings.gr/en/investor-relations).
Ordinary
General
Meeting
of
Shareholders
on
22.7.2021
The Ordinary General
Meeting of Shareholders,
which
was held on 22.7.2021, was attended, with regard to all
the items of the agenda, in person or by proxy, by 449
Shareholders, representing 1,251,150,650 common,
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
64
ANNUAL FINANCIAL REPORT
registered, dematerialized shares with voting rights,
out of a total
of 2,176,806,930 common,
registered,
dematerialized shares with voting rights, excluding
169,174,167 shares held by the Hellenic Financial
Stability Fund as per the provisions of article 7a par. 3 of
Law 3864/2010, as
in force, namely 57.48%
of the voting
share capital of
the Company.
All the items of
the agenda were approved by the
Ordinary
General Meeting of
Shareholders.
The said items were
the following:
1.
Approval
of the
Annual
and Consolidated
Financial
Statements
of the financial
year 2020
(1.1.2020 -
31.12.2020), together
with the relevant
reports of
the Board of Directors and the Statutory Certified
Auditors.
2.
Approval, as per article 108 of Law
4548/2018,
of the overall management
for the financial year
2020 (1.1.2020
- 31.12.2020) and
discharge of
the Statutory Certified Auditors for the financial
year 2020, in accordance with article 117 of Law
4548/2018.
3.
Election of Statutory Certified Auditors for the
financial year
2021 (1.1.2021
- 31.12.2021)
and
approval of their
remuneration.
4.
Submission of the Activity Report of the Audit
Committee for the year 2020, in accordance with
article 44 of
Law 4449/2017
(non-voting item).
5.
Approval of the Members of the Board of Directors’
remuneration for
the financial year
2020 (1.1.2020
-
31.12.2020).
6.
Approval, in accordance with article 109 of Law
4548/2018, of
the advance
payment of
remuneration
to the Members of the Board of Directors for the
financial year 2021
(1.1.2021 - 31.12.2021).
7.
Deliberation and advisory vote
on the Remuneration
Report for the year 2020, in accordance with article
112 of Law
4548/2018.
8.
Approval of the Remuneration Policy of the Members
of the Board of Directors as per the provisions of Law
4548/2018.
9.
Submission of the Report of the Non-Executive
Independent
Members,
as per
the provisions
of Law
4706/2020 (non-voting item).
10.
Approval of the Suitability and Nomination Policy for
the Members of the Board of
Directors.
11.
Granting of authority, in accordance with article 98
of Law 4548/2018, to Members
of the Board of
Directors and the General
Management as well as
to
Managers to participate in the boards of directors or
in the management of companies having purposes
similar to those
of the Company.
The Resolutions
adopted
at the
Ordinary
General
Meeting
of Shareholders held on 22.7.2021 have been posted on
the Company’s website (https://www.alphaholdings.gr/en/
investor-relations).
2.
Communication with Shareholders, Investor
Roadshows
and Corporate
Governance
Meetings
In order to enhance the active participation of the
Shareholders in
the General
Meetings and
the genuine
interest in issues relating to its operation, the Company
applies procedures of active communication with its
Shareholders
and
establishes
the
appropriate
conditions
so that the policies and strategies adopted are based on
the constructive exchange of views with them.
The Company
enhances
its relations
with proxy
advisors
and institutional investors who focus on corporate
governance, providing
them, where necessary,
with
further information so as to facilitate their decision
-
making process on corporate governance matters
of the Company in view of
the General Meetings of
Shareholders.
In particular,
given the
increasing
interest
of institutional
investors and proxy advisors
in corporate governance
issues, bilateral
meetings
were held
throughout
the
year
with representatives from proxy advisors, analysts and
investors.
Through this initiative, the Company enhanced relations
with Stakeholders
who focus
on corporate
governance,
providing them, where necessary,
with further
information so as to
assist their decision-making process,
leading to further improving the Company’s corporate
governance scores, while also facilitating their voting
recommendations on governance mat
ters in view of the
upcoming General Meetings of Shareholders.
In order to ensure the reliable, secure and broad
dissemination of institutional information to its
Shareholders, the Company
declares the “Officially
Appointed Mechanism for the Central Storage of
Regulated Information” of the Hellenic Exchanges –
Athens Stock Exchange (ATHEX), which is currently
managed
by the
Athens
Exchange
and operates
through
the “HERMES” communication system,
in
accordance
with the Athens
Exchange Rulebook
(www.helex.gr),
as
the means of disclosure of regulated information and
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
65
ANNUAL FINANCIAL REPORT
72%
7%
9%
information provided
by law to its Share
holders before
the General
Meeting.
Through this
disclosure,
the prompt
and non-discriminatory access to the relevant information
is made available to the general public and particularly
to the Shareholders, given that the above System, as
recognized
by law,
is considered
reliable
for the
effective
dissemination of information to the
investing public and
meets the national and European range
requirements of
the law.
3.
Shareholder
Structure
Alpha Services and Holdings S.A.’s
shareholder base, on
31.12.2021, includes
approximately 112,000
investors.
The breakdown of Alpha Services
and Holdings S.A.’s
Shareholders on 31.12.2021 was, for descriptive (non-
regulatory) purposes, as
follows:
79%
Institutional Investors
12%
Legal and Private
Investors
9%
HFSF
7%
Greek Institutional Investors
72%
Foreign Institutional
Investors
Alpha Services
and Holdings
S.A.’s Shareholders,
excluding the Hellenic Financial Stability Fund (the
“HFSF”), hold 2,134,842,798 common, registered,
voting,
dematerialized shares of a nominal value of Euro 0.30
each. In
addition,
the HFSF
holds
211,138,299
shares,
out
of which, 169,174,167 shares are in accordance with the
voting rights restrictions foreseen in the provision of article
7a of Law
3864/2010.
E.
ENVIRONMENTAL,
SOCIAL
AND GOVERNANCE
(ESG)
The Company, in the context of its sustainable
development and responsible operation, has adopted
and
integrated the Corporate
Responsibility
Policy,
following
the best banking and business
practices.
With a view to ensuring its sustainable development, the
Company is committed to operating responsibly, taking
due account of the economic, social and environmental
parameters of its operation, both in Greece and in the
other countries
where it
is present.
To this
end, it
promotes
communication and cooperation with all its Stakeholders.
In order to enhance social responsibility and integrate it
into the
Group’s
principles
and values
in the
best possible
way, the Company applies the law and aligns its activity
with internationally-recognized guidelines,
principles
and initiatives on sustainable development, such as the
Organization
for
Economic
Co-operation
and
Development
(OECD) Guidelines for Multination
al Enterprises on
Responsible Business Conduct,
the Core Conventions
of the International Labour
Organization (ILO) and the
Universal Declaration of Human
Rights (UDHR).
The Company’s
organization
and
operation
follow
the
best
banking and business
practices. They are governed
by
principles such as integrity and honesty, impartiality and
independence, confidentiality
and
discretion,
as
provided
for in the
Company’s Code
of Ethics
and in the
principles of
Corporate Governance.
Particular
significance
is
attached
to the identification,
measurement and management
of
the undertaken risk, to the compliance with the applicable
legal and regulatory framework,
to transparency and to
the provision of full, accurate and
truthful information to
the Company’s Stakeholders.
The Company’s
primary
goals are
credibility,
consistency
and efficiency
in banking
services.
Its key
concerns
are
to continuously improve the products and services it
offers and to ensure that its Customers’ banking needs
are addressed
in a modern
and responsible
manner. It
examines and incorporates non-financial criteria (on
issues related
to the
Environment,
Society and
Corporate
Governance) in its financing
procedures as well as
in
developing
and placing
new products
and services
on the
market.
The Company acts responsibly to actively contribute to
the protection of the environment and to the conservation
of natural resources and is committed to
addressing
the direct and indirect impacts of its activities on the
environment.
The Company responsibly implements the following
policies with
regard to
its Human
Resources.
In particular,
the Company:
•
Respects
and defends
the diversity
of its
Employees
(in
terms of age,
gender, ethnic
origin, religion,
disability/
special capabilities, sexual orientation etc.).
•
Ensures top-quality working conditions and
opportunities for advancement based on merit and on
equal treatment, free
of discrimination.
•
Offers fair remuneration, based on
contracts which are
in agreement with the corresponding national labor
market and ensure compliance with the respective
national regulations on minimum pay, working hours
and the
granting of
leave.
12%
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
66
ANNUAL FINANCIAL REPORT
•
Defends human rights, recognizes the right to union
membership and to collective
bargaining and opposes
all forms of child,
forced or compulsory labor.
•
Treats all
Employees
with respect.
•
Provides
its Employees
with
continuous
education
and
training. Ensures the health and safety of Employees
at the workplace and helps them balance their
professional and personal life.
The Company’s
activities
are directly
linked to
the society
and the
citizens.
Therefore,
it seeks
to support
the society
and the citizens, giving priority to culture, education,
health and the protection of the environment.
In addition, the Company applies the Corporate
Responsibility principles to the entire range of its activities
and seeks to ensure that its Suppliers and Partners also
comply with the values and business principles that
govern its operation.
The Business
Model of
the Company
aims to
create valu
e
for its
Stakeholders.
Alpha Services
and Holdings
invests
in its Employees, in its network and infrastructures in
order to develop and place on the market high-quality
services and products. It also works together with its
Stakeholders in order to identify their requirements in a
timely manner, to ensure its
responsible operation and
to support the society.
The
Company
has
recognized
as
its Stakeholders the natural persons and/or legal entities
who/which, either directly or indirectly, are connected to
and affect
or are
affected
by the
Company’s
decisions
and
its operation. Following a series of internal meetings and
based on the relevant laws and international guidelines,
its daily operations, the existing policies and procedures
and the
Group’s
sustainability
strategy,
the Company
has
identified four different Stakeholder groups
(i.e.
Analysts
and Investors, Customers,
Employees and
Society). It
seeks to engage
in an
ongoing dialogue and collaboration
with its Stakeholders, in order to understand and, as far as
possible,
respond
to all
their
expectations,
needs,
concerns
and requests. Analysts and
Investors are provided with
full and prompt information via specific sections on the
website, together with the Financial Statements, the
Business Review
as well as
the Sustainability
Report.
Furthermore, the Company pays great attention to
ensuring its Customers’ satisfaction and to providing
high-quality products and services. The Customer
Service Division
is in charge
of Quality
Assurance and
is
committed to fulfilling these objectives. Alpha Services
and
Holdings
S.A.
ensures
effective
communication
with Employees,
by establishing
a Communication
Day
with the Human
Resources Unit
and Visits by Human
Resources Unit Executives
to Bank Units and
Branches.
Finally, the Company is often involved in a dialogue
and in consultations with State authorities, both locally
and at European
level. The Company
supports public
administration services, local organizations,
foundations
and it communicates with representatives of local
communities on a
regular basis.
In 2021, the Company
accelerated the full
incorporation
of ESG criteria into
its business strategy through initiatives
that support the transition to a new economic model and
to long-term business
resilience.
To this end, an extensive ESG work plan has been
developed in order not only to manage ESG-related
risks, but also to capture the opportunity to engage with
the Stakeholders and ensure the sustainability of the
Company’s
business.
The main
objectives
of the
work plan
are:
•
The compliance with regulatory obligations regarding
the proper management of Climate Risk and the
alignment of the Company’s strategy with the principles
of sustainable finance.
•
The incorporation of more ambitious environmental
targets and further contribution to the Sustainable
Development Goals.
•
The incorporation of sustainability criteria into the
Company’s
Policies
and
the
development
of
solutions
that will support the Customers in managing their
transition to sustainable operating models.
•
The
reduction
of
the
Company’s
direct
environmental
footprint and the upgrade of internal Standards.
•
The launch
of an
extensive ESG
training program
for all
Staff, supported by an
ESG Academy.
•
The enhancement of internal inclusivity and diversity in
order to create an attractive working environment.
On top of these, in 2021, as illustrated in the Committees’
Charters, the ESG
governance at
Group level, was further
enhanced to achieve
synergies and coordination
of ESG
objectives.
Specifically,
the Board
of Directors
and its
Committees
have oversight of all ESG issues and the refocused
Corporate Governance, Sustainability
and Nominations
Committee has taken over the overall ownership of the
Sustainability performance.
At the Management
level,
a
Group
Sustainability
Committee
has
been
established
in order to steer the Company’s ESG strategy.
Finally,
an ESG Working Group has also been established
in
order to execute
key initiatives,
along with a
Group ESG
Coordinator.
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
67
ANNUAL FINANCIAL REPORT
The Company, in line
with best practices,
recognizes the
most important non-financial issues for its responsible
operation and its long-term sustainable development
(materiality analysis) with
the participation of Stakeholders
and the Senior Management. The
approach followed
is aligned with the existing methodologies and risk
management tools used by the Company. Members of the
General Management assess the possibility of known and
potential impacts over the next two years as well as their
importance for
the Company,
the society,
the economy
and
the environment, taking into account the policies, the
actions
and results of
the existing practices.
In 2021, the Company followed a new process for the
identification and
mapping of the
most material issues
for
its responsible operation (materiality analysis).
Stakeholders
and Senior Management Executives were
involved in the
process, in accordance
with best practices (i.e.
the GRI
Standards), and evaluated 17 identified material issues.
Specifically, 4,216 representatives from all Stakeholder
groups participated in the materiality analysis process,
via an
online electronic
questionnaire
and assessed
the
following 17
material issues:
•
Integration of ESG
Criteria in Financing
•
Support
of
Green/Low-carbon
Investments
•
Financial Inclusion
•
Corporate Governance
•
Business Ethics
and Compliance
•
Customer Privacy
and Data
Security
•
Innovation and Digitalization
•
Risk Management
•
Long-term Financial
and Business
Resilience
•
Transparency
•
Responsible
Procurement
and Outsourcing
•
Human Rights
•
Diversity
and Inclusion
•
Health, Safety and Well-being
•
Talent Management
•
Support of Community
•
Operational
Environmental
Footprint
More information on the Company’s Management
approach regarding the most material issues
can be found
in the Non-Financial Report for 2021.
Detailed information on the current materiality analysis
process will be
included in the
Sustainability Report for the
year 2021.
The Non-Financial Information reports are prepared in
accordance with the Core option of the internationally-
recognized Global Reporting Initiative
(GRI) Sustainability
Report Standards
(GRI Standards).
In addition, the
reports
take also into consideration the principles of the Account
Ability Principles Standard-AA1000
which are based on
the integration of the interests of the Stakeholders in the
decision-making
processes
(Inclusivity),
on
the
definition
of
the most important issues for the Company (Materiality),
on the Responsiveness
of the Company
to the needs
and
expectations of
the Stakeholders
(Responsiveness)
and
on the monitoring and measuring of the impact of the
Company’s activities (Impact). Furthermore,
the
reports
are prepared according to the Guide of Disclosure of
Non-Financial
Information
of the
Athens
Stock
Exchange
for listed
companies,
while the
Financial
Services Sector
Committee
Committee
Corporate
& Nominations
Committee
Marketing &
& Governance
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
68
ANNUAL FINANCIAL REPORT
25%
58%
17%
Supplement of the GRI, a specialized template for the
contents of the
banking sector companies’ reports, is
also
utilized.
F.
BOARD
OF
DIRECTORS
AND
COMMITTEES
1.
Board of Directors
The Board
of Directors
is responsible
for managing
the affairs of the Company and representing it vis-à-
vis third parties. Further,
it has the ultimate and overall
responsibility
for the
Company
and defines,
oversees
and
is accountable for the implementation of the governance
arrangements within the Company that ensure the
effective and prudent management of the Company.
Among others,
the Board
of Directors:
a.
has the overall
responsibility for the Company and
approves and oversees the implementation of the
Company’s strategic objectives, risk strategy and
internal governance;
b.
ensures the integrity of the accounting and financial
reporting systems, including financial and operational
controls and compliance with the law and relevant
standards;
c.
oversees the
process
of disclosure
and
communications;
d.
is responsible for providing effective oversight of the
Senior Management.
The Board of Directors consists of no less than nine
and no more
than fifteen Members (only
odd numbers
are allowed, while an even number can
be accepted
temporarily
for
a justified
reason),
including
Executive
and Non-Executive Members,
in accordance with
the provisions of the applicable legislation and the
Relationship
Framework
Agreement
(RFA) signed
between
Alpha Bank S.A. and
the Hellenic Financial
Stability Fund
(the “HFSF”). A legal entity may also participate in the
Board of Directors as a Member, pursuant to article 77
par. 4 of
Law 4548/2018.
The tenure of the Members of the Board of Directors is
quadrennial. It may
be extended until
the termination
of the deadline for the convocation of the next Ordinary
General Meeting and until the relevant resolution has
been adopted.
The Board
of Directors
meets whenever
is required
for the
proper discharge of its responsibilities.
At the beginning
of each calendar year, the Board of Directors adopts a
calendar and
a work
plan. The
work plan
may be
reviewed
by the Board
of Directors on
an ongoing
basis, as needed.
Subject to the respective provisions of the related legal
and regulatory framework
and the Company’s Articles
of Incorporation, the specific duties and responsibilities
as well as the principles and the framework for the
operation of the Board of Directors are set out in its
Charter, which is posted
on the Company’s website
(https://www.alphaholdings.gr/en/corporate
-governance/
administrative-structure/board-of-directors).
The tenure of the current composition of the Board
of Directors ends
at the Ordinary
General Meeting of
Shareholders in 2022.
Board of Directors Composition 2021
17%
Executive Members
58%
Independent
Non-Executive
Members
25%
Non-Executive
Members
(Based on the
Board of
Directors
composition on
31.12.2021)
During 2021, the following changes took place with
regard to the composition of the Board of Directors
and its Committees:
On 17.6.2021,
Mr. A.Ch.
Theodoridis
notified the
Board
of Directors via a letter of his resignation from the
Board of Directors with immediate effect. The Board
of Directors resolved to fill the vacated position and
initiated the procedure for
the search for
a new Member,
in replacement of
the one that
resigned.
The Board of Directors, at its meeting held on
16.12.2021, elected
Ms.
E.M.
Andriopoulou
as
Member
of the Board
of Directors of
the Company, in replacement
of Mr. A.Ch. Theodoridis, Non-Executive Member,
who
resigned on 17.6.2021. The tenure of the elected
Member has been set from 1.1.2022 until the expiration
of the remainder of the tenure of the Member whom she
replaces.
The Board of Directors, at
its meeting held on
30.9.2021,
resolved on the appointment
of Ms. E.R. Hardwick,
Independent Non-Executive
Member, as Chair
of the
Corporate Governance, Sustainability
and Nominations
Committee (former Corporate Governance
and
Nominations Committee),
in replacement
of Mr. S.A.
Shahbaz, who resigned.
Mr. S.A. Shahbaz will
continue to
be a
Member of
the Committee.
Furthermore,
the Board
of Directors
appointed
Ms. C.G.
Dittmeier,
Independent
Non-Executive
Member,
as
the
Member in charge of overseeing ESG issues.
CORPORATE GOVERNANCE STATEMENT
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69
ANNUAL FINANCIAL REPORT
The Members of the Board of Directors
comply with
the stipulations
of article
83 of Law
4261/2014 on
the
combination of directorships, as they do not hold more
than one of the following combinations of directorships
at the same
time: (a) One
Executive directorship and
two Non-Executive
directorships;
(b) Four Non
-Executive
directorships, excluding
directorships
in
organizations
which do not
pursue predominantly commercial objectives
(e.g. non-profit, charities).
Executive or Non-Executive
directorships held within the same group
are regarded
as one directorship (see table below in “3. Professional
commitments of the Members of the Board of Directors”).
The Corporate Governance, Sustainability and
Nominations Committee, at its meeting held on
19.11.2021, after reviewing the independence criteria,
confirmed that the Independent Non-Executive
Members
fulfill all the criteria for being Independent Non-Executive
Members of the Board of Directors, in accordance with
Law 4706/2020 on corporate governance, the Articles
of Incorporation
and the
Hellenic
Corporate
Governance
Code, as in
force.
The Secretariat of the Board of Directors supports the
functionality of the Board of Directors, its Committees
and its Members and, among others, coordinates
communications among the Members of the Board of
Directors,
the Management
and the
Group Companies
in
order to achieve the effective flow of information to and
from the Board.
2.
Composition of the Board of
Directors
CHAIR
Vasileios T. Rapanos
(Non-Executive Member)
Bank of Greece and of the Hellenic Bank Association
(2009-2012). In October 2021 he was re-elected as
Chairman of
the Board
of Directors
of the Hellenic
Bank
Association. He has been the Chair of the Board of
Directors of the Bank
since May 2014.
Number of Alpha
Services and Holdings
shares owned
on
31.12.2021: 0
EXECUTIVE MEMBERS
CEO
Vassilios E. Psaltis
Year of birth: 1968
Nationality:
Hellenic
He holds a PhD in Banking and a
MA in Business and
Banking from
the University
of St. Gallen
in Switzerland.
He held various
senior management
positions at ABN
AMRO Bank’s Financial Institutions
Group
in
London
and at Emporiki
Bank wherein
he has worked
as Deputy
(acting) Chief Financial Officer. He joined Alpha
Bank in
2007. In
2010 he
was appointed
Group Chief
Financial
Officer (CFO) and in 2012 he was appointed General
Manager. Through
these posts,
he spearheaded
capital
raisings of several billions from foreign institutional
shareholders, diversifying
the Bank’s shareholder
base,
as well as significant mergers and acquisitions that
contributed to
the consolidation
of the Greek
banking
market, reinforcing the position of
the Bank. In
2019
he was elected member of the Institut International
d’Études Bancaires (IIEB).
He is a Member of the Board of
Directors and
of the Executive
Committee
of the Hellenic
Federation of Enterprises (SEV)
since July 2021. He has
Year of birth: 1947
Nationality: Hellenic
He is Professor
Emeritus at the
Faculty of Economics
of the
University of
Athens and has
been an Ordinary
Member of
the Academy of Athens
since 2016. He
studied Business
Administration at
the Athens School of Economics
and
been a Member of the Board of Directors of the Bank
since November
2018 and
Chief Executive
Officer since
January 2019.
Number of Alpha
Services and Holdings
shares owned
on
31.12.2021: 806
Spyros N.
Filaretos
Business (1975)
and holds a
Master’s in
Economics from
Lakehead University, Canada
(1977) and a PhD from
Queen’s University, Canada. He was Deputy Governor and
Governor
of
the Mortgage
Bank
(1995-1998),
Chairman
of
the Board
of Directors
of the
Hellenic
Telecommunications
Organization (1998-2000), Chairman of the Council of
Economic Advisors
at the Ministry of
Economy and Finance
(2000-2004), member of the Board of Directors of the
Public Debt
Management
Agency (PDMA)
(2000-2004)
as
well as Chairman of
the Board of
Directors of the
National
Year of birth: 1958
Nationality:
Hellenic
He studied
Economics
at the
University
of Manchester
and at the University of Sussex. He joined the Bank in
1985. He
was
appointed
Executive
General
Manager
in 1997 and General Manager in 2005. From October
2009 to November 2020 he served as Chief Operating
Officer (COO). In
December 2020
he was appointed
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
70
ANNUAL FINANCIAL REPORT
General
Manager
– Growth
and Innovation.
He has
been
a Member of the Board of Directors of the Bank since
2005.
Number of Alpha
Services and
Holdings shares
owned on
31.12.2021: 0
NON-EXECUTIVE
MEMBER
Efthimios
O.
Vidalis
Year of birth: 1954
Nationality:
Hellenic
He holds a
BA in Government
from Harvard
University
and an MBA from the Harvard Graduate School of
Business Administration.
He held several
leadership
positions
for almost
20 years
at Owens
Corning,
where
he served as President
of the Global Composites
and
Insulation Business Units. He joined S&B Industrial
Minerals S.A. in 1998 as Chief Operating Officer (1998-
2001), became the first non-family Chief Executive
Officer (2001-2011) and served on the Board of
Directors for 15 years. He was a member of the Board
of Directors
of Future Pipe
Industries (Dubai,
U.A.E.) from
2008 to 2019,
Chairman of
the Board
of Directors
of
the Greek Mining Enterprises Association (2005-2009)
and member of the Board of Directors of the Hellenic
Federation of Enterprises (SEV) from 2006 to 2016,
where he served as Vice
Chairman (2010-2014) and
as Secretary General (2014-2016). Furthermore, he is
the founder
of the SEV
Business Council
for Sustainable
Development and was the
Chairman thereof from 2008
to 2016. He was elected President of the Executive
Committee of
SEV during the
Annual General
Meeting,
held in June 2020. He
is a non-executive member
of the Board of Directors of Titan Cement Company
S.A., Fairfield-Maxwell
Ltd (U.S.A.) and non
-executive
independent
member
of Eurolife
FFH Insurance
Group
Holdings S.A. He
has been a Member
of the Board of
Directors of the Bank
since May 2014. He
is a Member
of
the Audit Committee and of the Corporate Governance,
Sustainability and Nominations Committee.
Number of Alpha
Services and
Holdings shares
owned on
31.12.2021: 0
INDEPENDENT
NON-EXECUTIVE
MEMBERS
Dimitris
C. Tsitsiragos
Year of birth: 1963
Nationality: Hellenic
He holds a BA
in Economics
from Rutgers
University
and an MBA
from the George
Washington University.
He
completed
the World
Bank
Group
Executive
Development
Program at the Harvard
Business School.
He spent 28
years at the International
Finance Corporation
(IFC)
– World Bank
Group.
He
held
progressive
positions
in the Oil, Gas and Mining and in the Central and
Eastern
Europe
Departments,
including
the
positions
of Manager,
Oil and
Gas, and
Manager, Manufacturing
and Services, based in Washington,
D.C., USA (1989-
2002). Furthermore, he held director positions for
South Asia
(India), Global
Manufacturing
and Services
(Washington, D.C.)
and Middle East, North Africa
and
Southern Europe (Cairo, Egypt), overseeing
IFC’s global
and regional investment operations
(2002-2011). In
2011, he was
promoted to
Vice President,
EMENA region
(Istanbul, Turkey) and in 2014 he was appointed Vice
President Investments/Operations
(Istanbul/Washington).
He currently sits on the Board of Directors of Titan
Cement International
and serves as a Senior
Advisor,
Emerging Markets at Pacific Investment Management
Company (PIMCO)
in London,
UK. He previously
served
as a non-executive independent Board member at the
Infrastructure Development
Finance
Company
(IDFC),
India and at the Commercial Bank of Ceylon
(CBC), Sri
Lanka. He has been a Member of the Board of Directors
of the Bank since July
2020. He is a Member
of the
Risk Management Committee and of
the Remuneration
Committee.
Number of Alpha
Services and Holdings
shares owned
on
31.12.2021: 0
Jean L. Cheval
Year of birth: 1949
Nationality:
French
He studied
Engineering
at the École
Centrale des
Arts et
Manufactures,
while he
holds a
DES (Diplôme
d’Études
Spécialisées) in Economics (1974) from the University
of Paris I. Additionally he holds a DEA (Diplôme d’
Études Approfondies)
in Statistics and
a DEA in
Applied
Mathematics from the University of Paris VI. After
starting his career at
BIPE (Bureau d’Information et
de Prévisions Économiques),
he served in the French
public sector (1978-1983) and then worked at Banque
Indosuez-Crédit Agricole (1983-2001), wherein he held
various senior management positions, including
the
positions
of Chief
Economist,
Head of
Corporate
Planning
and Head of
Asset-based Finance and subsequently
he became General
Manager. He
served as Chairman
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
71
ANNUAL FINANCIAL REPORT
and CEO of the Banque Audi France (2002-2005) as
well as Chairman of the Banque Audi Suisse (2002-
2004). Furthermore, he served as Head of France at
the Bank
of Scotland (2005-2009). As of 2009 he has
been working at Natixis in various senior management
positions, such
as Head
of the
Structured Asset
Finance
Department and Head
of Finance and Risk, second
“Dirigeant effectif”
of Natixis,
alongside the
CEO. He
is
currently a member of the Board of Directors of EFG-
Hermes,
Egypt, Chairman
of the
Steering
Committee
of
Natixis Algérie
and Chairman
of the
Natixis Foundation
for Research
and Innovation.
He has been
a Member of
the Board of
Directors of the
Bank since June
2018. He
is a Member of the
Risk Management Committee and of
the Remuneration Committee.
Number of Alpha
Services and
Holdings shares
owned on
31.12.2021: 0
Carolyn
G. Dittmeier
Year of birth: 1956
Nationality: Italian and
US
She holds
a BSc
in Economics
from the
Wharton School
of the University of Pennsylvania. She is a Statutory
Auditor, a Certified
Public Accountant
(CPA), a Certified
Internal Auditor
(CIA) and
a Certified
Risk Management
Assurance (CRMA) professional,
focusing on the
audit
and risk management sectors. Additionally, she has
obtained a Qualification in Internal Audit Leadership
(QIAL). She commenced
her career in the
US at the
auditing and consulting firm Peat Marwick
& Mitchell
(now KPMG) where she reached the position of Audit
Manager, and subsequently assumed managerial
responsibilities in the Montedison Group as Financial
Controller and later as Head of Internal Audit. In 1999,
she launched the practice of corporate governance
services in KPMG
Italy. Subsequently,
she
took on the
role of Chief Internal Audit Executive of the Poste
Italiane Group (2002-2014). She has carried out
various professional and academic activities
focusing
on risk and control governance and has written two
books. She was
Vice Chair (2013-2014)
and Director
of the Institute of
Internal Auditors (2007-2014),
Chair of the European Confederation of Institutes
of Internal
Auditing (2011
-2012) and
Chair of
the
Italian Association
of Internal Auditors
(2004-2010).
Furthermore, she served as Independent Director
and
Chair
of the
Risk and
Control
Committee
of Autogrill
SpA
(2012-2017) as well
as of Italmobiliare SpA
(2014-
2017). Since 2014 she has been Chair of the Board of
Statutory
Auditors
of
Assicurazioni
Generali
SpA
and
a member of the Boards and/or the Audit Committees
of some non-financial companies (Moncler, Illycaffè).
She has been a Member of the Board of Directors of
the Bank since January 2017 and is currently Chair of
the Audit Committee and a Member of the Corporate
Governance,
Sustainability
and
Nominations
Committee.
Number of Alpha
Services and Holdings
shares owned
on
31.12.2021: 0
Richard
R. Gildea
Year of birth: 1952
Nationality: British
He holds a BA in History from the University of
Massachusetts (1974) and an MA in International
Economics, European
Affairs from
the Johns Hopkins
University School of Advanced International Studies
(1984). He served in JP Morgan
Chase, in New York and
London, from 1986 to 2015, wherein he held various
senior management positions throughout his career.
He was Emerging Markets
Regional Manager
for the
Central and Eastern Europe Corporate
Finance Group,
London (1993-1997) and Head of Europe, Middle East
and
Africa
(EMEA)
Restructuring,
London
(1997-2003).
He also served as Senior Credit Officer in EMEA Emerging
Markets, London (2003-2007) and Senior Credit Officer
for JP Morgan’s
Investment Bank
Corporate Credit
in
EMEA
Developed
Markets,
London
(2007-2015),
wherein,
among others,
he was Senior
Risk Representative
to
senior committees. He is currently a member of the
Board of Advisors at
the Johns Hopkins University
School of Advanced International Studies, Washington
D.C., where
he chairs the
Finance Committee,
as well
as a member of
Chatham House (the Royal Institute of
International
Affairs),
London.
He
has
been
a
Member
of
the Board of Directors of the Bank since July 2016. He is
the Chair of the Remuneration Committee and a Member
of the
Risk Management Committee.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 0
Elanor
R.
Hardwick
Year of birth: 1973
Nationality:
British
She holds an MA (Cantab) from the University of
Cambridge
and an
MBA from
the Harvard
Business
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
72
ANNUAL FINANCIAL REPORT
School. She commenced her career in 1995 at the UK
Government’s
Department
of Trade
and
Industry,
focusing
on
the
Communications
and
Information
Industries
policy,
and subsequently held roles as a strategy consultant with
Booz Allen Hamilton’s Tech,
Media and Telco practice
and with the Institutional Equity Division of Morgan
Stanley. Since
2005, she
has held
various roles,
including
Global Head
of Professional
Publishing and
Global Head
of Strategy, Investment Advisory at Thomson Reuters
(now Refinitiv).
Afterwards,
she joined
the team
founding
FinTech startup Credit Benchmark,
becoming its CEO
(2012-2016). Then, she served as Head of
Innovation
at Deutsche Bank (2016-2018) and as Chief Digital
Officer at UBS (2019-2020). Since
2018 she has served
as a non-executive member of the
Board of Directors
of specialty
(re)insurer
Axis
Capital,
while
she
is also
a member of the
Risk Committee, the Compensation
Committee and the Corporate
Governance and
Nominating Committee. She served as a non-executive
member of the Board of
Directors of Itiviti Group AB
(July
2020 – May 2021). She is an external member of the
Audit Committee of the University of Cambridge as of
January 2021 and a member of the Advisory Board of
Concirrus as of May 2021. She has been a Member of
the Board of Directors of the Bank since July 2020. She
is the Chair
of the Corporate
Governance,
Sustainability
and Nominations Committee and she is a Member of the
Audit Committee.
Number of Alpha
Services and
Holdings shares
owned on
31.12.2021: 0
Shahzad
A.
Shahbaz
Jan A. Vanhevel
Year of birth: 1948
Nationality: Belgian
He studied Law at the University of Leuven (1971),
Financial Management at Vlekho (Flemish School of
Higher Education in
Economics), Brussels
(1978) and
Advanced Management
at INSEAD (The
Business School
for the World),
Fontainebleau.
He joined Kredietbank
in
1971, which became
KBC Bank and
Insurance Holding
Company in 1998. He acquired a Senior Management
position in 1991 and joined the Executive Committee
in 1996. In 2003 he was in charge of the non-Central
European branches
and subsidiaries,
while in 2005
he
became responsible
for the KBC
subsidiaries in
Central
Europe and Russia.
In 2009 he was appointed
CEO and
implemented the Restructuring Plan of the group until
2012, when he retired. From 2008 to 2011 he was
President of the Fédération belge du secteur financier
(Belgian Financial
Sector Federation)
and a
member of
the Verbond
van Belgische
Ondernemingen
(Federation
of Enterprises in Belgium), while he has been the
Secretary General of the Institut International d’Études
Bancaires (International Institute of Banking Studies)
since May 2013. He was also a member of the Liikanen
Group on reforming the structure of the EU banking
sector. Currently, he is a Board member of a private
industrial multinational company and
of
a
private
equity company. He has
been a Member
of the Board
of
Directors of the
Bank since April
2016. He is
the Chair of
the Risk Management Committee and a Member of
the
Audit Committee.
Year of birth: 1960
Nationality: British
He holds a BA in Economics from
Oberlin College, Ohio,
U.S.A. He has
worked at various
banks and invest
ment
firms, since 1981, including the Bank of America (1981-
Number of Alpha
Services and Holdings
shares owned
on
31.12.2021: 0
NON-EXECUTIVE
MEMBER
PURSUANT
TO THE
PROVISIONS OF LAW
3864/2010
Johannes Herman
Frederik G.
Umbgrove
2006), from which he
left as
Regional Head (Corporate
and Investment
Banking, Continental
Europe, Emerging
Europe, Middle East and Africa). He served
as Chief
Executive Officer
(CEO) of NBD
Investment Bank/Emirates
NBD Investment Bank (2006-2008), and of QInvest
(2008-2012). He is currently the Group CIO of Al Mirqab
Holding Co.
He is also
a member
of the Board
of Directors
of El Corte
Inglés and
of Seafox.
He has been
a Member
of the Board of Directors of the Bank since May 2014. He
is a
Member of
the Corporate
Governance,
Sustainability
and Nominations
Committee.
Number of Alpha
Services and
Holdings shares
owned on
31.12.2021: 0
Year of birth: 1961
Nationality: Dutch
He holds
an LL.M.
in Trade
Law (1985)
from Leiden
University
and an
MBA from
INSEAD
(The Business
School for the World),
Fontainebleau (1991).
Additionally,
he
attended
the
IN-BOARD
Non-Executive
Directors Program at
INSEAD. He worked
at ABN AMRO
Bank N.V. (1986-2008), wherein he
held various
senior management positions throughout his career.
He served as Chief Credit
Officer Central and Eastern
Europe, Middle East and Africa (CEEMEA)
of the Global
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
73
ANNUAL FINANCIAL REPORT
Markets Division at The
Royal Bank of Scotland
Group
(2008-2010) and as Chief Risk Officer
and member of
the Management
Board at Amsterdam
Trade Bank N.V.
(2010-2013). From 2011 until 2013 he was Group Risk
Officer at Alfa Bank
Group Holding and as
of 2014 he
has
been a Risk Advisor at Sparrenwoude B.V. He has been
a member of the Supervisory Board of Demir Halk Bank
(Nederland)
N.V. since
2016 and
in 2018
he became
the
Chairman of
the Supervisory
Board thereof.
He is
currently
the Chair of the
Supervisory Board, of the Nomination
and Remuneration
Committee as well as
a member
of the Risk and Audit Committee and of the Related
Party Transactions
Committee
of Demir Halk
Bank N.V.
Furthermore, since
December 2019
he has been
an
independent member of the Supervisory Board
and
as of 1.1.2022 he has been the Chairman of the Audit
Committee of
Lloyds Bank GmbH.
He has been a
Non-
Executive
Member
of the
Board
of Directors
of the
Bank,
representing
the Hellenic
Financial
Stability Fund,
since
April 2018. He is a Member of all the Committees of the
Board of
Directors.
Number of Alpha
Services and
Holdings shares
owned on
31.12.2021: 0
Secretary
George
P.
Triantafyllides
(until
16.12.2021)
the Secretariat
of the Board of
Directors in May
2020
as an Assistant Manager of the Division. In December
2021, she was appointed Secretary of the Board of
Directors. She has more than 20 years of professional
experience
in the
investment
banking industry
in Greece,
having participated in a large number of international
and domestic capital market transactions as well as
privatizations, Mergers and Acquisitions,
tender
offers
and corporate restructurings.
He was born in Athens in 1963. He holds a BSc from
Oregon State University.
He served as
a Naval Officer
in
the United States Navy. He joined the Bank in 1994 and
worked in various areas of
responsibility, while in 2001 he
was assigned to the Secretariat of the Board of Directors.
He was the Manager of the Secretariat of the Board of
Directors and the Secretary of the Board of Directors of
the Bank
from 2014 until
2021.
Secretary
Eirini E.
Tzanakaki
(as of
16.12.2021)
She was born in Chania in 1971. She studied
Mathematics at the University of
Crete and holds an
MBA
from the Cyprus
International Institute
of Management
as well as an MSc in Finance and Banking from the
Athens University
of
Economics
and
Business.
From
1997 to 1999, she worked as a Senior Credit Officer at
the Corporate Banking Division
of
Geniki
Bank.
Since
1999 she has been
working for the
Alpha Bank Group,
initially as an Investment Banker in Alpha Finance and
from 2006 until 2020 as an Associate Director of the
Corporate Finance Division
of Alpha Bank. She joined
CORPORATE GOVERNANCE STATEMENT
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74
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3.
Professional commitments
of the Members of
the Board of Directors
Position
Principal outside activities
Chair (Non-Executive Member)
Vasileios
T. Rapanos
Chairman of
the BoD of
the Hellenic
Bank Association
Member of
the BoD
and the
Executive Committee
of the
Foundation
for Economic
and Industrial
Research (ΙΟΒΕ)
Chairman of the BoD of the Cultural Foundation of the Alpha Bank Cultural Foundation
Member of
the BoD
of the
Citizens' Movement
for an
Open Society
(Non-profit association)
Vice Chairman of the BoD of
Biomedical Sciences and Technologies S.A. (BMS TECH S.A.)
Vice Chairman of the BoD of the Company for the Management and Development of the Academy’s
Property
Executive Members
Vassilios E. Psaltis
CEO
Member of
the BoD
and of
the Executive
Committee of
the Hellenic
Federation of
Enterprises (SEV)
Member of the BoD of the
Hellenic Bank Association
Spyros N. Filaretos
General Manager
- Growth
and Innovation
Member of the BoD of Alpha Bank London Ltd
Chair of the BoD of
the Efstathia J. Costopoulos Foundation
Member of the BoD of the Cultural Foundation of the Alpha Bank
Cultural Foundation
Non-Executive Member
Efthimios O. Vidalis
Non-Executive Member
of the BoD of
Titan Cement Company
S.A.
Non-Executive Member
of the BoD of Fairfield-Maxwell Ltd
Non-Executive Member of the BoD
of Eurolife FFH Insurance Group
Holdings S.A.
President of the Executive Committee and Member
of the BoD of the
Hellenic Federation of
Enterprises (SEV)
Member of
the BoD
of the ALBA
Graduate School
of Business
Administration in
Athens
Vice Chair of the BoD of
Solidarity Now (NGO)
Independent Non-Executive
Members
Dimitris C. Tsitsiragos
Member of the BoD of Titan Cement International
Jean L. Cheval
Member of the BoD
of EFG-Hermès, Egypt
Chairman of the Steering Committee of Natixis Algérie
Chairman of
the Natixis
Foundation for
Research and
Innovation, Senior
Advisor of
Natixis
Carolyn G. Dittmeier
Chair of the
Board of Statutory
Auditors of
Assicurazioni Generali
SpA
Member of the BoD of Illycaffè SpA
Member of the Board of Statutory Auditors
of Moncler SpA
Richard
R. Gildea
Member of
the Board
of Advisors
at the
Johns Hopkins
University School
of Advanced
International
Studies
Elanor R. Hardwick
Member of the BoD of Axis Capital Holdings Ltd,
Axis Specialty Europe, Axis Re Europe,
Axis Managing
Agency Ltd
Member of the
Advisory Board
of Concirrus
Shahzad
A. Shahbaz
Group CIO of Al Mirqab Holding Co
Member of the BoD of El Corte Inglés
S.A.
Member of the BoD of Seafox
Jan A. Vanhevel
Member of the BoD of Soudal NV
Member of the BoD
of Opdorp Finance
BVBA
Non-Executive Member
(pursuant to
the provisions
of Law 3864/2010)
Johannes Herman Frederik G. Umbgrove
Chairman of the Supervisory
Board of Demir Halk
Bank N.V.
Member of the
Supervisory Board
of Lloyds Bank
GmbH
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
75
ANNUAL FINANCIAL REPORT
4.
Profile of the Board of Directors
and Committee Membership for
the year 2021
Board of
Directors
Gender
Age
Tenure
Term
ends
Committees
Audit
Risk
Management
Remuneration
Corporate
Governance,
Sustainability
and
Nominations
Chair (Non-Executive Member)
Vasileios T. Rapanos
M
74
7
2022
-
-
-
-
Executive Members
Vassilios E. Psaltis
- CEO
M
53
3
2022
-
-
-
-
Spyros N. Filaretos
General Manager -
Growth and
Innovation
M
63
16
2022
-
-
-
-
Non-Executive Members
Efthimios O. Vidalis
M
67
7
2022
M
-
-
M
Artemios Ch. Theodoridis
(until 17.6.2021)
M
62
16
2022
-
-
-
-
Independent Non-Executive
Members
Dimitris C. Tsitsiragos
M
58
18
months
2022
M
M
Jean L. Cheval
M
72
3
2022
-
M
M
-
Carolyn G. Dittmeier
F
65
4
2022
C
-
-
M
Richard
R. Gildea
M
69
5
2022
-
M
C
-
Elanor R. Hardwick
F
48
18
months
2022
M
-
-
C
(as of 30.9.2021)
M
(until 30.9.2021)
Shahzad A. Shahbaz
M
61
7
2022
-
-
-
M
(as of 30.9.2021)
C
(until 30.9.2021)
Jan A. Vanhevel
M
73
5
2022
M
C
-
-
Non-Executive Member
(pursuant to
the provisions
of Law 3864/2010)
Johannes Herman Frederik G.
Umbgrove
M
60
3
2022
M
M
M
M
C: Chair / M:
Member / - :
The Member does
not participate in
this Committee
5.
Board
and
Committees
attendance
In 2021, the Board of Directors convened
29 times. The
average participatio
n
rate of the
Members of
the Board
of Directors in the meetings stood at 98% (based on the
composition of the Board of Directors on 31.12.2021).
Board
Meetings
Average
Attendance
The Corporate Governance, Sustainability
and Nominations
Committee deemed that there were no Member absences
from Board meetings without a valid reason. The Members
of the Board of Directors who were absent had informed the
Company in time
of the
relevant reasons.
The table of the attendance rates of the Members of the
Board of Directors is posted on the Company’s website
(https://www.alpha.gr/en/group/corporate
-governance/
administrative-structure/board-of-directors).
98%
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
76
ANNUAL FINANCIAL REPORT
6.
2021
Board
Members’
Individual
Attendance
Rates
at
Meetings
Board of
Directors
Audit Committee
Risk
Management
Committee
Remuneration
Committee
Corporate
Governance,
Sustainability
and
Nominations
Committee
Number of meetings
29
15
17
11
10
Chair
(Non-Executive
Member)
Vasileios
T. Rapanos
100%
-
-
-
-
Executive Members
Vassilios E. Psaltis
CEO
100%
-
-
-
-
Spyros N. Filaretos
General Manager
- Growth
and Innovation
100%
-
-
-
-
Non-Executive Members
Efthimios O. Vidalis
97%
93%
-
-
100%
Artemios Ch. Theodoridis
(until 17.6.2021)
100%
-
-
-
-
Independent Non-Executive
Members
Dimitris C. Tsitsiragos
100%
-
100%
100%
-
Jean L. Cheval
100%
-
100%
100%
-
Carolyn G. Dittmeier
100%
100%
C
-
-
100%
Richard
R. Gildea
93%
-
94%
100%
C
-
Elanor R. Hardwick
100%
100%
-
-
100%
C
(as of 30.9.2021)
M
(until
30.9.2021)
Shahzad
A. Shahbaz
86%
-
-
-
90%
M
(as of 30.9.202
1)
C
(until 30.9.2021)
Jan A. Vanhevel
100%
93%
100%
C
-
-
Non-Executive Member
(pursuant to
the provisions
of Law 3864/2010)
Johannes Herman Frederik G. Umbgrove
100%
100%
100%
100%
100%
C: Chair / M:
Member / - :
The Member does
not participate in
this Committee
7.
Suitability and Nomination
Policy for the Members
of the Board of Directors
The Suitability and Nomination Policy for the Members of
the Board of
Directors is a
document of Alpha
Services and
Holdings S.A. that sets the principles and the framework
for the selection,
appointment, re-appointment and
replacement of Members of the Board of Directors as well as
the criteria to
be used in
the assessment.
The Policy complies with the legislative and regulatory
framework in force, including
the
relevant
Joint
ESMA
and EBA
Guidelines
on “the
assessment
of the
suitability
of members of the management body and key function
holders” (hereinafter the “ESMA/EBA Guidelines”),
the
ECB Guide
to fit and
proper assessments,
as well as
with
European
best practices
in corporate
governance.
It also
meets the requirements stipulated in the Relationship
Framework Agreement
(RFA) with
the Hellenic
Financial
Stability Fund (the
“HFSF”).
The objectives of
the Policy are
to:
•
Set general principles that provide guidance to the
Corporate
Governance,
Sustainability
and
Nominations
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
77
ANNUAL FINANCIAL REPORT
Committee (hereinafter the
“CGSNC”)
and
its
Chair
on selecting, vetting and proposing candidates to
the
Board of Directors
as well as
replacing and renewing
the tenure of the Members of the
Board of Directors.
•
Set
criteria,
including
diversity
criteria,
for the
selection
and suitability assessment of Board of Directors
candidates.
•
Set criteria for the assessment of the ongoing individual
suitability of the Members of the Board of Directors
as well as the collective suitability of
the Board of
Directors.
•
Establish a transparent,
effective and
time-efficient
suitability and nomination
process.
The Policy is monitored and reviewed annually by the
CGSNC, approved
by the Board
of Directors
and submitted
for approval to the
General Meeting of Shareholders.
Any amendments to the Policy are approved by the
Board of Directors and, in case they are material, they
are submitted for approval
to the General Meeting of
Shareholders.
The Policy
and
every
material
amendment
thereto enters into force from the approval
thereof by
the General Meeting. Material are the
amendments
that provide for derogations or significantly change
the content of the Suitability and Nomination Policy in
particular as to the applied general principles and criteria.
In preparing, amending or reviewing the Policy, the
Corporate Governance,
Sustainability
and Nominations
Committee and the Board of Directors shall take into
account recommendations or findings of other Board
Committees and competent Departments, especially
the
internal control functions. Internal control functions should
provide effective input to the review of the Suitability
and Nomination Policy in accordance with their roles.
Notably, the
Compliance
Division
should analyze
how the
Suitability and Nomination Policy affects the Company’s
compliance with legislation, regulations, internal
policies
and procedures and
should report all
identified compliance
risks and issues of non-compliance to the CGSNC.
The CGSNC
will not propose
candidates
which it deems
not suitable to become Members of the Board of
Directors according to the criteria set out
in the applicable
regulatory framework and this Policy. Suitability is
determined in relation to the
Policy’s criteria for candidates
(fit and proper and general suitability) and current
composition needs.
For the purposes of
this Policy, it is
defined as the degree to
which an individual is deemed
to have good repute and to have, individually and
collectively with other individuals, adequate knowledge,
skills and experience to
perform his/her duties and a
clear
understanding
of
the
Company’s
culture,
values
and overall
strategy.
Suitability
also covers
the honesty,
integrity and independence
of mind of each individual
and
his or her ability to commit sufficient
time to perform his or
her duties.
Further to the above, where Members of the Board of
Directors do not fulfil the requirements set out, the
European Central Bank in the framework of the Single
Supervisory Mechanism (hereinafter the “competent
authority”) shall have the power to remove such Members
from the Board of Directors. The competent authority shall
in particular verify whether the requirements set out are
still fulfilled where it has reasonable grounds to suspect
that money laundering or terrorist
financing is being or
has
been committed or attempted or there is increased risk
thereof in
connection with the
Company.
In order to be considered as a suitable candidate by
the Board of
Directors and
its CGSNC,
the prospective
nominee must: meet the fit and proper requirements, meet
individual and collective suitability requirements, have
no systematic conflict of interests with the Company, be
able to devote sufficient time to the Board of Directors. All
nominees must submit a declaration that
they meet the
relevant requirements.
8.
External Evaluation of
the Board of
Directors
With the support
of the CGSNC,
the Board of
Directors
annually assesses its effectiveness and that of its
Committees.
From time to time and
at least once every three years,
the
Board of Directors may appoint external consultants to
facilitate a more in-depth review of its effectiveness.
The collective evaluation of the Members of the Board
of Directors and its Committees, for the year 2020, was
conducted
by Nestor
Advisors
Limited,
a London
-based
corporate governance consulting firm, with the assistance
of the CGSNC.
The Individual
Evaluation of
the Members
of
the Board of Directors for the year 2020 was conducted by
the Chair of
the Board of
Directors.
The main highlights of the collective evaluation for the
year 2020
are the
following:
-
The Board of
Directors’ overall
score has been
stable
since 2019 and is higher than tho
se of 2018 and 2017.
-
The Board
secretarial
support
is the
highest scoring
area, improving significantly since 2017.
-
All the sections
except three have
a higher average
score in 2020
compared to that
of 2019.
-
Strategic Human
Resources
Issues and
Remuneration
is
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
78
ANNUAL FINANCIAL REPORT
again the lowest scoring area, with an improvement over
2018 and 2017,
but with a lower
score than that
of 2019.
Pertaining to the Individual Evaluation of the Members of the
Board of Directors for the year 2020, the main finding is that
the Board performed its functions effectively in 2020. This
was an encouraging finding, since 2020 was an exceptional
year.
The Covid
-19
pandemic
changed
dramatically
the dail
y
work and the general economic environment both worldwide
and in Greece.
In order to
face the new
challenges, the
Board
of Directors and its Committees worked very productively
and supported the Management both in facing the
consequences of the pandemic and in implementing the
major plans of
the Company.
9.
Assessment
of
the
Board
Members’
collective
suitability based
on ESMA and EBA
Guidelines
During 2021, further
to the aforementioned
evaluation
of the Board of
Directors, an assessment of the
Board
Members’ collective suitability in terms of knowledge, skills
and experience
based on
the Joint
ESMA/EBA
Guidelines
on “the assessment of the suitability of members of the
management body and key function holders” (the “Joint
ESMA/EBA Guidelines”)
was conducted
with the support
of
the CGSNC.
In this context and for the purposes of preparing the
assessment of the collective suitability, each Member of the
Board
of
Directors
conducted
an
Individual
Self-Assessment
based on the
criteria listed in
the Joint ESMA/EBA
Guidelines.
The Chair of
the Board of
Directors completed the Collective
Suitability Matrix of the
Joint ESMA/EBA Guidelines
based on the Individual Self Assessments and examining,
among
others, the
areas of
governance,
risk management,
compliance, audit, management,
strategy, decision-making
and past experience,
as suggested
by the said
Guidelines.
Based on the approved Collective Suitability Matrix, the
Board of Directors resolved that it would benefit from gender
and ethnically diverse candidates, further Greek market
expertise, experience
in retail
financial services,
IT and
Digital
as well as Human Resources
and ESG skills and knowledge
and/or experience.
10.
Cooperation
of
the
Non-Executive
Members
with
the Executive
Members
The Non-Executive Members of the Board of Directors
reviewed issues of potential conflict of interests
between the
Company and the Executive Members.
Additionally, the good cooperation between
all the Executive
Members of the Board of Directors and their Non-Executive
peers was highlighted.
The Executive
Members stand
out for their
professional
expertise, their quality of character, their integrity and their
team spirit. They devote sufficient time and demonstrate
the required commitment in order to fully
comply with the
constantly increasing regulatory reporting requirements.
The Non-Executive Members of the Board of Directors
expressed their satisfaction to the Executive Members
about their positive
contribution to the
management of the
Company.
11.
Induction
and
Training
11.1
Induction
and
Training
Policy
for
the
Members
of
the Board of Directors
The Induction and
Training Policy
for the Members
of the
Board of Directors is a document of Alpha Services and
Holdings S.A. for internal
use
that
sets
the
principles
and
the approach for the induction and training programs
addressed to the Members of the Board of Directors in
accordance with the legislative and regulatory framework in
force, including the
relevant Joint
ESMA and EBA
Guidelines
on “the assessment of the suitability of members of the
management body and key function holders” (ESMA71-99-
598 EBA/GL/2017/12, 21/3/2018) (the “Joint ESMA and
EBA Guidelines”),
as well as
with European
best practices
in
corporate governance.
The Policy applies to
the Members of
the Board of
Directors
individually and/or
collectively.
The objectives of the induction and
training programs
provided to the Board of Directors
are to:
•
facilitate the Board of Directors’ clear understanding of
the relevant laws and regulations and of
the Company’s
structure, business
model, risk
profile and
governance
arrangements as well as of the role of the Member(s)
within them;
•
facilitate the Board of Directors’ clear understanding of
the international, European and national economic and
regulatory developments in the financial sector and their
impact on
the Company;
•
promote the Board of Directors’
awareness regarding
the benefits of diversity in the Board of Directors and the
Company;
•
improve the skills, knowledge or competence of the
Members of the Board of Directors to fulfil their
responsibilities
on an ongoing
or on an
ad hoc basis;
•
provide for relevant general and as
appropriate
individually tailored training programs.
The Policy is
approved by
the Board of
Directors and
is
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
79
ANNUAL FINANCIAL REPORT
reviewed every
two years
by the
Corporate Governance,
Sustainability and Nominations Committee,
which may
propose relevant amendments to the Board
of Directors.
11.2
Induction
and
Training
Programs
for
the
Members of the Board of Directors
All the newly-appointed Members of the Board of
Directors receive key information one month after
taking
up their position at the latest and the induction should
be completed within six months. For this purpose, the
Company offers to all the new Members of the Board of
Directors an induction
program on:
•
The Company’s
structure,
business
model, risk
profile
and governance arrangements;
•
Legal and regulatory requirements in relation to the
Company and the services it
provides;
•
Corporate Governance
principles;
•
Risk Management,
Internal Audit,
Compliance;
•
External
Statutory
Audit;
•
Capital Adequacy,
Financial and
Accounting Services;
•
ESG,
Sustainability
and Non
-Financial
Information;
•
Information
Technology
and Security;
•
Digitalization;
•
Transformation;
•
Strategic Planning.
Additionally, the Company, in the framework of the
continuous training of the Members of the Board of
Directors,
provides
informative
and/or
training
sessions
to all of them as well as the possibility for relevant
informative and/or training seminars
and meetings on the
above-mentioned or other
topics concerning the
financial
sector and
the Company.
The Company also provides
its
Board
Members
with
the opportunity to participate
in training and education
sessions
offered
by external
institutions.
Upon request
by any Member, the
Company may offer tailor-made
programs to further enhance
the Members’ knowledge and
competences.
12.
Related
Parties
Transactions
The
Company
has
established
and
implements
policies
and processes
on Related
Parties
Transactions
in order
to identify, evaluate, approve and
properly disclose the
transactions it performs with the Related Parties at a Group
level on a proportionate basis per legal entity.
All set processes and procedures aim
at mitigating the
conflict of interests risk, in the context of which the Related
Parties may put their own private interests before the
interests of the Company.
Specifically, the
Compliance
Division of each Company
is the
responsible Unit to monitor
the Related Parties transactions for conformity with the
principles and process applied.
On a quarterly
basis, the
Compliance
Division reports
to
the Audit Committee and informs the Board of Directors
regarding the outcome of the relevant review conducted,
along with any remediation actions, when considered
necessary.
13.
Committees of the Board
of Directors
The Board of Directors may establish permanent or
ad hoc Committees to assist it in the
discharge of its
responsibilities, facilitate its operations and effectively
support its decision-making. The Committees have an
advisory role but may also
assume delegated authorities, as
determined
by the
Board.
Each
Committee
has its
dedicated
Charter prescribing its composition, tenure, functioning
and
responsibilities.
Four Committees
operate
at Board
level,
namely:
•
the Audit Committee,
•
the Risk
Management
Committee,
•
the
Remuneration
Committee,
•
the Corporate
Governance,
Sustainability
and
Nominations Committee.
Each Committee consists of no fewer than three
Members and shall be deemed
in quorum when at least
three Members are present, whether physically or via
videoconference.
The
composition
of
each
Committee
is proposed
to the Board
of Directors
by the Corporate
Governance,
Sustainability
and
Nominations
Committee
taking into account the Suitability and
Nomination Policy
for the Members of the Board
of Directors as well as the
respective legal and regulatory framework.
The major focus of the Committees is placed on the
oversight
and diligence
of policies,
practices
and procedures
within their specific area of mandate, in the review of draft
resolutions to be approved by the Board of Directors and in
the submission of relevant
briefings, reports, key information
and recommendations to the Board. The Committees report
regularly to the Board of Directors about
their work.
Audit Committee
The Committee has been established and operates in
accordance with all applicable
laws and regulations.
The
Audit Committee currently constitutes a Committee of
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
80
ANNUAL FINANCIAL REPORT
40%60%
the Board of Directors and the Members were appointed
by a
resolution
of the
Annual Ordinary
General
Meeting
of
Shareholders of
31.7.2020.
Chair:
Carolyn
G. Dittmeier
•
Assists the Board of Directors in overseeing the
effectiveness and performance
of the Internal Audit
Unit and of the Compliance Unit of
the Company and of
the respective Units across the
Group.
•
Is responsible for the procedure
for the selection of
Number of Members
5
the Statutory Certified Auditors of the Company and
(including the Chair):
makes recommendations to the Board of
Directors
Number of meetings in
15
on the appointment or dismissal, rotation, tenure
2021:
and remuneration of the Statutory Certified Auditors,
Average participation rate
of the
Members:
97% (based on the
Committee’s composition on
31.12.2021)
according to the relevant regulatory and legal
provisions.
•
Monitors the independence and performance of
Audit
Committee
Composition
60%
Independent
Non-Executive
Members
40%
Non-Executive Members
(Based on the composition of
the Audit Committee on
31.12.2021)
The main responsibilities of the Audit Committee
include but are
not limited to those
presented below.
The Committee:
•
Performs the oversight of the financial reporting
processes
and procedures
for drawing
up the
Annual and
the Interim Financial Statements of the Company and
the Group,
in accordance
with the
applicable
accounting
standards.
•
Reviews the quarterly, semi-annual and annual Financial
Statements of the Company and the Group, together
with
the Statutory Auditors’ Report, where applicable, and the
Board of Directors’ Annual Management Report, prior to
their submission to the Board
of Directors for approval.
•
Is informed of the evolution of significant
accounting
standards and oversees the impact on accounting
policies.
•
Monitors and assesses the adequacy, effectiveness and
efficiency of the Internal Control System (including the
ongoing development
of ESG
procedures)
of the
Company
and the Group,
based on
reports by
the Internal
Audit Unit,
findings of the external auditors, the supervisors and the
tax authorities as well as management information, as
appropriate.
•
Assists the Board of Directors in ensuring the
independent, objective and effective conduct
of internal
and external audits.
the Statutory
Certified Auditors
in accordance with
the applicable laws, which includes reviewing, inter
alia, the provision by them of Non-Audit Services to
the Company and the Group. In relation to this, the
Committee examines and approves all proposals
regarding the provision by the Statutory Certified
Auditor of Non-Audit Services to the Company
and
the Group, based on the relevant policy that the Audit
Committee oversees and recommends to the
Board of
Directors for approval.
•
Performs the oversight of the Sustainability Report
and
Non-Financial
Information
reporting,
including
sustainability and ESG disclosures.
The Members of the Committee, based on a self-
assessment process, collectively possess
adequate
knowledge of the financial sector and, in general, the
required knowledge, skills and experience to adequately
discharge the Committee’s responsibilities.
At least one
Member, who is Independent from the audited entity, has
accounting/auditing
knowledge
and
experience
and
should
always be present at the meetings regarding the approval
of the
Financial Statements.
The specific duties and responsibilities of the Audit
Committee are set out in its Charter, which is posted on
the Company’s website (https://
www.alphaholdings.gr/en/
corporate-governance/commitees).
During 2021
the main
activities
of the
Committee,
among others,
were the following:
The Committee:
•
Evaluated the following annual reports
for the year
2020 which were submitted to the Bank of
Greece:
-
the Regulatory
Compliance
Report,
-
the evaluation
of the adequacy
and effectiveness
of the Anti-Money Laundering
and Combating the
Financing of Terrorism Policy,
CORPORATE GOVERNANCE STATEMENT
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81
ANNUAL FINANCIAL REPORT
-
the evaluation
of the adequacy
and effectiveness
of
the Internal
Control
System
of the
Alpha
Bank
Group
by the Internal
Audit Division,
-
the
Independent
Assessment
Report
regarding
the
custody of Alpha Bank customer assets.
•
Was informed of the monthly and the quarterly
activity reports of
the Internal Audit Division
and
the Compliance
Division,
based
on the
annual
plans
previously endorsed by the Committee.
•
Submitted to the Board of Directors for approval the
fees of Deloitte Certified
Public
Accountants
S.A.
and
of SOL S.A. for the statutory audit of the Financial
Statements of
Alpha Services
and Holdings
S.A. and
its
Group for the
year 2021.
•
Carried out an assessment on the effectiveness of
Deloitte to be reappointed as external auditors. The
Committee approved
the reappointment of Deloitte
as external Group auditors for 2022 with a potential
review of their appointment on a year-on-year basis for
a maximum additional
period of
five years.
•
Reviewed
the
annual
Financial
Statements
preparation
for Alpha Bank
S.A. and the
Group for the
year 2020
as
well as the First Quarter Financial Statements of the
Group of Alpha Bank S.A. (Banking
Group) for the year
2021, the semi-annual Financial Statements for Alpha
Services and Holdings
S.A. and the Group for the year
2021 and the Third Quarter Financial Statements of
the Group for the year 2021, prior to their submission
to the Board of Directors for
approval.
•
Monitored the
impact of the
Covid-19 pandemic
on the
Financial
Statements
of
the
Company
and
the
Group
as
well as on the quarterly
progress reports of the Internal
Audit Division and of
the Compliance Division.
•
Performed the oversight of the Statutory Certified
Auditors’ (Deloitte) activity and performance and
reviewed the Statutory Certified Auditors’ Audit Plan
for
the year 2021.
•
Reviewed
the
Statutory
Certified
Auditors’
Audit
Report
according to
article 10 of
the EU Regulation
537/2014
as well as the Additional Report according to article 11
of the EU
Regulation 537/2014.
•
Monitored the independence of the Statutory
Certified
Auditors, in accordance with
the laws in
force, and,
in particular, as
regards the provision of
Non-Audit
and reviewed
the relevant
Limited
Assurance
Reports
by
an External
Auditor.
•
Reviewed the appointment of the new Head of the
Internal Audit
Unit of Alpha
Services and
Holdings S.A.
following the
hive-down.
•
Reviewed
the
organization,
independence
and
capacity
of the Internal Audit Division and the Compliance
Division.
•
Reviewed the Charter of the Audit Committee of Alpha
Services
and Holdings
S.A.
and resolved
to submit
it to
the Board of Directors for approval.
•
Was updated on a
quarterly basis on the
Whistleblowing
Committee meetings.
•
Was updated
on the
Supervisory
Dialogue
meeting
in
view of the draft Supervisory Review and Evaluation
Process (SREP) Decision of 2021.
•
Acquired a full understanding of the work of the Risk
Management Unit through
the participation of some of
its Members in the Risk Management Committee and
reviewed the operational risk reports with regard to the
relevant impact on the Internal Control System.
Regarding
the Subsidiaries,
the Audit
Committee:
•
Aiming
at
further
enhancing
corporate
governance
and
the collaboration among the Subsidiaries, launched
a series of videoconference meetings with the Audit
Committees of the Subsidiaries. In this context,
meetings with the Members of the Audit Committee
of
Alpha Bank Cyprus Ltd, Alpha Bank Romania S.A.,
Alpha
Bank London
Ltd, Alpha Astika
Akinita S.A.
and AlphaLife
Insurance Company S.A. took place.
•
Reviewed
their
Annual
and Semi
-Annual
Activity
Reports
regarding the fulfillment of their responsibilities.
Risk
Management
Committee
The Committee has been established and operates in
accordance with all applicable laws and regulations. The
Members of the
current Risk Management Committee were
appointed by a resolution of the Annual Ordinary General
Meeting of Shareholders
of 31.7.2020.
Chair:
Jan
A.
Vanhevel
Number of Members
(including the
Chair):
Number of meetings in
2021:
Services to the
Company and
the Group.
•
Monitored the procedure followed
for the drafting of
Average participation rate
of the
Members:
99% (based on the
Committee’s
composition
on
the Non
-Financial
Report
and the
Sustainability
Report
31.12.2021)
5
17
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
82
ANNUAL FINANCIAL REPORT
20%80%
Risk
Management
Committee
Composition
80%
Independent
Non-Executive
Members
20%
Non-Executive Members
(Based on the composition of
the Risk Management Committee
on 31.12.2021)
The main
responsibilities
of the
Risk Management
Committee include but are not limited to those
presented below.
The Committee:
•
Assists the
Board of
Directors in
promoting a
sound risk
culture at all levels throughout the Company and its
Subsidiaries
(the “Group”),
fostering risk
awareness
and
encouraging
open
communication
and
challenge
across
the Organization.
•
Reviews regularly and recommends to the Board of
Directors for approval the risk and capital management
strategy, ensuring alignment with the
business objectives
of the Company and the Group. In this context, the
Committee considers the adequacy of the technical (e.g.
modelling tools,
IT systems,
etc.) and human
resources
available to implement the risk and capital
strategy and
ensures the communication of key aspects of the risk
strategy throughout the Group.
•
Reviews and recommends annually to the Board of
Directors for approval the
Group’s risk appetite framework
and its respective updates,
considering also ESG
risks, i.e.
the risks of any negative financial impact to the Company
stemming from the current or prospective impacts of
ESG
factors
on
its counterparties,
such
as climate
-related
risks, and ensuring alignment with the Group’s strategic
objectives and capital allocation. The risk appetite
framework should be clearly communicated throughout
the Group and articulated/monitored via a set of metrics.
•
Determines
the
principles
which
govern
risk
management
across the Company and the Group in terms of the
identification, measurement, monitoring,
control, and
mitigation of risks.
•
Evaluates on an annual basis or more frequently, if
necessary, the appropriateness of risk identification and
measurement systems, methodologies
and models,
including the capacity of
the Company’s IT infrastructure
to record, report, aggregate and process risk-related
information.
•
Reviews regularly,
at least
annually, the
Group’s Internal
Capital Adequacy Assessment
Process (ICAAP) and the
Internal Liquidity
Adequacy Assessment
Process (ILAAP)
and related target ratios and recommends their approval
to the
Board of
Directors.
•
Assesses the overall effectiveness of capital planning,
allocation processes and systems and the allocation of
capital requirements to
risk types.
•
Keeps itself informed of recent regulatory developments,
emerging supervisory expectations, the results of
supervisory requests
and the Supervisory
Review and
Evaluation Process (SREP) conclusions.
•
Recommends
to the
Board
of Directors
for approval
high-
level policies on the management of risks.
All the Members of the Committee should have prior
experience
in the
financial services
sector and,
individually
and
collectively,
appropriate
knowledge,
skills
and
expertise
concerning risk
management
and control practices.
One
Member should be in charge
of overseeing ESG issues.
The
specific duties and responsibilities of the Risk Management
Committee are set out in
its Charter, which is
posted on
the Company’s website (https://
www.alphaholdings.gr/en/
corporate-governance/commitees).
During 2021 the
main activities
of the Committee,
among others,
were the following:
The Committee
endorsed:
•
The updated Risk
and Capital Strategy
(RCS)/Risk Appetite
Framework (RAF)
for 2021 and
resolved to propose
its
approval to the
Board of Directors.
•
The response
to Mr.
A. Enria’s
Letter on
the “Identification
and measurement of credit risk in the context of the
Covid-19 pandemic” and proposed its approval by the
Board of
Directors.
•
The submissions of the EBA templates regarding the
European Union-wide Stress Test for 2021
to
the
SSM
and resolved to submit them to the Board of Directors for
ratification.
•
The updated
NPE Reduction
Plan of
2021 and
resolved
to
submit it to the Board of
Directors for approval.
•
The Group Internal Capital Adequacy Assessment Process
(ICAAP) Report for 2021 and the concluding Group Capital
Adequacy Statement
(CAS) for
2021, along
with the
Group Internal Liquidity Adequacy Assessment Process
(ILAAP) Report for 2021 and the concluding
Group Liquidity
Adequacy Statement
(LAS) for 2021 and proposed
to the
Board of Directors
the approval
and submission
thereof to
the Single Supervisory Mechanism (SSM).
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
83
ANNUAL FINANCIAL REPORT
•
The updated figures
for the Group
ICAAP and the
Group
ILAAP upon completion of
Project Tomorrow.
•
The updated
ICAAP Framework
and resolved
to submit
it
to the Board of Directors for
approval.
•
The updated
ILAAP Framework
and resolved
to submit
it
to the Board of Directors for
approval.
•
The Pillar
III Disclosures
Report
for the
First Half
of 2021
and resolved to submit it to the Board of Directors for
approval.
•
The amendments to the Loan Impairment and Loan
Default Policies due to the expiration of the EBA
Guidelines on legislative and non-legislative moratoria
and the
change
of the
Individual
Assessment
Threshold
for Companies.
•
The proposed Environmental,
Social and Governance
(ESG) Framework
and resolved
to submit
it to the
Board
of Directors
for approval
and subsequently
to the
SSM.
•
The Charter of the Risk Management Committee of
Alpha Services
and Holdings
S.A. and resolved
to submit
it to the Board of
Directors for approval.
•
The actions taken to tackle the technical breach of the
SREP ratio at
solo level, following the
completion of the
Hive-Down and of
Project Galaxy.
•
The notification of the SSM/ECB about the quarterly
evolution of the Capital Adequacy Ratios for the Alpha
Services and Holdings Group, Alpha Bank S.A.
and the
Alpha Bank Group following the completion of
the Hive-
Down.
•
The updated Group Recovery Plan (2021) and the
updated
Recovery
Plan
Framework
and
Manual
(2021)
and resolved to submit them to the Board of Directors
for approval.
•
The
revised
Wholesale
Banking
Concentration
Policy
and resolved to propose its approval to the Board of
Directors.
The Committee
took cognizance
of:
•
the final version of
the SREP Letter for
2020;
•
the draft version of the SREP
Letter for 2021 and the
respective action plan.
The Committee was informed of:
•
the NPEs Business
Plan Development;
•
the Wholesale and Retail
Banking NPE Policy;
•
the Early Warning Policy;
•
the Wholesale
Banking Credit
Policy;
•
the Credit Risk
Model Management
Policy;
•
the Retail Credit automation project;
•
the outcome of the Supervisory Dialogue for 2021;
•
the Contingency Funding Plan (CFP);
•
the Single Supervisory
Mechanism (SSM) and
the
Single Resolution
Board (SRB)
Agendas for 2021,
on a
monthly basis;
•
the monthly evolution of the Capital Ratios, the Net
Stable Funding
ratio (NSFR)
and the Liquidity
Coverage
Ratio (LCR);
•
the SSM’s feedback
on the Group
Recovery Plan
2020;
•
the
SRB’s
Joint
Decision
2020
on
the
resolution
plan
and MREL
(Minimum
Requirement
for own
funds
and
Eligible Liabilities);
•
the SRB’s
working
priorities
for 2022;
•
the updated Bail-in playbook
(2021);
•
the Work
Program
in accordance
with the
Resolvability
Working Priorities for 2021;
•
the updated versions of the Financial Market
Infrastructure (FMI) Contingency Plan (2020
and 2021);
•
the updated Resolution Communication Plan
(2021);
•
the Resolvability
Budget for 2022
-2023;
•
the Group’s MREL issuance plan;
•
the progress of the off-site inspection of Alpha Bank
Cyprus Ltd
regarding credit
and counterparty
risk in
the large corporate,
SME corporate
and retail SME
portfolios;
•
the progress of the off-site inspection on Business
Model and profitability;
•
the 2022 Climate
Risk Stress
Test.
Regarding
the Subsidiaries,
the Risk
Management
Committee:
•
Aiming
at
further
enhancing
corporate
governance
and
the collaboration among the Subsidiaries, launched
a series of videoconference meetings with the Risk
Management Committees of the Subsidiaries abroad.
In this context, meetings with
the Members of the
Risk
Management Committee of Alpha Bank Cyprus Ltd,
Alpha Bank Romania
S.A. and Alpha Bank
London Ltd
took place.
•
Reviewed the Annual Activity Reports for 2020 and the
Semi-Annual Activity Reports for 2021 prepared by the
Risk Management Committees of the
Subsidiaries.
Remuneration
Committee
The Committee has been established and operates in
accordance with all applicable
laws and regulations.
The
Members of the current
Remuneration Committee were
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
84
ANNUAL FINANCIAL REPORT
25%
75%
appointed
by a
resolution
of the
Annual
Ordinary
General
Meeting of Shareholders
of 31.7.2020.
Chair:
Richard
R. Gildea
and Key
Function
Holders,
ensuring
that it
is implemented
adequately and in accordance with the provisions of the
respective Policy.
The Members of the
Committee should have collectively
Number of Members
(including the
Chair):
Number of meetings in
2021:
Average participation rate
of the
Members:
4
11
100% (based on the
Committee’s composition on
31.12.2021)
appropriate knowledge, skills and professional
experience
concerning remuneration policies and practices,
risk
management and control activities as well as concerning
the incentives and risks that can arise therefrom. At least
one
Member
should
have
sufficient
professional
experience
in risk
management.
The
specific
duties
and
responsibilities
of the Remuneration Committee are set out in its Charter,
which is posted on
the Company’s website (https://www.
Remuneration
Committee
Composition
75%
Independent
Non-Executive
Members
25%
Non-Executive Members
(Based on the composition of the Remuneration Committee
on 31.12.2021)
The
main
responsibilities
of
the
Remuneration
Committee include but are not limited to those
presented below.
The Committee:
•
Assists the
Board of
Directors
in ensuring
that the
Group
Remuneration Policy as well as the “Remuneration
Policy of the Members of the Board of Directors as per
the provisions of Law 4548/2018”
are consistent with
the values, culture, business strategy, risk
appetite
and strategic objectives of the Company and the
Subsidiaries (the “Group”).
•
Provides its support and advice to the Non-Executive
Members of the Board of Directors on
the design of the
Remuneration
Policies for
the Company
and the
Group
according to the relevant legislative and regulatory
provisions.
•
Recommends to the Non-Executive Members the
remuneration of the Members of the Board of
Directors.
•
Reviews
and advises
on fixed
salaries,
benefits
and the
total
compensation
within the
Company.
•
Reviews
the
variable
remuneration
framework.
Advises
on variable remuneration schemes, where these are
permitted,
for Employees
across
the Company
and the
Group, and proposes the total envelope for variable
remuneration across the Company
and the Group.
•
Oversees the
evaluation
process for
Senior Executives
alphaholdings.gr/en/corporate-governance/commitees).
During 2021 the
main activities
of the Committee,
among others,
were the following:
The Committee:
•
reviewed and proposed to the
Board of Directors the
approval of:
-
the Expenses
Policy for
the Non-Executive
Members
of
the Board
of Directors,
-
the amended
Senior
Executives
Severance
Payment
Policy,
-
the Remuneration
Committee
Charter;
•
endorsed, as part of the material to be submitted to
the Ordinary General
Meeting of
Shareholders,
the
Remuneration Policy of the Members of
the Board of
Directors as per the provisions of Law 4548/2018 and the
Remuneration Report as per Law 4548/2018;
•
endorsed and recommended to the
Board of Directors
the
approval of the Performance Incentive Program
– 2020
Bonus Pool as well
as the respective
Bonus Allocation;
•
endorsed and recommended to the Board of Directors
the approval of the 2020
Sales Incentive Program Bonus
Allocation to Branch
Employees;
•
resolved to recommend to the
Board of Directors the
approval of the allocation of Stock Options to MRTs,
including the
Senior
Managers
under the
Bonus Ban
Perimeter;
•
reviewed the list of
Material Risk Takers for 2020;
•
reviewed the 2020 Evaluation Scorecards and the 2021
objective-setting Scorecards of the General Managers
and of
the Key Function
Holders;
•
provided input to the Corporate Governance,
Sustainability and Nominations Committee
regarding the
Policy for the Evaluation
of Senior Executives
and Key
Function Holders;
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
85
ANNUAL FINANCIAL REPORT
40%60%
•
finalized the remuneration
amounts of the Members of
the Board of Directors for the financial year 2021.
Regarding
the
Subsidiaries,
the
Remuneration
Committee
reviewed:
•
the Annual Activity Reports for the year 2020 of the
Remuneration Committees of the Subsidiaries.
•
the annual remuneration amounts of the Non-Executive
Members of the Boards
of Directors of the
Subsidiaries for
the year 2021.
Corporate Governance, Sustainability and
Nominations Committee
(former Corporate
Governance
and Nominations
Committee)
The Committee has been established and operates in
accordance with all applicable laws and regulations. The
Members
of
the
current
Corporate
Governance,
Sustainability
and Nominations Committee were appointed by a resolution
of the Annual Ordinary General Meeting of Shareholders of
31.7.2020.
Chair:
Elanor
R. Hardwick
provides oversight that the implementation of this
principle aligns with the legislation in force, the regulatory
expectations and the international corporate governance
best practice.
•
Facilitates the regular review of the Charters of the
Board Committees, in consultation with the relevant
Committees, by providing input to each Committee in
order to ensure that the Charters remain fit-for-purpose
and align
with the
Hellenic Cor
porate Governance
Code as
well as with corporate governance best practices.
•
Assists the Board of Directors in establishing the
conditions required for effective succession and
continuity
in the
Board of
Directors.
•
Develops and regularly reviews the selection criteria and
the appointment process for the Members of the Board of
Directors.
•
Identifies and recommends for the approval of the Board
of Directors candidates to fill vacancies, according to the
Suitability and Nomination Policy for the Members of the
Board of Directors, evaluates the balance of knowledge,
skills, diversity and experience
of the Board
of Directors
Number of Members
(including the
Chair):
Number of meetings in
2021:
Average participation rate
of the
Members:
5
10
98% (based on the
Committee’s composition on
31.12.2021)
and prepares a description of
the roles and capabilities
for a particular appointment and assesses the time
commitment expected.
•
Assesses
periodically,
and at
least annually,
the structure,
size, composition and performance of the Board of
Directors and makes recommendations to the Board of
Directors with regard
to any changes.
Corporate Governance, Sustainability and
Nominations Committee Composition
60%
Independent
Non-Executive
Members
40%
Non-Executive Members
(Based on the composition
of the Corporate
Governance,
Sustainability and Nominations Committee on
31.12.2021)
The
main
responsibilities
of the
Corporate
Governance,
Sustainability and Nominations Committee include but
are not limited to those presented below.
The Committee:
•
Monitors the compliance of
the Company and
the Group
with the
pertinent Hellenic
Corporate
Governance
Code
to which the Company adheres, ensuring appropriate
application of the “comply or
explain” principle required;
•
Assesses periodically, and at least annually, the
knowledge,
skills and
experience
of each
Member
of
the Board of Directors and of the Board of Directors
collectively
and reports to the Board of Directors
accordingly.
•
Oversees the design and implementation of the induction
program for the new Members of the Board of Directors
as well as
the ongoing knowledge and skills
development
for Members, which support the effective discharge of
their responsibilities.
•
Reviews at least annually current and emerging trends
and regulatory developments in ESG issues that may
significantly affect the Company’s
activities, highlighting
to the Board of
Directors areas that may require actions.
•
Oversees the implementation of the
Company’s policies
on ESG
issues.
•
Oversees major sustainability and corporate responsibility
initiatives, reviewing the respective reporting to
Stakeholders.
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
86
ANNUAL FINANCIAL REPORT
The Committee ensures and regularly evaluates that its
Members collectively possess the required knowledge,
skills and
experience
relating to
sustainability
and ESG
issues as well as to the business of the Company to
assess the appropriate composition of the Board of
Directors and,
among others,
the selection
process and
suitability requirements to adequately discharge the
Committee’s responsibilities.
The specific
duties
and responsibilities
of the
Corporate
Governance, Sustainability and Nominations
Committee
are set out in its Charter, which is posted on the
Company’s website (https://www.alphaholdings.gr/e
n/
corporate-governance/commitees).
During 2021
the main
activities of
the Committee,
among others,
were the following:
The Committee:
•
identified and recommended for approval by the Board
of Directors candidates to fill vacancies in the Board of
Directors;
•
recommended to the Board of Directors the
appointment of
Ms. E.M.
Andriopoulou as
Non-
Executive Member of the
Board of Directors, with
effect as of
1.1.2022;
•
reviewed and proposed to the
Board of Directors the
approval of:
-
the Committees’
Charters,
-
the Board of
Directors’ Charter,
-
the Suitability and Nomination Policy for the
Members of the Board of
Directors,
-
the Diversity Policy,
-
the Induction
and Training
Policy
for the
Members of
the Board
of Directors,
-
the Policy
for the
Evaluation
of Senior
Executives
and Key
Function Holders,
-
the Corporate
Governance
Statement
for the
year
2020,
-
the Internal
Governance
Regulation
of the
Company,
-
the European
Banking Authority
(EBA) Guidelines
Matrix regarding the collective suitability of the
Board of
Directors,
-
the Corporate Governance
Action Plan,
-
the training program of the Board of Directors for
the year 2022;
•
recommended to the Board of
Directors the approval
of the
adoption
of the
Hellenic
Corporate
Governance
Code;
•
recommended to the Board of
Directors the approval
of changes to the Organizational Chart of the
Company;
•
was informed of Environmental, Social, and
Governance (ESG) issues and, in particular,
of the
proposed Environmental,
Social and Governance
(ESG)
Framework;
•
was informed
of the assessment
of the effectiveness
of
the
Company’s
approach
to
Corporate
Governance
conducted by Nestor Advisors Limited;
•
reviewed and submitted its Annual Activity Report
to
the Board of Directors for information.
Regarding
the Subsidi
aries,
the Corporate
Governance,
Sustainability and Nominations Committee reviewed:
•
the 2020 Annual
and the 2021
Semi-Annual Activity
Reports
of
the
Subsidiaries’
Nomination
Committees
and Boards
of Directors.
•
the composition of the Subsidiaries’ Boards of
Directors and their Committees.
G.
EXECUTIVE
COMMITTEE
In accordance with Law 4548/2018, the Board of
Directors has established as of
2.12.2019 an Executive
Committee.
The Executive
Committee
acts
as a
collective
corporate
body of the Company.
The Committee’s
powers and
authorities are determined by way of a CEO act,
delegating powers and authorities to the Committee.
The indicative main responsibilities of the
Committee include but are not limited to the
following:
The Committee:
•
prepares the strategy, business plan and annual
Budget
of the
Company
and the
Group for
submission
to and approval by the Board of Directors as well as
the annual and quarterly Financial Statements;
•
decides on and manages the capital allocation to the
Business Units;
•
prepares
the
Internal
Capital
Adequacy
Assessment
Process (ICAAP) Report and
the Internal Liquidity
Adequacy Assessment Process (ILAAP) Report;
•
monitors the performance of
each Business Unit and
Subsidiary of the Company against the Budget and
ensures that corrective measures are taken;
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
87
ANNUAL FINANCIAL REPORT
•
reviews and
approves
the policies
of the
Company,
informing the Board of Directors
accordingly;
•
approves and manages any
collective
program
proposed
by the Human
Resources Division
for the Employees
and
ensures
the adequacy
of Resolution
Planning
governance,
process and
systems;
•
is responsible for the implementation of (i) the overall
risk strategy, including the institution’s risk appetite
and its risk management framework, (ii) an adequate
and effective internal governance and internal control
framework, (iii) the selection and suitability assessment
process for
Key Function
Holders, (iv)
the amounts,
types
and distribution of both internal capital and regulatory
capital and (v) the targets for the liquidity management.
The composition of the Executive Committee of the
Company
as of
1.12.2020
is as
follows:
Chair
V.E. Psaltis
Chief Executive Officer
Members
S.N. Filaretos
General Manager – Growth and Innovation
S.A.
Andronikakis
General Manager –
Chief Risk Officer
L.A. Papagaryfallou
General Manager
– Chief
Financial Officer
S.A. Oprescu
General Manager of International
Network
N.V. Salakas
General Manager
– Chief
Legal and
Governance
Officer
I.M. Emiris
General Manager
of Wholesale
Banking
I.S. Passas
General Manager
of Retail
Banking
A.C. Sakellariou
General Manager
– Chief
Transformation
Officer
S.N. Mytilinaios
General Manager
– Chief
Operating Officer
Chair
Vassilios
E. Psaltis
- CEO
He was born in
Athens in 1968
and holds a PhD
in Banking
and a MA
in Business
and Banking
from the
University
of St.
Gallen in
Switzerland.
He held
various senior
management
positions at
ABN AMRO
Bank’s Financial
Institutions
Group
in London and
at Emporiki Bank
wherein he has
worked
as Deputy (acting)
Chief Financial
Officer. He joined Alpha
Bank in 2007. In 2010 he was appointed Group Chief
Financial Officer (CFO) and in 2012 he was appointed
General Manager.
Through these posts,
he spearheaded
capital raisings of several billions from
foreign institutional
shareholders,
diversifying the
Bank’s shareholder
base, as
well as significant mergers and acquisitions that contributed
to the consolidation of
the Greek banking market,
reinforcing
the position of the Bank. In 2019 he was elected member
of the
Institut
International
d’ Études
Bancaires
(IIEB).
He
is a Member of
the Board of Directors
and of the
Executive
Committee
of the
Hellenic Federation
of Enterprises
(SEV)
since July 2021. He
has been a
Member of the Board of
Directors of the Bank since November 2018 and Chief
Executive Officer since January 2019.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 806
Member
Spyros
N.
Filaretos
- General
Manager
– Growth
and Innovation
He was
born in
Athens in
1958. He
studied Economics
at the
University of Manchester and at
the University of Sussex.
He joined the Bank in 1985. He was appointed Executive
General Manager in 1997 and General Manager in 2005.
In October 2009 he
was appointed Chief Operating Officer
(COO). He has
been a Member
of the Board
of Directors
of
the Bank since 2005. As of December 2020 he is General
Manager – Growth
and Innovation.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 0
Member
Spiros
A.
Andronikakis
-
General
Manager
–
Chief
Risk Officer
He was born in Athens
in 1960. He holds a BA
in Economics
and Statistics from the Athens University of Economics and
Business and
an MBA
in Financial
Management
and Banking
from the University
of Minnesota,
U.S.A. He
has worked
in the
Corporate Banking Units of Greek and multinational banks
since 1985.
He joined
Alpha Bank
in 1998.
He was
Corporate
Banking Manager from 2004 to 2007. In 2007 he was
appointed Chief
Credit Officer
and in
2012 General
Manager
and Chief
Risk Officer.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 0
Member
Lazaros
A.
Papagaryfallou
-
General
Manager
–
Chief Financial
Officer
He was born in Athens in 1971. He studied Business
Administration at the Athens University of Economics and
Business and
holds an MBA
in Finance
from the University
of Wales, Cardiff Business
School. He started
his career in
Citibank and ABN
AMRO and he
joined Alpha Bank
in 1998,
having served
as Manager
of the
Corporate
Development,
International
Network
and Strategic
Planning
Divisions.
On
1.7.2013 he was appointed Executive General Manager of
the Bank and has contributed to the implementation
of the
Group’s
Restructuring
Plan,
the
capital
strengthening
of the
Bank, the
design and
closing of
mergers, acquisitions
and
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
88
ANNUAL FINANCIAL REPORT
portfolio transactions. On 2.1.2019 he was appointed
as General Manager and CFO
for the Group. During his
career he
served as
Chairman
and Member
in the Boards
of Directors of
various Group Companies,
in Greece and
abroad, in the banking,
insurance, financial
services,
industry and real
estate sectors.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 591
Member
Sergiu
– Bogdan
A. Oprescu
- General
Manager
of International
Network
He was born in
1963. He holds
a MEng Graduate
degree
with concentration in Avionics from the Aeronautical
Faculty,
Politehnica
University
of Bucharest.
He acquired
a postgraduate degree in Banking from the University of
Colorado and followed multiple executive programme
studies at
Harvard Business
School, Stanford
and London
Business School. He joined Alpha Bank Romania
in
1994 and held several senior positions before he was
appointed Executive
President in
2007. He served
as
Chairman of the Bucharest Stock Exchange from 2000
to 2006 and Chairman of the Board of Directors of the
Romanian Association of Banks from May 2015 to May
2021. On February 11, 2019 he was also appointed as
General Manager of International Network of
the Bank.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 0
Member
Nikolaos
V.
Salakas
-
General
Manager
–
Chief
Legal and
Governance
Officer
He was born in 1972. He studied Law at the National
and Kapodistrian University of Athens and holds a
postgraduate
degree
(LL.M.
in
International
Business
Law) from
the University
College
London. He
is joining
the
Bank after
having worked
for Koutalidis
Law Firm,
where
he was leading the
Banking and Finance Department
as of 2010. He has more than 20 years of experience
in domestic and international Banking, Financing,
Restructuring and
Securities transactions
and he is
ranked amongst
the leading
Greek lawyers
by the IFLR,
Legal 500
and Chambers
and Partners.
He has
supported
Alpha Bank in regulatory, M&A, strategic and finance
transactions since 1999. On 1.3.2019 he was appointed
as General Manager – Chief Legal and Governance
Officer of the
Bank.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 0
Member
Ioannis
M. Emiris
- General
Manager
of
Wholesale
Banking
He was
born in
Athens
in 1963.
He studied
Economics
and Business Administration
at the Athens University
of Economics and Business
(former Athens School
of Economics and Business) and holds an MBA from
Columbia Business School as well
as
a
US
Certified
Public Accounting degree.
He started his career as a
certified public accountant in PricewaterhouseCoopers
in
New York. From 1991 to 2012 he worked for the Alpha
Bank Group, initially as an Investment Banker in Alpha
Finance and from 2004 as Head of the Investment
Banking and
Project Finance
Division of
Alpha Bank.
From
2012 to 2014, he was the Chief Executive Officer of the
Hellenic Republic Asset Development
Fund (HRADF). On
5.11.2014, he was appointed
Executive
General
Manager
of
the Bank and on 19.11.2019 he was appointed General
Manager of Wholesale
Banking.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 34,901
Member
Isidoros
S.
Passas
-
General
Manager
of
Retail
Banking
He was
born in
Thessaloniki
in 1967.
He holds
an MSc
in Mechanical Engineering from the National Technical
University of Athens, an
MBA from at
the City University
Business School and has attended the Advanced
Management Program
(AMP) at INSEAD.
He started his
career in
Procter &
Gamble and
held Director
Positions
in the Marketing and Sales functions of multinational
consumer goods companies. In 2000, he
started his
banking career
in Eurobank.
He had been Deputy
General
Manager of
Retail Banking
Network for
several years.
In
2013, he worked
as a Senior
Advisor to
the CEO for
retail
marketing distribution in Hellenic Petroleum. He joined
Alpha Bank in 2014. He
held the positions of Manager
of Deposit and
Investment Products
and Greek Branch
Network Division. He
is Vice President
at the Board of
Directors of
AlphaLife Insurance
Company S.A.
and holds
the position of Counselor at the Board of Directors of
Alpha Finance.
On 4.1.2016,
he was
appointed
Executive
General Manager of the Bank and
on 19.11.2019 he was
appointed General Manager of Retail Banking.
Number of
Alpha Services
and Holdings
shares owned
on
31.12.2021: 454
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
89
ANNUAL FINANCIAL REPORT
Member
Anastasia
Ch.
Sakellariou
-
General
Manager
–
Chief Transformation
Officer
She was
born in
1973.
She holds
postgraduate
degrees
from the University of Reading in International Banking
and from the University of Warwick in International
Studies. She joined the Bank with 25 years of
experience in internat
ional banking.
She began her
career in London in the mid-90s, having worked at
bulge bracket investment banking firms. In her latest
international role, she was a Managing Director in
investment banking at Credit Suisse. In 2009 she
repatriated; she
held a public
sector role
as the CEO
of
the Hellenic Financial Stability Fund at a critical time
for the reshaping of the banking landscape. Before
joining Alpha Bank,
she was the CEO and
driving force
behind the creation of the first digital
banking platform
in Greece,
Praxiabank. On
1.4.2020 she
was appointed
General Manager – Chief
Transformation Officer.
Number of
Alpha Services
and Holdings
shares owned
on 31.12.2021: 0
Member
Stefanos
N.
Mytilinaios
- General
Manager
–
Chief Operating
Officer
He was born in Athens
in 1973. He holds a
First Class
degree
in Aerospace
Engineering
from the
University
of
Bristol, UK,
and an
MBA with
Distinction
from INSEAD
in Fontainebleau,
France. He brings
onboard extensive
international and Greek
experience in technology,
operations and business, having assumed managerial
positions in Greece
and abroad. He
has been the Chief
Technology Officer
at Commercial
Bank of Qatar
and
later on he was appointed General Manager, Digital
Business at Piraeus Bank. Previously,
he served as
the Deputy Group CIO at Eurobank
and a business
consultant
with McKinsey
& Company,
based
in Athens
and London. On 1.12.2020 he was appointed General
Manager – Chief Operating Officer of the
Bank.
Number of
Alpha Services
and Holdings
shares owned
on 31.12.2021: 0
H.
DESCRIPTION
OF THE DIVERSITY
POLICY
APPLIED
TO
THE
MEMBERS
OF
THE
BOARD
OF
DIRECTORS
AND EMPLOYEES
The Diversity Policy
is a document
of Alpha Services
and Holdings S.A. for internal use that sets the
principles and the approach for the achievement of
diversity
in both
the Board
of Directors
and Employees
in accordance with the legislative and regulatory
framework in force, including the relevant Joint ESMA
and EBA
Guidelines
on “the
assessment
of the
suitability
of members of the management body and key function
holders” (ESMA71-99-598
EBA/GL/2017/12, 21/3/2018)
(“the Joint ESMA and
EBA Guidelines”),
as well as with
European best practices
in corporate governance.
Diversity is defined as the situation whereby the
characteristics of the Members of the Board of Directors
and Employees, including
age, gender, geographical
provenance and educational and professional
background, are sufficiently different to an extent that
allows a variety of views within the Board of Directors
and Employees.
While the diversity of the Board of Directors is not a
criterion for the assessment of the Members’ individual
suitability, diversity should be taken into account when
selecting and assessing Members of the Board of
Directors. Diversity within the Board of Directors leads
to a
broader range of
experience, knowledge, skills
and values and is one of the factors that enhance its
functioning and address the
phenomenon of “groupthink”.
Thus, a more
diverse Board
of Directors,
in its supervisory
and management functions, can reduce
the phenomenon
of “groupthink” and facilitate independent opinions and
constructive challenging in the process of decision-
making.
The Policy
applies to the
selection procedure followed for
the Members of the Board of Directors and is also taken
into consideration for the appointment of the Company’s
Senior Management and Employees.
The objectives of
the Policy are
to:
•
Support and promote diversity in the Board of
Directors and Employees.
•
Engage a broad set of qualities and competences
when recruiting Members of the
Board of Directors
and Employees, to achieve a variety of views and
experiences and to facilitate independent opinions
and sound decision-making within the Board of
Directors.
•
Ensure that there is an appropriate representation of
all genders within the Board of
Directors.
•
Ensure that the principle of equal opportunities is
respected when selecting Members of the
Board of
Directors.
•
Ensure equal treatment and opportunities for
Employees of different genders.
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
90
ANNUAL FINANCIAL REPORT
•
Ensure that, when setting diversity objectives, the
Company considers diversity benchmarking
results
published
by competent
authorities,
the EBA
or other
relevant international bodies or organizations.
The Policy is approved
by the Board
of Directors
and is
reviewed every
two years
by the
Corporate
Governance, Suitability and Nominations
Committee,
which may propose relevant amendments to the
Board of
Directors.
1.
Board of Directors
According to the
existing Greek legislative
framework
concerning
the suitability
requirements
for the
members
of the Board of Directors of credit institutions
which
have received
capital
support
from the
Hellenic
Financial
Stability Fund (Law
3864/2010, Article 10, as in force),
the Members of the
Board of Directors must fulfil
certain
criteria in addition to those
required by the European
legislation, such
as:
•
experience of at least ten years at senior
managerial
level in the areas of banking, audit, risk management
or distressed asset
management.
Additionally,
the Non
-Executive
Members:
•
must have served for at least three years as Board
members of a credit institution, of a company active
in the financial sector or of an international
financial
institution.
Furthermore,
the Board
of Directors:
•
must include at least three experts as independent
non-executive members with adequate knowledge
and international experience
of at least fifteen years
in relevant banking institutions, of which at least
three years’ experience in
a Board of
an international
banking group not operating in the Greek market.
These
experts
should
have
no relationship
with
credit
institutions operating in Greece
over the previous ten
years.
These requirements may have as a result the limitation
of the potential diversity of candidates for the Board
of Directors, in
particular as far
as age, gender
and
experience are concerned.
The Company, taking into account the existing
framework, embraces the benefits of having a diverse
Board of Directors. It recognizes that diversity can help
achieve maximum team performance and effectiveness,
enhance innovation and creativity and promote
critical thinking and team cooperation within the
Board. In
this context,
a diversified
Board of
Directors
fosters constructive
challenge
and discussion
on the
basis of different points of view. It can help improve
decision-making regarding strategies and risk-taking
by encompassing
a broader
range of
views, opinions,
experience, perception,
values and backgrounds.
It
reduces the phenomena of “groupthink” and “herd
behavior”.
A truly diverse Board of Directors allows and makes
good use
of differences
in skills,
regional and
industry
experience, background,
abilities, qualifications,
professional training, gender and other distinction
s
between the Members. Pursuant to the
Suitability and
Nomination Policy for the Members of the Board of
Directors of the
Company, all Board appointments are
made on merit in the context of the skills, experience,
knowledge and
independence
which the Board
as a
whole requires in order to be
effective.
The above differentiation parameters should be taken
into consideration in determining the best possible
composition of the Board of Directors and, when
possible, should be balanced appropriately.
At least the following diversity aspects shall be taken
into consideration for all Board appointments, without
prejudice to the legislative and regulatory framework
and to the Suitability and Nomination Policy for the
Members of the Board
of Directors of the
Company:
•
Educational
and professional
background,
skills
and knowledge
as well as
experience in order
to
facilitate productive challenge and
independent
thinking in accordance with the Suitability and
Nomination Policy for the Members of the Board of
Directors.
•
Gender:
the Company
strives
to enhance
gender
diversity in its Board of Directors and Senior
Management.
•
Age: the same applies to age, as the time period in
which a person
has grown up
influences his
or her
values and
risk culture.
•
Geographical
provenance:
the region
where
a person has gained a cultural, educational or
professional
background.
Diversity
regarding
geographical
provenance
improves
the
experience
of the Board of Directors with regard to the business
activities pursued in a business area and enables
the Board of Directors to better take into account the
cultural values and the legal and market specificities
relevant to
those areas.
In reviewing the composition of the Board of
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
91
ANNUAL FINANCIAL REPORT
17%
8%
17%58%
17%
83%
25%41.7%
33.3%
Directors and in identifying suitable candidates for
appointment,
the
Corporate
Governance,
Sustainability
and Nominations Committee
(the “CGSNC”),
without
prejudice to the provisions of Law 3864/2010, as in force,
concerning the representative of the
HFSF, will:
a.
Consider the benefits of all aspects of diversity
including, but not
limited to, those
described above, in
order to enable the
Board of Directors to
discharge its
duties and responsibilities
effectively.
b.
Consider candidates on merit against objective criteria
pursuant to the strategic objectives of the Company,
the legislative and regulatory requirements and with
due consideration of diversity in
the Board of
Directors.
As part of the annual evaluation of the effectiveness
of
the Board of Directors
and its Committees,
the CGSNC
will consider
the balance of
values, skills,
experience,
independence
and knowledge
of the
Board
of Directors,
the diversity
representation
in the
Board,
including
gender,
and other factors relevant to its effectiveness.
The CGSNC will discuss and agree annually upon all
measurable
objectives
for achieving
diversity
in the
Board
of Directors. In the event that any diversity objectives or
targets have not been met, the CGSNC
shall explain the
relevant
reasons and
the measures
to be
taken, in
order
to ensure that the diversity objectives and targets will be
met.
The CGSNC shall review
and
monitor
regularly
the effectiveness of the Policy and
make relevant
recommendations
to
the
Board
of
Directors.
Furthermore,
it will review regularly the proportion of women who
are employed by
the Company
as a whole,
in senior
management positions and in the
Board of Directors.
The Board of Directors’ actual target is that the
percentage of the less
represented gender in the
Board
is to reach at least 30% in the next three years, while
always considering
industry
trends and
best practices.
All the candidates for the Board of Directors shall be
assessed
on the
basis of
the same
criteria,
irrespective
of gender, since the eligible Members for the Board of
Directors must fulfil all the conditions set in relation
to their qualifications. In this context, men and women
shall have equal opportunities
to be nominated under
the condition that they fulfil all the other prerequisites
in
accordance with the Suitability and Nomination Policy for
the Members of the Board of Directors of the Company.
The Company shall not nominate Members of the Board
of Directors with the sole purpose of increasing diversity
to the detriment of the functioning
and suitability of
the Board of Directors collectively or at the expense of the
suitability of individual Members of the Board of Directors.
Nationality of
the Members
of the Board
of Directors
42%
Hellenic
25%
British
8.33%
Belgian
8.33%
Dutch
8.33%
French
8.33%
US
(Based on
the Board
of Directors
composition
on 31.12.2021)
Educational Profiles of the Members of the
Board of
Directors
58%
Business Administration/Economics
17%
Law
8%
Engineering
17%
Degree in another field of study
(Based on
the Board
of Directors
composition
on 31.12.2021)
Gender
Diversity
83%
Male
17%
Female
(Based on
the Board
of Directors
composition
on 31.12.2021)
Age Range
33.3%
45 - 60
41.7%
61 - 70
25%
over 70
(Based on
the Board
of Directors
compostion on
31.12.2021)
42%
25%
8.33%
8.33%
8.33%
8.33%
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
92
ANNUAL FINANCIAL REPORT
2.
Employees
The provision of equal opportunities for employment
and advancement to all its Employees is not merely
a legal obligation of the Company, but rather a
cornerstone of its
Human Resources Strategy.
It is thus
incorporated in
the Human
Resources
management procedures and practices and the
Company ensures the implementation thereof in
every country where
it is
present.
When setting diversity objectives, the Company
considers
diversity
benchmarking
results,
published
by compete
nt authorities,
the EBA
or other
relevant
international bodies or organizations.
Seeking to implement gender equality in action
and to address the issue of the
low percentage of
women
in positions
of responsibility,
issues
which
are
typical of the
Greek labor market, the
Company takes
a number of measures which help its Employees
balance their professional and family life, while also
promoting equitable treatment and
merit-based
Employees advancement, with equal advancement
opportunities for female Employees. In addition,
a multitude of training, coaching and mentoring
initiatives are in place to support gender equality.
The Company also aims to reflect the gender
diversification
evidenced
in the
Employees
in the
Senior Management.
The Company applies uniform, gender-neutral
Remuneration
and Benefits
and Corporate
Expenses
Policies to all categories of
Employees.
The Company respects and
defends
the
diversity
of
its Employees
irrespective
of gender,
age, nationality,
marital status, sexual orientation, genetic features,
disability, race, color, religious or political affiliation,
ethnic or
social origin,
citizenship
or any
other aspect
unrelated to employment. Further to the above
principles, the Company recognizes the need for
diversity pertaining to skills, background, knowledge
and experience in order to facilitate constructive
discussion and independent thinking.
The Company provides a work environment free of
discrimination and harassment and values the work
and worth of each and every Employee. It ensures
top-quality work conditions and opportunities for
advancement that are based on merit and equitable
treatment. It offers fair remuneration, based on
contracts which
are in agreement
with the conditions
of the corresponding national labor
market and ensures
compliance with the respective national regulations,
inter alia, on minimum pay, working hours and the
granting of leave.
The Company
defends
human
rights and
opposes
all forms
of child,
forced or
compulsory
labor. The
Company respects
employee rights and
is committed to
safeguarding them fully,
in accordance with the
national
and the
European
Union
Law
and the
Conventions
of the
International Labour Organization.
The Company,
in order
to monitor
and elimin
ate diversity
gaps, reviews relevant data on an annual basis and
implements corrective measures to narrow gaps, where
these exist.
Employees
in
Management
positions*
as
of
31.12.2021
Gender
Age Breakdown
as of
31.12.2021
Percentage(%)
26-40
41-50
51+
Total
Male
25
164
148
337
62.64%
Female
11
104
86
201
37.36%
Total
36
268
234
538
100.00%
Percentage (%)
6.69%
49.81%
43.49%
100.00%
Educational level
Breakdown
as of
31.12.2021
Percentage
Postgraduate Studies (Master’s,
PhD)
273
50.74%
Tertiary Education
(graduates of
Universities
or
Technological
Education Institutes)
147
27.32%
High School (Lyceum)
graduates
118
21.93%
Total
538
100.00%
* Management positions are defined as
the positions from
the level of Branch
Manager and above.
The percentage and number of Employees in
managerial positions per
educational level point
out that Employees in managerial positions holding
postgraduate degrees represent in 2021 the highest
percentage, i.e.
51%.
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
93
ANNUAL FINANCIAL REPORT
I.
REMUNERATION
Remuneration of the Non-Executive
Members
*
of the Board of Directors
for the year 2021
Members of
the Board
of Directors
Total Members'
remuneration
Committees
Audit
Risk
Management
Remuneration
Corporate
Governance,
Sustainabilty
and
Nominations
Chair
(Non-Executive Member)
Vasileios T. Rapanos
259,000.00
-
-
-
-
Non-Executive Member
Efthimios O. Vidalis
96,500.00
Μ
-
-
Μ
Independent Non-Executive
Members
Dimitris C. Tsitsiragos
96,500.00
-
M
M
-
Jean L. Cheval
96,500.00
-
M
M
-
Carolyn G. Dittmeier
121,500.00
C
-
-
M
Richard
R. Gildea
121,000.00
-
Μ
C
-
Elanor R. Hardwick
99,625.00
M
-
-
C
(as of 30.9.2021)
Μ
(until 30.9.2021)
Shahzad A. Shahbaz
80,875.00
-
-
-
Μ
(as of 30.9.2021)
C
(until 30.9.2021)
Jan A. Vanhevel
134,000.00
Μ
C
-
-
Non-Executive Member
(pursuant to the provisions of Law 3864/2010)
Johannes Herman Frederik G. Umbgrove
109,000.00
Μ
Μ
Μ
Μ
Total
1,214,500.00
C: Chair / M:
Member / - :
The Member does
not participate in
this Committee
In particular, as regards the remuneration amounts, as of
1.1.2021, the following
apply subject to the approval
of the
Ordinary General Meeting of Shareholders:
A.
The remuneration
of the
Non-Executive
Chair
of the
Board
of Directors should amount to Euro 259,000 annually.
B.
The lump
sum remuneration,
per beneficiary,
for the
Non-
Executive Members of the Board of Directors, in their
capacity as Members of the Board of Directors, should
amount to Euro
59,000 annually.
C.
The lump
sum remuneration,
per beneficiary,
for the
Non-
Executive Members of the Audit Committee of the Board
of Directors should amount to Euro 25,000
annually.
The lump sum remuneration for the Chair of the Audit
Committee of the Board of Directors should amount to
Euro 50,000 annually.
D.
The lump
sum remuneration,
per beneficiary,
for the
Non-
Executive
Members
of the
Risk
Management
Committee
of the Board of Directors should amount to Euro 25,000
annually. The lump sum
remuneration for the Chair of
the
Risk Management Committee of the Board of Directors
should amount to Euro 50,000 annually. The lump sum
remuneration
for the NPL
Expert should
amount to
Euro
12,000 annually.
E.
The lump sum remuneration, per beneficiary, for the
Non-Executive
Members of
the Corporate
Governance,
Sustainability and Nominations Committee
of the Board
of Directors should amount to
Euro 12,500 annually. The
lump sum remuneration for the Chair of the Corporate
Governance, Sustainability
and
Nominations
Committee
of the Board of Directors should amount to Euro 25,000
annually.
F.
The lump
sum remuneration,
per beneficiary,
for the
Non-
Executive Members of the Remuneration Committee
of
the Board of Directors should amount to Euro
12,500
*
The Executive Members
of the BoD are employed
by the Bank in positions of Senior
Executives with
indefinite term contracts
which provide for
termination according
to the applicable
legislation.
The Executive
Members of the
BoD do not receive
any remuneration
for their participation
in the BoD. The remuneration
of the Executive
Members is effectuated
as per the terms
and conditions
of their employment
contracts and
the
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
94
ANNUAL FINANCIAL REPORT
provisions of the
applicable legislative and
regulatory framework.
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR 2021
95
ANNUAL FINANCIAL REPORT
annually. The lump sum remuneration for the Chair of
the Remuneration Committee of the Board of
Directors
should amount to Euro 25,000 annually.
G.
No Member may be paid for participation in more than
three Committees of the Board of Directors.
H.
A Member of the Board
of Directors who is at
the same
time a Member of the Audit Committee and of the Risk
Management Committee
may be paid for participation
in only one of these Committees. Only if the Member
of the Board of Directors
is the Chair in one of the
above-mentioned Committees, he/she
may be paid for
participation in both.
I.
Taking into account B. to H. above, the annual
remuneration for the representative of the Hellenic
Financial Stability
Fund (HFSF)
who is a
Member of
the
Board of Directors and also a Member of all the Board
Committees should amount to Euro 109,000.
J.
The Executive Members
of
the
Board
of
Directors
do not receive any
remuneration in their capacity as
Members of the
Board of Directors
.
It is noted that,
due to the fact that the composition
of the Board of Directors of Alpha Services and
Holdings S.A. and that
of the Board of
Directors of its
100% Subsidiary
Alpha Bank
S.A. are the
same, the
remuneration of the Members of the Board of Directors
is paid by one company
only and, specifically,
by the
Bank.
The Remuneration Report for the
year 2020 is
and will
remain available on the Company’s website for a time
period of ten (10) years, as stipulated by Law, through
the link https://www.alphaholdings.gr/en/corporate
-
governance/remuneration-report-holdings.
Athens, March 31, 2022
THE CHAIRMAN
OF THE BOARD OF DIRECTORS
VASILEIOS T.
RAPANOS
ID No ΑΙ 666242
THE CHIEF
EXECUTIVE OFFICER
VASSILIOS E. PSALTIS
ID No ΑΙ 666591
Deloitte Certified Public
Accountants S.A.
3a Fragkokklisias & Granikou str.
Marousi Athens GR 151-25
Greece
Tel: +30 210 6781 100
www.deloitte.gr
TRUE TRANSLATION FROM THE
ORIGINAL IN GREEK
INDEPENDENT AUDITOR’S
REPORT
To the Shareholders of Alpha Services
and Holdings S.A.
Report on the Audit
of the Separate and
Consolidated Financial
Statements
Opinion
We have audited the accompanying separate
and consolidated financial statements of Alpha Services and Holdings
S.A. (the Company) and its subsidiaries (the Company
and the Group), which comprise the separate
and
consolidated balance sheet as at 31 December 2021,
and the separate and consolidated
statements of income and
comprehensive income, changes in equity and
cash flows for the year then ended,
and notes to the separate and
consolidated financial statements,
including a summary of significant accounting policies.
In our opinion, the accompanying separate
and consolidated financial statements
present fairly,
in all material
respects, the separate and consolidated
financial position of Alpha Services and Holdings S.A. and its subsidiaries as
at 31 December 2021 and its separate and consolidated
financial performance and its separate
and consolidated
cash flows for the year then ended in
accordance with International Financial
Reporting Standards (IFRSs), as
endorsed by the European Union.
Basis for opinion
We conducted our audit in accordance
with International Standards
on Auditing (ISAs) as they have been
incorporated into the Greek
legislation. Our responsibilities under those standards
are further described in the
“Auditor’s
Responsibilities for the Audit of the Separate
and Consolidated Financial Statements”
section of our
report. We have been
independent of the Company and the Gro
up during the whole period of our appointment, in
accordance with the International Ethics
Standards Board for
Accountants’ Code of Ethics for
Professional
Accountants (IESBA Code), as incorporated
into the Greek legislation and the ethical
requirements in Greece,
relevant to the audit of the separate
and consolidated financial statements.
We have fulfilled our ethical
requirements in accordance with the
applicable legislation and the abovementioned
Code of Ethics.
We believe
that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for
our opinion.
Key audit matters
Key audit matters are
those matters that, in our professional
judgement, were of most significance
in our audit of
the separate and consolidated
financial statements of the current
year.
These matters and the assessed risks
of
material misstatements were
addressed in the context of our audit of
the separate and consolidated
financial
statements as a whole, and in forming
our opinion thereon, and we do not provide
a separate opinion on these
matters.
Key audit matters
How our audit addressed
the Key audit matters
Allowance for expected
credit losses (ECL) for loans
at amortized cost
Loans at amortized
cost of the
Group amounted
to € 30,943
million for the
Group at
31 December
2021 excluding
Senior
Notes (€38,792 million at 31 December 2020)
and allowance for
expected credit
losses amounted
to € 2,077 million
at 31
December 2021 (€9,080
at 31 December
2020).
Measurement of ECL on loans
at amortized cost is deemed
a key
audit matter as the determination
of assumptions used, involves
critical Management
judgments and
accounting estimates
with
high level of subjectivity
and complexity.
The most significant Management judgements
and estimates,
relate to:
●
The criteria used
for the staging
assessment of
loans at
amortized cost (Significant
Increase in Credit Risk – SICR and
Unlikeness to
Pay – UTP).
●
The determination
of credit risk
parameters,
such as Loss
Given Default
(LGD), Probability
of Default
(PD) and the
Exposure at
Default (EAD)
as well as the
modeling
assumptions and data used
to build and run the models that
calculate the
ECL.
●
Assumptions of
expected future
cash flows
of individually
assessed credit
impaired exposures,
including assessment
approach, valuation
of collaterals, and the time to liquidate
the collaterals.
●
Inputs, assumptions and weightings
used to estimate the
impact of multiple
economic scenarios.
●
Appropriateness, identification
and valuation of post model
adjustments
raised
by Management
to address
known
impairment model
limitations
as well as risks
not captured
by the models. These adjustments are inherently
uncertain
and significant
Management
judgment is involved.
Based on our
risk assessment
and following
a risk-based
approach, we
have evaluated
the impairment
methodologies
applied and assumptions
made by
Management in relation
to this key audit matter,
and we
performed, inter
alia, the following audit
procedures:
●
With the support
of our financial
risk modeling
specialists where appropriate,
we assessed the design
and implementation of relevant
internal controls
over
the ECL estimate
included the controls
around:
-
assumptions used in the ECL models
-
model monitoring and model validation
-
governance and approval
of post model
adjustments
-
allocation of loans into stages
-
selection and implementation of macro-economic
variables and
the controls
over the selection
of
macro-economic
scenarios and
probability
weightings.
•
We assessed
the design and
tested the
operating
effectiveness
of relevant
controls
over the ECL
measurement of credit impaired
loans assessed on an
individual basis,
including controls
around the
determination
of the appropriate
approach, the
valuation of
collaterals
and the assumptions
of the
expected future
cash flows.
•
We involved our
financial risk modelling specialists
in:
-
evaluating the appropriateness
of the Group’s IFRS9
impairment methodologies
-
inspecting model
code and reperforming
the
calculation of certain components
of the ECL models
(including the stage
allocation)
-
evaluating Management’s
design of models
and the
appropriateness
of assumptions
and parameters
used in the models
(i.e. Exposure
at Default
– EAD.
Probability of Default
– PD, Loss Given Default
-
LGD),
especially for new models developed
or re-calibrated
in the year.
-
evaluating the
appropriateness
of the criteria
used
to allocate loans to stages
in accordance with IFRS9.
This included
an evaluation
of the criteria
set by
Management
for determining
whether there
had
been a Significant Increase
in Credit Risk (SICR) or an
Unlikeness to
Pay (UTP).
-
assessing the reasonableness and appropriateness
of
the macroeconomic
variables, scenarios
and
weightings used in the models by comparing
them to
macroeconomic
variables included
in a variety
of
external market
sources.
Key audit matters
How our audit addressed
the Key audit matters
Allowance for expected
credit losses (ECL) for
loans at amortized cost
–
(continued)
Management
has provided
further information
about
principles and accounting
policies for determining
the ECL on
loans at amortized
cost and management
of credit risk
in
Notes 1.2.13,
11, 19 and 43.1
to the consolidated
financial
statements.
We obtained
and substantively
tested evidence
of timely
identification of exposures
with significant increase
in credit
risk and timely identification
of credit impaired exposures.
We performed substantive
procedures to test the
accuracy and
completeness
of critical data
used in the
ECL models
by
agreeing a sample
of ECL calculation
data points
to source
systems
or documentation,
including balance
sheet data
used
to run the models.
Οn a sample
basis we assessed
whether the
approach used
in
the measurement
of impairment
for the individually
assessed
credit impaired
exposures is
appropriate,
and we tested
the
reasonableness
of significant
assumptions used,
including
valuation of
collaterals
(where we
also made use
of our real
estate specialists),
time to liquidate
collaterals,
and the
estimation of the
discounted future
cash flows.
We assessed
the appropriateness
of post model
adjustments,
including those which were
applied as a result of the expected
sale of certain
loan portfolios
and as a result
of ad hoc
management
actions by considering
the data, judgements,
methodologies and
governance of these
adjustments.
Given the complexity and granularity
of the related disclosures,
we assessed their completeness
and accuracy in accordance
with the provisions
of the relevant accounting
standards.
Key audit matters
How our audit addressed the Key audit matters
Recoverability of Deferred Tax
Asset (DTA)
The Group have recognized a deferred
tax asset of € 5,428
million as at 31 December 2021 compared to € 5,279 million as
at 31 December 2020.
The recognition and measurement of the deferred tax
asset is
considered a key audit matter as it is involves
a high degree of
judgment and significant accounting estimates to be made by
Management regarding the ability to generate sufficient future
taxable profits.
The most significant judgements and estimates used by
Management regarding future profit forecasts and recoverability
of deferred tax assets include:
-
Revenue and Cost
forecasts for
the preparation
of the
annual budget and the 3 year business plan taking into
account the impact of the Group’s strategic plan.
-
Macroeconomic assumptions and management projections
used to extend the period
covered under the business plan
to the time when the deferred tax assets can
be utilized for
tax purposes.
-
Conversion of accounting profits to taxable profits.
Management has provided further information about the
deferred tax asset in Notes 1.2.16, 13 and 25 to the consolidated
financial statements.
Based on our risk assessment, we evaluated the method
used to determine the amount of deferred tax asset
recognized and examined the budgets prepared
and
significant assumptions made by Management relating to
the future taxable profits.
Our examination included the following elements where
we also made use of our tax specialists:
●
Assessed the design and implementation of the
relevant internal controls over
the preparation and
approval of budgets and forecasts, including
the
internal controls over the significant assumptions,
inputs, calculation and methodologies used for this
purpose.
●
We compared significant assumptions used by
Μanagement in the DTA
exercise with the
approved budget and the three year business plan
for consistency and assessed their reasonability by
evaluating the underlying business strategies.
●
We compared previous management forecasts to
actual results, to evaluate the reasonableness of
the forecasting process.
●
We assessed whether significant assumptions used
beyond the business plan period were reasonable.
●
With the support of our tax specialists we assessed
the appropriateness of the adjustments made by
Management to convert accounting profits into tax
profits.
We evaluated the adequacy of the disclosures in
the financial statements including the
appropriateness of the assumptions disclosed.
Information Technology General Controls
and controls
over financial reporting
The Company’s and the Group’s financial reporting processes are
highly dependent on Information Technology
(“IT”) systems
supporting automated accounting and reconciliation procedures,
thus leading to a complex IT environment, pervasive in nature
and in which a significant number of transactions are processed
daily, across numerous locations.
This is a key audit matter since it is important that
controls over
access security, cyber risks, system
change control and
datacenter and network operations, are designed and operate
effectively to ensure complete and accurate financial records and
information.
Management has provided further information about General
Information Technology
Controls under the header “Internal
Control System” in Section C of the Corporate
Governance
Statement for the year 2021
Based on our risk assessment, we have tested the design
and operating effectiveness of General
Information
Technology Controls
(GITCs) relevant for financial
reporting. Our assessment included the evaluation of
user access over applications, operating systems
and
databases, the process followed over changes made to
information systems, as well as the evaluation
of
datacenter and network IT operations.
In summary, our key audit activities included, among
others, testing of:
●
User access provisioning and de-provisioning
process.
●
Privileged access to applications, operating
systems and databases.
●
Periodic review of user access rights.
●
Change management process over applications,
operating systems and databases (i.e. user request,
user acceptance testing and final approval for
promotion to production).
●
Datacenter and network operations.
Key audit matters
How our audit addressed
the Key audit matters
Hive - down and
derecognition of loans following transfer through securitization
The Group in line
with its Strategic Plan and
in order to expedite
the non- performing loans reduction acceleration plan,
proceeded with the following actions (combined referred
as
transactions):
a)
In April 2020
Alpha Services and
Holdings S.A. (former
Alpha Bank S.A.)
proceeded with the securitisation of
€ 6 billion NPEs
under four special purpose
entities
(the Galaxy securitisation)
b)
In April 2021,
Alpha Services and
Holdings S.A. (former
Alpha Bank S.A.) proceeded to the demerger by way
of a hive-down of its banking operations into a newly
incorporated banking institution named Alpha Bank
S.A.
c)
In June 2021, Alpha Services and Holdings S.A. sold
51% of the mezzanine and junior notes issued by
three of the Galaxy SPEs to funds managed by
Davidson Kepner S.A. together with
80% of its
wholly
owned subsidiary Cepal
Holding Single Member
Firm
S.A. (“Cepal”) and proceeded with the derecognition
of the underlying securitized loans from Group
financial statements and the
deconsolidation of Cepal
which continued to be recognised as an equity
investment. The group recognised a
loss of Euro 2,260
million from the sale of the notes and the
derecognition of the securitised loans and a gain of
Euro 111 million from the sale of
the 80% of Cepal
Due to the complexity
and magnitude of
the above transactions
and the significance of their relating accounting effect we
have
considered the above transactions as a key audit matter.
Management has provided
further information about the
aforementioned transactions in Notes
19 and “Corporate
Transformation
– Hive Down” to the Group financial
statements.
Based on our risk assessment we have assessed the
accounting treatment
applied by Management
for Galaxy
Transaction and we performed, inter
alia, the following
audit procedures:
●
We assessed the design and implementation of
controls around the review and approval of this
transaction, as well as the determination of the
appropriate accounting treatment.
●
We examined the related legal
documents for the
hive down, the
transformation balance sheet and the
related accounting entries to ascertain whether this
was done in accordance with IFRS.
●
We examined relevant
asset transfer agreements
and other related legal documents including the
operational agreement of
the related securitization
vehicles as well as the relevant quantitative
assessment performed by the Group to ascertain
whether the criteria for
derecognition according to
IFRS are met.
●
We analysed the contractual terms, substantial
assumptions and conditions to assess if the Group
retained control over the transferred loans
or Cepal.
●
We reviewed and assessed the
accounting policy of
the Group and the accounting assessment for the
specific transaction.
We evaluated whether the disclosures
include significant
judgements and estimates and assessed their adequacy
against the relevant accounting standards.
Other Information
Management is responsible for the other
information. The other information,
included in the Annual Report
prepared in accordance with Law 3556/2007,
comprises the Board of Directors’
Annual Management Report,
referred to in the section “Report
on Other Legal and Regulatory
Requirements”,
the Statement by the Members
of
the Board of Directors, the Explanatory
Report of the Board of Directors
and the Corporate Governance Statement
but does not include the separate and consolidated financial
statements and our auditor’s report
thereon.
Our opinion on the separate and consolidated
financial statements does not cover
the other information and we will
not express any form of assurance
conclusion thereon.
In connection with our audit of the separate and
consolidated financial statements,
our responsibility is to read the
other information and, in doing so, consider
whether the other information is materially
inconsistent with the
separate and consolidated financial
statements or our knowledge
obtained in the audit, or otherwise appears to
be
materially misstated.
If, based on the work
we have performed, we conclude
that there is a material misstatement
in this other information, we are
required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged
with Governance for the separate
and consolidated financial
statements
Management is responsible for the preparation
and fair presentation
of the separate and consolidated
financial
statements in accordance
with IFRSs, as endorsed by the European Union,
and for such internal control
as
Management determines is necessary to enable the preparation
of separate and consolidated
financial statements
that are free from material misstatement,
whether due to fraud or error.
In preparing the separate and consolidated
financial statements,
Management is responsible for assessing
the
Company’s and the Group’s
ability to continue as a going concern, disclosing, as applicable,
matters related
to going
concern and using the going concern basis of accounting
unless Management either intends to liquidate
the
Company and the Group or to cease operations,
or has no realistic alternative but to do
so.
The Audit Committee (article 44 of Law 4449/2017) of the Company
is responsible for overseeing
the Company’s and
Group’s financial reporting
process.
Auditor’s Responsibilities for the audit of the separate and consolidated
financial statements
Our objectives are to obtain reasonable
assurance about whether the separate
and consolidated financial
statements as a whole are free
from material misstatement,
whether due to fraud or error,
and to issue an auditor’s
report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee
that an
audit conducted in accordance with ISAs, as these have been incorporated into Greek legislation, will always
detect a
material misstatement when
it exists. Misstatements
can arise from fraud or error
and are considered material if,
individually or in the aggregate, they could
reasonably be expected to influence
the economic decisions of users
taken on the basis of these separate
and consolidated financial
statements.
As part of an audit in accordance with ISAs, as these have been incorporated into Greek legislation, we exercise
professional judgment and maintain
professional scepticism
throughout the audit.
We also:
●
Identify and assess the risks of material misstatement
of the separate and consolidated
financial statements,
whether due to fraud or error,
design and perform audit procedures responsive
to those risks, and obtain audit
evidence that is sufficient and appropriate
to provide a basis for our opinion. The
risk of not detecting a
material misstatement resulting
from fraud is higher than for
one resulting from error,
as fraud may involve
collusion, forgery,
intentional omissions, misrepresentations,
or the override of internal control.
●
Obtain an understanding
of internal control relevant
to the audit in order to design audit procedures
that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s and Group’s
internal control.
●
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and
related disclosures made by
Management.
●
Conclude on the appropriateness of Management’s
use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast
significant doubt on the Company’s
and Group’s ability
to continue as a going concern. If we
conclude that a
material uncertainty exists, we
are required to draw attention
in our auditor’s report to the related
disclosures
in the separate and consolidated
financial statements or,
if such disclosures are inadequate, to modify
our
opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report.
However,
future events or conditions may
cause the Company and the Group
to cease to continue as a going
concern.
●
Evaluate the overall presentation, structure
and content of the separate and consolidated financial statements,
including the disclosures, and whether the separate
and consolidated financial stateme
nts represent the
underlying transactions and events in a manner that achieves
fair presentation.
●
Obtain sufficient appropriate
audit evidence regarding the financial information
of the entities or business
activities within the Group to express an opinion on the separate and consolidated financial statements.
We are
responsible for the direction, supervision and performance
of the group audit. We remain solely
responsible for
our audit opinion.
We communicate
with those charged with
governance regarding,
among other matters,
the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal
control that we
identify during our audit.
We also provide those charged
with governance with a statement that
we have complied with relevant
ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with those charged
with governance, we determine those matters that were of
most significance in the audit of the separate
and consolidated financial statements
of the current year and are
therefore the key
audit matters.
Report on Other Legal and Regulatory Requirements
1)
Board of Directors’ Annual Management Report
Taking into
consideration that Management
is responsible for the preparation
of the Board of Directors’
Annual Management report
which also includes the Corporate
Governance Statement,
according to the
provisions of paragraph 5 of article 2 of Law 4336/2015 (part B) we note
the following:
a)
The Board of Directors’ report
includes the Corporate Governance Statement
which provides the
information required
by article 152 of Law 4548/2018.
b)
In our opinion, the Board of Directors’
report has been prepared in accord
ance with the applicable legal
requirements of articles 150 - 151 and 153 - 154 and
paragraph 1 (cases c and d) of article
152 of Law
4548/2018 and its content is consistent
with the accompanying consolidated
financial statements for
the
year ended 31 December 2021.
c)
Based on the knowledge we obtained during our audit of the
Company and the Group and its
environment, we have
not identified any material inconsistencies
in the Board of Directors’ Annual
Management Report.
2)
Additional Report to the Audit Committee
Our audit opinion on the separate and consolidated
financial statements is consistent
with the additional
report to the Audit Committee of the Company
referred to in Article 11 of the
European Union (EU)
Regulation 537/2014.
3)
Non-audit Services
We have not provided
to the Company and the Group any
prohibited non-audit services referred
to in Article
5 of EU Regulation 537/2014.
The allowable non-audit services provided to the Company
and the Group by Deloitte Certified Public
Accountants S.A., which is a member firm of Deloitte
Touche
Tohmatsu
Limited (“DTTL”),
during the year
ended 31 December 2021 are disclosed in Note 43 and 46 to
the separate and consolidated
financial
statements respectively.
4)
Appointment
We were first
appointed as statutory auditors
by the general assembly of the shareholders
of the Company
(former Alpha Bank
S.A.) on 30 June
2017. The year
ended 31 December
2021 is the fifth
consecutive year
that we serve as statutory auditors.
5)
Internal Regulation
The Company retains an Internal Regulation according
to the provisions of article 14 of Law 4706/2020.
6)
Assurance Report on European Single Electronic Format reporting
We have examined
the digital file of the Company and the Group
of Alpha Services and Holdings S.A.,
prepared in accordance with the European
Single Electronic Format (ESEF),
defined by the Commission
Delegated EU Regulation 2019/815
as amended by EU Regulation 2020/1989 (“ESEF
Regulation”), which
include the separate and consolidated
financial statements of the Company
and the Group for the year ended
31 December 2021 in XHTML format (ab-2021-12-31.xtml) as
well as the XBRL file (5299009N55YRQC69CN08-
2021-12-31-en.zip) with the appropriate tagging on these consolidated
financial statements.
Regulatory Framework
The ESEF digital files are prepared in accordance with the ESEF Regulation, and the Interpretation Announcement
2020/C 379/01 of the European Commission dated 10
November 2020, as provided by L.3556/2007 and
the
relevant announcements of the Hellenic Capital
Market Commission and the Athens Stock
Exchange (the “ESEF
Regulatory Framework”).
In summary this Regulatory Framework includes, inter alia, the following requirements:
-
Annual financial statements shall be prepared in XHTML format
-
Financial information included in the consolidated
financial statements prepared
in accordance with
International Financial Reporting Standards
and in specific in the consolidated Balance Sheet, Income
statement and total
comprehensive income, statement
of changes in equity and statement
of cash flows,
shall be tagged with XBRL mark-up (“XBRL tags”) in accordance with ESEF Taxonomy,
as currently in force.
The technical specifications of ESEF,
including the related taxonomy,
are included in ESEF Regulatory
Technical Standards.
Regulatory requirements included in ESEF Regulatory Framework
consist an appropriate basis for the purpose of
expressing a conclusion that provides
reasonable assurance.
Responsibilities of Management and Those Charged with Governance
Management is responsible for the preparation
and submission of these separate and
consolidated financial
statements of the Company
and the Group for the year ended 31 December
2021, in accordance with the
requirements set by the ESEF Regulatory Framework and for such internal controls
as Management determine are
necessary to enable the preparation
of the digital files that are free
from material misstatement,
whether due to
fraud or error.
Auditor’s responsibilities
Our responsibility is to design and perform this assurance
procedures in accordance with the
decision 214/4/11-
02-2022 of the board of Hellenic Accounting and Auditing
Oversight Board (HAASOB) and
the “Guidelines in
connection with the procedures and the assurance report of the certified auditors on the ESEF reported of Issuers
with listed shares in the Hellenic capital
market” dated 14/02/2022 as issued by the Institute
of Certified Public
Accountants (the “ESEF Guidelines”) in order
to obtain reasonable assurance about
whether the separate and
consolidated financial statements
of the Company and the Group, prepared
by Management in accordance with
ESEF,
comply in all material respects with the ESEF Regulatory
Framework, as currently in force.
In conducting this work, we
have complied with the
International Ethics Standards
Board for Accountants’
Code of
Ethics for Professio
nal Accountants (IESBA Code), as
incorporated into the Greek
legislation and the independence
rules, in accordance with Law 4449/2017 and EU Regulation
No 537/2014.
The assurance work performed, is limited
to the items included in the ESΕF Guidelines and
has been performed in
accordance with the International Standard on Assurance Engagements 3000 “Assurance
engagements other than
audits or review of historical financial information”.
Reasonable assurance is a high level
of assurance but is not a
guarantee that this work will always
detect a material misstatement
when it exists relating to the compliance
with
the requirements of ESEF Regulatory
Framework.
Conclusion
Based on the procedures performed and the evidence obtained, we conclude that the separate and the consolidated
financial statements of the Company
and the Group for the year ended 31 December
2021 prepared in XHTML
format (ab-2021-12-31.xtml) as well as the XBRL file (5299009N55YRQC69CN08
-2021-12-31-en.zip) with the
appropriate tagging on these consolidated
financial statements are
prepared in all material respects
in accordance
with the requirements of ESEF Regulatory
Framework.
Athens, 31 March 2022
The Certified Public Accountant
Alexandra V.
Kostara
Reg. No. SOEL: 19981
Deloitte Certified Public Accountants
S.A.
3a Fragoklissias & Granikou Str.
151 25 Maroussi
Reg. No. SOEL: Ε120
This document has been prepared by Deloitte Certified Public Accountants Societe Anonyme.
Deloitte Certified
Public Accountants
Societe Anonyme,
a Greek
company,
registered
in Greece
with registered
number 0001223601000
and its
registered
office at
Marousi, Attica,
3a Fragkokklisias &
Granikou str.,
151 25, is one of
the Deloitte Central
Mediterranean S.r.l.
(“DCM”) countries. DCM,
a company limited
by guarantee
registered in Italy
with registered
number 09599600963 and
its registered
office at Via
Tortona
no. 25, 20144, Milan,
Italy is one
of the Deloitte
NSE LLP geographies.
Deloitte NSE LLP is a UK limited liability partnership and member
firm of DTTL, a UK private company limited by guarantee.
DTTL and each of its
member firms are legally separate and independent entities.
DTTL, Deloitte NSE LLP and Deloitte Central Mediterranean S.r.l.
do not provide services
to clients. Please see
www.deloitte.com/about
to learn more about our global network
of member firms.
Consolidated Financial Statements
as at 31.12.2021
CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 113-378) form an integral part of these consolidated
financial statements
118
ANNUAL FINANCIAL REPORT
Consolidated
Income
Statement
(Amounts in thousands of Euro)
From 1 January to
Note
31.12.2021
31.12.2020
Interest and similar income
1,887,539
2,056,953
Interest expense and similar charges
(511,643)
(529,606)
Net interest income
2
1,375,896
1,527,347
Fee and commission income
466,808
384,869
Commission expense
(66,438)
(53,011)
Net fee and commission income
3
400,370
331,858
Dividend income
4
1,825
2,958
Gains less losses on derecognition of financial assets measured at amortised cost
6
(2,247,871)
173,202
Gains less losses on financial transactions
5
218,089
515,792
Other income
7
23,617
21,941
Staff costs
8
(406,746)
(453,764)
Expenses for separation schemes
8
(97,701)
(26,214)
General administrative expenses
9
(480,187)
(464,266)
Depreciation and amortization
22, 23, 24
(157,055)
(158,982)
Other expenses
10
(132,116)
(38,501)
Profit / (loss) before impairment losses, provisions to cover credit risk and related costs
(1,501,879)
1,431,371
Impairment losses, provisions to cover credit risk and related costs
11
(1,433,013)
(1,318,984)
Share of profit/(loss) of associates and joint ventures
21
6,167
(1,014)
Profit/(loss) before income tax
(2,928,725)
111,373
Income tax
13
55,795
(10,131)
Profit/(loss) after income tax, from continuing operations
(2,872,930)
101,242
Profit/(loss) after income tax, from discontinued operations
(33,144)
2,766
Profit/(loss)
(2,906,074)
104,008
Profit/(loss) attributable to:
Equity holders of the Company
(2,906,160)
103,800
Non-controlling interests
86
208
Earnings/(losses) per share
Basic (€ per share)
14
(1.5047)
0.0672
Basic from continuing operations (€ per share)
(1.4875)
0.0654
Basic from discontinued operations (€ per share)
(0.0172)
0.0018
Diluted (€ per share)
(1.5040)
0.0672
Diluted from continuing operations (€ per share)
(1.4868)
0.0654
Diluted from discontinued operations (€ per share)
(0.0172)
0.0018
*
Certain figures of the previous
year have been restated
as described in note 50.
CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 113-378) form an integral part of these consolidated
financial statements
119
ANNUAL FINANCIAL REPORT
Consolidated Statement
of Comprehensive Income
(Amounts in thousands of Euro)
From 1 January to
Note
31.12.2021
31.12.2020
Profit/(loss) for the year, recognized in the Income Statement
(2,906,074)
104,008
Other comprehensive income
Items that may be reclassified subsequently to the Income Statement
Net change in reserve of investment securities' measured at fair value through other comprehensive
income
(237,923)
(361,940)
Net change in cash flow hedge reserve
20,785
20,841
Foreign currency translation net of investment hedges of foreign operations
(1,627)
(1,889)
Income tax
13
56,550
95,250
Items that may be reclassified to the Income Statement from continuing operations
(162,215)
(247,738)
Items that may be reclassified to the Income Statement from discontinued operations
1,753
(2,767)
Items that will not be reclassified to the Income Statement
Remeasurement of defined benefit liability/(asset)
31
3,480
(5,348)
Gains/(losses) from investments in equity securities measured at fair value through other
comprehensive income
13,834
3,619
Income tax
13
(5,081)
1,452
Items that will not be reclassified to the Income Statement from continuing operations
12,233
(277)
Other comprehensive income, after income tax
(148,229)
(250,782)
Total comprehensive income for the year
(3,054,303)
(146,774)
Total comprehensive income for the year attributable to:
Equity holders of the Company
(3,054,378)
(146,972)
-from continuing operations
(3,021,234)
(149,738)
-from discontinued operations
(33,144)
2,766
Non controlling interests
75
198
*
Certain figures of the previous
year have been restated
as described in note 50.
CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 113-378) form an integral part of these consolidated
financial statements
120
ANNUAL FINANCIAL REPORT
Consolidated
Balance
Sheet
(Amounts in thousands of Euro)
Note
31.12.2021
31.12.2020
Assets
Cash and balances with central banks
15
11,803,344
7,467,316
Due from banks
16
2,964,056
2,741,547
Trading securities
17
4,826
30,014
Derivative financial assets
18
941,609
1,267,083
Loans and advances to customers
19
36,860,414
39,380,002
Investment securities
20
- Measured at fair value through other comprehensive income
20a
6,634,120
6,577,698
- Measured at amortized cost
20c
3,752,748
3,335,733
- Measured at fair value through profit or loss
20b
253,346
137,675
Investments in associates and joint ventures
21
68,267
30,716
Investment property
22
425,432
569,524
Property, plant and equipment
23
737,813
796,331
Goodwill and other intangible assets
24
478,183
599,245
Deferred tax assets
25
5,427,516
5,278,904
Other assets
26
1,572,797
1,587,943
71,924,471
69,799,731
Assets classified as held for sale
48
1,431,485
240,343
Total Assets
73,355,956
70,040,074
LIABILITIES
Due to banks
27
13,983,656
13,106,681
Derivative financial liabilities
18
1,288,405
1,768,357
Due to customers
28
46,969,626
43,830,940
Debt securities in issue and other borrowed funds
29
2,593,003
1,222,869
Liabilities for current income tax and other taxes
30
59,584
70,141
Deferred tax liabilities
25
23,011
32,379
Employee defined benefit obligations
31
29,448
43,737
Other liabilities
32
888,030
891,580
Provisions
33
834,029
703,630
66,668,792
61,670,314
Liabilities related to assets classified as held for sale
48
607,657
251
Total Liabilities
67,276,449
61,670,565
EQUITY
Equity attributable to owners of the Company
Share capital
34
703,794
463,110
Share premium
35
11,362,512
10,801,029
Reserves
36
320,671
492,791
Amounts directly recognized in equity and associated with assets classified as held for sale
15,127
Retained earnings
37
(6,366,258)
(3,431,502)
6,035,846
8,325,428
Non-controlling interests
29,432
29,382
Hybrid securities
38
14,229
14,699
Total Equity
6,079,507
8,369,509
Total Liabilities and Equity
73,355,956
70,040,074
*
Certain figures of the previous
year have been restated
as described in note 50.
CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 113-378) form an integral part of these consolidated
financial statements
121
ANNUAL FINANCIAL REPORT
Consolidated
Statement
of
Changes
in
Equity
(Amounts in thousands of Euro)
Note
Share
capital
Share
premium
Reserves
Amounts
recognized
directly in
Equity related
to assets held
for sale
Retained
earnings*
Total
Non-
controlling
interests
Hybrid
securities
Total
Balance 31.12.2019, as
published
463,110
10,801,029
739,676
(122)
(3,572,126)
8,431,567
28,951
15,072
8,475,590
Impact from the amendement of
the accounting policy for the
calculation of defined benefit
obligations
32
38,024
38,024
38,024
Balance 1.1.2020
463,110
10,801,029
739,676
(122)
(3,534,102)
8,469,591
28,951
15,072
8,513,614
Changes for the year 1.1 -
31.12.2020
Profit/(loss) for the year, after
income tax
103,800
103,800
208
104,008
Other comprehensive income
for the year, after income tax
(250,495)
(277)
(250,772)
(10)
(250,782)
Total comprehensive income for
the year
-
-
(250,495)
-
103,523
(146,972)
198
-
(146,774)
Transfer of reserves related to
the valuation of shares
measured at fair value through
other comprehensive income
and relates to assets held for
sale
(122)
122
-
Acquisitions, Disposals and other
changes of ownership interests
in subsidiaries
-
223
223
Valuation reserve of employee
stock option program
1,667
-
1,667
1,667
Appropriation of reserves
2,067
-
(2,067)
-
10
10
(Purchases), (redemption)/sales
of hybrid securities, after income
tax
-
(373)
(373)
Expenses for share capital
increase
74
74
74
Other
(2)
1,070
1,068
1,068
Balance 31.12.2020
463,110
10,801,029
492,791
-
(3,431,502)
8,325,428
29,382
14,699
8,369,509
*
Certain figures of the previous
year have been restated
as described in note 50.
CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 113-378) form an integral part of these consolidated
financial statements
122
ANNUAL FINANCIAL REPORT
(Amounts in thousands of Euro)
Note
Share
capital
Share premium
Reserves
Amounts
recognized
directly in
Equity related
to assets held
for sale
Retained
earnings
Total
Non-
controlling
interests
Hybrid
securities
Total
Balance 1.1.2021
463,110
10,801,029
492,791
-
(3,431,502)
8,325,428
29,382
14,699
8,369,509
Changes for the year 1.1 -
31.12.2021
Profit/(loss) for the year,
after income tax
(2,906,160)
(2,906,160)
86
(2,906,074)
Other comprehensive
income for the year, after
income tax
0
(160,451)
12,233
(148,218)
(11)
(148,229)
Total comprehensive
income for the year
-
-
(160,451)
-
(2,893,927)
(3,054,378)
75
-
(3,054,303)
Share capital increase in
cash
240,000
560,000
800,000
800,000
Share capital increase
through options exercise
684
1,483
(1,666)
183
684
684
Transfer of reserves related
to the valuation of shares
measured at fair value
through other
comprehensive income and
relates to assets held for
sale
(15,127)
15,127
-
-
Acquisitions, Disposals,
Share capital increase and
other changes of
ownership interests in
subsidiaries
(10)
-
(10)
(36)
(46)
Valuation reserve of
employee stock option
program
3,083
3,083
3,083
Appropriation of reserves
2,021
(2,021)
-
11
11
(Purchases),
(redemption)/sales of
hybrid securities, after
income tax
142
142
(470)
(328)
Expenses for share capital
increase
(38,597)
(38,597)
(38,597)
Other
30
(536)
(506)
(506)
Balance 31.12.2021
703,794
11,362,512
320,671
15,127
(6,366,258)
6,035,846
29,432
14,229
6,079,507
*
Certain figures of the previous
year have been restated
as described in note 50.
CONSOLIDATED FINANCIAL STATE
MENTS AS AT 31.12.2021
The attached notes (pages 113-378) form an integral part of these consolidated
financial statements
123
ANNUAL FINANCIAL REPORT
Consolidated
Statement
of
Cash
Flows
(Amounts in thousands of Euro)
From 1 January to
Note
31.12.2021
31.12.2020
Cash flows from continuing operating
activities
Profit/(loss) before income tax,
from continuing operations
(2,928,725)
111,373
Adjustments of profit/(loss) before
income tax for:
Depreciation, impairment, write-offs
and net result from disposal of property,
plant and equipment
145,522
103,419
Amortization, impairment, write-offs
of intangible assets
119,103
74,154
Impairment losses on financial assets, related
costs and other provisions
1,696,772
1,385,369
Gains less losses on derecognition of financial assets
measured at amortised cost
2,247,871
(173,202)
Fair value (gains)/losses on financial assets
measured at fair value through
profit or loss
(61,760)
90,590
(Gains)/losses from investing activities
(251,234)
(722,326)
(Gains)/losses from financing activities
50,129
46,885
Share of (profit)/loss of associates and joint
ventures
(6,167)
1,014
1,011,511
917,276
Net (increase)/decrease in assets relating
to continuing operating activities:
Due from banks
223,548
(259,266)
Trading securities and derivative
financial instruments
14,641
(957)
Loans and advances to customers
(1,993,618)
(1,544,568)
Other assets
(13,811)
310,269
Net increase/(decrease) in liabilities relating
to continuing operating activities:
Due to banks
884,548
2,848,858
Due to customers
3,650,275
3,477,552
Other liabilities
(58,322)
(145,686)
Net cash flows from continuing operating
activities before income tax
3,718,772
5,603,478
Income tax paid
(58,242)
(2,313)
Net cash flows from continuing operating
activities
3,660,530
5,601,165
Net cash flows from discontinued operating
activities
31,177
5,771
Cash flows from continued investing
activities
Acquisition of a subsidiary
(41,967)
Investments in associates and joint
ventures
(15,978)
Proceeds from disposals of subsidiaries
116,888
15,403
Dividends received
1,825
2,958
Acquisitions of investment property,
property, plant and equipment
and intangible assets
22,23,24
(160,660)
(157,935)
Disposals of investment property,
property, plant and
equipment and intangible assets
20,948
6,696
Interest received from investment
securities
209,743
202,586
Purchases of Greek Government Treasury
Bills
(1,237,405)
(1,101,788)
Proceeds from disposal and redemption of
Greek Government Treasury
Bills
1,305,359
612,757
Purchases of investment securities (excluding
Greek Government Treasury
Bills)
(3,996,826)
(6,793,607)
Disposals/maturities of investment securities
(excluding Greek Government Treasury
Bills)
2,984,759
6,223,175
Net cash flows from continuing investing
activities
(755,369)
(1,047,700)
Net cash flows from discontinued investing
activities
(13,175)
(23,063)
Cash flows from continuing financing activities
Share capital increase
800,684
Expenses for share capital increase
(40,327)
Issuance of debt securities in issue and other borrowed
funds
1,385,681
495,363
Interest paid on debt securities in issue and
other borrowed funds
(20,877)
(391,403)
Repayments of debt securities in issue and
other borrowed funds
(41,972)
(17,367)
Finance lease payments
(35,637)
(41,036)
Net cash flows from continuing financing activities
2,047,552
45,557
Net cash flows from discontinued financing
activities
(7,061)
(1,991)
Effect of foreign exchange
changes on cash and cash equivalents
(3,837)
8,833
Net increase/(decrease) in cash flows
4,959,817
4,588,572
Cash and cash equivalents at the beginning
of the year
7,990,900
3,402,328
Cash and cash equivalents at the end of the
year from discontinued activities
81,617
Cash and cash equivalents at the end of the
year
12,869,100
7,990,900
*
Certain figures of the previous
year have been restated
as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
124
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
Notes
to
the
Consolidated
Financial
Statements
GENERAL
INFORMATION
The Alpha Services and Holding Group, (hereinafter the Group), which includes companies in Greece and abroad, offers the
following services: corporate and retail banking, financial services, investment banking and brokerage services, insurance
services, real estate management, hotel services.
On 16 April 2021, the demerger by way of hive-down of the banking business sector of Alpha Bank S.A. (the “Demerged”) was
completed and its core banking operations were contributed into a new company – credit institution which was registered
under G.E.M.I. on the same date under the name “Alpha Bank S.A.” (the “Beneficiary”). Specifically, Alpha Bank S.A substituted
the Demerged as universal successor, in all of its assets and liabilities within the banking business sector transferred to it, as
these are included in the Transformation balance sheet of 30.6.2020 and were formed until 16.4.2021, the completion date of
the demerger.
The “Demerged” by assuming the 100% of the issued shares of Alpha Bank S.A., becomes the parent entity of the bank and its
subsdiaries (Alpha Bank Group).
On 19.4.2021 the amendment of the Articles of Incorporation of the “Demerged” was approved, by virtue of the decision of the
Ministry of Development and Investments number 45898/19.4.2021, and the banking license of the Demerged was revoked,
while its corporate name changed to “Alpha Services and Holdings S.A.”
As a result of the above it is noted that in the notes to the Financial Statements “Alpha Bank” (the “Demerged”) and “Alpha
Services and Holdings S.A.” will be mentioned as “the Company”, while “Alpha Bank S.A.” after the demerger will lbe
mentioned as “the Bank”.
The Company’s business scope is:
a)
the direct
and indirect
participation in
domestic and/or
foreign companies
and undertakings
that already
exist or
will be
established, of
any form and
objective whatsoever,
b)
the
design,
promotion
and
distribution
of
insurance
products
in
the
name
and
on
behalf
of
one
or
more
insurance
undertakings in the capacity
of insurance agent in
accordance
with the applicable
legislation,
c)
the provision of supporting accounting and tax
services to affiliated companies and third parties
as well as the
elaboration
of studies on
strategic and financial management and
d)
the issuance of securities for raising regulatory capital, which
are expected to have the form of debit/credit titles.
100% of rights of
the Financial Stability Fund
was retained after the completion
of the Demerger.
The corporate name and distinctive title of the Company were established as “Alpha Sevices and Holdings S.A.”
and “Alpha
Sevices
and
Holdings”
respectively.
The
Company
has
its
registered office at 40 Stadiou Street, Athens and is listed in the
General Commercial Register with registration number 223701000
(ex
societe anonym
registration number
6066/06/B/86/05).
Its duration has been set until
2100 and can be extended following a
decision of the General Assembly.
On 18.1.2022
the Company
was granted
a licence
to operate
as a
Financial Holdings
Company by
the European
Central
Bank.
The
Company
is
managed
by
the
Board
of
Directors,
which
represents
the
Company
and
is
qualified
to
resolve
on
every
action concerning its management, the administration
of its property and the promotion of its scope of business in general.
The tenure
of the
Board of
Directors
which was
elected by
the Ordinary
General Meeting
of Shareholders
on 29.6.2018
expires with the
Ordinary General Meeting
of Shareholders that
will take
place in
2022.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
125
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
According
to the
decision of
the Board
of Directors
of 16.4.2021,
as Alpha
Services
and Holdings
S.A. ceased
to operate
as
a credit institution, a new composition of the
Board of Directors was considered appropriate.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
114
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The composition of the Board of
Directors as at December 31, 2021 is
as follows:
CHAIRMAN (Non-Executive
Member)
Carolyn Adele
G. Dittmeier */****
Vasileios T. Rapanos
Richard R. Gildea **/***
EXECUTIVE MEMBERS
Elanor
R.Hardwick
*/****
Vassilios E. Psaltis, Chief Executive Officer (CEO)
Shahzad
A.
Shahbaz
****
Spyros N. Filaretos, General
Manager - Growth and
Jan Oscar A. Vanhevel */**
Innovation
NON-EXECUTIVE MEMBER
NON-EXECUTIVE MEMBER
(pursuant
to the
provisions
of Law
3864/2010)
Efthimios O. Vidalis */****
Johannes Herman Frederik G. Umbgrove */**/***/****
NON-EXECUTIVE INDEPENDENT MEMBERS
SECRETARY
Dimitris K. Tsitsiragkos **/***
George
P. Triantafyllides
(up to
16.12.2021)
Jean L. Cheval **/***
Irene E.
Tzanakaki
(as of
16.12.2021)
It is noted that the Board
of Directors of 16.12.2021
elected Mrs. E.M. Andriopoulou
as a Non Executive Member
of the Board
of Directors, effective as of
1.1.2022.
The
Board
of
Directors
can
set
up
the
Executive
Committee
to
which
it
delegates
certain
powers
and
responsibilities.
The
Executive Committee
acts as the
collective corporate
body of
the Company.
The powers
and authorities
of the
Committee are
determined by way of a Chief Executive Officer Act, delegating powers and authorities to the Committee.
Indicatively,
main responsibilities
of the
Committee
include, but
are not
limited to,
the preparation
of the
strategy, business
plan and annual budget
of the Company and
the Group for submission
to and approval by the
Board of Directors, as
well as
the
annual
and
quarterly
financial
statements;
the
preparation
of
the
Internal
Capital
Adequacy
Assessment
Process
(ICAAP)
Report
and
the
Internal
Liquidity
Adequacy
Assessment
Process
(ILAAP)
Report;
review
and
approval
of
the
Company’s
policies;
processes
and
systems
related
to
Recovery
Plan.
Furthermore,
the
Committee
is
responsible
for
the
implementation
of
the overall
risk strategy
– including
risk
the institution’s
risk appetite
and
its risk
management
framework-,
an adequate
and effective
internal governance
and internal
control framework,
the selection
and suitability
assessment
process for
Key
Function Holders,
the amounts,
types and
distribution of
both internal
capital and
regulatory capital,
and the
targets for
the
liquidity management of the
Company.
*
Member of
the Audit
Committee
**
Member of the Risk Management Committee
***
Member of the Remuneration Committee
****
Member
of the
Corporate
Governance,
Sustainability
and
Nomination
Committee
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
115
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The composition of the Executive Committee as of 31.12.2021 is as follows:
CHAIRMAN
Vassilios E. Psaltis, Chief Executive Officer
EXECUTIVE MEMBERS
Spyros
N.
Filaretos,
General
Manager
-
Growth
and
Innovation
Officer
Spyridon
Α.
Andronikakis,
General
Manager
-
Chief
Risk
Officer
(CRO)
Lazaros
A. Papagaryfallou,
General
Manager
- Chief
Financial
Officer (CFO)
Sergiu-Bogdan
A.
Oprescu,
General
Manager
International
Network
Nikolaos V.
Salakas, General
Manager
- Chief
Legal and
Governance
Officer
Ioannis Μ. Emiris, General Manager
Wholesale Banking
Isidoros S. Passas, General Manager
Retail Banking
Anastasia
X.
Sakellariou,
General
Manager
-
Chief
Transformation
Officer
Stefanos Ν. Mytilinaios, General
Manager - Chief
Operating Officer
On 16.11.2021
the “Sustainable
Growth Committee
at Group
level” was
formed, followingthe
decision of
30.9.2021 under
which,
the
Board
of
Directors’
committee
“Corporate
Governance
and
Nominations
Committee”
was
renamed
“Corporate
Governance,
Sustainability
and
Nominations
Committee”.
The
committe’s
objective
is
to
examine
and
decide
on
Sustainable
Growth
issues,
as
well
as
Environmental,
Social,
and
Governance
Issues
(“ESG”),
in
order
to
ensure
an
internal
governance
framework that will allow the Company to manage relative risks and
study all issues regarding sustainable growth.
The share
of Alpha
Bank
Services
and Holding
S.A.
is listed
in the
Athens
Stock
Exchange
since
1925 and
is included
among
the
companies
with
the
higher
market
capitalization.
The
Company’s
share
is
included
in
international
indices,
such
as
the
MSCI
Emerging Markets, MSCI Greece, FTSE All World and FTSE4Good Emerging Index.
Apart from the
Greek listing,
the share
of the Company
is traded over
the counter in
New York
(ADRs).
Total
ordinary
shares
in
issue
as
at
31
December
2021
were
2,345,981,097,
out
of
which
2,134,842,798
are
ordinary
registered
shares
with
voting
rights
with
nominal
value
Euro
0.30
each
held
by
Private
Investors,
while
the
Hellenic
Financial
Stability
Fund
(“HFSF”)
holds
the
remaining
211,138,299
shares
(i.e.
9%
of
share
capital).
Of
the
shares
held
by
the
Hellenic
Financial Stability Fund, 169,174,167 shares
are under limited voting rights in accordance with article 7a of Law 3864/2010.
During the year 2021, the average daily volume of the
share per session was €
9,932,558.
The present
annual financial
statements
have been
approved by
the Board
of Directors
on 31st
March 2022.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
116
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ACCOUNTING
POLICIES
APPLIED
1.1
Basis of presentation
The financial statements for the current period
ending at 31.12.2021 have been prepared in accordance
with International
Financial
Reporting
Standards
(IFRS),
as
adopted
by
the
European
Union,
in
accordance
with
Regulation
1606/2002
of
the
European Parliament and
the Council of
the European Union
on 19
July 2002.
The accounting policies applied by the Group in preparing the financial statements are the same as those stated in
the
published financial statements for the year ended on 31.12.2020, after taking into account:
a.
the amendments
to standards
which were
issued
by the
International
Accounting
Standards
Board
(IASB),
adopted
by the
European Union and applied on
1.1.2021, regarding which further analysis is provided in
note 1.1.2.
b.
The
decision
of
the
IFRS
Interpretations
Committee
(IFRIC
Committee)
“IAS
19:
Employee
Benefits
-
Attributing
benefit
to periods of service.” More specifically, the decision stipulates that the attribution of benefits in periods of service must
comply
with the
condition
of receiving
the benefit,
which is
the completion
of the
years
required in
order to
receive the
full
amount
of
pension,
and
it
is
applied
provided
there
is
no
legal
or
constructive
payment
obligation
in
cases
of
voluntary
retirement
or
early
retirement.
The
Group
within
the
year
adopted
the
above
decision
and
retrospectively
amended
the
method
of
attribution
of
benefits
in
periods
of
service
on
the
defined
benefit
plan
resulting
from
retirement
compensation
based on Greek labor law. As
a result, the attribution of benefits in
periods of service no longer starts from
the first day
of
employment
and
until
the
completion
of
16
years
of
work,
but
the
last
16
years
before
leaving
the
employment.
Especially
for the
employees who
had completed
17 and
more years
of service
in the
Group at
the time
of application
of
Law
4093/2012,
the
retirement
benefits
are
attributed
per
year
of
service
in
the
last
so many
years
for
which
they
had
established the
right to the retirement
benefit at the
time of application
of the applicable
legislation. The
application of this
accounting policy did not have any significant impact on the Group’s financial position as
at 1.1.2020 (note 50).
The
financial
statements
have
been
prepared
on
the
historical
cost
basis.
However,
some
assets
and
liabilities
are
measured
at
fair value. Those
assets are the
following:
-
Securities held for trading
-
Derivative financial instruments
-
Loans and advances to customers measured at fair value
through profit or loss
-
Investment securities measured at fair value through other comprehensive income
-
Investment securities measured at fair value through profit or loss
-
The contingent
consideration
recognized
either as
a result
of a
business combination
in which
the Group
is the
acquirer or
in
the context
of asset
disposal transactions in
which the
Group is
the seller.
The financial
statements
are presented
in Euro,
rounded
to the
nearest
thousand,
unless
otherwise
indicated.
1.1.1
Going concern
The financial
statements as
at 31.12.2021
have been prepared
based on the
going concern
principle. For
the application of
this principle, the Board of Directors considered current economic developments and made estimates for the formation, in the
near future, of
the economic environment
in which it operates.
In this context,
the Board of Directors
assessed the following
areas which are
considered important during
its assessment:
Developments
in
the
macroeconomic
environment
In early 2020, the emergence and rapid spread of the Covid-19 pandemic
overturned the growth prospects of the global
and the Greek economy. Many governments,
in an effort to boost the resilience of their national economies,
have taken
to an unprecedented extent emergency fiscal measure to support national
health systems and ensure employment and
entrepreneurship. The fiscal support
policy that the government has followed mitigated,
in part, the adverse effects of the
recession that reached 9% on
an annual basis in
2020. The swift and
strong recovery of economic activity in
the first nine
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
117
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
months of
2021, recouped
a significant
part of the
losses registered
because of
the recession
of the previous
year, as GDP
at
constant prices increased by 8.3% on an
annual basis based on the
adjusted criteria.
The
steep
rebound
of
GDP
in
2021
can
be
attributed,
firstly,
to
the
private
consumption,
which
increased
by
7.8%,
on
an
annual basis,
contributing
by 5.5
points on
GDP growth
and which
was driven
by the
sharp increase
in savings
and the
rise in
employment.
Investments
have
marked
the
second
greater
positive
contribution
to the
GDP
increase
in
2021
(2.3
percentage
points), as
they increased
by 19.6%,
which amongst
individual categories
was mainly
attributed
to the rise
of investment
in
machinery
and
technological
equipment
(+34.5%
on
an
annual
basis).
The
good
performance
of
exports
of
services,
and
especially
the
remarkable
recovery
of
tourism
in
2021,
have
resulted
in
the
positive
contribution
of
net
exports
to
the
GDP
increase,
by
0.9
percentage
points.
Finally,
public
consumption
has
increased
by
3.7%
in
2021,
in
comparison
to
2020,
contributing
to GDP
increase
by
0.8 percentage
points,
as
a
result
of fiscal
interventions
addressing
the negative
impacts
of
the
pandemic,
as well
as other
fiscal support
measures
for the
strengthening
of households
and businesses,
which
include,
amongst
others,
the provision
of subsidies
for heating,
electricity
and petroleum.
On the
contrary,
inventories
have significantly
decreased,
during the
previous year,
deducting 1.1
percentage points
from the
GDP rise.
Some
particularly
favorable
indications
that
the
recovery
of
the
Greek
economy
will
be
strong
are
the
following:
first,
conditions
for
the
change
of
the
composition
of
the
economic
growth
are
put
in
place,
which
is
expected
to
derive
mainly
from
investment
expenditure.
The
increase
of
investment
in
the
short-term
will
be
determined
by
the
evolution
of
the
country’s
sovereign
credit
rating
towards
the
so-called
“investment
grade”,
the
disbursement
of
funds
in
the
context
of
the
Recovery
and
Resilience
Facility
(RRF),
as
well
as
the
implementation
of
structural
reforms
that
will
establish
a
business-friendly
environment.
The
RRF
funding can be demonstrated
a stable basis for a
strong continued growth
of the Greek economy
and is expected to mobilize
new
investments
and
sustainable
growth
rates.
The funds,
according
to the
National
Recovery
and Resilience
Plan
(NRRP),
are
expected to mobilize new investments of around EUR 57.5 billion in 2021-2026, covering to a large extent the investment gap
that
was created
in
Greece
in
the previous
decade.
Secondly,
in the
estimation
for new
increase
of tourist
arrivals
and
proceeds
from tourism, the significant recovery of turnover of businesses and finally, the gradual stabilisation of the Economic
Sentiment
Indicator (ESI).
Despite the positive expectations, the challenges
and uncertainties are retained with regards to the evolution of the disease
Covid-19 and its mutations, as well as the potential impacts of permanent nature in productivity, employment, behavior
of
households,
resilience
of
businesses
and
risks
of
financing
the
economically
weak
economies.
In
addition,
inflation,
as
measured
by
the
harmonized
index
of
consumer
prices,
has
increased
the
second
half
of
2021
primarily
due
to
the
rising
energy prices globally, the supply
chains disruptions and shortages
of raw materials. In December 2021
the harmonized index
of consumer prices
increased by 4.4%, compared
to -2.4% in the respective
month of 2020, while
the average ratio increased
in 2021 by 0.6% compared to the previous year. In 2022, the harmonized index is expected to amount to 3.1% according to the
Organisation
for
Economic
Co-operation
and
Development
(World
Economic
Outlook,
December
2021)
and
to
3%
according
to
the European
Central Bank
(Eurosystem
staff macroeconomic
projections for
the euro area
countries, December
2021).
Finally,
the
economic
implications
of
the
full-scale
invasion
from
Russia
to
Ukraine
at
the
beginning
of
the
year,
as
well
as
the
sanctions
against
Russia,
are
basically
related
with
a longer
period
of inflation
tensions
in
Eurozone.
These
tensions
are
fueled
by
gas,
oil
and
food
prices
which
are
expected
to
remain
high
over
the
medium
term,
as
well
as
from
increased
uncertainty
from
the
disruption
in
financial
markets.
As
a result,
the
impact
of
high
energy
prices
on
households’
real
incomes
as
well
as
on
industries
supply lines, is
expected to weaken
the increase in
private consumption.
Consequently, the
three basic channels
through which
it
is
expected
that
the
geopolitical
developments
will
affect
the
Greek
economy
are
the
energy
prices,
tourism
and
a
potential
disruption
of
financial
markets.
The
potential
economic
or
non-economic
impact
of
these
conditions
on
the
Group
depends
on
the
manner
that
the
crisis
is
going
to
unfold.
This
crisis
and
its
impact
on
the
domestic
and
global
economic
conditions
could
affect
the
capacity
of
the
Group
to
generate
income
or
satisfy
financial
targets,
increase
expenses,
or
result
in
higher
expected
credit losses. Given the
uncertainty that exists it
is not
possible to estimate
with reliance the
future economic impact (note
43.8).
Liquidity
Regarding
the liquidity
levels
of the
Group,
it is
noted
that there
was no
adverse
change
due to
Covid-19
in terms
of the
ability
to
draw
liquidity
from
the
Eurosystem
Mechanisms
and
from
repos
interbank
transactions
(with
or without
collateral).
The
Bank
made use
of the
TLTRO III
program of
the European
Central Bank
and ensured
long-term
liquidity with
very low
interest rates.
In
this context,
the total
financing
from the
European
Central
Bank
on 31.12.2021
amounts
to € 12.9
billion (note
27). In
addition,
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
118
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
in
order
to
reinforce
its
liquidity,
the
Bank
issued
on
16.9.2021
a
senior
preferred
bond,
amounting
to
€ 500
mil.,
with
a
6.5-
year maturity, callable
in year 5.5 with
a coupon of 2.5%
and a yield of
2.625%, while, additionally
on 10.12.2021 the
Bank
issued a
senior preferred
bond, amounting
to € 400
mil, with
a 2-year
maturity,
with a
coupon
of 3%
and callable
the first
year.
In
addition,
it
is
important
that
the
European
Central
Bank,
in
its
decisions
in
March,
April
and
December
2020,
accepted
the
securities
of
the
Hellenic
Republic
as
collateral
for
liquidity
operations.
It
is noted
that
the
available
eligible
collaterals
through
which
the
drawing
of liquidity
from
the Eurosystem
Mechanisms
and
/ or
from
third
sources
is ensured,
to the
extent
required,
amounts
to €
13 billion
as of
31.12.2021.
In addition,
during
the year
there
was an
increase
in private
sector
deposits
of €
3.6
billion.
As a
result of
the above,
the liquidity
ratios
(liquidity
coverage
ratio and
net stable
funding
ratio) exceed
the supervisory
limits
that
have
been
set.
In
addition,
considering
the
conditions
that
form
the
current
economic
environment,
stress
test
exercises
are
carried
out
regularly
for
liquidity
purposes,
in
order
to
assess
possible
outflows
(contractual
or
potential).
Based
on
these
exercises,
the
Group
successfully
overcomes
the
liquidity
short
term
stress
scenarios
(idiosyncratic,
systemic
and
combined),
retaining a
high liquidity
buffer. As
a result,
based on
the Group’s
plan as
well on
internal stress
tests the
Group has
sufficient liquidity reserves
to meet
its needs.
Capital
Adequacy
On
31.12.2021,
the
Common
Equity
Tier
I
of
the
Group
stands
at
13.2%,
while
the
Total
Capital
Adequacy
Ratio
at
16.1%.
These levels
are significantly
higher than
the levels
set by
the European
Central Bank
as further
described in
note 44.
It is also
important that due to
the spread of
Covid-19, the European Central Bank
decided to temporarily deviate from
the minimum
limits of
regulatory
capital for
European
Banks at
least until
the end
of 2022.
The Bank in
order to strengthen
its capital proceeded
on 4.3.2021
to the
issuance of
new Tier
2 bond
amounting to
€
500 mil,
with a
10.25-year
maturity callable
anytime between
year 5
and year 5.25
with initial
fixed coupon of
5.5% until
11.6.2026, which
resets to
a new rate
effective from the
call date until maturity
and which is
set based
on the
5-year swap
rate plus
a margin
5.823% for
the residual
maturity. It
is also noted
that within
2021 the
Group recognized significant losses due to
the finalisation of Galaxy
(sale of 80%
of Cepal Holding SA
and of 51%
of Mezzanine
and Junior
securitization
notes of
Galaxy securitization)
and Cosmos
(sale of
51% of
Mezzanine
and Junior
securitization
notes
of
Cosmos securitization)
transactions,
as well
as due
to the
increased impairment
losses, which
are related
to the
imminent
sales of
portfolios of
overdue loans.
However,
given the
relief of
risk weighted
assets from
the Galaxy
and Cosmos
transactions,
the Group
capital adequacy stood at a level higher that the capital requirement thresholds. In
addition, within the third quarter
of 2021 the
share capital increase of the parent company was completed resul
ting in raising funds of € 800 million. Finally, the Group successfully
concluded the 2021 EU-wide Stress Test. The Stress Test was conducted
based on a static balance sheet approach under a baseline
and an
adverse
macro
scenario
with a
3-year
forecasting
horizon
(2020-2023).
Taking
into
consideration
the results
of the
capital
Stress Test and the internal capital adequacy assessment process (ICAAP), the actions performed within 2021 (share
capital increase,
Tier 2 issuance,
NPE reduction)
as well as
the actions
that aim
in the creation
of internal
capital through
profitability,
it is estimated
that for the next
12 months the Total Capital Adequacy Ratio and the
MREL ratio will remain higher than the
required minimum levels.
Updated Strategic
Plan 2021-2024
In
May
2021
the
Bank
announced
the
Updated
Strategic
Plan
which
is
intended
to
drive
the
sustainable
development
and
profitability of the Group. The updated Strategic Plan is
based on the following key initiatives:
•
The asset growth initiative, with specific focus on corporate loans, in the context of the anticipated recovery of the Greek
economy and
the prospects
being developed
by the Recovery
and Resilience
Fund (RRF),
enhancing Net
Interest Income
and
Fee and
Commission Income for
the Bank.
•
The initiatives
for the reduction
of non-performing
exposures (NPEs),
which include
the Galaxy
transaction, which
was
completed on 18th June 2021, as well as a series of other transactions, that refer to a total gross book value of € 8.1 billion
of NPEs, part
of which relate
to securitizations
under the
extension of
the HAPS scheme
(«HAPS 2»),
but also to
the ongoing
organic NPE reduction.
•
The initiatives for efficiency enhancements, with the
aim to achieve operational excellence and reducing operating costs
throughout the organization.
•
The initiatives for the growth of
fees and commissions income, through low-intensity capital operations, such as Wealth
Management products and
services and the
supply of
Bancassurance products.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
119
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
•
The initiatives for the development of the Groups’ international presence, including utilization
of additional funds in
Romania where the
banking sector has a
strong growth outlook.
In
addition,
in
the
context
of
the
updated
strategic
plan,
capital
measures
are
taken
through
the
implementation
of
specific
transactions that provide
additional capital buffers.
For
the
support
of
the
implementation
of
the
updated
strategic
plan
with
regards
to
the
asset
growth
initiative,
the
parent
company has succes
sfully completed
increase of share capital,
raising new capital
of € 800 million.
The Group estimates
that
the share capital increase ensures
from the start the growth capital that is
expected to be utilised for this purpose
until the end
of 2024.
The updated
strategic
plan
aims
in aggregate
at the
reform
of the
Group’s
balance
sheet
and in
the mid-term
at the
increase
of return
on equity, preserving at the
same time the capital position, over the required minimum thresholds
that apply.
Based on the
above and taking
into account:
•
the Group’s capital adequacy ratio that
is significantly higher than the
required minimum levels, the MREL ratio
that is higher
than the mid-level, as well the specific actions the Bank
has planned to further strengthen the ratios,
•
the satisfactory liquidity of the Group,
•
the measures taken by the Group to protect its employees from coronavirus, the implementation of actions under the
Business Continuity Plan and the activation of the ability for teleworking at a large scale whilst ensuring that critical
operations are performed,
•
the actions taken to enhance efficiency and profitability,
•
the decisions of the eurozone
countries to adopt a series
of fiscal and other
measures to stimulate the economy, according
to which Greece is expected
to receive € 30.5 billion from
the recovery package
for Europe “Next Generation
EU”,
•
that even though the prolonged duration as well as the form that the Russia and Ukraine
war conflict will possibly take may
adversely affect the macroeconomic
environment, the
Group has
limited exposure
to Russian and
Ukrainian economy
as well
as significant buffers
of capital
adequacy and
liquidity,
the Board
of Directors estimates
that, at least
for the
next 12
months from the
date of
approval of
the financial
statements, the
conditions
for
the
application
of the
going
concern
principle
for
the
preparation
of
its
financial
statements
are met.
1.1.2
Adoption of new
standards and of
amendments to standards
The following are the amendments to standards applied from 1.1.2021:
‣
Amendment to International Financial Reporting
Standard 4 “Insurance Contracts”: Extension of the temporary
exception from applying IFRS
9 (Regulation 2020/2097/15.12.2020)
On
25.6.2020
the
International
Accounting
Standards
Board
issued
an
amendment
to
IFRS
4
with
which
extended
the
temporary
exception
from
applying
IFRS
9
by
two
years.
In
this
context,
companies
that
have
used
the
temporary
exception
from applying IFRS
9 shall apply
the standard
by 1.1.2023.
The adoption of the
above amendment had
no impact on the financial
statements of the Group
since the Group has not
made
use of
the temporary exception
from IFRS 9.
‣
Amendment to International Financial Reporting Standard 9 “Financial Instruments”, to International Accounting
Standard 39 “Financial Instruments: Recognition
and measurement”, to International Financial
Reporting Standard 7
“Financial Instruments: Disclosures”,
to International Financial
Reporting Standard
4 “Insurance Contracts” and International
Financial Reporting Standard 16 “Leases”: Interest rate benchmark reform – phase 2 (Regulation 2021/25/13.1.2021)
On 27.8.2020
the International
Accounting
Standard
Board
issued amendments
to IFRS
9, IAS
39, IFRS
7, IFRS
4 and
IFRS 16
in the context of Phase 2 of the IBOR project that address issues that arise following the reform of an
interest rate benchmark
rate,
including
the
replacement
of
one
benchmark
rate
with
an
alternative
one.
The
key
reliefs
provided
by
the
Phase
2
amendments are as
follows:
-
Changes to contractual cash flows: When changing the basis for determining contractual cash
flows for financial assets
and liabilities (including lease liabilities), the reliefs have the effect that the changes that are required by an interest rate
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
120
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
benchmark
reform
will
not
result
in
an
immediate
gain
or
loss
in the
income
statement
but
in
the
recalculation
of
the
interest rate. The same
practical expedient applies for insurers
that are applying the
temporary exemption from IFRS 9.
-
Hedge accounting: The hedge accounting
reliefs ensure that changes to the hedge documentation do not result in the
discontinuation of hedge accounting nor the designation of a new hedge relationship, as long as the only changes are
those permitted
by the
Phase
2 Amendments.
Permitted
changes
include
redefining
the hedged
risk to
reference
a risk-
free rate and redefining the description of the hedging instruments and/or the hedged items to reflect the risk-free rate.
However, additional ineffectiveness might need to be recorded in profit or
loss statement.
The adoption
of the above
amendment does
not have
an impact on
the financial
statements because
on the one
hand
changes
in the
contractual
cash flows
of the
financial instruments
are treated
through the
change of
the discount
rate
and on the other hand because the existing hedging relationships are not affected by
the interest rate benchmark reform.
Relevant disclosures are
presented in note
43.7.
‣
Amendment to International Accounting
Standard 16 “Leases”: Covid-19 Related rent concessions beyond 30 June
2021 (Regulation 2021/1421/30.8.2021)
On 31.3.2021
the International
Accounting Standards
Board issued
an amendment
to IFRS16
with which
it extended
by one year the possibility of the
lessee to elect (practical expedient) not to assess whether a
rent concession is a lease
modification. The practical expedient had been provided with the amendment of the standard issued on 28.5.2020.
The adoption of the above amendment had no impact on the financial
statements of the Group.
Except
for the
standards
mentioned
above,
the European
Union
has
adopted
IFRS
17 as
well
as the
following
amendments
to
standards
which
are
effective
for
annual
periods
beginning
after
1.1.2021
and
have
not
been
early
adopted
by
the
Group.
‣
Amendment to the International Financial Reporting
Standard 3 “Business Combinations”: Reference
to the
Conceptual Framework (Regulation
2021/1080/28.6.2021)
Effective for annual periods beginning on or
after 1.1.2022
On
14.5.2020
the
International
Accounting
Standards
Board
amended
IFRS
3
in
order
to
update
references
to
the
Conceptual Framework. More
specifically:
-
amended IFRS
3 in
order to
refer to
the latest
version of
the Conceptual
Framework,
-
added a
requirement
that for
transactions within
the scope
of IAS
37 or IFRIC
21 an acquirer
applies IAS
37 or IFRIC
21
instead of the Conceptual Framework to identify liabilities it has
assumed in a business combination,
-
added an explicit statement that an acquirer does not recognise contingent assets acquired in
a business combination.
The adoption of the above amendment is not expected to have
any impact on the financial statements of the Group.
‣
International Financial
Reporting Standard
17 “Insurance
Contracts” and
Amendment
to International
Financial
Reporting Standard 17 “Insurance Contracts” (Regulation 2021/2036/19.11.2021)
Effective for annual periods beginning on or
after 1.1.2023
On 18.5.2017
the
International
Accounting
Standards
Board
issued
IFRS
17
which
replaces
IFRS
4 “Insurance
Contracts”.
In
contrast
to
IFRS
4,
the
new
standard
introduces
a
consistent
methodology
for
the
measurement
of
insurance
contracts.
The
key principles in
IFRS 17 are
the following:
An entity:
•
identifies as insurance contracts those contracts under which the
entity accepts significant insurance risk from another
party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event adversely
affects the policyholder;
•
separates specified embedded derivatives, distinct
investment components and distinct performance obligations
from
the insurance contracts;
•
divides the contracts into groups that it
will recognise and measure;
•
recognises
and measures
groups
of insurance
contracts
at:
i.
a risk-adjusted present
value of the future cash
flows (the fulfilment cash
flows) that incorporates
all of the
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
121
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
available
information
about the
fulfilment
cash flows
in a
way that
is consistent
with observable
market information;
plus (if
this value
is a
liability) or minus
(if this
value is an
asset)
ii.
an amount representing the unearned profit in the group
of contracts (the contractual service margin);
•
recognises the profit from
a group of
insurance contracts over the period
the entity provides insurance cover,
and as the
entity is released from risk.
If a group of
contracts is or becomes loss-making, an
entity recognises the loss immediately;
•
presents separately
insurance
revenue, insurance
service
expenses
and insurance
finance income
or expenses;
and
•
discloses information to enable users of financial statements to assess the effect that contracts within the scope of IFRS 17
have on the
financial position, financial performance and
cash flows of
an entity.
On
25.6.2020
the
International
Accounting
Standards
Board
issued
an
amendment
to
IFRS
17
which
aimed
to
ease
implementation
of
the
standard
and
make
it
easier
for
entities
to
explain
their
financial
performance.
Additionally,
with
the
amendment the effective date
of the standard was
postponed to 1.1.2023.
Finally, it is noted that under the Regulation of the European Union that adopted above standard, an entity may choose not to
apply paragraph 22 of the standard, in accordance with which an entity shall not include contracts issued more than one year
apart in the
same group, to:
(a)
groups
of
insurance
contracts
with
direct
participation
features
and
groups
of
investment
contracts
with
discretionary
participation
features
and with
cash
flows that
affect or
are affected
by cash
flows to
policyholders
of other
contracts;
(b)
groups of
insurance contracts
that are managed
across generations
of contracts and
that meet the
conditions laid
down in
Article 77b of Directive 2009/138/EC
and have been approved by supervisory
authorities for the application
of the matching
adjustment.
The Group is examining the
impact form the adoption of
IFRS 17 on
its financial statements.
‣
Amendment
to
the
International
Accounting
Standard
1
“Presentation
of
Financial
Statements”:
Disclosure
of
accounting policies (Regulation
2022/357/2.3.2022)
Effective for annual periods beginning on or
after 1.1.2023
On 12.2.2021 the International Accounting Standards Board issued an amendment to IAS
1 with which it
clarified that:
-
The definition
of accounting
policies is
provided
by paragraph
5 of
IAS 8.
-
An entity shall disclose material
accounting policy information. Accounting policy information is material if, when
considered
together with other information included in an entity’s financial statements, it can reasonably be expected to influence
decisions that
the primary users
of financial statements
make.
-
Accounting policy information that relates to immaterial transactions
is immaterial and need not be disclosed. Accounting
policy information may nevertheless
be material because of the nature of the related transactions even
if the amounts
are immaterial. However, not all accounting policy information relating to material transactions
and other events is itself
material.
-
Accounting policy information is material if users of an entity’s financial
statements would need it to understand other
material information in
the financial statements.
-
Accounting policy information that focuses on how an entity has
applied an accounting policy is more useful to
users of
financial statements than standardized information or information that only summarizes the requirements of IFRSs.
-
If an entity discloses immaterial accounting policy information, such information
shall not obscure material accounting
policy information.
The Group is examining the impact form the adoption of the
above amendment on its financial statements.
‣
Amendment to the International Accounting Standard
8 “Accounting Policies, Changes in Accounting Estimates and
Errors”: Definition of
accounting estimates (Regulation 2022/357/2.3.2022)
Effective for annual periods beginning on or
after 1.1.2023
On 12.2.2021 the International Accounting Standards Board issued
an amendment to IAS
8 with which:
-
Defined accounting estimates as
monetary amounts in financial statements
that are subject to measurement uncertainty.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
122
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Clarified that an accounting policy may require items in financial statements to be measured in a way that involves
measurement uncertainty. In such a
case, an entity
develops an accounting estimate. Developing
accounting estimates
involves the
use of judgements
and assumptions.
-
An entity uses measurement techniques and inputs to
develop an accounting estimate.
-
An entity may need to change an accounting estimate. By its nature, a change in an accounting estimate does not relate to
prior periods
and is not
the correction
of an
error. A
change in
an input
or a change
in a measurement
technique are
changes
in accounting estimates
unless they result
from the correction
of prior
period errors.
The Group is examining the impact from the adoption of the above amendment on its
financial statements.
‣
Amendment to International Accounting
Standard 16 “Property, plant and equipment”: Proceeds before intended use
(Regulation 2021/1080/28.6.2021)
Effective for annual periods beginning on or
after 1.1.2022
On 14.5.2020 the International Accounting Standards Board issued an amendment to IAS 16 which prohibits deducting from
the cost of
an item of
property, plant
and equipment
any proceeds from
selling items
produced while
bringing that asset
to
the location and
condition necessary
for it to be capable
of operating in
the manner intended
by management.
Instead, the
proceeds from selling such items and the
cost of producing them must be
recognized in profit or loss.
The Group is examining the impact form the adoption of the
above amendment on its financial statements.
‣
Amendment to International Accounting
Standard 37 “Liabilities, Contingent Liabilities and Contingent
Assets”: Onerous
Contracts –
Cost of
fulfilling a contract
(Regulation 2021/1080/28.6.2021)
Effective for annual periods beginning on or
after 1.1.2022
On 14.5.2020
the International
Accounting Standards
Board issued an
amendment to
IAS 37 in order
to clarify that
the cost
of fulfilling
a contract
comprises
the costs
that relate
directly to
the contract.
These costs
are both
the incremental
costs of
fulfilling a contract
– for example
direct labour and
materials-
and an allocation
of other costs
that relate directly
to fulfilling a
contract – for example the depreciation charge of an item of property
plant and equipment used in fulfilling that contract.
The Group is examining the impact from the adoption of the above amendment on its
financial statements.
‣
Annual Improvements – cycle 2018-2020 (Regulation 2021/1080/28.6.2021)
Effective for annual periods beginning on or after 1.1.2022
As part of the annual improvements project, the International
Accounting Standards Board issued
on 14.5.2020 non-urgent but
necessary amendments
to IFRS
1, IFRS
9, IFRS
16 and
IAS 41.
The above amendments are not expected to have
any impact on the financial statements of
the Group.
In addition, the International Accounting Standards Board has issued the following standards
and amendments to standards
the effective date of which is for annual periods beginning after 1.1.2021, which have not yet been adopted by the European
Union and
which have not
been early applied
by the
Group.
‣
Amendment to International Financial Reporting Standard 10 “Consolidated
Financial Statements” and to
International
Accounting
Standard
28 “Investments
in Associates
and Joint
Ventures”: Sale
or contribution
of assets
between an
investor and its
associate or joint
venture.
Effective date:
To be
determined.
On 11.9.2014 the International Accounting Standards Board issued an amendment to IFRS 10
and IAS 28 in
order to clarify the
accounting treatment
of a transaction
of sale or
contribution of
assets between
an investor
and its associate
or joint venture.
In particular,
IFRS 10
was amended
in order
to be clarified
that in case
that as a
result of a
transaction
with an associate
or
joint venture,
a parent
(investor)
loses control
of a
subsidiary,
which does
not constitute
a business,
as defined
in IFRS
3, it
shall
recognise to profit or loss only the part of the gain or loss which is related
to the unrelated investor’s interests in that associate
or joint
venture.
The
remaining
part of
the gain
from the
transaction
shall
be eliminated
against
the carrying
amount
of the
investment
in that
associate
or joint
venture.
In addition,
in case
the investor
retains an
investment
in the
former subsidiary
and
the former
subsidiary
is now
an
associate
or joint
venture,
it recognises
the part
of the
gain
or loss
resulting
from the
remeasurement at fair value of the investment retained
in that former subsidiary in its profit or loss only to the extent of the
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
123
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
unrelated investor’s interests in the new associate or
joint venture. The remaining part of the gain is eliminated against
the
carrying amount
of the
investment retained in
the former
subsidiary.
In IAS 28, respectively,
it was clarified that
the partial recognition
of the gains or losses
shall be applied only
when the involved
assets do not constitute a business. Otherwise, the
total of the gain
or loss shall be
recognised.
On
17.12.2015,
the
International
Accounting
Standards
Board
deferred
the
effective
date
for
the
application
of
the
amendment
that had
been initially
determined.
The new
effective
date will
be determined
by the
International
Accounting
Standards Board at a future date after taking into account the results of its project relating to the equity method.
‣
International Financial Reporting Standard 14 “Regulatory deferral accounts”
Effective for annual periods beginning on or after 1.1.2016
On
30.1.2014
the
International
Accounting
Standards
Board
issued
IFRS
14.
The
new
standard,
which
is
limited-scope,
addresses
the
accounting
treatment
and
the
disclosures
required
for
regulatory
deferral
accounts
that
are
maintained
in
accordance
with
local
legislation
when
an
entity
provides
rate-regulated
goods
or services.
The
scope
of
this
standard
is limited
to
first-time
adopters
that
recognized
regulatory
deferral
accounts
in
their
financial
statements
in
accordance
with
their
previous
GAAP. IFRS 14
permits these
entities to capitalize
expenditure that
non-rate-regulated entities
would recognize
as expense.
It is noted that European Union has decided not to launch the endorsement
of this standard and to wait for the final standard.
The above standard does
not apply to
the financial statements
of the Group.
‣
Amendment
to
International
Financial
reporting
Standard
17: “Insurance
Contracts”:
Initial Application
of IFRS
17 and
IFRS 9
–
Comparative information
Effective for annual periods beginning on or
after 1.1.2023
On 9.12.2021 the International Accounting
Standards Board issued an amendment to IFRS 17 according
to which entities are
permitted on
initial application
of IFRS 17
to classify financial
assets in the
comparative period
in a way that
aligns with
how
the entity would classify them on IFRS 9 transition. The amendment specifies how this option is
applied depending on whether
the entity applies IFRS 9
for the first time
at the same time
as IFRS 17 or
whether it has already applied it
in a previous period.
The Group is examining the impact from the adoption of the above amendment on its
financial statements.
‣
Amendment
to
the
International
Accounting
Standard
1
“Presentation
of Financial
Statements”:
Classification
of
liabilities as current
or non-current
Effective for annual periods beginning on or
after 1.1.2023
On
23.1.2020,
the
International
Accounting
Standards
Board
issued
amendments
to
IAS
1
relating
to
the
classification
of
liabilities as current
or non-current.
More specifically:
-
The amendments specify that the conditions which exist at the end of the reporting period are those which will be used to
determine if
the liability must
be classified as
current or
non-current.
-
Management expectations about events after the balance sheet date must not be taken into account.
-
The amendments clarify the situations
that are considered settlement of a liability.
On 15.7.2020
the International
Accounting
Standards
Board extended
effective
date by
one year
taking into
account
the
impact of Covid-19.
The above amendment
will have no
impact on the
financial statements
of the Group
since in Group’s
balance sheet
liabilities
are not
classified as current
and non-current.
‣
Amendment
to
International
Accounting
Standard
12 “Income
Taxes”:
Deferred
tax related
to assets
and liabilities
arising from a
single transaction
Effective for annual periods beginning on or
after 1.1.2023
On 7.5.2021 the International Accounting Standards
Board issued an amendment to IAS 12 with which it narrowed the scope
of the recognition
exception according to
which, in specific circumstances,
entities are exempt from
recognising deferred
tax
when they
recognise
assets or
liabilities
for the
first time.
The amendment
clarifies that
the exception
no longer
applies to
transactions that, on initial recognition, give rise to
equal taxable and deductible temporary differences.
The Group is examining the impact from the adoption of the above amendment on its
financial statements.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
124
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1.2
Accounting
policies
1.2.1
Basis
of
consolidation
The consolidated
financial
statements
include
the
parent
company
Alpha
Services
and
Holdings,
its
subsidiaries,
associates
and joint ventures.
The financial
statements used
to prepare the
consolidated financial
statements have
been prepared
as at
31.12.2021 and the accounting policies applied in their preparation, when necessary, were adjusted to ensure consistency with
the Group accounting
policies.
a.
Subsidiaries
Subsidiaries
are entities
controlled
by the
Group.
The Group
takes into
account
the following
factors,
in assessing
control:
-
power over
the investee,
-
exposure, or rights, to variable returns from
its involvement with the investee, and
-
the ability to use its power over the investee to affect the amount of the investor’s return.
Power arises from currently exercisable
rights that provide the Group with the current ability to direct the relevant activities
of
the investee. In a straightforward case, rights that provide power
are derived from voting rights granted by equity instruments
such as shares.
In other
cases, power results
from contractual arrangements.
The
Group’s
returns
are
considered
variable,
when
these
returns
have
the
potential
to
vary
as
a
result
of
the
investee’s
performance. Variability of returns is judged based on
the substance of the arrangement, regardless of
their legal form.
The Group,
in order
to evaluate
the link
between
power
and returns,
assesses
whether
it exercises
its power
for its
own
benefit
or on behalf of other
parties, thus acting as either a
principal or an agent, respectively. If the
Group determines that it acts
as
a
principal,
then
it
controls
the
investee
and
consolidation
is
required.
Otherwise,
control
does
not
exist
and
there
is
no
requirement to consolidate.
In cases
where the
power over
an investee
arises from
voting rights,
the Group
primarily assesses
whether it
controls the
investee through holding
more than 50% of the
voting rights. However,
the Group can have power
even if it holds less than
50% of the
voting rights of
the investee, through:
-
a contractual arrangement between the investors and other vote holders,
-
rights arising from other contractual arrangements,
-
the size of the investor’s holding of voting rights
relative to the size and dispersion of
holdings of the other vote holders,
-
potential voting rights.
In cases of structured entities
where the voting rights relate
to administrative tasks only
and the relevant activities
are directed
by
means
of
contractual
arrangements
(i.e.
securitization
vehicles
or
mutual
funds),
the
Group
assesses
the
existence
of
control based on
the following:
•
the purpose of the entity and the contractual rights of the parties involved,
•
the risks to which
the investee was designed to
be exposed, the risks it
was designed to pass
on to the
parties involved with
the investee
and the
degree of
exposure of
the Group
to those
risks,
•
indications of a special relationship with the entity, which suggests that the Group has more than a passive interest in the
investee.
Furthermore,
regarding
the
structured
entities
that
are
managed
by
the
Group,
the
Group
assesses
if
it
acts
as
principal
or
an agent based on the extent
of its decision – making authority
over the entity’s activities,
the rights of third parties and
the
degree of its
exposure to variability
of returns due
to its involvement
with the entity.
The Group,
based
on the
above
criteria,
controls
structured
entities
established
for the
securitization
of loan
portfolios.
The Group reassess whether it controls an investee if facts and circumstances indicate that there are changes to one or more
of the elements
of control.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
125
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The
financial
statements
of
subsidiaries
are
fully
consolidated
from
the
date
that
control
commences
until
the
date
that
control ceases.
The acquisition method is applied
when the Group obtains control of other companies
or units that meet the definition of
a business. Application
of the acquisition
method requires identifying
the acquirer, determining
the acquisition date
and
measuring the consideration transferred,
the identifiable assets acquired, the liabilities
assumed and any non controlling
interest in the acquiree, in order to
determine the amount of goodwill or gain arising
from the business combination.
The consideration
transferred is
measured at
fair value on
acquisition date.
Consideration includes
also the
fair value
of any
contingent consideration. The obligation
to pay contingent consideration is recognized as a liability or as an equity component,
in accordance with IAS 32. The right to the return of a previously transferred consideration is classified as an asset, if specified
conditions are met. Subsequently, and
to the extent that changes in the value of the contingent consideration do not constitute
measurement period adjustments, contingent
consideration is measured as
follows:
-
In case it
has been classified in
equity, it is
not re-measured.
-
In all other cases it is
measured at fair value through profit or loss.
The
identifiable
assets
acquired
and
liabilities
assumed
are
initially
recognised
on
acquisition
date
at
their
fair
value,
except from specific assets
or liabilities for which a different measurement
basis is required. Any non controlling
interests
are recognised at
either fair value or
at their proportionate
share in the acquiree’s
identifiable net assets,
as long as they
are present ownership
interests and entitle
their holders to a proportionate
share of the entity’s
net assets in the event
of
liquidation. Otherwise, they are
measured at their
acquisition date fair
values.
Any difference
between:
a.
the sum of the consideration transferred, the fair value of any previously held equity interest of the Group in the acquiree
and the
amount of any
non
–
controlling interests, and
b.
the net of the acquisition date amounts of the identifiable assets
acquired and the liabilities assumed,
is recognised as goodwill if
the above difference is positive or
as a gain in
profit or loss if
the difference is negative.
During the measurement period, the provisional amounts recognized at the acquisition date are adjusted in order to reflect new
information obtaine
d
about facts and
circumstances that
existed as of the
acquisition date and,
if known, would
have affected
the measurement of the amounts recognized as of that date. These adjustments affect accordingly the amount of goodwill.
The measurement period
ends as soon as the
information about facts
and circumstances existed
as of the acquisition
date has
been obtained. However, the measurement period shall not exceed one
year from the acquisition date.
When
the
Group’s
interest
in
a
subsidiary
increases
as
a
result
of
an
acquisition,
the
difference
between
the
consideration
paid
and the share
of net
assets acquired is
recognized directly in
retained earnings.
Sales
of
ownership
interests
in subsidiaries
that
do
not
result
in
a
loss
of
control
for
the Group
are
accounted
for
as
equity
transactions and the gain or loss
arising from the sale is
recognized directly in retained earnings.
Intercompany transactions
are eliminated, unless the transaction provides
evidence of impairment of the asset transferred, in
which case,
it is
recognized in
the consolidated
balance sheet.
b. Associates
Associates
are
entities
over
which
the
Group
has
significant
influence
but
not
control.
Significant
influence
is
generally
presumed to exist when the Group holds, directly or indirectly, more than
20% of the share capital of the company concerned
without having control or joint control,
unless the ownership of more than 20%
does not ensure significant influence,
e.g. due
to lack of representation of the Group in the company’s Board of
Directors or due to the Group’s non-participation in the policy
making process.
Investments in associates are accounted for using
the equity method of accounting. The investment
is initially recognised at
cost and adjusted thereafter
for the post acquisition
change in the Group’s
share of net assets of
the associate. In case the
losses according to the equity method exceed the investment in ordinary shares, they are recognized as a reduction of other
elements that are
essentially an extension of
the investment in
the associate.
The
Group’s
share
of
the
associate’s
profit
or
loss
and
other
comprehensive
income
is
separately
recognized
in
the
income
statement and in
the statement of
comprehensive income, accordingly.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
126
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
c. Joint
ventures
The
Group
applies
IFRS
11
which
deals
with
the
accounting
treatment
of
interests
in
joint
arrangements.
All
joint
arrangements in which
the Group participates
and has joint control are
joint ventures, which are
accounted for by using
the
equity method.
A
detailed
list
of
all
Group
subsidiaries,
associates
and
joint
ventures,
as
well
as
the
Group’s
ownership
interest
in
them,
is
provided in note 40.
1.2.2
Operating
Segments
Operating
segments
are determined
and measured
based on
the information
provided
to the
Executive
Committee of
the
parent
Company
of
the
Group,
which
is
the
body
responsible
for
the
allocation
of
resourses
between
the
Group’s
operating
segments and the
assessment of their
performance.
Based on
the above,
and given
the Group’s
administrative structure
and activities,
the following
operating segments
have
been determined:
•
Retail Banking
•
Corporate Banking
•
Asset Management
and Insurance
•
Investment
Banking and
Treasury
•
South Eastern Europe
•
Other
Since
the
Group
operates
in
various
geographical
areas,
apart
from
the
operating
segments
identified
above,
the
financial
statements contain information
based on
the below distinction:
•
Greece
•
Other Countries
It is noted
that the methods
used to measure
operating segments
for the purpose
of reporting
to the Executive
Committee
are not different from those required by
the International Financial Reporting Standards.
Detailed information relating to operating segments is provided in note 42.
1.2.3
Transactions in foreign
currency and translation
of foreign operations
a.
Transactions
in foreign
currency
The consolidated financial statements are presented in Euro, which is
the functional currency and the currency of
the country
of incorporation of
the parent company
of the
Group.
Items
included
in the
financial
statements
of the
subsidiaries
are measured
in the
functional
currency
of each
subsidiary
which is the currency
of the company’s country of
incorporation or the currency used
in the majority of
the transactions held.
Transactions in foreign currencies are translated into the functional currency of each subsidiary at the closing exchange rate
at the date
of the transaction.
Monetary assets and liabilities denominated
in foreign currencies are translated into the functional
currency at the closing
exchange rate at the balance
sheet date. Foreign exchange
differences arising from
the translation are recognized
in the
income statement.
Non-monetary
assets
and
liabilities
are
translated
using
the
rate
of
exchange
at
the
transaction
date,
except
for
non-
monetary items denominated
in foreign currencies that are measured
at fair value which are translated at the exchange
rate
of the date
that the fair value
is determined.
The exchange differences
relating to these
items are part
of the change
in fair
value and they
are recognized
in the income
statement or
recorded directly
in equity depending
on the classification
of the
non-monetary item.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
127
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
b.
Translation
of foreign
operations
The financial statements
of all group entities that
have a functional currency
that is different from the
presentation currency
of
the Group
financial statements are
translated as follows:
i.
Assets and liabilities are translated to Euro at the closing rate applicable on the balance sheet date. The comparative
figures presented are translated to Euro at the closing rates at
the respective date of the comparative balance sheet.
ii.
Income and
expense
items
are
translated
to Euro
at average
exchange
rates
applicable
for each
period
presented.
The resulting exchange difference from
the retranslation and those arising from other monetary
items designated as a part of
the net investment in the entity are recorded in equity. When a foreign entity is sold,
the exchange differences are reclassified
to the
income statement as
part of
the gain or
loss on sale.
1.2.4
Cash and cash
equivalents
For the purposes
of the consolidated cash
flow statement, cash and
cash equivalents consists of:
a.
Cash on hand
b.
Non-restricted
balances
with
Central
Banks
and
c.
Short-term
balances
due from
banks
and Reverse
Repo
agreements
Short-term balances are amounts that mature
within three months of the balance sheet date.
Non-restricted
placements
with
Central
Banks,
short-term
balances
due
from
banks
and
Reverse
Repo
agreements
are
measured at amortised
cost.
1.2.5
Classification and measurement
of financial instruments
Initial
recognition
The Group recognises
financial assets
or financial liabilities
in its statement
of financial position
when it becomes a
party to the
terms of the
contract.
At initial recognition
the Group measures
financial assets
and liabilities
at fair values.
Financial instruments
not measured
at
fair value through profit or loss are initially recognised at fair value plus or minus transaction
costs and income or fees that are
directly attributable to
the acquisition or
issue of
the financial instrument.
Regular
way purchases
and
sales
of financial
instruments
are recognized
at the
settlement
date
with the
exception
of equity
shares and
derivatives
that are
recognized
on trade
date. For
bonds that
are measured
at fair
value, the
change
in fair
value
during
the
period
between
the
trade
date
and
the
settlement
date
is
recognized
in
profit
or
loss
or
in
other
comprehensive
income based on
the bond’s classification
category.
Subsequent
measurement
of financial
assets
The Group classifies
its financial
assets as:
-
Financial assets measured at
amortised cost
-
Financial assets measured at fair
value through other comprehensive income, with
gains or losses reclassified in
profit or
loss on derecognition
-
Equity instruments measured at fair
value through other comprehensive income, with no
reclassification in gains or
losses
to profit or
loss on derecognition
-
Financial assets measured at fair value through profit
or loss.
For each of the above
categories the following apply:
a)
Financial
assets measured
at amortised
cost
In this category are classified the financial assets that satisfy both of the following criteria:
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
128
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
are held within
a business model
whose objective
is to hold financial
assets in order
to collect contractual
cash flows,
-
the contractual
terms of
the financial
asset give
rise on
specified dates
to cash
flows that
are solely
payments of principal
and
interest (SPPI)
on the
principal amount
outstanding.
The
above
category
is
measured
at
amortised
cost
using
the
effective
interest
method
and
is
periodically
assessed
for
expected
credit losses,
as it
is further
described in
notes 1.2.13
and 1.2.14.
b)
Financial assets measured
at fair value through other comprehensive
income, with gains or losses
reclassified in
profit or loss on
derecognition
In this
category are
classified the
financial assets
that satisfy
both of
the following
criteria:
-
are held within
a business
model whose objective
is a both to
collect contractual
cash flows
and selling financial
assets,
-
the contractual
terms of
the financial
asset give
rise on
specified dates
to cash
flows that
are solely
payments of principal
and
interest (SPPI)
on the
principal amount
outstanding.
The above category is periodically
assessed for expected
credit losses, as it is further described
in notes 1.2.13 and 1.2.14.
c)
Equity instruments
measured at fair
value through other
comprehensive income,
with no reclassification
in gains or
losses to profit or
loss on derecognition
In this
category
are classified
equity instruments
that are
neither held
for trading
nor contingent
consideration
recognised
by
an acquirer
in
a business
combination
and
that
Group
decides,
at initial
recognition,
to measure
at fair
value
through
other
comprehensive income.
This decision is irrevocable. With
the exception of dividends, which are
directly recognized in profit or
loss,
all
other
gains
and
losses
arising
from
those
instruments
are
directly
recognized
in
other
comprehensive
income
and
are
not
reclassified to profit or loss. For
those equity instruments there is no impairment assessment.
d)
Financial assets
measured at fair
value through
profit or loss
Financial assets included in this category
are:
i.
those acquired
principally for the
purpose of selling
in the near term
to obtain short
term profit (held
for trading).The
Group has
included in
this category
bonds, treasury
bills and
a limited
number of
shares.
ii.
those that
do not
meet the
criteria to
be classified
into one
of the above
categories
iii.
those the Group designated,
at initial recognition,
as at fair value through profit
or loss. This classification
option, which is
irrevocable, is
used when
the designation
eliminates
an accounting
mismatch which
would otherwise
arise from
measuring
financial assets and
liabilities on a different
basis (i.e. amortised
cost) in relation to
another financial
asset or liability
(i.e.
derivatives which
are measured
at fair
value through
profit or
loss).
As at the reporting date, the Group had
not designated, at initial recognition,
any financial assets as at fair value through profit or loss.
Business Model assessment
The
business
model
reflects
how
the
Group
manages
its
financial
assets
in
order
to
generate
cash
flows.
That
is,
the
Group’s
business
model
determines
whether
cash
flows
will result
from
collecting
contractual
cash
flows,
selling
financial
assets
or
both.
The Group’s
business model
is determined
at a level
that reflects
how groups
of financial
assets are
managed together
to achieve
a
particular
business
objective.
Accordingly,
business
model
does
not
depend
on
management’s
intentions
for
an
individual
instrument but
it is
determined on
a higher
level of
aggregation.
The business
models of
the Group
are determined
by the
Asset Liability
Committee
(ALCO) or
the Executive
Committee
(ExCo)
which
decide
on
the
determination
of
the
business
model
both
for
the
loans
and
advances
to
customers
and
the
securities
portfolio. In
this context:
•
For loans and advances
to customers the
Group has identified
the following business
models:
-
Business model
whose objective
is to hold
financial instruments
in order to
collect their
contractual cash
flows (hold
to
collect) and
-
usiness model
whose objective
is the sale
of financial
instruments which
is applied only
to syndicated
loans that the
Group
grants in
order to
sell them
within six
months.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
129
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
•
Due from banks are
included in the business model whose
objective is to hold
financial assets in order
to collect contractual
cash flows (hold
to collect)
•
For bonds
and in
general
for fixed
income
investments,
the Group
has identified
the following
business
models:
-
Business model whose objective is to hold financial instruments in order to collect their contractual cash flows (hold to
collect)
-
Business model that aims both at collecting contractual cash flows and selling (hold to
collect and sell)
-
Trading portfolio
-
Business model whose objective is achieved
by the sale/distribution of the
financial assets.
The determination
of the
above business
models
has been
based on:
•
The way the performance of the business model and the financial assets held within that business model are evaluated and
reported to
the Group key
management personnel.
•
The risks that affect the performance of the business model (and the financial assets held within that business model) and,
specifically, the way
those risks are
managed.
•
The way the managers are evaluated (e.g.,
whether the evaluation is based on
the fair value of the
assets managed or the
contractual cash flows
collected).
•
Past and expected frequency and value of sales from the portfolio
The Group,
at each
reporting
date,
reassesses
its business
models
in order
to confirm
that there
has been
no change
compared
to the prior
period or application
of a new busine
ss model. In
the context of
the reassessment
of the hold
to collect business
model past sales as well as expected
future sales are taken into account.
In this assessment, the following cases
of sales are
considered consistent with
a hold
to collect business
model:
a)
Sales of non performing
loans due to
the credit deterioration of
the debtor, excluding those sales
of loans considered as
credit impaired at
origination.
b)
Sales made close to the maturity of the financial assets so that the proceeds from the sales approximate the collection of
the remaining contractual cash flows. In
these cases, for loan
portfolio the Group defines as ‘close’,
what is less
than 5% of
the total life of the instrument remaining at the time of sale. For bonds portfolio respectively, the Group defines as ‘close’,
the minimum between 10%
of the original life of the instrument
and a time period equal to 6 months
up to maturity while
no limitation on the size exists on the sales that take place close to maturity where expected cash flows amount to at least
97% of
principal plus accrued
interest.
c)
Sales (excluding a and b)
which are infrequent (even if significant in
value) or insignificant in value both
individually and in
aggregate (even if frequent). For loan portfolio the Group has
defined the following thresholds:
-
Significance:
Sales
exceeding
5%
the previous
reporting
period
gross
balance
of the
respective
portfolio
-
Frequency:
Significant
sale transactions
occurring
more than
twice a
year.
For bonds
portfolio, sales
deemed insignificant
are those
that sum up
to 5% of
the current
total portfolio
size or the
portfolio of
the last
quarterly reporting period,
whichever is higher.
In addition, for bond portfolio
the following sales are considered consistent with
a hold to
collect business model:
-
Sales of bonds that do not longer meet the requirements stated in the investment policy due to a significant increase in
issuer’s credit risk.
-
Infrequent sales under liquidity
stress conditions.
Solely
Payments
of
Principal
and
Interest
(SPPI)
assessment
of
the
contractual
cash
flows
For the purposes
of applying
the SPPI assessment:
-
Principal is the fair value of the asset at initial recognition, which may change over the life of the financial asset (for
example if there
are repayments of
principal).
-
Interest is the consideration for the time value of money, for the credit risk associated with the principal amount outstanding
during a particular period of
time and for other
basic lending risks (i.e. liquidity risk)
and costs, as well
as a profit margin.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
130
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Contractual terms that introduce
exposure to risks and volatility in the
contractual cash flows that are not
related to a basic
lending
arrangement,
such as
exposure
to changes
in equity
prices
or commodity
prices,
do not
give rise
to contractual
cash
flows that are solely payments of principal and interest on
the principal amount outstanding.
In
this
context,
in
assessing
whether
contractual
cash
flows
are
SPPI,
the
Group
assesses
whether
the
instrument
contain
contractual
terms
that
change
the
timing
or
amount
of
contractual
cash
flows.
More
specifically,
the
following
are
taken
into
account:
-
Leveraged
payments
-
Payments linked with the variability in
exchange rates
-
Conversion
to equity
terms
-
Interest rates indexed to non-interest variables
-
Prepayment
or extension
options
-
Terms that limit the Group’s
claim to the cash
flows from specified assets or
based on which the
Group has no contractual
right to unpaid
amounts
-
Interest-free deferred payments
-
Terms based on which the
performance of the instruments is affected by equity
or commodity prices
Especially in the case
of financing of a special
purpose vehicle, in order
for the loan to meet the criterion
that its cash flows
are solely payments of principal and
interest on the principal amount outstanding,
among other, at least one of the following
conditions should apply:
-
At initial recognition,
LTV (Loan
to Value) shall
not exceed
the threshold
of 80% or
LLCR (Loan
Life Coverage
Ratio) shall
be
at least equal
to the threshold
of 1.25.
-
The equity of the special purpose vehicle shall amount to at least 20% of its total assets.
-
There are sufficient collaterals that are not related to the asset being funded.
In
addition,
in
determining
whether
contractual
cash
flows
are
solely
payments
of
principal
and
interest
on
the
principal
amount
outstanding,
it
is
assessed
whether
time
value
of
money
element
has
been
modified.
Time
value
of
money
is
the
element
of
interest
that
provides
consideration
for
only
the
passage
of
time.
That
is,
the
time
value
of
money
element
does
not
provide
consideration
for other risks
or costs
associated with
holding the
financial asset.
However,
in some cases,
the time
value of
money
element
may
be
modified.
That
would
be
the
case,
for
example,
if
a
financial
asset’s
interest
rate
is
periodically
reset
but
the
frequency of that reset
does not match the
tenor of the interest
rate or if a
financial asset’s interest
rate is periodically reset to an
average of
particular short
-
and long-term
interest
rates. In
such cases,
the Group
assesses the
modification
to determine
whether
the
contractual
cash
flows
represent
solely
payments
of principal
and
interest
on the
principal
amount
outstanding.
The
objective
of the
assessment
is to
determine
how different
the contractual
(undiscounted)
cash flows
could
be from
the (undiscounted)
cash
flows that would
arise if the
time value of
money element was
not modified
(benchmark test).
The effect
of the
modified time
value of
money element
must be
considered
in each
reporting
period and
cumulatively
over the
life of
the instrument.
If the
Group
concludes
that
the
contractual
(undiscounted)
cash
flows
could
be significantly
different
from
the (undiscounted)
benchmark
cash
flows, the
contractual
cash flows
are not
solely
payments
of principal
and interest
on the
principal
amount
outstanding.
According
to the
policy
set by
the Group,
the above
assessment
test does
not result
in significant
different
contractual
cash flows
when
the
cumulative difference over the life of
the instrument does not exceed
10% and at the same
time the number of individual
cash
flows with a
difference of more
than 10% do
not exceed 5%
of total reporting
periods of the
asset until maturity.
Reclassification
of financial assets
Reclassifications
of
financial
assets
between
measurement
categories
occur
when,
and
only
when,
the
Group
changes
its
business
model
for
managing
the
assets.
In
this
case
the
reclassification
is
applied
prospectively.
Changes
in
the
business
model
of
the
Group
are
expected
to
be
rare.
They
arise
from
decisions
of
the
Asset
Liability
Committee
(ALCO)
or
the
Executive Committee (ExCo) as a result of
external or internal changes which must
be significant to the
entity’s operations and
demonstrable to external
parties.
It is
noted that
during the
fourth quarter
the Bank
amended the
operating model
for the
management
of long-term
securities
that had been included within hold to collect and sell
business model, a fact which will lead, on 1.1.2022, to
the reclassification
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
131
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
of those
securities
from
the securities
portfolio
measured
at fair
value
through
other
comprehensive
income
to the
securities
portfolio measured at
amortized cost (note
20).
If the
Group reclassifies
a financial
asset out
of the
amortised cost
measurement
category and
into the
fair value
through
profit or
loss measurement
category, its
fair value
is measured
at the reclassification
date. Any
gain or
loss arising
from a
difference between the previous amortised
cost of the financial asset and fair value is recognized in profit or loss. The same
happens if
the Group
reclassifies a
financial asset
out of the
amortised cost
measurement category
and into the
fair value
through
other
comprehensive
income
measurement
category,
however
in
this
case
the
difference
between
the
previous
amortised cost of the financial
asset and fair value is
recognized in other comprehensive income. The effective interest
rate and
the measurement
of expected
credit losses
are not adjusted
as a result
of the reclassification.
However, the
loss
allowance would be derecognized
(and thus would no longer be recognized as an adjustment
to the gross carrying amount)
but instead would be recognized as an
accumulated impairment amount in other comprehensive income.
If
the
Group
reclassifies
a
financial
asset
out
of
the fair
value
through
profit
or
loss
measurement
category
and
into
the
amortised cost measurement
category, its fair
value at the reclassification
date becomes its
new gross carrying
amount. At
this date,
the effective
interest rate
of the asset
is calculated
while the
date of
the reclassification
is treated
as the date
of
initial recognition for
impairment calculation purposes.
If the Group reclassifies
a financial asset out
of the fair value through
profit or loss measurement
category and into
the
fair value through other comprehensive income measurement category,
the financial asset continues to be measured at
fair value.
As in the
above case,
at this date,
the effective
interest rate
of the asset
is calculated
while the
date of
the
reclassification is treated as the date of initial recognition for impairment calculation purposes.
Ιf a financial asset is reclassified
out of the fair value through
other comprehensive
income measurement category
and into
the amortised cost
measurement category,
the asset is reclassified
at its fair value at the
measurement date.
However, the
cumulative gain or loss previously recognized in other comprehensive income is reversed and
adjusted against the fair value
of the financial
asset at the
reclassification date.
As a result,
the financial asset
is measured at
the reclassification
date as
if it
had always
been measured
at amortised
cost.
This reversal
affects
other comprehensive
income but
does
not affect
profit or loss and therefore is not a reclassification adjustment under IAS 1. The effective interest rate and
the calculation
of expected
credit losses
are not
affected.
However,
the loss
allowance
is recognized
as an
adjustment
to the
gross carrying
amount of
the financial asset
from the
reclassification date.
If the Group
reclassifies a
financial asset
out of the
fair value
through other
comprehensive
income measurement
category
and
into
the
fair
value
through
profit
or
loss
measurement
category,
the
financial
asset
continues
to be
measured
at fair
value. The cumulative gain or
loss previously recognised in other comprehensive income is reclassified from
equity to profit or
loss as a reclassification adjustment (in accordance with IAS
1) at the reclassification date.
Derecognition
of
financial
assets
The Group
derecognizes
financial assets
when:
•
the contractual rights to the assets cash
flows expire,
•
the contractual right to receive the cash flows of the financial assets are transferred and at the same time all the risks and
rewards of
ownership are substantially
transferred,
•
loans or investments in
securities are no longer
recoverable and consequently are written off,
•
the contractual cash flows of the assets are significantly
modified.
In the case of transactions
where despite the transfer of
the contractual right to receive
the cash flows from financial
assets
both the risk
and rewards remain
with the Group,
no derecognition of these
financial assets occurs. The
amount received
by
the
transfer
is
recognized
as
a
financial
liability.
The
accounting
practices
followed
by
the
Group
in
such
transactions
are
discussed in notes
1.2.21 and 1.2.22.
In the
case
of transactions,
whereby
the Group
neither
retains nor
transfers
risks
and rewards
of the
financial
assets,
but
retains control over them, the financial assets are recognized to
the extent of the Group’s continuing involvement. If the Group
does not retain control of the assets
then they are derecognised, and in their
position the Group recognizes, distinctively,
the
assets and
liabilities
which are
created
or retained
during the
transfer.
No such
transactions
occurred upon
balance sheet
date. In case of
a change in the
contractual terms of a financial asset, the
change is considered significant and therefore it
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
132
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
results in the derecognition of the original financial
asset and the recognition of a new one when one of the following crite
ria
is met:
-
Change
of issuer/debtor
-
Change in
denomination
currency
-
Consolidation of different
types of contracts
-
Consolidation of contracts that do not entirely satisfy the criterion that cash flows are solely payments
of principal and
interest on the
principal amount outstanding
-
Addition or deletion of equity conversion terms
-
Separation of a non-SPPI debt instrument into two
or more new instruments so that the
reason that leads to SPPI failure
of
the original
instrument is not
included in
all of
the new
instruments.
-
Split of contract that meets SPPI criteria and addition of
a non-SPPI term to part of it
-
Significant modifications occurring due to the commercial renegotiation
of the contractual terms of performing borrowers.
-
Refinancing
of existing
loans
accompanied
by an
increase
in the
amount
financed.
In case
of derecognition
due to
significant
modification,
the difference
between the
carrying
amount of
the original
asset
and the fair value of the new asset is directly recognized in the Income Statement, as specifically mentioned in notes 1.2.27
and 1.2.28.
Additionally,
in case
the original
asset was
measured
at fair
value through
other comprehensive
income, the
cumulative gains or losses recognized in
other comprehensive income is transferred to profit
or loss.
In contrast,
if the change
in contractual
cash flows
is not significant,
the gross carrying
amount of
the asset is
recalculated
by discounting new contractual cash
flows with the original effective interest
rate and the difference compared to the
current
gross carrying
amount is directly
recognized in
profit or loss
(modification gain
or loss) in
the line item
“Impairment losses,
provisions to cover credit risk and related expenses”. Fees related to the modification adjust the carrying amount of
the asset
and are amortised over the remaining term of the modified financial asset through the effective interest method.
Subsequent
measurement
of financial
liabilities
The Group
classifies
financial
liabilities
in
the following
categories
for
measurement
purposes:
a)
Financial liabilities measured at fair value through profit or loss
i.
This category includes financial liabilities held for trading, that
is:
•
financial liabilities acquired or incurred principally
with the intention of selling or repurchasing in the near term for short
term profit, or
•
derivatives not used for hedging purposes. Liabilities arising from either derivatives held for trading or derivatives used
for hedging purposes are presented as “derivative financial liabilities” and are measured according to the principles set
out in note
1.2.6.
ii.
this category also includes financial liabilities which
are designated by the Group as at fair value through profit or loss
upon initial recognition,
when:
•
doing so results
in more relevant
information, because either:
-
it eliminates or significantly reduces a measurement or recognition inconsistency
that would otherwise arise from
measuring assets or liabilities or recognising the
gains and losses on them
on different bases; or
-
a group of financial liabilities or financial assets and financial liabilities is managed
and its performance is evaluated
on a fair value basis, in accordance with a documented risk management or investment strategy, and information
about the group is
provided internally on that basis to
the Group’s key management personnel; or
•
the contract contains one or
more embedded derivatives and the
Group measures the compound financial instrument
as a financial
liability measured at
fair value through
profit or loss
unless:
-
the embedded derivative does not significantly modify the cash flows that otherwise would be required by the
contract or
………CONSOLIDATED FINANCIAL STA
TEMENTS AS AT 31.12.2021
133
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
it is clear with little or no analysis when a similar hybrid instrument is first considered that the separation of the
embedded derivative(s) is
prohibited.
It
is
noted
that
in
the
above
case,
the
amount
of
the
change
in
fair
value
attributable
to
the
Group’s
credit
risk
is
recognized in other
comprehensive income,
unless this treatment
would create or
enlarge an accounting
mismatch in
profit or loss. Amounts
recognized in other comprehensive income are never
tranferred to profit or
loss.
As at the reporting date, the Group had not designated, at initial recognition,
any financial liabilities as at fair value through
profit or loss.
b)
Financial liabilities carried at amortised cost
The liabilities classified in this category are measured at
amortised cost using the effective interest method.
Liabilities to credit
institutions and customers,
debt securities issued
by the Group and
other loan liabilities
are classified in
this category.
In
cases
when
financial
liabilities
included
in
this
category
are
designated
as
the
hedged
item
in
a
hedge
relationship,
the
accounting principles applied
are those
set out
in note
1.2.6.
c)
Liabilities arising from financial guarantees and commitments to provide loans at a below market interest rate
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a
loss it incurs because a
specified debtor fails to make a
payments when due in accordance with the
agreed terms.
The
financial
guarantee
contracts
and
the
commitments
to
provide
loans
at
a
below
market
interest
rate
are
initially
recognized at fair
value, and measured subsequently
at the
higher of:
•
the amount of the provision determined during expected credit
loss calculation (note 1.2.13),
•
the amount initially recognised less cumulative amortization which
is calculated based on the term of the instrument.
d)
Financial liabilities that arise when a transfer of a financial
asset does not qualify for derecognition or when
the continuing involvement approach applies
In
the
first
case
the
liability
should
be
equal
to
the
amount
received
during
the
transfer
while
in
the
second
case
it
should
measured in such a way that the
net carrying amount of the transferred asset and the associated liability is:
•
The amortised cost of the rights
and obligations retained by the Group, if
the transferred asset is measured at
amortised
cost or
•
Equal to the fair value of
the rights and obligations retained by the Group when
measured on a stand-alone basis, if the
transferred asset is
measured at fair
value.
e)
Contingent consideration
recognized by
an acquirer
in a
business combination
Such contingent
consideration
is subsequently
measured
at fair
value with
changes
recognized
in profit
or loss.
Derecognition
of
financial
liabilities
Financial liabilities (or part thereof) are derecognized when the
contractual obligation is been discharged, cancelled or
expires.
When a financial liability
is exchanged for another
liability with substantially
different terms, the exchange
is accounted
for as an extinguishment of the original financial liability and the recognition of a new one. The same applies in cases of
a substantial modification
of the terms of an existing financial
liability or a part of it (whether
or not attributable to the
financial difficulty of the debtor). The terms are considered
substantially different if the discounted present
value of the cash
flows under the new terms (including any fees paid net of any fees received), discounted
using the original effective interest
rate, is at least 10% different from the present value of the remaining cash flows of
the original financial liability.
In
cases
of
derecognition,
the
difference
between
the
carrying
amount
of
the
financial
liability
(or
part
of
the
financial
liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is
recognised in profit
or loss.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
134
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Offsetting
financial
assets
and
financial
liabilities
Financial assets and liabilities
are offset and the amount are
reported net on the balance
sheet, only in cases when the
Group
has the
legally enforceable
right to offset
recognized amounts
and there
is the intention
to settle on
a net basis,
or to
realize
the asset and
settle the liability
simultaneously.
1.2.6
Derivative
financial
instruments
and
hedge
accounting
Derivative
financial
instruments
Derivatives
are financial
instruments
that
upon inception
have
a minimal
or zero
fair valu
e
that subsequently
changes
in
accordance
with
a particular
underlying
instrument
or indices
defined
in
the
contract
(foreign
exchange,
interest
rate,
index
or
other variable).
All derivatives are recognized as assets when their
fair value is positive and
as liabilities when their fair value
is negative.
Derivatives
are
entered
into
for
either
hedging
or
trading
purposes
and
they
are
measured
at
fair
value
irrespective
of
the
purpose for which
they have been
transacted.
The
change
in
the
fair
value
of
the
interest
and
currency
derivatives,
excluding
options,
is
separated
into
interest,
foreign
exchange differences and other
gains or losses
from financial
transactions.
In
case
a
derivative
is
embedded
in
a
financial
asset,
the
embedded
derivative
is
not
separated
and
the
hybrid
contract
is
accounted for based on the classification requirements mentioned in note 1.2.5.
In
case
a
derivative
is embedded
in a
host contract,
other
than
a financial
asset,
the embedded
derivative
is separated
and
measured at fair
value through profit
or loss when
the following conditions are
met:
•
the economic characteristics and risks of
the embedded derivative are not
closely related to the
economic characteristics
and risks of
the host,
•
a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative;
and
•
the hybrid contract is not measured at fair
value with changes in fair value recognised in
profit or loss.
The
Group
uses
derivatives
as
a
means
of
exercising
Asset-Liability
management
within
the
guidelines
established
by
the
Asset-Liability Committee (ALCO).
In addition the
Group uses derivatives
for trading purposes
to exploit short
-term market fluctuations,
within the Group
risk level
set by
the Asset-Liability Committee
(ALCO).
Valuation
differences
arising
from
derivatives
are
recognized
in
Gains
less
losses
on
financial
transactions
except
when
derivatives participate in hedging relationships in
which case the
principles for hedge accounting mentioned below
apply.
When
the
Group
uses
derivatives
for
hedging
purposes
hedge
relationships
are
formally
designated
and
documented
at
inception and effectiveness is monitored on an ongoing basis
at each balance sheet date.
We emphasize the
following:
a.
Synthetic Swaps
Alpha Bank,
in order
to increase
the return
on deposits
to selected
customers,
uses synthetic
swaps.
This
involves
the
conversion
of
a
Euro
deposit
to
JPY
or
other
currency
with
a
simultaneous
forward
purchase
of
the
related
currency to
cover the
foreign exchange exposure.
The
result
arising
from
the
forward
transaction
is
recognized
as
interest
expense,
which
is
included
in
deposits’
interest
expense, foreign exchange differences and other gains
less losses on financial
transactions.
b.
FX Swaps
These
types
of
swaps
are
entered
into
primarily
to
economically
hedge
the
exposures
arising
from
customer
loans
and
deposits.
For those cases for
which no hedge accounting is
applied, swaps are accounted for as
trading instruments.
The result arising from
these derivatives is recognized as
interest and foreign exchange differences, in
order to match
with the
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
135
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
interest
element
and
foreign
exchange
differences
resulting
from
the
deposits
and
loans,
and
as
other
gains
less
losses
on
financial transactions.
Hedge accounting
Hedge
accounting
establishes
the
valuation
rules
to offset
the
gain
or loss
of
the
fair
value
of a
hedging
instrument
and
a
hedged item which would not have been possible if the normal measurement principles were applied. It is noted that the Group
has opted
to continue
to apply
the provisions
for hedge
accounting of
IAS 39.
Documentation of the hedging relationship
upon inception and of the effectiveness of the hedge on an on-going basis
are the
basic requirements for
the adoption of
hedge accounting.
The
hedge
relationship
is
documented
upon
inception
and
the
hedge
effectiveness
test
is
carried
out
upon
inception
and
is
repeated at each
reporting date.
A hedge is regarded as highly
effective only if both of the
following conditions are met:
-
at the inception of the hedge and in subsequent periods the hedge is expected to be highly effective in achieving offsetting
changes in fair value or
cash flows attributable to the hedged risk
during the period for which
the hedge is designated,
-
the results of the hedge are within a range
of 80%-125% of the results of the hedged
item.
a.
Fair value hedges
A fair value
hedge of a
financial instrument
offsets the change
in the fair
value of the
hedged item
in respect of
the risks being
hedged.
Changes in the
fair value of
both the hedging
instrument and
the hedged item,
in respect of
the specific risk
being hedged,
are
recognized in the
income statement.
When the
hedging relationship
no longer
exists, the
hedged items
continue to
be measured
based on
the classification
and
valuation principles set
out in note 1.2.5. Specifically
any adjustment, due to
the fair value change of a
hedged item for which
the
effective
interest
method
is
used,
up
to
the
point
that
the
hedging
relationship
ceases
to
be
effective,
is
amortised
to
interest income or expense based on a
recalculated effective interest rate, over its remaining life.
The Group
uses interest
rate swaps
(IRS’s) to
hedge risks
relating to
borrowings, loans
and bonds.
b.
Cash flow hedge
A cash flow hedge changes the
cash flows of a
financial instrument from a variable rate to
a fixed rate.
The effective portion
of the gain or loss on
the hedging instrument
is recognized directly
in other comprehensive
income,
in cash
flow
hedge reserve,
whereas
the ineffective
portion
is recognized
in Gains
less losses
on financial
transactions.
The
accounting treatment of
the hedged item
does not
change.
When the hedging relationship is discontinued, the amount recogn
ized in equity remains there separately until the cash flows
or the future transaction occur. When the
cash flows or the future
transaction occur the following apply:
-
If the result is the recognition of a financial asset or a financial liability, the amount is reclassified to profit or loss in the
same periods during
which the hedged
forecast cash flows
affect profit or
loss.
-
If the result is the recognition of
a non-financial asset or a non-financial
liability or a firm commitment
for which fair value
hedge accounting is applied, the amount recognized in equity either is reclassified to profit or loss in the same periods
during which the asset or the liability affect profit or loss or adjusts the carrying amount of the asset or the liability.
When a forecasted transaction or the expected cash flows
are no longer expected to occur,
the cumulative gain or loss that
was
recognized in equity
is reclassified to profit
or loss. In particular,
the amount that
has been recognized
in equity, as a result
of
revoked
cash
flow
hedging
relationships
for
term
deposits,
is
linearly
amortised
as
interest
expense
in
the
periods
during
which
the hedged cash
flows from the
aforementioned term deposits affect
profit or loss.
c.
Hedges of net investment
in a foreign operation
The
Group
uses
foreign
exchange
derivatives
or
borrowings
to
hedge
foreign
exchange
risks
arising
from
investment
in
foreign
operations.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
136
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Hedge accounting
of net
investment
in a
foreign operation
is similar
to cash
flow hedge
accounting.
The cumulative
gain or
loss recognized in equity is reversed and recognized in profit or loss, at
the time that the disposal of the foreign operation takes
place.
1.2.7
Fair Value
Measurement
Fair
value
is the
price
that
would
be received
to sell
an asset
or paid
to transfer
a liability
in an
orderly
transaction
between
market
participants
at the
measurement
date, in
the principal
market
for the
asset or
liability or,
in the
absence
of a
principal
market, in
the most
advantageous market for
the asset or
liability.
The Group measures
the fair value of assets and
liabilities traded in active
markets based on available
quoted market prices.
A
market
is
regarded
as
active
if
quoted
prices
are
readily
and
regularly
available
from
an
exchange,
dealer,
broker,
pricing
service
or
regulatory
agency,
and
those
prices
represent
actual
and
regularly
occurring
market
transactions
on
an
arm’s
length
basis.
Especially,
for
the
measurement
of
securities,
the
Group
uses
a
particular
range
of
prices,
within
the
bid-ask
spread,
in
order to
characterize the
prices as
prices of
an active
market (the
difference
between bid
and ask
prices quoted
should not
exceed 1.5/100 nominal value). Furthermore,
if quoted market prices are not available on the measurement date,
but they are
available
during the three last working days of the reporting period and there
are quoted prices for 15 working days during the
last month of the reporting period and the criteria of
the bid-ask spread is met, then the
market is considered to be active.
The fair value of financial instruments
that are not traded in an active market is determined
by the use of valuation techniques,
appropriate
in
the
circumstances,
and
for
which
sufficient
data
to
measure
fair
value
are
available,
maximizing
the
use
of
relevant observable
inputs and minimizing
the use of unobservable
inputs. If observable
inputs are not available,
other model
inputs
are used
which
are based
on
estimations
and
assumptions
such
as the
determination
of expected
future
cashflows,
discount rates, probability
of counterparty default and
prepayments. In all cases,
the Group uses the assumptions
that ‘market
participants’ would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
Assets and
liabilities which
are measured
at fair value
or for which
fair value
is disclosed
are categorized
according to
the
inputs used to
measure their fair
value as
follows:
•
Level 1 inputs: quoted market
prices (unadjusted) in active markets
•
Level 2 inputs: directly
or indirectly observable inputs
•
Level 3 inputs: unobservable inputs used by
the Group,
to the extent that
relevant observable inputs are not available
In particular, the
Group applies the
following:
Financial
instruments
For financial
instruments
the best
evidence of
fair value
at initial
recognition
is the
transaction
price, unless
the fair
value
can be derived
by other observable
market transactions
relating to
the same
instrument, or
by a valuation
technique using
mainly observable inputs. In these cases,
if the fair
value differs from the
transaction price, the difference is recognized in
the
statement of comprehensive income. In all other cases, fair value is adjusted to defer the difference
with the transaction price.
After initial recognition, the deferred difference is recognized
as a gain or loss only to the extent that it arises from a change in
a factor that
market participants would take
into account when
pricing the instrument.
When
measuring
fair
value,
the
Group
takes
into
consideration
the
effect
of
credit
risk.
Specifically,
for
derivative
contracts,
the
Group estimates the
credit risk
of both
counterparties (bilateral credit
valuation adjustments).
The
Group
measures
fair
value
for
all
assets
and
liabilities
separately.
Regarding
derivative
exposures,
however,
that
the
Group
manages
as a
group on
a counterparty
basis and
for which
it provides
information
to the
key management
personnel,
the fair
value measurement
for credit
risk is
performed based
on the
net risk
exposure
per counterparty.
Credit valuation
adjustments
arising from
the aforementioned
process are
allocated to
either assets
or liabilities,
depending on
whether the
net exposure
to
the counterparty
is long or
short respectively.
Furthermore,
the
fair value
of deposit
accounts
with a
demand
feature
(such
as saving
deposits)
is no
less
than
the amount
payable on demand, discounted from the first date that the
amount could be required to be paid.
The principal
inputs to
the valuation
techniques
used by
the Group
are:
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
137
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
•
Bond prices
- quoted
prices available
for government
bonds and
certain corporate
securities.
•
Credit spreads
- these
are derived
from active
market prices,
prices of
credit default
swaps or
other credit
based instruments,
such as debt. Values between
and beyond available
data points are obtained
by interpolation and
extrapolation.
•
Interest rates
- these
are principally
benchmark
interest rates
such as
the LIBOR,
OIS and
other quoted
interest rates
in
the swap,
bond and
futures
markets.
Values
between
and beyon
d
available
data points
are obtained
by interpolation
and
extrapolation.
•
Foreign currency
exchange
rates -
observable
markets
both for
spot and
forward contracts
and futures.
•
Equity and
equity index
prices -
quoted prices
are generally
readily available
for equity
shares listed
on stock
exchanges and
for major
indices on
such shares.
•
Price volatilities
and correlations
- Volatility
and correlation
values are
obtained
from pricing
services
or derived
from option
prices.
•
Unlisted
equities
- financial
information
specific
to the
company
or industry
sector
comparables.
•
Mutual Funds
-
for open
-ended
investments
funds listed
on a
stock
exchange
the published
daily quotations
of their
net asset
values (NAVs).
•
Loans and
Deposits-
market
data
and Bank/customer
specific
parameters.
Non financial
assets
and liabilities
The most
important category
of non
financial assets
for which
fair value
is estimated
is real
estate property.
The process, mainly, followed for the determination of the
fair value is summarized below:
•
Assignment to the engineer - valuer
•
Case study-
Setting of additional data
•
Autopsy - Inspection
•
Data processing
- Calculations
•
Preparation of the valuation report
To derive the fair value of
the real estate property, the valuer
chooses among the three following valuation techniques:
•
Market
approach
(or sales
comparison
approach),
which
measures
the fair
value by
comparing
the property
to other
identical ones for
which information on transactions
is available.
•
Income approach, which capitalizes future cash flows arising from
the property using an appropriate discount rate.
•
Cost approach, which reflects the amount that would be required currently to replace the asset with another asset with
similar specifications, after taking into account the required adjustment for impairment.
Examples
of inputs
used to
determine
the fair
value of
properties
and which
are analysed
to the
individual
valuations,
are the
following:
•
Commercial
property:
price
per
square meter,
rent growth
per
annum,
long-term
vacancy
rate,
discount
rate, expense
rate of
return, lease
term, rate
of non
leased properties/units for
rent.
•
Residential
property:
Net return,
reversionary
yield,
net rental
per square
meter,
rate of
continually
non
leased
properties/
units, expected rent value per
square meter, discount rate, expense rate of
return, lease term etc.
•
General assumptions such as the
age of the
building, residual useful life,
square meter per building
etc are also
included in
the analysis of
the individual valuation
assessments.
It is noted that the fair
value measurement
of a property takes into
account a market’s participant
ability to generate economic
benefits by using the asset
in it’s highest and best use
or by selling it to another
market participant that would
use the asset in
it’s highest and
best use.
1.2.8
Property,
Plant and
Equipment
This caption
includes:
land,
buildings
used by
branches
or for
administrative
purposes,
additions
and improvements
of leased
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
138
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
property
and
equipment.
It
also
includes
right
of
use
assets
in
case
those
assets
are
used
by
the
Group
(the
accounting
policies applicable to
those assets
are presented
in note
1.2.11).
Property, plant and equipment are initially rec
ognised at cost which includes any expenditure
directly attributable to the
acquisition of the
asset.
Subsequently,
property,
plant
and
equipment
are
measured
at
cost
less
accumulated
depreciation
and
impairment
losses.
Subsequent expenditure is recognized on the carrying amount
of the item when
it increases future economic benefit.
Expenditure
on repairs
and maintenance
is recognized
in profit
or loss as
an expense
as incurred.
Depreciation is charged on a straight line basis over the estimated useful
lives of property, plant and equipment and it is
calculated on
the asset’s cost
minus residual value.
The estimated useful lives are as follows:
•
Buildings: up to 50
years
•
Additions to leased fixed assets and improvements: duration of the
lease
•
Equipment and vehicles: up
to 40
years
Land is not depreciated but is tested for impairment.
The residual value of property and equipment and their useful lives are periodically reviewed
and adjusted if necessary at
each reporting date.
Property, plant and equipment are reviewed on an annual basis to determine whether
there is an indication of impairment
and if they are impaired the carrying amount is adjusted to its recoverable
amount with the difference recorded in profit or
loss.
In case of sale of property, plant and equipment as well as when no economic benefits are expected for the Group, the
fixed asset
is derecognised.
When selling
the asset, the
difference between
the sale price
and its carrying
amount is
recognized in profit or
loss.
1.2.9
Investment property
The Group
includes in
this category
buildings or
portions of
buildings together
with their
respective portion
of land
that
are held for the purpose of long-term lease or for capital appreciation. The Group
has also included in this category right
of use assets when the Group is
an intermediate lessor in an operating lease (the accounting policies applicable to those
assets are presented
in note 1.2.11).
Investment
property
is initially
recognised
at cost
which includes
any expenditure
directly attributable
to the
acquisition of
the asset.
Subsequently investment property is measured at cost
less accumulated depreciation and impairment losses.
Subsequent expenditure
is recognized on
the carrying amount
of the item when
it increases future economic
benefit and
can be measured reliably.
All costs for repairs and
maintenance are
recognized in profit or loss
as incurred.
The
estimated
useful
lives
over
which
depreciation
is
calculated
using
the
straight
line
method
are
the
same
as
those
applied to property,
plant and equipment.
Transfers
to and
from the
category
of investment
property
are made
when the
property
meets
(or ceases
to meet)
the
definition
of investment
property
and there
is evidence
of change
in its
use. In
particular, the
property
is reclassified
in
“Property, plant
and equipment”
if the
Group decides
to use it
while it
is reclassified
in the category
of property
held for
sale if a decision
is taken to sell it and
if the criteria referred
to in paragraph
1.2.17 are met.
Conversely, for property
not
classified within
“Investment Property”,
its lease constitutes
a proof
of change
of use and
leads to
the reclassification
to
investment property.
In case
of sale
of investment
property as
well as
when no
economic
benefits are
expected
for the
Group, the
fixed asset
is
derecognised.
When selling
the asset,
the difference
between the
sale price
and its
carrying
amount
is recognized
in profit
or loss.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
139
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1.2.10
Goodwill and
other intangible
assets
Goodwill
Goodwill represents the difference between
the cost of an acquisition as well as the value of non-controlling interests and
the fair
value of the
assets and liabilities
of the
entity acquired, as
at the
acquisition date.
Positive goodwill arising from
acquisitions after 1/1/2004
is recorded to “Goodwill and
other intangible assets”, if it relates
to the acquisition
of a subsidiary,
and it is
tested for impairment
at each balance
sheet date. Goodwill
on acquisitions
of
associates or joint ventures is included in “Investment in
associates and joint ventures”.
Negative goodwill is recognized
in profit or
loss.
Other
intangible
assets
The Group has
included in this
caption:
a)
Intangible assets which are recognized from business combinations
or which are individually acquired. These intangible
assets include the value attributed to the acquired customer relationships and to deposit bases. Intangible assets arising
from business combinations are initially measured at fair value while those individually acquired are initially measured
at
cost. Subsequently,
they are
depreciated,
using the
straight
line method,
during
their useful
life, which
has been
determined
from 6 to 9
years, and are assessed for impairment when there are triggers
for impairment.
It is noted that
during the year the
Group fully impaired
intangible assets
relating to customer
relationships acquired
during
the acquisition
of Citi
retail business
and subsequent
absorption
of Citi
Wealth Management
and credit
cards clientele
of
Citi/Diners (note 10).
b)
Software, which is measured at cost less accumulated amortization and impairment
losses. Expenditure incurred to
maintain software programs is recognized in the
income statement as incurred. Software that is
considered to be an
integral
part of hardware (hardware cannot operate without the use of the specific software) is classified in property, plant and
equipment.
More
specifically,
separately
acquired
software
is initially
measured
at cost
which
comprises
its
purchase
price
and
any
directly
attributable
cost of
preparing
the software
for
its intended
use,
including
employee
benefits
or professional
fees.
Software acquired
as part
of a
business combination
is initially
measured at
fair value.
Both software
separately acquired
and acquired as part of a
business combination is depreciated during its useful life which has been
set from 1 to
15 years.
Regarding
internally
generated
software,
the
Group
recognizes
an
intangible
asset
when
it
can
demonstrate
all
of
the
following at the
development phase:
-
the technical feasibility of completing the intangible
asset so that it will be available for use or sale;
-
its intention to complete the intangible asset and use or sell it;
-
its ability to use or sell the intangible asset;
-
how the intangible asset will generate probable future economic benefits;
-
the availability of adequate technical, financial and other resources to complete the development
and to use or sell the
intangible asset;
-
its ability to measure reliably the expenditure attributable
to the intangible asset during is development.
Expenditure incurred during the research phase is
directly recognized in profit or
loss.
Consequently, the
cost of an internally
generated intangible
asset is the sum
of expenditure incurred
from the date when
the intangible asset first meets the above criteria, including employee benefits arising from the generation of the software.
Internally generated software is depreciated,
using the straight line method,
during its useful life which has been set from 2
to 15 years.
All intangible assets are assessed for impairment when there are triggers for impairment
(note 1.2.15).
No residual value is
estimated for intangible assets.
In case of
sale of an
intangible asset the intangible asset
is derecognised, while when
no economic benefits are
expected
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
140
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
for the Group, its value is
fully impaired. When selling the asset, the difference between the sale price and its
carrying amount
is recognized in
profit or loss.
1.2.11
Leases
The Group
enters into
leases either
as a
lessee or
as a
lessor. At
inception, the
Group assesses
whether a
contract is
or contains
a lease. If the contract conveys
the right to control the use of an identified
asset for a period of time for consideration,
then the
contract is accounted
as a lease.
The lease
term is
determined as
the non-cancellable
period of
a lease,
together with
both periods
covered by
an option
to
extend the lease if the lessee
is reasonably certain to exercise
that option and periods covered
by an option to terminate the
lease if the lessee is reasonably certain not to
exercise that option. After lease commencement, upon the occurrence of either
a significant
event or
a significant
change in
circumstances
that is
within the
control of
the lessee,
the Group,
as a
lessee,
reassesses
the
lease
term.
The
Group,
either
as
a
lessee
or
lessor,
revises
the
lease
term
if
there
is
a
change
in
the
non-
cancellable period of
a lease.
a)
When
the
Group
is
the
lessor
When the risks and rewards incident to ownership of an asset are transferred
to the lessee they are classified as finance leases.
All other
lease agreements are
classified as operating
leases.
The accounting treatment followed depends on the
classification of the lease, which is
as follows:
i.
Finance
leases:
For
finance
leases
where
the
Group
is
the
lessor
the
aggregate
amount
of
lease
payments
is
recognized
as
loans
and
advances.
The difference
between the
present value
(net investment)
of lease payments
and the aggregate
amount of
lease payments
is
recognized as unearned
finance income and
is deducted from
loans and advances.
The
lease
rentals
received
decrease
the
aggregate
amount
of
lease
payments
and
finance
income
is
recognized
on
an
accrual
basis.
The
finance
lease
receivables
are
subject
to
the
same
impairment
testing
as
applied
to
customer
loans
and
advances
as
described in note
1.2.13.
ii.
Operating leases:
When
the
Group
is
a lessor
of assets
under
operating
leases,
the
leased
asset
is recognized
and
depreciation
is charged
over
its
estimated useful life. Income arising from the
leased asset is recognized as other
income on an accrual basis.
b)
When the Group
is the lessee
The Group, as a lessee, for
all leases recognizes a right of use
asset and a lease liability at
the commencement of the lease.
The right of use asset is initially measured at cost, comprising the initial lease liability amount,
any initial direct costs and an
estimate of the obligation for costs to refurbish
the asset, less any lease incentives received.
Right-of use
assets are
subsequently
measured
at cost
less any
accumulated
depreciation,
any accumulated
impairment
losses and
adjusted for
any remeasurement of
the lease liability.
Depreciation is charged
on a straight line basis from
the commencement date
to the earlier of the end of
the useful life of the
right-of-use asset or the end
of the lease term. Right-of-use
assets are reviewed at each
reporting date to determine
whether
there is
an indication
of impairment
and if
they are
impaired the
carrying amount
is adjusted
to its
recoverable amount
with
the difference recorded
in profit or
loss (note
1.2.15).
For short
-term
leases
(lease term
of 12
months
or less
at the
commencement
date) and
leases
for which
the underlying
asset
is
of low
value (less
than 5.000
EUR when
new) the
Group does
not recognize
a right-of-use
asset
and a
lease liability
but instead
recognizes the lease
payments associated
with those leases
as an expense on a straight
-line basis over the lease
term.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
141
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The lease liability
is initially measured
at the present value
of lease payments
that are not paid at
that date, net of cash
lease
incentives. Lease payments include fixed payments and variable payments that
depend on an index (such
as an inflation index)
or
a
rate
and
are
discounted
using
the
lessee’s
incremental
borrowing
rate.
Incremental
borrowing
rate
is
determined
by
using
as
reference
rate
Alpha
Bank’s
secured
funding
rate,
adjusted
for
different
currencies
and
taking
into
consideration
government
yield curves, where
applicable.
After
the
commencement
date,
the
Group
measures
the
lease
liability
by
increasing
the
carrying
amount
to
reflect
interest,
reducing
the
carrying
amount
to
reflect
lease
payments
made
and
remeasuring
the
carrying
amount
to
reflect
any
reassessment or lease
modifications.
Right of use assets are included within Property, plant and equipment and the lease liability is included in Other liabilities. In
cases
where
the Group
is an
intermediate
lessor
in
an
operating
lease,
right
of use
assets
recognized
for
the head
lease
are
included within Investment property while in case the Group is an
intermediate lessor in a finance lease right of use
asset, or
the part of it
which is subleased, is derecognized and
a finance lease receivable is
recognized.
1.2.12
Insurance activities
a)
Insurance
contracts
An insurance
contract is
a contract
with which
significant insurance
risk is transferred
from the policyholder
to the insuran
ce
company and the
insurance company
agrees to compensate
the policyholder
if a specified uncertain
future event affects
him
adversely. Insurance
risk is
significant if,
and only
if an event
could force
the company
to pay significant
additional benefits.
For the Group, insurance risk is significant when the amount paid in the event of insurance risk exceeds 5% of the total benefit
arising from the
contract.
b)
Distinction
of insurance
products
In
accordance
with
IFRS
4
contracts
that
do
not
transfer
significant
insurance
risk
are
characterized
as
investment
and/or
service
contracts,
and
their
accounting
treatment
is
covered
by
IAS
32
and
IFRS
9
for
financial
instruments
and
IFRS
15
for
revenue.
All types of
contracts offered
by the Group
are classified
as insurance life
contracts, as
they represent
individual, traditional
insurance contracts that provide earnings
participation based on surplus revenue from
investment (in relation to the technical
interest rate) on
the mathematical reserves.
c)
Insurance
reserves
The insurance reserves
are the current estimates
of future cash flows arising
from insurance life
contracts. The reserves
consist of:
i.
Mathematical
reserves
The
insurance
reserves
for
the
term
life
contracts
(e.g.
term,
comprehension,
investment)
are
calculated
on
actuarial
principles
using the present
value of future
liabilities less the
present value of
premiums to be
received.
The
calculations
are
based
on
technical
assumptions
(mortality
tables,
interest
rates)
in
accordance
with
the
respective
supervisory authorities on
the date
the contract
was signed.
If the carrying
amount of the
insurance reserves is inadequate, the
entire deficiency is
provided for.
ii.
Outstanding
claims
reserves
They concern
liabilities
on claims
occurred
and reported
but
not yet
paid at
the balance
sheet
date. These
claims
are determined
on a case-by-case
basis based
on existing information
(loss adjustors’
reports, court
decisions etc)
at the balance
sheet date.
They
include
also
provisions
for
claims
incurred
but
not
reported
at
the
balance
sheet
date
(IBNR).
The
calculation
of
these
provisions is based
on statistical experience
and the
estimated average cost
of claim.
d)
Revenue recognition
Revenue
from life
insurance
contracts
is recognized
when it
becomes
payable.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
142
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
e)
Reinsurance
The Group
currently does
not use reinsurance
contracts.
f)
Liability adequacy test
In
accordance
with
IFRS
4
an
insurer
shall
assess
at
each
reporting
date
whether
its
recognized
insurance
reserves
less
deferred acquisition costs are adequate to cover the
risk arising from the
insurance contracts.
The methodolo
gy applied
for life
insurance products
was based
on current
estimates
of all
future cash
flows from
insurance
contracts and
of related
handling costs.
These estimates
were based
on assumptions
representing current
market conditions
and regarding parameters such as mortality, cancellations, future changes and
allocation of administrative expenses as
well
as the
discount
rate.
The guaranteed
return
included
in certain
insurance
contracts
has
also
been
taken
into account
in
estimating cash flows.
If
that
assessment
shows
that
the
carrying
amount
of
its
insurance
reserves
is
inadequate,
the
entire
deficiency
is
recognized against profit
or loss.
1.2.13
Credit
impairment
losses
on
loans
and
advances
to
customers,
undrawn
loan
commitments,
letters of credit and letters of guarantee
The
Group,
at
each
reporting
date,
recognizes
a
loss
allowance
for
expected
credit
losses
on
loans
and
advances
to
customers not measured at fair value through profit
or loss as well as for off-balance sheet exposures (letters of guarantee,
letters of credit,
undrawn loan commitments).
The
loss
allowance
for
loans
and
off-balance
sheet
exposures
is
based
on
expected
credit
losses
related
to
the
probability
of default within
the next twelve
months, unless
there has been
a significant increase
in credit risk
from the date
of initial
recognition in which
case expected credit
losses are recognized
over the life of the instrument.
In addition, if the financial
asset falls under the definition of
purchased or originated credit impaired (POCI) financial assets, a loss
allowance equal to
the lifetime expected
credit losses is
recognized.
a)
Default
definition
The
Group,
with
the
application
of
new
EBA
Guidelines
(GL/2016/07),
amended
from
1.1.2021
default
definition
and
adopted a new
default definition as
stated in note
43.1.
b)
Classification
of
exposures
into
stages
based
on
credit
risk
(Staging)
For the
purposes
of calculating
expected
credit
losses, the
exposures
are classified
into stages
as follows:
•
Stage 1: Stage
1 includes performing exposures that
do not have
significant increase in credit
risk since initial
recognition.
Stage 1 also
includes exposures
for which
credit risk
has been
improved and
the exposure
has been reclassified
from
Stages 2 or 3. In this stage, expected credit losses are recognized based on the probability of default within the next
twelve months.
•
Stage 2:
Stage 2
includes
performing
exposures
for which
there
has been
a significant
increase
in credit
risk since
initial recognition.
Stage 2
also includes
exposures
for which
credit risk
has been
improved
and the
exposure
has been
reclassified from Stage 3. In this
stage, lifetime expected credit losses are recognized.
•
Stage 3:
Stage 3
includes
non performing/impaired
exposures.
In this
stage,
lifetime
expected
credit losses
are
recognized.
As an
exception
to
the above,
for purchased
or originated
credit
impaired
(POCI)
exposures,
lifetime
expected
credit
losses
are always recognized.
Purchased or originated credit impaired exposures include:
-
Exposures that at the time of acquisition meet the
criteria to be classified as non-performing exposures.
-
Exposures for which there has been a change in repayment terms, either due to financial difficulty or not, which resulted
in derecognition and recognition
of a
new impaired asset
(POCI) except when
derecognition is due to
the change of
debtor
of a
corporate loan in
which case the
creditworthiness of the
new debtor
is reassessed.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
143
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
c)
Significant
increase
in
credit
risk
In determining
significant increase
in credit
risk of an
exposure since
initial recognition
and the
recognition of
lifetime
expected
credit
losses
instead
of 12
months
expected
credit
losses,
the Group
assesses,
at each
reporting
date,
the
risk
of default
compared to
the risk
of default
at initial
recognition for
all its
performing exposures
including those
with no
delinquencies.
The assessment of the
significant increase in credit
risk is
based on the
following:
•
Quantitative Indicators: refers
to the quantitative information used and more specifically
to the comparison of the
probability of default
(PD) between the
reporting date and
the date
of initial recognition.
•
Qualitative Indicators: refers to the qualitative information used which is not necessarily reflected
in the probability
of default,
such as
the classification
of an exposure
as forborne
performing (FPL,
according to
EBA ITS).
Additional
qualitative indicators, both for corporate and retail portfolios are also reflected through the
Early Warning indicators
where
depending
on
the
underlying
assessment,
an
exposure
can
be
considered
to
have
a
significant
increase
in
credit
risk or not. Especially for
special lending portfolio, additional qualitative indicators are captured through slotting
category.
•
Backstop Indicators: in addition to the above, and in order to capture cases for which there are no triggers reflecting
the increase in credit risk,
based on qualitative and quantitative indicators, the 30
days past due indicator is
used as a
backstop.
d)
Calculation
of
expected
credit
loss
The measurement of expected
credit losses is
made as follows:
-
For financial assets, a credit loss
is the present value
of the difference between:
(a)
the contractual cash flows and
(b)
the cash flows that the
Group expects to receive
-
For undrawn loan commitments, a credit loss is
the present value of the
difference between:
(a)
the contractual cash flows that are due if the holder of the loan commitment draws down the loan; and
(b)
the cash flows that the
Group expects to receive if the
loan is drawn down.
-
For letters of guarantee and letters of credit, the loss is equal to the expected payments to reimburse the holder for a
credit loss that it incurs less
any amounts that the Group expects to
receive from the holder.
For
present
value
calculation,
original
effective
interest
rate
is
used
as
a
discount
rate.
Especially
for
POCI
assets
credit-
adjusted effective interest
rate is used.
The Group
calculates impairment
losses either
on a collective
(collective assessment)
or on an
individual basis
(individual
assessment), taking
into account the
significance of
an exposure or
the borrower’s
limit. In addition,
exposures that
do not
have common
credit risk
characteristics
or for
which there
are no
sufficient historical
behavioral
data are
assessed on
an
individual
basis.The
Group
calculates
expected
credit
losses
based
on
the
weighted
probability
of
three
scenarios.
More
specifically,
the
Economic
Research
Division
produces
forecasts
for
the
possible
evolution
of
macroeconomic
variables
that
affect the level of expected credit losses of loan portfolios under a baseline
and under alternative macroeconomic
scenarios
and also generates
the cumulative probabilities associated
with these scenarios.
The mechanism
for calculating
expected
credit
loss is
based
on the
following
credit
risk parameters:
•
Probability of Default (PD): It is an estimate of the probability of a debtor to default over a specific time horizon.
•
Exposure at default (EAD):
Exposure at Default is
an estimate of the
amount of the exposure
at the time of
the default
taking into account:
(a) expected
changes in the
exposure after
the reporting date,
including principal
and interest payments;
(b) the
expected
use of
credit limits
and (c)
accrued
interest.
The approved
credit limits
that have
not been
fully disbursed
represent
a
potential
credit
exposure
and
are
converted
into
a
credit
exposure
equal
to
the
approved
undrawn
loan
commitment
multiplied
by a
Credit
Conversion
Factor (CCF).
The Credit
Conversion
factor of
credit exposure
is calculated
based on
statistical models.
•
Loss given default (LGD): Loss given default is an estimate of
the loss that will occur if the
default occurs at a given
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
144
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
time. It is based on the difference between the contractual cash flows due and those expected to be
received, including the
liquidation of collaterals and
cure rate.
e)
Measurement
of expected
credit losses
on receivables
from customers
Receivables
from
customers
are
derived
from
the
Group’s
commercial,
other
than
loan,
activity.
The
loss
allowance
for
receivables
from
customers
is
measured
at
an
amount
equal
to
the
lifetime
expected
credit
losses
(there
is
no
stage
allocation) based on
the simplified approach provided
by IFRS 9.
f)
Presentation
of expected
credit
losses
in
financial
statements
Loss allowances
for expected
credit losses
are presented
in the
Balance Sheet
as follows:
-
Financial assets measured at
amortised cost and finance
lease receivables: loss allowance is
presented as a
deduction from
the gross carrying
amount of the
assets.
-
Financial
assets
measured
at fair
value through
other
comprehensive
income:
for those
assets
no loss
allowance
is
recognized in the Balance Sheet, however, its
amount is disclosed in the
notes to the financial
statements.
-
Letters of credit/letters of
guarantee: loss allowance is
recognized in line “Provisions” of
liabilities in Balance Sheet.
-
Undrawn loan commitments: When there
is not
also a loan,
loss allowance is
recognized in line
“Provisions” of liabilities
in Balance Sheet. If a
financial asset includes both a loan
and an undrawn loan
commitment, the accumulated expected
credit losses of the loan commitment are presented
together with the accumulated expected
credit losses of the loan, as a
deduction
from
its
gross
carrying
amount.
To
the
extent
that
the combined
expected
credit
losses
exceed
the
gross
carrying
amount of the loan,
the expected credit losses are
recognized in line “Provisions” of
liabilities in Balance Sheet.
The amount
of expected
credit
losses
for the
period
is presented
in the
caption
“Impairment
losses,
provisions
to cover
credit
risk and
related
expenses”.
In the
same
caption
the following
are also
recognized:
recoveries
from
written-off
loans measured
at amortised
cost, modification
gains or losses
of loans measured
at amortised
cost, the favourable
changes in
expected credit
losses of
POCI assets
in case
expected credit
losses are
less than
the amount
of expected
credit losses
included in
the estimated
cash flows
on initial
recognition,
loans servicing
fees arising
from a
contract
signed
in the
context
of the
transfer
of the
entity that
services
overdue
loans
as
well
as
protection
fee
and
reimbursement
from
a
special
purpose
entity
paid
as
part
of
the
synthetic
securitization.
For
servicing
fees,
this
presentation
reflects
more
accurately
the
nature
of
these
fees
taking
into
account
the
new
model
for the
servicing
of overdue
loans as
well as
the fact
that impairment
losses on
these loans
and the
impact from
the
modification of their
contractual terms
is also presented
in the same line
item. Corresponding
is the presentation
of protection
fee and reimbursement paid as part of
synthetic securitization since those amounts relate to credit risk
coverage.
g)
Write-offs
The
Group proceeds
with the
write-off
of loans
and
advances
to customers
when
it has
no
reasonable
expectations
for their
recovery.
In this
case,
the loss
allowance
is used
against
the carrying
amount
of the
financial
asset.
Write-off
is an
event
of
derecognition.
1.2.14
Credit imp
airment
losses
on due
from banks
and bonds
The
Group,
at
each
reporting
date,
recognizes
a
loss
allowance
for
expected
credit
losses
on
due
from
banks
and
bonds
not
measured at fair
value through profit
or loss.
The
loss
allowance
is based
on
expected
credit
losses
related
to
the
probability
of
default
within
the
next
twelve
months,
unless
there has
been a
significant
increase
in credit
risk from
the date
of initial
recognition
in which
case expected
credit
losses are recognized over the life of the instrument. In addition,
if the financial asset falls under the definition of purchased or
originated
credit impaired
(POCI) financial
assets, a
loss allowance
equal to
the lifetime
expected
credit losses
is recognized.
a)
Default
definition
Due from banks and bonds are considered impaired
when the external rating of the issuer/counterparty is equivalent
to default
(D). In case
there is no
external rating, then the
instrument is characterized as impaired
based on internal
rating. If there
is also
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
145
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
an exposure
to the
corporate
issuer/counterparty
to the
loan portfolio
which has
been classified
as impaired,
the instrument
is
also characterized as
impaired.
b)
Classification
of due
from
banks
and
bonds
into
stages
based
on credit
risk
(Staging)
For the
purposes
of calculating
expected
credit
losses, the
exposures
are classified
into stages
as follows:
•
Stage 1: Stage 1 includes non impaired instruments that do not have significant increase in credit risk since initial
recognition. Stage 1 also includes instruments for which credit risk has been improved and the instrument has been
reclassified from Stages 2 or 3.
In this stage, expected credit losses are
recognized based on the probability of
default
within the next
twelve months.
•
Stage 2: Stage 2 includes non impaired instruments for which there has been a significant increase in credit risk since
initial recognition. Stage 2
also includes instruments for which
credit risk has
been improved and the
instrument has been
reclassified from Stage 3. In this
stage, lifetime expected credit losses are recognized.
•
Stage 3:
Stage
3 includes
impaired
instruments.
In this
stage,
lifetime
expected
credit losses
are recognized.
As
an
exception
to
the
above,
for
purchased
or
originated
credit
impaired
(POCI)
instruments,
lifetime
expected
credit
losses
are
always recognized. An instrument is characterized as purchased or
originated credit impaired when:
•
The instrument (or the issuer) has an external rating that corresponds to default at the time of acquisition
•
Corporate bonds resulting from
debt restructuring are classified as
purchased or originated credit
impaired, based on the
guidelines applicable to
the loan portfolio.
When a debt security has been purchased at a
large discount and does not fall into any of
the categories mentioned above, the
Group examines
the transaction in
detail (transaction
price, recovery rate,
issuer’s financial condition
at the time of purch
ase,
etc.)
in
order
to
determine
whether
it
should
be
recognised
as
purchased
or
originated
credit-impaired
(POCI).
Classification
in
this category requires documentation and approval by the relevant committees of the Group.
c)
Significant
increase
in
credit
risk
The
classification
into
stages
for
the
purpose
of
expected
credit
loss
measurement
is
based
on
the
credit
rating
of
rating
agencies
or, for
corporate
securities
issued
by Greek
issuers
for which
there
is also
an exposure
in loan
portfolio,
on the
issuer’s
internal rating.
The Group
defines as
low credit
risk all inv
estment grade
securities, which
are classified
in Stage
1.
The
determination
of
significant
increase
in
credit
risk
for
non-investment
grade
securities
is
based
on
the
following
two
conditions:
-
Downgrade in the issuer / counterparty’s credit rating on the reporting dates compared to the credit rating on the date of the
initial recognition.
-
Increase in the probability of default of the issuer / counterparty for the 12-month period compared to the corresponding
probability of default
at initial recognition.
Additionally,
the
Group
monitors
the
change
in
the
credit
spread
since
initial
recognition.
A
change
in
credit
spread
at
the
reporting
date that
exceeds a
specific
threshold
compared
to the
credit margin
prevailing
at the
date of
initial recognition
is a
trigger for
reviewing the securities
classification stage.
d)
Calculation
of
expected
credit
loss
The expected credit loss
is the
present value of the
difference between:
(a)
the contractual cash flows and
(b)
the cash flows
that the Group
expects to receive
For
present
value
calculation,
original
effective
interest
rate
is
used
as
a
discount
rate.
Especially
for
POCI
assets
credit-
adjusted effective interest
rate is used.
For the calculation of
the expected credit loss,
the following parameters are used:
•
Probability of default (PD): the probability of default over the next 12 months is used to calculate the expected credit loss
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
146
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
for 12
months, and
the probability
of default
over the
life of
the instrument
is used
to calculate
the lifetime
expected
credit
losses.
•
Exposure at default (EAD):
In the case
of securities, the
Group estimates the future
unamortised cost in order
to calculate
the EAD. In particular, for each period, EAD is the maximum loss that would result from issuer / counterparty potential
default.
•
Loss given default (LGD) is the percentage of the total exposure that the Group estimates as unlikely to recover at the
time of
the default.
The Group
distinguishes
sovereigns
from non
-sovereign
issuers
/ counterparties
as regards
to the
LGD
estimation. In case the Group has also granted a loan to the issuer / counterparty of the security, the estimated LGD is
aligned to corresponding estimate for the loan portfolio (taking
into account any potential collaterals the loan portfolio is
likely to have
against the
unsecured debt securities).
e)
Presentation of expected
credit losses in financial
statements
Loss allowances
for expected
credit losses
are presented
in the
Balance Sheet
as follows:
-
Financial assets measured at amortised cost:
loss allowance is presented as
a deduction from the
gross carrying amount of
the assets.
-
Financial
assets
measured
at fair
value through
other
comprehensive
income:
for those
assets
no loss
allowance
is
recognized in the Balance Sheet, however, its
amount is disclosed in the
notes to the financial
statements.
The
amount
of
expected
credit
losses
for
the
period
is presented
in
the
caption
“Impairment
losses,
provisions
to
cover
credit
risk and
related expenses”.
The caption
includes
also the
favourable
changes
in expected
credit
losses of
POCI assets
in case
expected
credit
losses are
less than
the amount
of expected
credit
losses
included
in the
estimated
cash
flows on
initial
recognition.
1.2.15
Impairment losses
on investments
and non-financial
assets
The Group assess as at each balan
ce sheet date its investments
in associates and joint ventures as well
as non-financial
assets for impairment, particularly,
right of use assets, goodwill and other intangible assets and at least annually
property,
plant and equipment
and investment property.
In assessing whether
there is an indication
that an asset may
be impaired both
external and internal
sources of information
are
considered, of
which the
following are indicatively
mentioned:
-
The asset’s market value has declined significantly, more than
would be expected as a
result of the passage of
time or
normal use.
-
Significant changes with an adverse effect have taken place during the period or will take place in the near future, in the
technological, economic or legal environment in which the
entity operates or in
the market to which the
asset is dedicated.
-
Significant
unfavorable
changes
in
foreign
exchange
rates.
-
Market interest rates or other
rates of return
of investments have increased during the
period, and those increases are
likely
to affect
the discount
rate used
in calculating an
asset’s value
in use.
-
The carrying amount of the net assets of the entity is greater than its market capitalization.
-
Evidence
is available
of obsolescence
or physical
damage
of an
asset.
Specifically for right of use
assets, triggers for impairment include:
-
The existence
of leased
properties
that are
neither used
nor leased
by the
Group.
-
The fact that the present value of the leases received in the event of a sublease is lower than the
value of the rents paid
under the lease.
An impairment loss is recognized
in profit or loss when the recoverable
amount of an asset is less than its carrying
amount. The
recoverable amount of
an asset is
the higher
of its
fair value
less costs to
sell and
its value
in use.
Fair value less costs
to sell is the amount received
from the sale of an asset
(less the cost of disposal)
in an orderly transaction
between market participants.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
147
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
Value
in
use
is
the
present
value
of
the
future
cash
flows
expected
to
be
derived
from
an
asset
or
cash
–generating
unit
through their use
and not from
their disposal.
For the valuation of property, plant
and equipment, the calculation
of the recoverable amount
includes all improvements which
render the
asset perfectly
suitable for
its use by
the Group.
In this
way, the
market participant’s
ability to
generate economic
benefits by using the asset
in it’s highest and best use or
by selling it to another market
participant that would use
the asset in
its highest and
best use is
taken into account.
1.2.16
Income tax
Income tax consists of
current and deferred tax.
Current tax for a period includes the expected amount of income tax payable
in respect of the taxable profit for the current
reporting period, based
on the tax
rates enacted at
the balance sheet
date.
Deferred
tax is
the tax
that will
be paid
or for
which relief
will be
obtained
in future
periods
and
it is
calculated
based on
the
temporary
differences
between
the
tax
base
of
assets
and
liabilities
and
their
respective
carrying
amounts
in
the
financial
statements.
Deferred tax
assets and
liabilities are
calculated using
the tax
rates that
are expected
to apply
when the
temporary difference
reverses, based on
the tax rates
(and laws) enacted
at the balance
sheet date.
A deferred
tax asset
is recognized
to the extent
that it is
probable that
future taxable
profits will be
available against
which the
asset can be
utilized.
In addition, deferred tax assets
are not recognized from the initial
recognition of an asset or liability
in a transaction that is not
a business combination and at the time it
takes place affects neither accounting profit nor taxable profit.
Furthermore,
regarding
investments
in
associates
and
joint
ventures,
deferred
tax
assets
are
recognized
only
when
it
is
probable that
the temporary
difference will
reverse in
the foreseeable
future and taxable
profit will be
available against
which
the temporary difference
can be utilized.
Income tax, both current and
deferred, is recognized in profit
or loss except when it
relates to items recognized directly in
equity.
In such
cases, the
respective income tax
is also
recognized in
equity.
1.2.17
Non-current assets held
for sale
Non-current assets
or disposal
groups that
are expected
to be
recovered principally
through a
sale transaction,
along with
the
related liabilities, are
classified as held-for-sale.
The
above
classification
is
used
if
the
asset
is
available
for
immediate
sale
in
its
present
condition
and
its
sale
is
highly
probable.
The
sale
is
considered
highly
probable
when
it
has
been
decided
by
the
competent
bodies
of
the
Management,
an
active programme
to locate a buyer
has been initiated,
the asset is actively
marketed for sale
at a price which
is reasonable
in
relation
to its
current
fair
value
and
the
sale
is expected
to
be
completed
within
one
year.
Non-current
assets
that
are
acquired exclusively
with a view
to their subsequent
disposal are
classified as
held for sale
at the acquisition
date when the
one-year requirement is met and
it is highly probable that the remaining
criteria will be met within a short period
following the
acquisition (usually within three
months).
Before their
classification
as held
for sale,
the asse
ts are
remeasured
in accordance
with the
respective
accounting
standard.
Assets
held for
sale are
initially
recognised
and subsequently
remeasured
at each
balance
sheet date
at the
lower of
their
carrying amount and fair value less cost
to sell. Any loss arising from the above measurement
is recorded in profit or loss and
can be reversed in the future. In this case, the gain
from any subsequent increase in fair value less costs
to sell cannot exceed
the
cumulative
impairment
losses
that
have
been
recognized.
When
the
loss
relates
to
a
disposal
group
it
is
allocated
to
assets within the disposal
group with the exception
of specific assets that are
not within the scope of IFRS
5. The impairment
loss on a disposal group is
first allocated to goodwill and then to
the remaining assets and liabilities on a pro-rata
basis.
Assets in
this category
are not
depreciated.
Gains or losses from
the sale of
these assets are recognized in
the income statement.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
148
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Non-current
assets held
for sale,
that the
Group subsequently
decides
either to
use or
to lease,
are reclassified
to the
categories
of property,
plant
and
equipment
or investment
property
respectively.
During
their
reclassification,
they
are
measured
at
the
lower
of
their
recoverable
amount
and
their
carrying
amount
before
they
were
classified
as
held
for
sale,
adjusted
for
any
depreciation,
amortization or
revaluation
that would
have been
recognized
had the assets
not been
classified as
held for sale.
Non - current assets
that the Group intends
to sell but which are
not available for immediate
sale or are not expected
to be
sold within a year are included in
Other Assets and are measured at the lower of
cost (or carrying amount) and net realizable
value in accordance with IAS 2.
Net realizable value is considered equal to
fair value less cost
to sell.
1.2.18
Defined
contribution
and
defined
benefit
plans
The Group
has both
defined
benefit
and defined
contribution
plans.
A defined
contribution
plan is
where the
Group pays
fixed contributions
into a
separate
entity and
the Group
has no
legal or
constructive obligation
to pay further contributions
if the fund does not have sufficient
assets to pay all employees
the benefits
relating
to
employee
service
in
current
or
prior
years.
The
contributions
are
recognized
as
employee
benefit
expense
on
an
accrual
basis. Prepaid
contributions
are recognized
as an
asset to
the extent
that a
cash refund
or a
reduction
in the
future
payments is available.
A defined
benefit plan
is a pension
plan that
defines an
amount of
pension benefit
that an employee
will receive
on retirement
which is dependent,
among others, on years
of service and salary
on date of retirement
and it is guaranteed
by the entity of the
Group.
The
defined
benefit
obligation
is
calculated,
separately
for
each
plan,
based
on
an
actuarial
valuation
performed
by
independent actuaries using
the projected
unit credit method.
The
net
liability
recognized
in
the
consolidated
financial
statements
is
the
present
value
of
the
defined
benefit
obligation
(which is
the expected
future payments
required to
settle the
obligation
resulting from
employee service
in the
current and
prior periods) less the fair value of plan assets. The amount determined by the above comparison may be negative, an asset.
The amount of the asset recognised in the financial
statements cannot exceed the total of the present value of
any economic
benefits available to the Group in the form of refunds from the
plan or reductions in future contributions to the plan.
The
present
value
of
the
defined
benefit
obligation
is
calculated
based
on
the
return
of
high
quality
corporate
bonds
with
a
corresponding
maturity to
that of
the obligation,
or based
on the
return of
government
bonds in
cases when
there in
no deep
market in corporate
bonds.
Interest
on
the
net
defined
benefit
liability
(asset),
which
is
recognised
in
profit
or
loss,
is
determined
by
multiplying
the
net
defined benefit
liability (asset)
by the
discount rate
used to
discount
post-employment
benefit obligation,
as determined
at the
start of the annual reporting period, taking into
account any changes in the net defined benefit liability (asset).
Service cost,
which is also
recognised in
profit or loss,
consists of:
•
Current service cost, which is the
increase in the present value
of the defined benefit obligation resulting from employee
service in the
current period;
•
Past service cost, which is the change in the present value of the defined benefit obligation for employee service in prior
periods, resulting from the introduction or withdrawal of, or changes to, a defined benefit plan or a curtailment (a significant
reduction by
the entity
in the
number of
employees covered by
a plan)
and
•
Any gain or
loss on settlement.
Before determining
past service cost
or a gain or
loss on settlement,
the Group remeasures
the net defined
benefit liability
(asset) using the current fair value of plan assets and current actuarial assumptions, reflecting the benefits offered under the
plan before
its amendment, curtailment
or settlement.
Past service cost, in particular, is
directly recognized to profit or
loss at the earliest
of the following dates
•
When the plan amendment or
curtailment occurs and
•
When the
Group
recognizes
related
restructuring
costs
(according
to IAS
37) or
termination
benefits.
Likewise, the Group recognizes a
gain or loss
on the settlement when the
settlement occurs.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
149
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Remeasurements of the net defined benefit
liability (asset) which comprise:
•
actuarial gains
and losses;
•
return on plan assets, excluding amounts included in net
interest on the net defined benefit
liability (asset); and
•
any change in the effect of the limitation in the asset recognition, excluding amounts included in net interest on the net
defined benefit liability (asset),
are recognized
directly in
other comprehensive
income and
are not
reclassified
in profit
or loss
in a
subsequent
period.
Finally, when the Group decides to terminate the
employment before retirement or the employee accepts the Group’s offer
of benefits
in exchange
for termination
of employment,
the liability
and the
relative expense
for termination
benefits are
recognized at the
earlier of the
following dates:
a.
when the Group can no longer withdraw the offer
of those benefits; and
b.
when the Group recognizes restructuring costs which involve
the payment of termination benefits.
1.2.19
Share
options
granted
to employees
The
granting
of
share
options
to
the
employees,
their
exact
number,
the
price
and
the
exercise
date
are
decided
by
the
Board
of
Directors in accordance
with the Shareholders’
Meeting approvals
and after taking into account
the current legal framework.
The fair value calculated
at grant date is recognized during
the servicing period and recor
ded in staff costs with an increase
of a
reserve in
equity respectively.
When there
are no
vesting
conditions,
it is
considered
that services
have been
received.
On
the contrary,
when there
are service
vesting conditions
the expense
is recognized
as the
relative services
are received.
In case
there are conditions
that are not vesting
conditions, they are
taken into account
in share options
valuation. The amount
paid by
the beneficiaries
of share options
on the exercise
date increases
the share capit
al of the
Group and
the reserve
in equity
from
the
previously
recognized
fair value
of the
exercised
options
is transferred
to share
premium.
The
reserve
in equity
from the
previously recognized fair value of the unexercised options is
transferred to retained earnings.
1.2.20
Provisions and contingent
liabilities
A
provision
is
recognized
if,
as
a
result
of
a
past
event,
the
Group
has
a
present
legal
or
constructive
obligation
that
can
be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are, also, recognized in cases of restructuring plans with which management attempts either to change the subject
of a
corporate
activity
or the
manner
in which
it is
conducted
(e.g.
close
down
business
locations).
The recognition
of provision
is accompanied
with
the
relevant,
authorized
by the
Management,
program
and
with
the suitable
actions
of disclosure.
A
restructuring
provision
includes
only
the
direct
expenditures
arising
from
the
restructuring,
which
are
those
that
are
both
necessarily entailed by the restructurings
and not associated with the ongoing activity of
the Group.
The amount recognized as
a provision shall be the best estimate
of the expenditure required
to settle the present obligation
at
the end of the reporting period. Where
the effect of the time value of money is material,
the amount of the provision is equal to
the present
value of
the expenditures expected
to settle the
obligation.
Amounts paid for the settlement of an obligation are set against the original provisions
for these obligations. Provisions are
reviewed at the
end of each
reporting period.
If it is no longer probable that an
outflow of resources embodying
economic benefits will be required
to settle the obligation,
the provision is reversed. Additionally, provisions are not
recognized for future operating losses.
Future events
that may
affect the
amount required
to settle
the obligation,
for which
a provision
has been
recognized, are
taken into account
when sufficient objective
evidence exists that
they will occur.
Reimbursements from
third parties relating to a portion
of or all of the estimated cash
outflow are recognized
as assets, only
when it is virtually certain
that they will be received.
The amount recognized
for the reimbursement
does exceed the amount
of
the
provision.
The
expense
recognized
in
profit
or
loss
relating
to
the
provision
is
presented
net
of
the
amount
of
the
reimbursement.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
150
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
The Group does not recognize in
the statement of financial position contingent liabilities which relate to:
•
possible obligations resulting from past events
whose existence will be
confirmed only by the
occurrence or non-
occurrence of one or more uncertain future events
not wholly within the control of
the Group, or
•
present obligations resulting from past events for which:
-
it is not probable that an outflow of
resources will be required, or
-
the amount of liability cannot be measured reliably.
The
Group
provides
disclosures
for
contingent
liabilities
taking
into
consideration
their
materiality.
1.2.21
Securities
sale
and repurchase
agreements
and securities
lending
The
Group
enters
into
purchases
of
securities
under
agreements
to
resell
at
a
certain
date
in
the
future
at
a
fixed
price
(reverse repos). Securities purchased subject to commitments to resell them at future dates are not
recognized in the balance
sheet.
The
amounts
paid,
including
interest
accruals,
are
recognized
in
loans
and
advances
to
either
banks
or
customers.
The
difference
between
the purchase
price
and the
resale
price is
recognized
as interest
income
using effective
interest
method.
Similarly,
securities
that
are
sold
under
agreements
to
repurchase
(repos)
are
not
derecognized
but
they
continue
to
be
measured in accordance with the accounting policy of the
category that they have been classified.
The proceeds from the sale of the securities
are reported as liabilities to either banks
or customers. The difference between
the sales price and
the repurchase price is recognized
as interest expense using effective interest
method.
Securities
borrowed
by
the
Group
under
securities
lending
agreements
are
not
recognized
in
the
consolidated
balance
sheet
except when they have been sold to third parties whereby the liability to deliver
the security is recognized and measured at
fair value.
1.2.22
Securitization
The Group
securitises
financial
assets by
transferring
these assets
to special
purpose entities,
which in
turn issue
bonds.
In each
securitization
of financial
assets the
assessment of
control of
the special
purpose entity
is considered,
based on
the
circumstances mentioned
in note 1.2.1, so as to
examine whether it should
be consolidated. In addition,
the contractual terms
and
the economic
substance
of transactions
are considered,
in order
to decide
whether
the Group
should
proceed
with the
derecognition of
the securitised
financial assets,
as referred
in note
1.2.5.
1.2.23
Equity
Distinction
between
debt
and
equity
Financial
instruments
issued
by
Group
companies
to
obtain
funding
are
classified
as
equity
when,
based
on
the
substance
of the transaction,
the Group does
not undertake
a contractual
obligation to
deliver cash
or another
financial asset
or to
exchange financial instruments under conditions that are potentially unfavorable
to the issuer.
In
cases
when
Group
companies
are
required
to
issue
equity
instruments
in
exchange
for
the
funding
obtained,
the
number
of
equity instruments must be fixed and determined on the initial
contract, in order for the obligation to
be classified as equity.
In
the
context
of
the
above
assessment,
hybrid
securities
issued
by
the
Group
entity
Alpha
Group
Jersey
Ltd
were
classified
within the equity
of the Group.
Distributions to the holders of equity instruments are directly
recognized by debiting the equity of
the Group.
Incremental
costs of share capital
increase
Incremental
costs directly
attributable
to the
issue of
new shares
are shown
in equity
as a
deduction, net
of tax,
from retained
earnings.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
151
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Share premium
Share premium includes the difference between the nominal value of the shares and the
consideration received in the case of
a share capital
increase.
It also includes the difference between the nominal value of the shares issued and
their market value, in cases of exchanges
of shares
as consideration
for the
acquisition of
a business
by the
Group.
Treasury
shares
The
cost
of
acquiring
treasury
shares
is
recognized
as
a
reduction
of
equity.
Subsequent
gains
or
losses
from
the
sale
of
treasury shares, after deducting all
direct costs and taxes,
are recognized directly in retained
earnings.
Dividends
Dividends
are deducted
from retained
earnings
and
recorded
as
a liability
in the
period
that
the dividend
is approved
by
the
Shareholders in General Meeting.
Distributions of non
-cash assets
Distributions
of non-cash
assets take
place at
the fair
value of
the asset
distributed.
Any difference
between
the carrying
amount and the
fair value of
the asset distributed
is directly
recognised in profit
or loss.
1.2.24
Interest
income
and expense
Interest income and expense is recognized in
the income statement for all
interest bearing financial assets and liabilities.
Interest income and expense is recognised on an
accrual basis and measured using the effective
interest method, with the
exception
of
derivatives
as
described
in
detail
in
note
1.2.6.
Especially
for
POCI
assets,
interest
income
is
calculated
using
credit-adjusted effective interest rate.
Effective
interest
rate is
the rate
that exactly
discounts
estimated
future cash
payments
or receipts
through
the expected
life of the
financial asset
or financial liability
to the gross
carrying amount
of a financial
asset or
to the amortised
cost of a
financial liability. When calculating the effective interest
rate, the Group estimates the
expected cash flows by
considering all
the contractual
terms of the financial
instrument but does
not consider the
expected credit losses.
The calculation includes
all
fees and points paid or received between parties to the contract that are an integral part of the effective interest rate.
For financial
assets,
in particular,
the following
apply:
-
For those financial assets classified within Stage
1 or Stage
2 for the
purpose of expected credit losses measurement,
interest income is calculated by applying effective interest rate to the gross carrying amount of the
asset.
-
For those financial assets classified within Stage
3 for the
purpose of expected credit losses measurement, interest
income is calculated by applying the effective interest rate to the amortised cost of the
asset.
-
For purchased or originated credit impaired financial assets interest
income is calculated by applying the
credit-adjusted
effective interest rate
to the amortised
cost of the
asset.
In
case
of negative
interest
rates,
interest
is presented
within
interest
income
for
interest
bearing
financial
liabilities
and
within interest expense
for interest
bearing financial assets.
Borrowing
costs
that
are
directly
attributable
to
assets
that
require
a
substantial
period
of
time
to
get
ready
for
their
intended use or sale are capitalized as part of the cost
of the asset. Capitalisation ceases when
substantially all the activities
necessary to
prepare the
asset for
its intended
use are
complete.
1.2.25
Fee and commission
income
Fees
and commission
income
from contracts
with customers
are recognized
based on
the consideration
specified
in the
contract when the Group satisfies the performance obligation by
transferring the service to the customer. With the exception
of specific portfolio management fees which are calculated on the basis of the size and performance of the portfolio, the
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
152
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
services
provided
have
a
fixed
price.
Variable
portfolio
management
fees
are
recognized
when
all
related
uncertainties
are
resolved.
For commissions
on services
provided
over time,
revenue
is recognized
as the
service is
being
provided
to the
customer,
such
as
commissions
to
provide
account
management
services,
fees
for
administration
of
syndicated
loans,
fees
for
portfolio
management and investment services advice as well as management fees and
fees for collection of receivables.
For transaction
-based fees,
the execution
and completion
of the
transaction
executed signals
the point
in time,
in which
the service
is transferred
to the
customer
and the
revenue
is recognized,
such as
currency
transactions,
purchases
/ sales
of
securities as
well as
issue and
disposal of
syndicated loans
and bonds.
Transaction revenues relating to the recognition
of a financial instrument not measured at fair value through profit or loss
are capitalized
and amortised
in the
income statement
using the
effective
interest
method over
the life
of the
financial
instrument and included
in interest
income.
1.2.26
Dividend Income
Dividend
income
from
investments
in
shares
is
recognised
in
the
income
statement
when
the
dividend
distribution
is
approved by the appropriate body of the company that
the Group has invested in.
1.2.27
Gains
less losses
on financial
transactions
Gains less
losses on
financial transactions
include:
-
fair value changes of financial assets and liabilities,
-
gains and losses arising from the modification
of the contractual terms of financial assets
measured at fair value
through profit or
loss,
-
gains and losses arising from the derecognition of financial assets and liabilities due to early repayment, including
conversion of loans into shares, disposal or
significant modification of the contractual terms, except for
gains and losses
arising from the derecognition of financial assets measured at amortised cost which are recognized in a separate line
item of the
Income Statement,
-
gains and losses arising from the impairment or
disposal of Group entities that have
not been classified as discontinued
operations,
-
negative goodwill arising from business combinations,
-
exchange differences arising from the translation of financial instruments denominated in foreign currencies.
1.2.28
Gains
less
losses
on derecognition
of financial
assets
measured
at amortised
cost
Gains less
losses
on derecognition
of financial
assets measured
at amortised
cost include:
-
Gains and losses from the
derecognition of financial assets measured at amortised cost
-
The difference, at initial recognition, between the nominal and the fair value of a financial asset measured at amortised
cost that is the result of the derecognition
of another financial asset due to significant
modification of its contractual
terms.
1.2.29
Discontinued
operations
A
discontinued
operation
is
a component
of
the
Group
that
either
has
been
disposed
of,
or
has
been
classified
as
held
for
sale and represents:
•
a major line of
Group’s business;
or
•
a geographical area of
operations; or
•
a subsidiary acquired exclusively with
a view to
resale.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
153
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The profit
or loss after
tax from discontinued
operations and
any losses
recognized on
the measurement
to fair value
less
costs to sell
of the disposal
group are present
ed in a separate
line in the face
of the income
statement after
net profit from
continuing operations.
The comparative financial statements are restated
only for the income statement and the cash flow statement.
1.2.30
Related parties definition
According to IAS 24, a related party is a person or entity that is related to the entity that is preparing its financial
statements. For the
Group, in
particular, related parties
are considered:
a.
An entity that constitutes for the Group:
i)
a joint venture and
ii)
an associate
b.
A person or
an entity that have
control, or joint control,
or significant influence over
the Group.
This category includes
Hellenic Financial Stability
Fund and its subsidiaries
because, in the context
of the L.3864/2010,
the HFSF participates in the Board of
Directors and in significant committees of the parent company and the Bank
and as
a result
is considered
to have
significant influence over
the Group.
c.
A person and his
close family members, if that
person is a member
of the key management personnel.
The Group
considers
as key
management
personnel
all the
members
of the
Board
of Directors
and of
the Executive
Committee of the parent company
of the Group while as their close family members
it considers their children and
spouses or domestic partners and
their dependants and the
dependants of their spouses or
domestic partners.
Related parties are also considered the entities controlled or jointly controlled by the above mentioned persons and more
specifically the entities in
which the above
persons participate with
more than 20%.
1.2.31
Comparatives
To
the
extent
considered
necessary
the
comparatives
have
been
adjusted
to
facilitate
changes
in presentation
of
the
current year amounts.
1.3
Significant accounting judgments
and key sources
of estimation uncertainty
Significant
accounting
judgments
The
Group,
in
the
context
of
applying
accounting
policies,
makes
judgments
and
assessments
relating
to
the
carrying
amount
of assets
and
liabilities
at the
end
of the
period
that relate
to the
future.
Final amounts
in the
next year
may
be
significantly different from those recognised in the financial statements. Those judgements relate to the following:
Assessment
of
whether
contractual
cash
flows
of
a
debt
financial
instrument
represent
solely
payments
of
principal and interest on the principal amount outstanding (SPPI) (note
1.2.5)
The
Group,
at initial
recognition
of a
debt
financial
asset,
assesses
whether
cash
flows
are
solely
payments
of principal
and
interest on the principal amount outstanding. The assessment requires judgement mainly on:
•
Whether contractual
terms that affect the performance
of the instrument relate solely
to credit risk, other basic
lending
risks and profit
margin.
•
For loans
in special
purpose
entities,
whether
there
is a
non-recourse
feature.
The assessment
is based
on specific
index
thresholds as well as on
the evaluation of the adequacy
of equity and of the collaterals
that are not related to
the asset
being financed.
•
Whether
in case
of prepayment
or extension
the compensation
received
is considered
fair.
•
Whether loans
with ESG
(Environmental,
Social, Governance)
criteria, the
change in
credit spread
based on the
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
154
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
satisfaction of those ESG
criteria relates to the
change in credit risk
and/or change in profit
margin.
Significant judgements relating
to the selection
of methodologies and
models for expected
credit losses calculation
(note 43.1)
The Group, in
the context of the
application of its
accounting policies
for the measurement
of the expected
credit losses makes
judgments in order
to identify:
-
the criteria that indicate a significant increase in
credit risk,
-
the choice of appropriate methodologies for
expected credit loss calculation (expected credit loss
calculation on an
individual or on
a collective basis),
-
the choice and development of appropriate models used to calculate the exposure
at default by financial instrument
category (EAD ), the probability of default (PD), the estimated expected credit loss at the time of default (LGD), the
probability of forbearance (PF) and the
choice of appropriate parameters and economic forecasts used
in them,
-
the choice of the parameters of the macroeconomic forecasts used in the models to determine the expected life and the
date of
initial recognition of
revolving exposures,
-
the grouping of financial
assets based on similar
credit risk characteristics.
Applying
different
judgments
could
significantly
affect
the number
of financial
instruments
classified
in stage
2 or
significantly
differentiate expected credit loss.
Income Tax (notes
13 and 39)
The recognition of assets and liabilities for current and deferred tax is carried out based on the interpretation
of the applicable
tax
legislation.
However,
it may
be affected
by factors
such
as the
practical
implementation
of the
relevant
legislation
and
the
settlement
of
disputes
that
might
exist
with
tax
authorities
etc.
When
assessing
the
tax
treatment
of
all
significant
transactions,
the Group
takes into
account and
evaluates
all available
data (Circulars
of the
Ministry of
Finance, case
law,
administrative
practices,
etc.)
and
/
or
opinions
received
from
internal
and
external
legal
advisers.
Future
tax
audits
and
changes in tax legislation
may result in the adjustment of
the amount of assets and liabilities
for current and deferred tax
and
in tax payments
other than those
recognized in the
financial statements of
the Group.
Classification of non-current assets held for
sale (note 48, 52)
The
Group
classifies
non-current
assets
or
disposal
groups
that
are
expected
to
be
recovered
principally
through
a
sale
transaction,
along
with
the
related
liabilities,
as
held-for-sale
when
the
asset
is
available
for
immediate
sale
in
its
present
condition and
its sale
is highly
probable to
be completed
within one
year. The
assessment of
whether the
above criteria
are
met requires
judgment mainly
as to whether
the sale is
likely to be
completed within
one year
from the reporting
date. In the
context of this assessment, the Group takes into account the receipt of the required approvals (both regulatory and those given
by the General Meeting and the Committees of the
Group), the receipt of offers (binding or
note) and the singing of agreements
as well as
of any
conditions included in
them.
Assessment of control of
special purpose entities (note
40)
The Group
in the context
of its actions
for liquidity
and for
strategic management
of non
- performing
loans proceeds
with
the securitization of
assets through the establishment
of special purpose entities
whose activities are
guided by contractual
agreements.
The Group
makes judgments
in order
to assess
whether it
controls those
companies
taking into
account the
possibility to make decisions on their relative activities as well as the degree of its
exposure to the variability of their returns.
Key
sources
of estimation
uncertainty
Key sources
of estimation
uncertainty used
by the
Group in the
context of
applying its
accounting principles
and which
have a
significant impact on the amounts recognized in the financial statements are presented below:
Fair value of assets and
liabilities (notes 22, 23, 26,
43.4, 48)
For assets and liabilities traded in active
markets, the determination of their fair value is
based on quoted, market prices. In
all
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
155
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
other cases
the determination
of fair
value
is based
on valuation
techniques
that use
observable
market
data to
the greatest
extent possible. In cases where there is
no observable market data, the fair
value is determined using data that
are based
on
internal
estimates
and
assumptions
i.e. determination
of expected
cash
flows,
discount
rates,
prepayment
probabilities
or
potential counterparty default.
Estimates included in
the calculation of
expected credit losses
(note 43.1)
The measurement
of expected
credit losses
requires the
use of
complex
models and
significant
estimates of
future economic
conditions and
credit behavior,
taking into
account the
events that have
occurred until
reporting date.
The significant
estimates
relate to:
-
the determination of the alternative macroeconomic scenarios
and the cumulative probabilities associated with these
scenarios,
-
the probability of default during a specific time period based on historical data, the assumptions
and estimates for the
future,
-
the probability of forbearance for retail
portfolios,
-
the determination of the expected
cash flows and the flows from the
liquidation of collaterals,
-
the determination of the adjustments to the expected credit loss models
and
-
the integration of loan portfolio sales scenarios taking into account on the one hand any factors that may hinder the
realization of the sale and on the other hand the level of satisfaction of the conditions
for the completion of the sale.
Impairment losses on
investments in associates
and joint ventures and
on non - financial assets
(notes 10, 22 and 23)
The
Group,
at
each
reporting
date,
assesses
for
impairment
non
–
financial
assets,
and
in
particular,
right-of-use
assets,
goodwill
and other
intangible
assets,
as well
as its
investments
in associates
and joint
ventures
and at
least on
an annual
basis property, plant and equipment and investment
property. Internal estimates are used to a significant degree
to determine
the recoverable amount of the assets, i.e. the
higher between the fair value less
costs to sell and
value in use.
Employee
defined benefit
obligations
(note 31)
Defined benefit obligations are estimated based on actuarial valuations,
which are mainly conducted on an annual basis, that
incorporate assumptions regarding
discount rates, future changes in salaries and pensions,
as well as the return on any plan
assets. Any change in these assumptions will affect the
amount of obligations recognized.
Provisions (note
33)
The amounts
recognized by
the Group
in its financial
statements as
provisions are
derived from
the best
estimate of
the
outflow
required
to settle
the
present
obligation.
This
estimate
is
determined
by
Management
after
taking
into
account
experience from relevant
transactions and
in some cases expert
reports. In case the
amount recognized
as a provision
is
affected by a variety of factors, its calculation is based on the weighting of all possible results. At each balance
sheet date,
provisions are revised to
reflect current best estimates
of the obligation.
Recoverability of deferred tax assets
(notes 13 and 25)
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 estimation
of future taxable profits is based on forecasts for the development of the accounting results, as these are formulated
in
accordance
with
the
business
plan
of
the
Group.
In
particular,
the
business
plan
includes
actions
aimed
at
enhancing
profitability through:
-
the reduction of the amount of
non-performing exposures, based on the plan submitted to the
Single Supervisory
Mechanism (SSM),
-
further reduction of operating costs,
-
interest income increase
through targeted financing of
business segments,
-
increase in commission income from
services and products offered
to individuals and
corporates and
………CONSOLIDATED
FINANCIAL STATEMENTS
AS AT 31.12.2021
156
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
the active management of the sources and the
financing costs of the Group.
The
main
categories
of
deferred
tax
assets
which
have
been
recognized
by
the
Group
relate
to
losses
from
the
Greek
government
bonds
exchange
program
(PSI)
and
the
December
2012
Greek
government
bond
buyback
program
and
to
deductible temporary differences arising from
loans’ impairment.
Deferred tax assets associated with tax losses incurred by the PSI and the participation of the Bank in the December 2012
Greek government bond buyback program
were recognized as a “debit difference” according
to Law 4046/14.2.2012, Law
4110/23.1.2013
and a
respective
legal opinion.
According
to Law
4110/23.1.2013
the “debit
difference”
is deductible
for
tax purposes, gradually in equal installments, within 30 years, a fact
which, according to the Group’s estimation, provides a
sufficient time period
for its
gradual utilization against
taxable profits.
Regarding
the
temporary
differences
arising
from
loans’
impairment,
there
are
no
time
constraints
concerning
their
recovery,
as is the
case for
the other
deferred tax
assets categories.
The Group
assessed their
recoverability
based on
estimates for
future taxable profits, as
these are forecasted on the
basis of the aforementioned
business plan. In order to
assess deferred tax
asset recoverability,
the Group’s business
plan was extended
for a limited
number of years
during which
estimates were
made
regarding the production
of new loans
and the evolution
of the
operating results.
In addition,
tax losses
resulting from
the write-down
of debts and
the sale
of loans,
as specifically
mentioned in
note 13,
are
recognized
as a
debit
difference.
In this
context,
during
the period
a significant
amount
of this
kind
of debit
difference
was
recognized
due
to
the
securitization
of
loans
under
Cosmos
transaction.
It
is
noted
that
the
debit
difference
is
recognized
gradually and
equally over
a period of
20 years, a
fact which in
accordance with
Group’s estimations
provides sufficient
time
for
offsetting
against
taxable
profits.
In addition,
in accordance
with
the amendment
of article
27 of
L.
4172/2013
that
was
enacted during the
year, the amount
of the annual deduction
of the debit difference
due to credit risk
that is not offset
against
the taxable profits of the year is transferred in order to be deducted
in subsequent tax years within the twenty-year
period. If at
the end of the twenty-year
depreciation period
there are balances that have
not been offset, they constitute
a loss that can be
carried forward in
order to be
offset with future taxable
profits within five
years.
The
Group,
based
on
the
above,
estimates
that
the
total
deferred
tax
assets
recognized
and
that
relate
to
temporary
differences and
to tax
losses carried forward
is recoverable.
In addition,
and regardless of
the assessment
of the recoverability
of deferred tax
assets that
is carried out
based on what
is
mentioned
above, Law
4303/2014 provides
that in
case that
the after
tax accounting
result for
the period
is a
loss, deferred
tax assets arising from the PSI
debit difference and from the accumulated provisions and other general losses due
to credit risk
are eligible to be converted into a
final and settled claim against the
Greek State, as described in detail in
note 13.
The main
uncertainties concerning
the estimations
for the recoverability
of the deferred
tax assets
relate to the
achievement
of
the
goals
set
in
the
Group’s
business
plan,
which
is
affected
by
the
general
macroeconomic
environment
in
Greece
and
internationally. These goals mainly concern the reduction of non-performing exposures, the production of new loans as well as
the evolution of operating results. At each balance sheet date,
the Group reassesses its estimation regarding the recoverability
of deferred tax
assets in conjunction with
the development of
the factors that
affect it.
The estimates and judgments applied by the Group in making decisions and in preparing the financial statements
are based
on historical information and assumptions which at
present are considered appropriate. The estimates and judgments are
reviewed on an ongoing basis in order to take into account current conditions,
and the effect of any changes is recognized in the
period in which
the estimates are revised.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
157
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
CORPORATE
TRANSFORMATION
–
HIVE
DOWN
The demerger by way of hive-down of the banking business sector
resulted in the incorporation of a new company (under
the name Alpha Bank
S.A.) which assumed
all the activities of the
Company relating to the
banking sector. It is
therefore
considered
as
business
combination
between
entities
under
common
control,
Alpha
Bank
S.A.
is
the
subsidiary
of
the
Company which in turn
becomes into a Holding
entity under the
name Alpha Services and
Holdings S.A.
The
respective
transaction,
as
business
combination
between
entities
under
common
control,
is
scoped
out
of
the
provisions
of
IFRS
3 “Business
Combinations”.
In
addition,
since
Alpha
Bank
S.A.
is a
newly
established
entity,
it
cannot
be
considered
as the
acquirer in
the transaction
and therefore
the demerger
cannot be
considered
as a
business
combination
but as
a
reorganization within the
Group.
In
accordance
with
the
accounting
policy
of
the
Group,
the
transactions
between
group
entities
that
involve
the
incorporation
of new
entities to
which the
assets and
liabilities
of a
sector of
another group
entity are
transferred
at their
book values in
the books of the
transferring entity.
Furthermore, information
from the date of
the intragroup reorganization
and onwards will be included in
both separate and consolidated financial statements of Alpha Bank
S.A.
In this context the accounting treatment of the Demerger involved the following:
i.
Based on the Demerger Deed, Alpha Services and Holdings S.A maintained the activities relating to the planning,
promotion and distribution of insurance products in the capacity of the insurance agent, as well as the provision of
accounting and tax services to affiliated companies and third parties, as well as the preparation of studies for strategy
and financial management purposes and the issuance of securities for raising regulatory capital.
It also maintained
certain investments in subsidiaries relating to the above operations and more specifically to: Alpha Group Jersey Ltd,
Alpha Insurance
Brokerage
S.A., Alpha
Life AAEZ,
Reoco Orion
X S.M S.A.,
Reoco Galaxy
IΙ S.M S.A.,
Reoco Galaxy
ΙV S.M
S.A. Finally,
it retained
the contractual
rights and
obligations
relating to
subordinated
issues and
borrowing
funds to
Alpha Group Jersey Ltd
as well as of the bonds issued under
the Galaxy securitization
with the exception of the 100%
of the senior bonds and the 5%
of the mezzanine and junior tranches which were transferred to Alpha Bank
S.A. Due to
the
holding
of
the
aforementioned
notes
and
in
accordance
with
IFRS
9,
Alpha
Services
and
Holdings
S.A
continued
to
recognize in
its books
the Galaxy related
securitized loans.
ii.
The assets
and liabilities
which
were not
maintained
by Alpha
Services
Holdings
S.A. and
which were
determined
to relate
to the
banking sector were
transferred to Alpha
Bank S.A. at
book values.
iii.
Alpha Bank recognized the bonds that were transferred due to the demerger as Loans and advances to customers, as
the intention is to hold the notes until maturity in order to collect principal and interest, the risks associated with these
bonds as well as the management of such risks relate to the risks of the underlying loans which were originated by the
Alpha Bank
prior to demerger
and were subsequently
securitized under
Galaxy and
also
Alpha Bank
S.A. is the
successor
of Alpha Bank
prior to demerger
as far as
the banking sector activities
ae concerned. In contrast
the bonds of
the Galaxy
securitization,
which were
not transferred
to Alpha Bank
S.A., but
were held by
the Alpha Services
and Holdings
S.A, were
classified as Investment securities as the intention of the Company is
to sell and distribute them.
iv.
Alpha Bank S.A.
recognized on
its balance sheet
the assets,
liabilities and
equity reserves
transferred based
on their
carrying amount as at 16.4.2021 and any difference between the carrying amounts of assets and liabilities transferred
between 30.6.2020 and 16.4.2021 was recognized directly in retained earnings.
Accordingly, Alpha Services and
Holdings S.A.
recognized
as cost of
investment in
Alpha Bank
S.A., the
difference between
the book value
of the assets
,
liabilities and equity accounts transferred
to Alpha Bank
S.A. taking into
consideration the liability recognized from
Galaxy
securitization due to the transfer to
Alpha Bank S.A of
part of the bonds issued
for the securitization purposes.
v.
The equity of
Alpha Bank S.A, at
the date of
the demerger, comprises of
the share capital as
this was determined based
on the Transformation Balance sheet prepared based on Law 2515/1997 and Law 4601/2019 and includes
all assets
and liabilities of the Banking sector as at 30.6.2020, the valuation reserves of bonds and shares, the cash flow hedging
reserves and the
retained earnings.
The table below presents the assets, liabilities and equity reserves transferred to the Bank, at
hive-down date, the required
adjustments
in the context
of the application
of the accounting
treatment as
well as the
statement of
financial position
of
the Bank
and the Company
at the
same date.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
158
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
(a)
(b)
(c)= (a)+(b)
(d)
(e)
(f)= (d)+(e)
(g)= (c)-(d)
(h)
(i)
(k)= (g)+(h)+(i)
Alpha Bank
prior
demerger
Cancellation
of
Galaxy
securitization
off-set
Balances
excluding
Galaxy’s
securitization
off-set
Assets
transferred
to Alpha
Bank S.A.
Initial
recognition of
assets
transferred to
Alpha Bank S.A.
and
reclassifications
Alpha
Bank
S.A.
Assets not
transferred to
Alpha Bank
S.A.
Recognition
of
Alpha Services
and Holdings
S.A.
participation to
Alpha Bank S.A.
Initial
recognition of
assets remained
under Alpha
Services and
Holdings S.A.
and
reclassifications
Alpha Services
and Holdings
S.A.
ASSETS
Cash
and
balances
with
central
banks
7,265,548
7,265,548
7,265,548
7,265,548
-
Due from banks
3,877,744
3,877,744
2,384,199
(3)
1,493,545
3,877,744
1,493,545
1,493,545
Trading securities
15,725
15,725
15,725
15,725
-
Derivative financial assets
1,098,977
1,098,977
1,098,977
1,098,977
-
Loans and
advances
to customers
35,058,719
(48,581)
35,010,138
28,987,449
(2)
3,841,587
32,829,037
6,022,689
6,022,689
Investment securities
-
- Measured
at fair value
through
other comprehensive
income
4,846,802
318,628
5,165,430
4,846,802
4,846,802
318,628
(1)
(318,628)
-
- Measured at amortised
cost
3,267,461
3,795,340
7,062,801
7,062,801
(2)
(3,795,340)
3,267,461
-
- Measured
at fair value
through
profit or loss
217,246
2,144,967
2,362,213
324,495
(2)
(107,248)
217,246
2,037,719
(1)
(2,037,719)
-
Investments in associates
and joint
ventures
2,497,861
2,497,861
2,465,081
2,465,081
32,780
5,007,471
(61,001)
4,979,250
Investment property
45,379
45,379
45,379
45,379
-
Property, plant and equipment
630,448
630,448
630,440
630,440
8
8
Goodwill and other
intangible
assets
420,780
420,780
420,378
420,378
402
402
Deferred tax assets
5,279,400
5,279,400
5,336,251
4,569
5,340,821
(56,851)
56,851
-
Other assets
1,380,268
1,380,268
1,337,001
1,192
1,338,193
43,267
43,267
65,902,358
6,210,354
72,112,712
62,220,526
1,438,305
63,658,832
9,892,187
5,007,471
(2,360,497)
12,539,161
Assets classified
as held
for sale
79,391
79,391
79,391
79,391
Total Assets
65,981,749
6,210,354
72,192,103
62,299,917
1,438,305
63,738,223
9,892,187
5,007,471
(2,360,497)
12,539,161
LIABILITIES
Due to banks
14,676,759
14,676,759
14,676,759
14,676,759
-
Derivative financial
liabilities
1,471,483
1,471,483
1,471,483
1,471,483
-
Due to customers
39,326,704
238,183
39,564,887
39,564,887
(3)
1,493,545
41,058,432
-
Debt securities in issue
and other
borrowed funds
1,521,698
5,975,438
7,497,136
504,879
504,879
(4)
6,992,257
(2,417,348)
4,574,909
Liabilities for current
income tax
and other taxes
86,824
86,824
985
4,569
5,555
85,839
85,839
Deferred tax liabilities
-
-
56,851
56,851
Employee
defined
benefit
obligations
36,923
36,923
36,912
36,912
11
11
Other liabilities
910,404
(3,267)
907,137
907,093
1,192
908,285
44
44
Provisions
284,393
284,393
284,366
284,366
27
27
Total Liabilities
58,315,188
6,210,354
64,525,542
57,447,364
1,499,306
58,946,671
7,078,178
(2,360,497)
4,717,681
Total Equity
7,666,561
7,666,561
(154,918)
4,946,470
4,791,552
7,821,480
-
-
7,821,480
Total Liabilities
and Equity
65,981,749
6,210,354
72,192,103
57,292,446
6,445,776
63,738,223
14,899,658
-
(2,360,497)
12,539,161
(1)
The
amount
relates
mainly
to
the
nominal
value
of
95%
of
the
Mezzanine
and
Junior
notes
and
the
100%
of
the
issues
from
Galaxy
III
Funding
Designated
Activity
Company of
Galaxy securitization
held by
Alpha Services
and Holdings
S.A.
(2)
The amount relates
mainly to the securitization
Galaxy bonds, which
were held by
Alpha Bank S.A. and
relate to the
100% of the Senior
and 5% of the Mezzanine
and Junior
securitization notes
of Galaxy securitization.
The amount in “Loans
and Advances to
customers” includes
the fair value adjustments
at
initial recognition
of €
61,001.
(3)
The amount concerns mainly the deposits of Alpha Services and Holdings S.A. with Alpha Bank S.A.
(4)
The amount
relates
mainly
to
a) the
nominal
value
of
Tier II
bonds
held
by
Alpha
Services
and
Holdings
S.A.
and
the
financial
liabilities
mainly
from
the
senior
notes
transferred
It should be noted that since
the above transaction is
considered as intragroup,
there was no effect in the
consolidated financial
statements of Alpha
Services and Holdings
S.A.
Certain balances
in the assets
and liabilities
that were transfe
rred at the
demerger date
to the Bank
have been
restated in
relation to the
respective balances
presented in the
semi-annual financial
statements as
of 30.6.2021 due
to a) the change
in accounting policy for the employee
defined benefit obligations
(note 50) and b) the finalization of the
fair values of the net
assets of Acarta
(note 40).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
159
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
INCOME
STATEMENT
2.
Net interest income
From 1
January to
31.12.2021
31.12.2020
as restated
Interest and similar income
Due from banks
2,470
1,914
Loans and advances to customers measured
at amortized cost
1,333,211
1,563,766
Loans and advances to customers
measured at fair value through profit
or loss
8,403
13,020
Trading securities
(Note 17)
(97)
177
Investment securities
measured at fair value through other
comprehensive
income (Note 20a)
59,523
102,605
Investment securities
measured at fair value through
profit or loss (Note 20b)
964
944
Investment securities
measured at amortized
cost (Note 20c)
40,566
39,467
Derivative financial instruments
176,587
201,037
Finance lease
receivables (Note
19)
13,479
10,819
Negative interest
from interest bearing
liabilities
251,178
121,144
Other
1,255
2,060
Total
1,887,539
2,056,953
Interest expense
and similar
charges
Due to banks
(9,326)
(22,039)
Due to customers
(57,652)
(110,710)
Debt securities in issue and other borrowed funds
(60,279)
(37,119)
Derivative financial instruments
(177,216)
(198,160)
Lease liabilities (note
32)
(2,562)
(4,299)
Negative interes
t
from interest bearing
assets
(142,827)
(89,327)
Other
(61,781)
(67,952)
Total
(511,643)
(529,606)
Net interest income
1,375,896
1,527,347
During 2021, net interest income decreased compared
to 2020, mainly due to the reduction in interest income from loans, due
to the
derecognition of the
Galaxy perimeter loans,
as well
as the
decrease in interest
rates.
The
aforementioned
decrease
was
partially
offset
by
the
recognition
of
additional
interest
income
€ 88,368
for
the
program
TLTRO
III,
relating
to
the
period
from
24,06,2020
to 31,12,2021
as
detailed
in
note
16
and
is
included
in
the
line
“Negative
interest
from
interest
bearing
liabilities”
and
the
decrease
in
the
interest
expense
Due
to
customers
mainly
because
of
a
decrease in interest
rates.
The
following
table presents
interest
income
and interest
expense
calculated
using
the effective
interest
rate
method, by
financial asset measurement
category:
From 1
January to
31.12.2021
31.12.2020
as restated
Financial assets measured at amortised cost
1,330,434
1,588,401
Financial assets measured at fair value through other comprehensive
income
59,523
102,605
Financial assets measured
at fair value through profit or loss
9,270
14,141
Total
1,399,227
1,705,147
Financial liabilities measured
at amortised cost
32,765
(120,746)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
160
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
161
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
3.
Net fee
and commission
income
and other
income
Net fee and commission
income
From 1
January to
31.12.2021
31.12.2020
as restated
Loans
58,830
45,435
Letters of guarantee
40,996
43,544
Imports-exports
6,003
5,565
Credit cards
92,518
72,656
Transactions
46,136
41,255
Mutual funds
65,141
41,304
Advisory fees
and securities
transaction fees
5,259
2,428
Brokerage services
8,021
8,194
Foreign exchange fees
19,543
16,909
Insurance brokerage
27,533
18,243
Other
30,390
36,325
Total
400,370
331,858
Net fee and
commission
income for
2021 icludes
commission fee
amounting to
€ 10
million received
by the
Bank from
AXA
Mediterranean
Holding
S.A.,
which
is
the
parent
company
of
AXA
Insurance
S.A.
due
to
early
termination
of
bankassurance
agreement following to the disposal of the latter to Generalli, the increase
in the commission fee from Mutual Funds and Credit
Cards
due to
the increase
in the
volume
of transactions
and the
increase
in the
commission
fee from
loans mainly
deriving
from commissions received for the arrangement of bond and syndicated loans.
Net fee and
commission income
for 2020 includes
a commission of
€ 11.8 million
received by the
Group for the
modification of
collateral agreement
(CSA agreement) of
amount € 11.8 million which is included
in caption “Other”.
It is
noted
that commission
income
from
loans,
for the
year 2021,
includes
an
amount
of of
€ 58,943
(31.12.2020:
€ 45,477)
which relates to
loans and advances to
customers measured at
amortized cost.
Fee and commissions
and other income
The table below presents, per
operating segment, the income from contracts, that
fall within the scope
of IFRS 15:
From 1 January
to 31.12.2021
Retail
Banking
Corporate
Banking
Asset
Management/
Insurance
Investment
Banking/
Treasury
South-
Eastern
Europe
Other /
Elimination
Center
Group
Fee and commission income
Loans
7,964
33,410
63
17,760
768
59,965
Letters of guarantee
2,147
35,441
1
1,606
1,801
40,996
Imports-exports
1,333
4,434
-
1
234
6,002
Credit cards
101,464
38,151
1
371
12,055
152,042
Transactions
22,837
8,327
526
1,261
13,185
46,136
Mutual funds
-
-
65,044
90
7
65,141
Advisory
fees
and
securities
transaction
fees
-
1,153
-
3,772
335
5,260
Brokerage services
-
-
-
9,609
187
9,796
Foreign exchange fees
13,712
4,070
34
1,030
697
19,543
Insurance brokerage
24,474
-
-
-
3,060
27,534
Other
5,459
4,254
12,723
118
11,634
205
34,393
Total
179,390
129,240
78,392
35,618
43,963
205
466,808
Other income
Hotel services
-
-
-
-
-
-
-
Gains from disposal of fixed assets
-
457
-
-
2,903
5,428
8,788
Other
10,781
80
-
1,518
2,589
5,134
20,102
Total
10,781
537
-
1,518
5,492
10,562
28,890
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
162
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
161
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
From 1
January to
31.12.2020
as restated
Retail
Banking
Corporate
Banking
Asset
Management/
Insurance
Investment
Banking/
Treasury
South-
Eastern
Europe
Other /
Elimination
Center
Group
Fee and commission income
Loans
7,247
31,075
392
6,888
774
46,376
Letters of guarantee
2,161
37,969
1
1,511
1,902
43,544
Imports-exports
1,191
4,265
-
1
108
5,565
Credit cards
79,841
29,096
-
208
9,622
118,767
Transactions
19,758
8,733
348
1,164
11,253
41,256
Mutual funds
-
-
41,200
97
7
41,304
Advisory
fees
and
securities
transaction
fees
-
550
92
1,596
190
2,428
Brokerage services
-
-
-
9,368
174
9,542
Foreign exchange fees
11,405
4,023
29
982
469
16,908
Insurance brokerage
14,828
3,414
18,242
Other
5,347
3,579
10,251
11,802
9,958
40,937
Total
141,778
119,290
52,313
33,617
37,871
-
384,869
Other income
Hotel services
-
-
-
-
311
-
311
Gains from disposal of fixed assets
-
52
-
-
1,548
2,723
4,323
Other
9,062
25
83
993
1,947
7,165
19,275
Total
9,062
77
83
993
3,806
9,888
23,909
“Other income”
line of the
Income Statement
includes additionally
income form
insurance activities,
income from
insurance
indemnities and operating lease income,
which are not presented in the above table since they do not fall within the scope of
IFRS 15.
4.
Dividend income
From 1 January to
31.12.2021
31.12.2020
Equity securities of trading
portfolio
21
8
Equity securities of investing portfolio
measured at fair value through other Comprehensive
Income (note 20)
1,707
2,450
Equity securities measured
at fair value through profit or loss
97
500
Total
1,825
2,958
5.
Gains
less losses
on financial
transactions
From 1 January
to
31.12.2021
31.12.2020
as restated
Foreign exchange differences
30,448
23,999
Trading securities:
- Bonds
623
1,955
- Equity securities
330
(1,042)
Financial assets measured
at fair value through profit or loss
- Loans
(61,385)
(18,037)
- Equity securities
5,720
64,942
- Bonds
5,394
422
- Other securities
7,745
(16,006)
Financial assets measured at fair value through other comprehensive
income
- Bonds and treasury bills
142,211
465,782
Impairments / Sale
of investments
102,335
1,902
Derivative
financial instruments
14,313
(22,348)
Other financial instruments
(29,645)
14,223
Total
218,089
515,792
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
162
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
“Gains less losses on financial
transactions” for the year 2021
has been mainly affected by
the following:
•
Losses of
€ 61,385 included
in Loans
of “Financial
Assets
measured
at Fair
Value Through
Profit or
Loss” mainly
derived
from the
fair valuation adjustments
within the year.
•
Gains of € 142,211 included in “Bonds and treasury bills” of financial assets measured at fair value through other
comprehensive
income
relating
to
gains
from
sales
of
Greek
Government
bonds
and
treasury
bills
amounting
to
€ 132,638
and gains
from other
corporate bonds amounting
to €
9,573.
•
Gains of € 4,219 included in “Impairments / Sale of investments” relates to the sale of 100% of shares of the Group’s
subsidiary Alpha Investment
property Attikis II
A.E.
•
Losses of € 8,230 included in “Impairments / Sale of investments” relates to the sale of 100% of shares of the Group’s
subsidiary Alpha
Investment Property Kefalariou
A.E.
•
Gains of € 111,296 included in “Impairments / Sale of investments” relates to the result from the sale of Cepal Holdings
Single Member
S.A. (80%)
to Davidson
Kempner
Capital
Management
LP in
the context
of the
Galaxy transaction,
(note 40).
•
Gains of € 9,601 included in “Derivative financial instruments” relating to the Credit Valuation Adjustment for transactions
with Greek State.
•
Losses of € 22,741 included in “other financial instruments” which mainly relates to the estimation of provisions
for
indemnities included in the share transfer agreement of
Cepal Holdings A.E.
6.
Gains
less
losses
on derecognition
of financial
assets
measured
at amortised
cost
The
tables
below
present
gains
less
losses
for
the
year
2021
and
2020
from
derecognition
of
financial
assets
measured
at
amortised cost
as well
as their
carrying amount
before derecognition.
From 1 January
to 31.12.2021
Carrying Amount
(Losses) from
derecognition
Gains
from
derecognition
Gains
less
losses
from derecognition
Early repayments
- Loans and advances to customers
2,009,030
(3,176)
5,527
2,351
Sales
- Loans and advances to customers
7,464,441
(2,261,100)
132
(2,260,968)
- Securities
148,097
(2)
10,481
10,479
Substantial modifications
- Loans and advances to customers
1,139,566
(5,082)
5,349
267
Total
10,761,134
(2,269,360)
21,489
(2,247,871)
From 1 January
to 31.12.2020
Carrying Amount
(Losses) from
derecognition
Gains
from
derecognition
Gains
less
losses
from derecognition
Early repayments
- Loans and advances to customers
1,749,808
(2,723)
3,245
522
Sales
- Loans and advances to customers
271,316
(635)
1,417
782
- Securities
595
14
14
Substantial modifications
- Loans and advances to customers
265,126
(4,116)
5,474
1,358
- Securities
1,941,392
170,526
170,526
Total
4,228,237
(7,474)
180,676
173,202
“Early repayments” includes gains and losses
that arise from the recognition in the income statement of the unamortised
amounts of capitalized commission and fees from loans and advances to
customers that were early repaid.
“Sales” include the
following:
a)
loans that were sold during the years
2021 and 2020, part of which had been classified as Assets held for sale during
previous periods and relate mainly
to loans included in
the perimeter of the
Galaxy and Cosmos transactions (note 48),
b)
securities that were sold during the year 2021.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
163
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
“Substantial modifications” include the following:
a) the carrying
amount of loans
that were derecognized
during the years
2021 and 2020
due to substantial
modification of
their contractual terms,
as well as the related profit
or loss from their derecognition
and any valuation adjustment
in the fair
value of the
newly recognized loans.
7.
Other income
From 1 January
to
31.12.2021
31.12.2020
as restated
Insurance
activities
(18,482)
(12,677)
Hotel activities
311
Operating lease
income
12,489
10,211
Sale of fixed assets
8,787
4,323
Other
20,823
19,773
Total
23,617
21,941
Operating lease income for the year includes an amount
of € 1,316 relating to income from subleases.
Income
from
insurance
activities
is
analyzed
as
follows:
From 1 January to
31.12.2021
31.12.2020
Insurance
Activities
Premiums and other related income
159,003
124,448
Less:
- Commissions
(1,089)
(673)
- Claims paid and
technical provisions
(176,396)
(136,452)
Total
(18,482)
(12,677)
8.
Staff costs
and expenses
for separation
schemes
a. Staff
costs
From 1 January
to
31.12.2021
31.12.2020
as restated
Wages and salaries
295,217
311,706
Social security
contributions
66,542
76,006
Employee defined benefit
obligation of the Group (note 31)
192
(120)
Employee indemnity
provision due to retirement
based on Law 2112/1920
(note 31)
8,712
9,031
Compensation
due to staff separation
9,306
9,031
Cost of staff transferred to Cepal subsidiary
-
19,085
Other charges
26,777
29,025
Total
406,746
453,764
The total number of
Group’s employees as
at 31.12.2021 was
8,939 (31.12.2020: 10,528)
out of which 5,931 (31.12.2020:
7,510) are employed in Greece and 3,008 (31.12.2020: 3,018) are
employed abroad.
During 2021 wages and salaries as well as social security contributions
decreased compared to 2020, mainly as a result of the
completion of the employee separation scheme of the Bank and the group subsidiary Alpha Bank Cyprus Ltd in 2021 and 2020
respectively, and
also the reduction
of social security
contributions due
to decrease in the
respective rates
as well as the sale
of the
subsidiary company Cepal.
“Wages
and salaries”
and “Social
security
contributions”
include
costs relating
to staff
incentive
schemes
as a
reward
on the
Group’s employees’ performance.
Based on the Board
of Directors decision held in
December 2020, the terms
of the existing
incentive programs are as follows:
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
164
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Award in cash
According to the terms of the
programs, this award is paid in
a lump sum by
the Group while the relevant expense is
recognized
at the time the employee has
the right to receive this remuneration
or, if the remuneration depends
on performance targets, at
the time of
their achievement.
For a
part of
the staff,
the benefit
is paid
in a
lump sum
of up
to 60%
while the
payment of
at least
40% is
deferred
for three
years
from
the
initial
payment
subject
to
the
condition
that
the
employee
will
remain
with
the
Group,
The
recognition
of
the
expense
relates
to
the
amount
the
payment
of
which
is
deferred
for
three
years,
is
recognized
as
the
related
services
are
provided.
The Group
has
recognized
in “Wages
and
Salaries”
an amount
of €
12,139
(31.12.2020:
€ 10,719),
relating
to these
programs.
Awarding of stock options rights
The Annual General
Meeting of shareholders
of 31.7.2020 approved a
five year Stock Option plan
which provides the right
to
acquire
newly –
issued
shares of
the Bank
by awarding
of stock
options
rights to
management
and employees
of the
Bank
and
its related
entities.
The plan
concerns
the period
2020-2024
and according
to that
the beneficiaries
may exercise
their
right
to
acquire
each
new
share
with
an
offer
price
equal
to
the nominal
value
of
the
share,
i.e.
€ 0.30.
The
General
Meeting
of
shareholders
also approved
the assignment
to the Board
of Directors
of the responsibility
to determine
the beneficiaries,
the
terms of options’ awarding, as well as any other term and condition related
to the plan, in accordance with the applicable legal
and regulatory framework
and Bank’s policies.
Within the first
year from the
date the reward
is awarded, beneficiaries
may exercise 60%
of their total
option rights while
for
each one of the following three
years they may exercise 13.3% of
those, subject that they will remain
in service. The exercise
of
the
option
rights
is conducted
in
January
or September.
Options
that
are
not
exercised
are
no
longer
valid.
Also,
in
the
case
that
some
of the
beneficiaries
ceases
to be
an
employee
or executive
of the
Group
(for reasons
other
thatn
retirement
or
inability
to work)
the right
to purchase
shares
ceases.
Following
the exercise
of the
Options
Rights,
the
New
Shares
are
subject
to a
mandatory twelve (12)
months retention period.
The Board
of Directors
of the
Company,
at its
meeting held
on 30.12.2020:
(a) approved
the Plan’s
Regulation
(b) awarded
Stock Options
Rights under the
Performance Incentive
Program for the
fiscal years 2018
and 2019 to identified
employees of
the Bank and
its related entities.
In this context, for the years 2018 and 2019, the total number of options
rights granted and can be exercised within the peri
od
2021-2024, equals
to 4,126,394,
each of
which corresponds
to one (1)
New Share,
i.e. in case
that all Option
Rights will
be
exercised,
an
amount
of up
to a
total
of 4,126,394
newly
– issued
common,
registered
shares
of the
Bank
with
a nominal
value of Euro
0.30 each will
be issued.
Exercise period
Total maximum
number of
exercised options
January 2021
2,563,945
January 2022
552,818
January 2023
552,890
January 2024
476,741
Total
4,146,394
For the options
for which the
exercise period
is January 2021,
there are no
specific vesting
conditions at
the time of
awarding,
while for the rest of the
options the condition to remain under the Bank employment is
prerequisite.
In addition to the above, the Board of Directors of the Company during its meeting on 16.12.2021
granted the Options rights,
within the Performance Incentive Program for the year 2020 to
specific Members of the Bank and its
Affiliates.
In this
context, for
the fiscal
year 2020,
the number
of Options,
granted and
can be
exercised within
the period
2022-2025
equals to 5,297,802 each of which
corresponds to one (1) New Share, i.e.
in case all Option
Rights are exercised, up to a
total
of 5,297,802 newly issued common, registered, multiple Shares will be available, with a
nominal value of Euro 0.30 each.
It
is
noted
that
under
the
Performance
Incentive
Program
for
the
year
2020,
3,612,094
options
rights
were
granted
to
Senior
Executives,
the exercise
of which
is subject
to the
postponement
of the
amendment
or repeal
of the
provisions
for the
prohibition
of additional
remuneration,
which were
introduced
of article
10 par,
3 of
the law
on the
Financial
Stability Fund
and which
should
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
165
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
enter
into
force,
within
a
period
of
two
(2)
years,
which
begins
on
January
15,
2022
and
ends
on
January
15,
2024.
Respectively
based on
the postponement
periods of
each Program,
the Exercise
Periods were
defined as
follows:
Exercise period
Total maximum number of
options that may
be exercised
by
Group
Companies
January 2022
3,178,645
January 2023
706,351
January 2024
706,351
January 2025
706,455
Total
5,297,802
For the options
for which the
exercise period
is January 2022,
there are no
specific vesting
conditions at
the time of
awarding,
while for the rest of the
options the condition to remain under the Bank employment is
prerequisite.
Variations to the number of
existing options during the fiscal year
are shown in the
table below:
Balance 1.1.2021
4,146,394
Options Rights
awarded during
the year
5,296,625
Options Rights
canceled during
the year
due to
non-registered
(76,838)
Options Rights exercised
during the year
(2,281,716)
Options Rights expired
during the year
(282,229)
Balance
31.12.2021
6,802,236
The
price
of
the
Company’s
share
at
the
time
of
exercising
the
Options
rights
amounted
to
€ 0.77.
The Periods for the Exercise
of the active rights
on 31.12.2021 are depicted below.
The weighted average lifespan of the above rights is
19.5 months.
For the Options rights awarded on
31.12.2021 with an exercise date
of January 2022, the fair value was determined
as the
difference between the share price on 31.12.2021, which is the date of issue, and the exercise price. A similar methodology
was applied for the rights awarded on 31.12.2020 with an exercise date of
January 2021.
For the rest of Options righ
ts the fair value was determined
using the Black & Scholes
valuation model. The key variables
that
used in the
model, as presented
in the table
below, are
the share price,
the exercise
price, the
volatility of
the share price
as
well as the
remaining duration
until the expiration.
Historical volatility
has been used
as volatility i.e.
the standard deviation
of
the logarithmic changes of the daily share price for
a period equal to the
remaining duration of each right.
Options
under
the
Performance
Incentive
Program for the years
2018 and 2019
Options, under
the Performance
Incentive
Program for the year 2020
Average weighted value
0.7
0.79
Expected volatility
72.23%
58.20%
Expected duration (in
years)
2
2
Weighted average
share price
0.9702
1.077
Exercise price
0.3
0.3
Expected dividends
No-risk interest rate
(0.52)%
(0.48)%
Exercise period
Total maximum
number of
exercised
options
January 2022
3,703,742
January 2023
1,232,064
January 2024
1,160,132
January 2025
706,298
Total
6,802,236
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
166
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The weighted average fair value of the rights granted during
the year under the Performance Incentive
Program for the year
2021 amounted to
€ 3,083
(31.12.2020: €
1,667).
As at 31.12.2020,
the caption “Cost
of staff transfered
to Cepal subsidiary”
relates to the
compensation to
the Bank’s staff,
in
the context
of the transfer
of the Bank’s
Non-performing
Management Activity
(carve-out), to
its subsidiary
Cepal Hellas
S.A.
(“Cepal”) as detailed
described in note
40. The voluntary
termination of the employment
contract required
the payment by
the
Bank of
an amount
equivalent to
ten (10)
gross monthly
salaries, as
these would
be determined
on 1.12.2020
based on
the
provisions of the Sectoral Collective Agreement OTOE - Banks
2019 -2021 (basic scale) with a minimum limit of € 25,000. The
abovementioned
amount,
includes
cost
for
the
compensation
of
senior
executives
transferred
to
Cepal
Hellas
S.A.
as
described
below in the
relevant program.
Defined
contribution
plans
All the
employees
of the
Bank
are insured
for their
main
pension
plans
by the
Social
Insurance
Fund
(IKA-ETAM).
The Social
Insurance
Fund
(IKA-ETAM)
as
of
1.1.2017
consists
part
of
the
Single
Social
Security
Body
(E.F.K.A.),
a
Public
law
entity
established under the provisions of Law 4387/2016. In addition for the
Bank’s employees, the following also apply:
a.
Staff from the
former Alpha
Credit Bank
and the former
Emporiki Bank
are insured
for subsidiary insurance
at the E.T.E.A.E.P.
(Joint Supplementary
Insurance Fund
and Lump Sum Benefits),
as renamed on January
1, 2017 by E.T.E.A.
with Law
4387/2016.
Pre-retirement
pensioners
are insured
as of
1.1.2017
with the
Single Social
Security
Agency
(EFKA) under
the
same Law.
b.
The supplementary
pension plan for employees
of the former Ionian
and Laiki Bank of Greece
is T.A.P.I.L.T.A.T.,
a multi-
employer plan. The Bank has obtained legal opinions that indicate that it has no obligation if this fund does not have
sufficient assets to pay employee benefits. Therefore, the Bank considers that the fund is a defined contribution plan and
has accounted for
it as such.
c.
Employees of former Ionian and Laiki Bank of Greece and former Emporiki Bank are insured for the lump sum benefit in the
“Bank Employee
and Companies
Common Benefit
Plan” (T.A.Y.T.E.K.O.)
which is a
defined contribution
plan with contributions
paid only by employees. In accordance with article 74 of Law 4387/2016, the Care Sectors of the “Bank Employee and
Companies Common Benefit Plan” (T.A.Y.T.E.K.O.)
consist part of the E.T.E.A.E.P. (Joint Supplementary Insurance Fund and
Lump Sum Benefits).
With paragraph
5D, of article
2 of Law
4670 / 28.2.2020
the Sectors
of the former
T.A.Y.T.E.K.O
are
included in
the Sector
lump sum Benefits
of E.F.K.A.
d.
All employees
of the
Bank
receive
medical
benefits
from
the National
Organization
of Health
Care
(EOPYY)
and
either
in
the Care Sector of the
former T.A.Y.T.E.K.O.
or the former E.T.A.A.,
both of which have been
incorporated into
Single Social
Security
Body (E.F.K.A.)
since 1.1.2017.
e.
Retirement/Savings
Insurance
Plans
i)
The Bank,
in cooperation
with insurance
company,
has created
a savings
plan.
The plan’s
effective
date is
January
1,
2011 and its
aim is to
provide a lump
sum monetary benefit
to retiring
employees.
The plan assets consist of investment for
the fixed monthly contributions of the Bank and
its employees.
Initially the plan included Bank’s personnel that were hired and insured for the first time on 1.1.1993 and onwards. After
signing the Collective Labor Agreement
for the 3-year period of 2016-2019, the personnel
of the Bank may be included
in the savings
plan.
Except from those employees,
that were hired by the
Bank and were members
of the main pension scheme
for the period
from
1.1.1993
until 31.12.2004
for
which a
minimum
payment
guarantee
is required(Law
2084/1992),
for
the remaining
employees, the
plan is considered
to be a defined
contribution plan,
given that the
beneft is paid
out from a
savings fund
that was accumulated
up to the
date they leave.
ii)
Following the
Board of
Directors’
and General
Assebly’s
decision,
the Bank
provides
to its
senior management
a group
retirement and savings Insurance Plan with effect from 1.1.2018. The plan is a
defined contribution plan and aims
to
provide
a
lump-sum
benefit
upon
retirement.
The
savings
fund
sums
up
from
the
investment
of
defined
monthly
contributions paid by
the senior
management and
the Bank.
The
Bank’s
“Investment
Committee
for
group
insurance
employee
plans
of
Alpha
Bank”
is
responsible
for
determining
the
appropriate structure of the
portfolio of the
aforementioned saving plans.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
167
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Employee
defined benefit
obligations
Αn analysis of liabilities arising from defined benefit plans is
included in note 31.
b. Expenses
for employee
separation
schemes
From 1 January
to
31.12.2021
31.12.2020
Expenses for
employee separation
schemes
97,701
26,214
Total
97,701
26,214
According to the three-year Strategic
Plan for the period 2020-2022, as announced
on November 2019, a transformation
plan
in the entire network of branches and the
central units of the Bank is to be implemented,
with the objective of rationalizing
the
organizational structure of
all units
and the
decrease of
operational costs.
As
a
result
of
the
above,
the
Bank
recognized
a
provision
of
€
97,200
for
employee
separation
schemes
in
the
context
of
the
above objectives, as
stated in note
18.
Additionally,
on
29.6.2018
the
General
Assembly
of
Shareholders
approved
the
senior
executives’
compensation
plan,
a
benefit
which was further specified by a Regulation subsequently issued. It is
noted that the payment of the
benefit is voluntary,
does not constitute a business practice and may be terminated
in the future with the decision of the General Assembly of
Shareholders. The charge for the year 2021 for this program amounted to €
501 (31.12.2020: € 1,165).
In
October
2020,
Alpha
Bank
Cyprus
Ltd
implemented
a
Voluntary
Retirement
Plan,
which
provided
for
one-time
compensation
based
on
age,
years
of
service
and
annual
gross
income.
At
the
same
time,
additional
incentives
were
provided
by
increasing
the amount
of compensation
for specific
services. The
total cost of
the Voluntary
Exit Program,
which was
recognized in
the
results of the
fiscal year 2020,
amounted to €
26,214.
9.
General
administrative
expenses
From 1 January
to
31.12.2021
31.12.2020
as restated
Lease expenses
302
369
Maintenance of
EDP equipment
23,821
19,637
EDP expenses
28,438
24,635
Marketing and
advertising
expenses
22,663
19,699
Telecommunications
and
postage
15,736
15,876
Third party fees
77,903
69,975
Contribution to
the Deposit
/ Investment
Coverage Scheme
and to
the Resolution
Scheme
59,989
58,736
Services for collection
agencies
703
3,245
Consultants fees relating
to financial information
8,789
9,623
Insurance
10,649
10,046
Electricity
11,090
8,054
Building and equipment maintenance
7,804
7,575
Security of buildings-money transfers
14,170
14,017
Cleaning
4,694
5,433
Consumables
2,385
3,570
Commission for the amount of Deferred tax
Asset guaranteed by the Greek State (note 13)
5,086
5,296
Taxes and Duties (VAT, real estate tax etc,)
91,685
98,107
Other
94,280
90,373
Total
480,187
464,266
General
administrative
expenses
of
2021
have
been
increased,
compared
to
2020,
mainly
due
to
Cepal
Holdings
S.A.
which
was consolidated for first time
under the full consolidation
method in Q3 2020 and ceased
to be consolidated under the full
consolidation method in June
2021 following the
sale of 80%
of the company.
The
caption
“Lease
expenses”
includes
expenses
for
short-term
leases,
low
value
leases
and
variable
lease
payments
which
are not included
in lease liabilities.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
168
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
168
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
10.
Other expenses
From 1
January to
31.12.2021
31.12.2020
as restated
Losses from disposals/write
-off/impairment
on plant, property
and equipment,
intangible asse
ts and right-of-
use assets
116,742
23,140
Provisions (note
33)
6,753
10,422
Other
8,621
4,939
Total
132,116
38,501
“Losses from disposals/write
-off/impairments on
plant, property and
equipment, intangible
assets and rights
of use assets”
as
at 31.12.2021 includes the
following:
•
The Bank at the acquisition of
the banking activity of Citi and
the acquisition of Diners’ in 2014, recognized intangible assets
relating to customer relations as a result of the acquisition of the Wealth Management sector of Citi and credit card base of
Citi/Diners. The fair value of the intangible assets on initial recognition was € 83,073 while as at 31.3.2021 their net book
value was €
16,217.
Recently, the
external events
(pandemic Covid
-19), the internal
initiatives taken,
such as the
restructuring of
the Bank’s
service
and
sales
channels,
the
acceleration
of
rebalancing
of
customer
portfolios
in
the
context
of
coping
with
the
pandemic and
the expected
business changes
of the transformation
plan, resulted
in a substantial
diversification
of the
customer base
management in
comparison with
previous years.
In addition, following
initial recognition
of the intangible
assets,
the
Bank
has
established
its
cooperation
with
the
Citi
customer
base
through
new
contractual
relationships,
diversification of products, services and pricing, resulting in
a significant decrease in the
distinction between the two.
The above were considered
triggers and an impairment
test was performed
on 31.3.2021 from which
it derived that it wzas
no longer
possible to
distinguish the
future economic
benefits that
are expected
to flow
from the
above intangible
assets,
and they were
therefore fully impaired.
•
An impairment of € 10,366 relating to information
technology applications
the use of which was terminated
during the
second half of 2021, following a decision to
be replaced by other existing systems.
•
The Group proceeded with an additional
impairment of € 15,146 which relate to IT applications that based
on the
framework of the Transformation Plan were deemed to no longer meet the new business requirements. The amount of the
impairment was determined taking into account the decision to
cease the use or
replace existing with new IT applications as
well as the estimated replacement time. For those IT applications that were not fully impaired,
their useful life was adjusted
based on
the expected replacement
date.
•
Impairment of an amount of
€ 65,693 related to the impairment loss recognized
on the real estate properties that
are
related to the non-performing collateralised loans (“Sky” project) as it is
further described in note 48.
•
Impairment
losses of owned used assets, investment property
and intangible assets other than those already
referred
above in
the context
of Sky
transaction amounted to
€ 7,161.
•
Losses losses of disposal/destruction of assets amounted to € 2,159
The
aforementioned
impairment
losses
and
losses
from
disposals
of
assets
are
included
in
the
operating
segment
“Other/Elimination Center” in
note 23
“Operating segments”.
“Provisions”
relate to
provisions
for legal
cases against
the Bank
and its
subsidiaries.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
169
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
11.
Impairment
losses
and provisions
to cover
credit
risk on
loans
and
advances
to
customers
and related expenses
“Impairment
losses
and
provisions
to
cover
credit
risk
and
related
expenses”
for
year
2021
amounted
to
€
1,433,013
(31.12.2020:
€ 1,318,984)
and
include
the
total
of
the
captions
presented
in
the
table
below,
along
with
the
impairment
losses on
other financial
instruments, as presented
in note
12.
The
following
table
presents
the
impairment
losses
and
provisions
to
cover
credit
risk
on
loans
and
advances
to
customers,
financial guarantee contracts, other assets, recoveries, commissions for
credit protection as well
as servicing fees of
non-performing loans as the Bank considers that
their presentation along with impairment losses
presents more accurately the
nature of these
expenses.
Servicing fees derived from the service agreement with Cepal
for the management of non-performing loans.
From 1 January
to
31.12.2021
31.12.2020
as restated
Impairment losses on loans
1,401,139
1,235,211
Impairment losses on advances to customers
7,503
28,384
Provisions to cover credit risk on letters
of guarantee, letters of credit and undrawn
loan commitments
(note 33)
(49,731)
(811)
(Gains) / Losses from modifications
of contractual terms of loans and advances to customers
17,764
68,599
Recoveries
(20,245)
(25,961)
Loans servicing fees
52,422
Impairment losses on other assets
2,544
203
Commission expenses
for credit
protection
588
Total
1,411,984
1,305,625
For
the
year
2021,
Impairment
losses
and
provisions
to
cover
credit
risk
on
loans
and
advances
to
customers
and
related
expenses amounted
to €
1,411,984 (31.12.2020: €
1,305,625).
Impairment
losses
on
loans
for
the
year
include
an
amount
of
€
1,038
million
which
represents
the
impact
of
incorporating
probabilities
of sale
in the
estimation
of expected
credit
losses,
in order
to take
into account
the impact
of expected
sales
of
loans of the
following projects:
•
Portfolio of non
performing retail and corporate loans
(project “Cosmos”)
•
Portfolio of retail loans mainly uncollateralized (project “Orbit”)
•
Portfolio of non-performing loans mainly collateralized which also included
connected real estate assets (project “Sky”)
•
Portfolio of non-performing corporate loans that is expected to be securitized with the senior note expected to be
guaranteed by the Greek
Government through
the “Hercules II” Guarantee
Program (project “Solar”)
•
Portfolio
of non
-performing
Finance
leases
of Alpha
Leasing
SA (project
“Leasing”)
The above
transactions
are included
in the
NPE Busine
ss plan,
as detailed
in Note
52. The
Group,
for the
determination
of the
sale
probabilities,
evaluated
the uncertainties
that relate
to each
project
and mainly
refer to
the stage
of preparation
and
the uncertainty relates
to the fullfillment of
the prerequisites that
are linked with these
sales (other capital
actions, obtaining
approvals etc.)
Orbit and Sky loan portfolios were classified as at 31.12.2021 as Assets held for sale. In this context, the expected
credit loss
were estimated by using
a 100% probability of the sale scenario. As a result, the carrying amount of the loan portfolios
reflect
the amounts expected
to be recovered
through sale.
For the Solar and
leasing portfolios a 20%
probability of sale scenario has
been calculated.
Additionally, for
a portfolio of non
performing corporate
loans (project
“Hermes” transaction)
the Bank has
not calculated a
sale
scenario propability as at
31.12.2021.
For
the
Solar,
Leasing
and
Hermes
transactions
in
case
the
Group
applied
a
sale
scenario
with
a
probability
of
100%,
the
additional impairment loss would amount
to approximately €
250 million.
On
17.12.2021,
the
Bank
completed
the
Aurora
synthetic
securitization
transaction.
With
this
transaction
the
Bank
receives
protection
against the
credit risk
of a
specific portfolio
of performing
corporate
loans amounted
to € 1.9
bil. through
a credit
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
170
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
171
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
protection/financial guarantee
agreement
with a
special purpose
entity. The
total amount
of credit
protection
is €
152 million
and represents
the mezzanine
tranche. In
the context
of the
transaction,
the guarantee
is activated
in the
event of
a default
payment, default
or loss
due to
modification of
contractual
terms in
the context
of restructuring
and given
that the
respective
loss
(for
all
loans
in
aggregate)
has
exceeded
a
certain
limit,
which
is
stated
in
the
contractual
terms
and
which
is bared
by
the
Bank.
The Bank
pays a
variable commission
every quarter
to the special
purpose entity
for the guarantee.
The above
guarantee is
not an integral part of
the securitized loans and
as a consequence is not
taken into account during
the calculation of expected
credit
losses.
The
claim
for
compensation
is
recognized
in
income
statement
when
its
collection
is
in
substance
certain.
For
disclosure purposes,
the commission
expense paid
by the Bank
as well
as the income
from the
recognition of
the receivable
from the claim are recognized in the caption “Impairment losses and provisions to cover credit risk and related expenses”, as in
this way, their nature
which is related to
credit risk is better
reflected. The expense
for the year that relates
to the commission
for the guarantee amounts to €
588. whereas until the end of the year
no claim for compensation has been made.
Gains/(Losses)
on modifications
of contractual
terms
of loans
and advances
to customers
The
Group,
in
the
context
of
renegotiation
with
borrowers
or
of
restructurings,
proceeds
with
the
modifications
of
the
contractual cash flows of
the loans in
order to ensure
their repayment.
The following table presents the carrying amount of those loans and advances to customers for which there was gain or loss
from the
modification of
the contractual
terms and
loss allowance
were measured
at an amount
equal to lifetime
expected
credit loss i.e.
loans categorised Stages 2,
or stage 3
or loans Purchased or
originated credit-impaired (POCI).
From 1 January
to
31.12.2021
31.12.2020
Net carrying amount
before the modification
5,332,168
9,385,036
Net gain or (loss) due to the modification
(10,606)
(51,184)
The
following
table
presents
the carrying
amount
of loans
and
advances
to customers
that
modified
at a
time
they had
a
lifetime
expected
credit
loss and
for which
the allowance
is measured
based on
12-month
expected
credit risk
losses
at the
end
of the
year.
From 1 January
to
31.12.2021
31.12.2020
Carrying amount before allowance
for expected credit losses at the end of the year
1,886,308
1,635,937
12.
Impairment losses and provisions
to cover credit risk
on other financial
instruments
From 1
January to
31.12.2021
31.12.2020
as restated
Impairment losses of debt securities
and other securities measured
at amortized cost
5,327
8,940
Impairment losses of debt securities
and other securities measured
at fair value through other comprehensive
income
15,593
4,422
Impairment losses on due from banks
109
(3)
Total
21,029
13,359
The
impairment
losses
of
debt
securities
during
2021
are
mainly
due
to
new
placements
in
Greek
issuers’
bonds
within
the
portfolio of debt securities measured at amortized cost and the portfolio of debt securities measured at fair value through other
comprehensive
income.
It
is
noted
that
Covid-19
pandemic
did
not
lead
to
a
significant
increase
in
credit
risk
of
those
debt
securities held by
the Group.
The
impairment
losses
of
debt
securities
during
2020
are
mainly
due
to
placements
in
Greek
Government
bonds
and
of
other
issuers within
the portfolio
of debt
securities measured
at amortized
cost.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
172
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
13.
Income tax
The
Extraordinary
General
Meeting
of
the
Shareholders
of
Alpha
Bank
S.A.
held
on
2.4.2021,
approved
the
demerger
of
the
société
anonyme
with the
corporate
name
“Alpha Bank
Societe
Anonyme”
(“Demerged
Entity”),
by way
of hive-down
of the
banking
business
sector
with
the
incorporation
of
a
new
company
– financial
institution
under
the
legal
name
“Alpha
Bank
Societe
Anonyme”,
Alpha
Bank
S.A.
resulting
from
the
demerger
by
the
way
of
the
hive-down
of
the
banking
business
sector,
started its operations
on 16.4.2021,
following the
approval of the
Ministry of Development
and Investments.
The first tax
year
for Alpha Bank
S.A. is from
1.7.2020 to 31.12.2021.
The
Demerged
changed
its
corporate
name
to
“Alpha
Services
and
Holding
Societe
Anonyme”
and
become
a
listed
holding
company,
and
its
business
scope
is
the
provision
of
the
insurance
agency
services
and
accounting
supporting
services,
and
has
retained the
same GEMI and
VAT numbers.
In accordance
with article
120 of
L.4799 “Incorporation
of Directive
(EU) 2019/878
of the European
Parliament and
of
the Council of 20 May 2019 amending Directive 2013/36/EU
as regards exempted entities, financial holding
companies,
mixed
financial
holding
companies,
remuneration,
supervisory
measures
and
powers
and
capital
conservation
measures.
Incorporation
of Directive
(EU) 2019/879
of the European
Parliament and
of the Council
of 20 May
2019 amending
Directive
2014/59/EU
as
regards
the
loss-absorbing
and
recapitalization
capacity
of
credit
institutions
and
investment
firms
and
Directive 98/26/EC,
through the
amendment of
article 2
of L.4335/2015,
and other
urgent provisions”,
the income
tax rate for
legal entities is reduced by 2% (from 24% as in force today
to 22%) for the income of tax year 2021 and afterwards. By explicit
reference of the law, this decrease does not apply to
the financial institutions for which the income tax rate remains at
29%.
In accordance
with article
119 of
the same
law, the
percentage
of income
tax prepayment
for legal
entities
is reduced
to
eighty percent (80%)
from one hundred
per cent (100%)
as in force. The
above is applicable
for income tax
prepayment of
income tax declaration for
the tax year
2021 and the
following tax years.
The article 20
of Law 4646 / 12.12.2019
“Tax reform with
a growth dimension
for tomorrow’s Greece”,
exempts income tax
on income derived
from the goodwill of
the transfer of equity
instruments to a
legal entity resident
in a Member State
of the
European Union, which a legal entity receives which is a tax resident of Greece if the legal
entity whose titles are transferred
fulfills the conditions prescribed
by law. This income shall not be taxable
on the distribution or capitalization
of these profits.
Any impairment losses recognized
as at 31.12.2019 are deducted under certain
conditions from gross income at the time of
transfer. The provision
applies to income
derived from 1.1.2020
onwards.
Furthermore, the withholding rate is reduced to 5% from 10% in dividends paid from
1.1.2020 and onwards.
For the Bank’
subsidiaries and
branches operating
in other countries,
the applicable nominal
tax rates for
the year 2021
are as
follows, with no
changes compared to
the tax
rates of
year 2020:
In
accordance
with
article
65A
of Law
4174/2013,
from
2011,
the statutory
auditors
and
audit
firms
conducting
statutory
audits
to
a
Societe
Anonyme
(S.A.),
are
obliged
to
issue
an
Annual
Tax
Certificate
on
the
compliance
on
tax
issues.
In
accordance
with
article
56
of
Law
4410/3.8.2016
for
the
fiscal
years
from
1.1.2016
and
onwards,
the
issuance
of
tax
certificate is optional. However, the
Company and the Group’s
companies intend to continue to
obtain the tax
certificate.
For
the
fiscal
years
2011
up
to
2020,
the
tax
audit
based
on
article
65A
of
Law
4174/2013
has
been
completed
and
the
Company has received the relevant tax certificate without any
qualifications on the tax issues covered.
For
Group
companies
in
Greece
a
tax
certificate
has
been
received
without
any
qualifications
on
the
tax
issues
covered
for
the
tax years
up to
2020. The
tax audit for
the fiscal
year 2021
is ongoing.
Cyprus
12.5
Bulgaria
10
Serbia
15
Romania
16
Luxembourg
24.94
Albania
15
Jersey
10
United Kingdom
19
Ireland
12.5
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
173
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The income tax in
the Income Statement is
analysed as follows:
From 1
January to
31.12.2021
31.12.2020
as restated
Current tax
47,673
32,599
Deferred tax
(103,468)
(22,468)
Total
(55,795)
10,131
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
31.12.2021
31.12.2020
as restated
Debit difference
of Law 4046/2012
44,555
44,555
Debit difference
of Law 4465/2017
(540,249)
(1,652,405)
Write-offs, depreciation,
impairment of plant, property
and equipment and leases
(57,472)
14,761
Loans
422,643
1,608,986
Valuation of loans due to hedging
(322)
582
Defined benefit obligation and insurance
funds
2,834
1,633
Valuation of derivative
financial instruments
40,952
(25,661)
Valuation of liabilities
to credit institutions
and other borrowed
funds due to fair value
hedge
5,172
555
Valuation/Impairment
of investments
7,610
8,918
Valuation/Impairment
of debt securities and other securities
(57,364)
24,776
Tax losses carried forward
3,642
3,754
Other temporary differences
24,531
(52,922)
Total
(103,468)
(22,468)
“Debit difference
L.4465/2017”
of the
period, includes
mainly the
deferred tax
amounting of
€ 477,172
twich resulted
from the
securitizations of loans
(project Cosmos).
“Debit
difference
L.4465
/
2017”
from
1.1.2020
to
31.12.2020
includes
the
deferred
tax
amounting
to
€ 1,486,703
which
resulted
from
the
securitization
of
loans
(project
Galaxy).
According
to the
terms
of the
transaction,
the
relevant
expected
credit losses were considered as definitive losses for tax purposes subject
to 20 years’ amortization resulting in an increase of
the balance with
an equal reduction
of the deferred
tax of the
“Loans” category.
“Debit
difference
of
Law
4046/2012”
relates
to
the
deferred
tax
asset
on
tax
losses,
due
to
the
Bank’s
participation
in
the
Greek
government
bonds
exchange
program
(PSI)
and the
Greek
government
bond
buyback
program
on December
2012,
which
have been
recognized
as a
debit difference
in accordance
with Law
4046/14.2.2012
and Law
4110/23.1.2013,
According
to
Law 4110/23.1.2013 the “debit difference” is deductible, gradually in equal installments, within 30 years.
Moreover, 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”,
which replaced
article 27A
of Law
4172/2013,
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
31.12.2014,
are
converted into final and settled claims against the State, if, the accounting result for the period, after taxes, is
a loss, according
to the audited and approved financial
statements by the Ordinary Shareholders’ General Meeting.
The inclusion in the Law is implemented with the approval of the General
Meeting of Shareholders and relates to tax assets
arising from 2016 and onwards, relating to 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 4340/1.11.2015
“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 the relevant deferred tax asset which is included
in the above provisions of article 5 of Law 4303/17.10.2014
and relates to
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
174
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
accumulated
provisions and
other general
losses due
to credit
risk, is
limited to
the amount
related to
the provisions
for credit
risk, which were
accounted for on
30.6.2015.
In
connection
with
the
amount
included
in caption
“Debit
difference
of Law
4465/4.4.2017”,
according
to
article
43
of Law
4465/4.4.2017
“Integration
of
Directive
2014/92/EU
of
the
European
Parliament
and
Council
held
on
23.7.2014
for
the
comparability
of charges
related to payment
accounts, the
change of payment
account and the
access to
payment accounts
with
basic
characteristics
and
other
provisions”,
the
articles
27
and
27A
of
the
Income
Tax
Code
were
amended
(Law
4172/2013), In particular,
par, 3 of article 27, as amended,
provides the right to amortise
losses registered by the above
legal
entities, for a
period of 20
years, if those
losses resulted
from debt write
-offs from their
balance sheet due
to loan settlement
or restructuring contractually, judicial or extrajudicial or due to the transfer
of the loan to companies of loan
acquisition
or
securitization
or
to
credit
and
financial
institutions
or
other
companies
and
legal
entities
under
the
conditions
that
the
management of those loans is carried out by a claims servicing company. The tax benefit of the
20-year depreciation is given
only to the realize
d
losses. In case
of an accounting
write-off of the loan
considering that
the events for
the final debt
write-
off or transfer of the loan have
not yet
completed, the tax result
for the year of the accounting
write-off is not affected. When
these events
occur, the
amount that
was written
off will be
converted into
a debit difference
and will be
amortised over
the
estimated 20-year period.
The amended provisions of Article
27A explicitly provide that in addition
to the deferred tax assets relating
to the amount of
accumulated provisions and other
general losses due to credit risk and to the remaining (amortized) balance of the PSI, the
deferred tax
asset relating
to accounting
write-offs and
final losses
due to
final write-off
or transfer
of loans, under
certain
conditions, can be
converted to final
and settled receivable
against the State and
therefore to be included
in the regulatory
capital,
It
is noted
that
the
right
to convert
deferred
tax
asset
into
final
and
settled
against
the
State,
had
already
been
provided in the legislative framework since 2014 in order to avoid losses in the regulatory capital of credit institutions.
Based on the above mentioned Law,
the total amount of deferred tax asset
from (a) the debit difference due to the permanent
write
off
of
debtors’
debts
and
the
sale
of
loans,
(b)
the
temporary
differences
from
any
accounting
write-off
of
loans
and
credits and (c) the temporary differences from accumulated
provisions and other losses due to credit risk, is limited to the total
tax amount related to accumulated provisions and other losses due
to credit risk, recognised until 30.6.2015.
This amendment ensures that the loan write-offs and disposals,
aiming to decrease the non-performing loans,
will not result in
the loss of
regulatory capital.
The above apply from 1.1.2016.
In accordance with article 125 of L.4831 / 2021 “Legal Council of the State
(NSK) and situation of its officials and employees
and other
provisions”,
article 27
of L.4172
/ 2013
was amended.
Pursuant to
the new
provisions, the
debit difference
from
the
exchange
of
Greek
government
bonds
or
corporate
bonds
guaranteed
by
the
Greek
State,
in
application
of
a
participation
program in
the redistribution
of Greek debt
(of par. 2
of article 27
of law 4172/2013),
deducts as
a priority compar
ed to the
debit difference due
to credit risk of law 4465/2017
(par. 3 of article 27 of
law 4172/2013). The amount
of the annual debit
difference from credit
risk deduction is
limited to the amount
of gains determined
under tax law, before
the deduction of the
se
debt differences and after the deduction of the debit difference resulting from the PSI
bond exchange. The remaining amount of
the annual
deduction that
has not been
offset is carried
forward for
deduction in
subsequent
tax years within
the twenty-year
period,
in which
the remaining
profits
will remain
after
the annual
deduction
of the
debit differences
corresponding
to those
years. The
order of deduction
of the transfe
rred amounts
is preceded by
the older debit
difference balances
compared to
the
newer ones. If at the end of the twenty-year amortization
period there are balances that have not been
offset, these are losses
subject to the
five-year transfer rule.
It is
noted that
the above
provision does
not affect
the rate
of the
depreciation
for regulatory
purposes of
the deferred
tax
asset
(DTA),
neither
retrospectively
nor
in
the
future,
ie
DTA
will
continue
to
be
depreciated
on
a straight
line
basis
(1/20
per
year), for both
previous, as well
as for
future sales of
non-performing loans.
The above is
valid from 1.1.2021
and concerns debit
differences of par.
3 that have arisen
from 1.1.2016.
Within the context
of
the
above
article,
the
Bank
recognized
a
deferred
tax
asset
of
€ 119,852,
on
the
unamortised
balance
of
debit
difference
of
FY
2021.
As of 31.12.2021,
the amount
of deferred
tax asset which
is in the
scope of
L.4465 / 2017
and includes
the amount of
the
debit difference of L.4046 / 2012 (PSI), amounts to €
2,891 million (31.12.2020: € 3,030 million).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
175
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
In accordance with
article 82 of Law 4472/19.5.2017
“Pension provisions
of the State and amendment
of provisions of Law
4387/2016, measures
for the implementation
of fiscal objectives
and reforms, measures
of social support
and employment
regulations.
Medium-Term
Framework
of the
Fiscal
Strategy 2018
-2021
and others
provisions
“provides
the obligation
of
credit institutions
and other companies
that fall under
the provisions of
article 27A of Law
4172/2013) to
pay an annual
fee
of 1.5% for
the amount of
the tax claim
guaranteed by
the Greek
State arising from
the difference
between the current
tax
rate (currently 29%)
and the tax rate
that was valid on 31.12.2014
(26%). The amount
of the commission
for the year 2021
amounts to €
5,086.
Pursuant to article
24 par. 8 of law 4172/2013,
the new established credit
institution Alpha Bank
Societe Anonyme made
use
of the beneficial provisions of the law
and postponed the depreciation
for tax purposes of its fixed assets for
the first three tax
years. Based on
Circular 1073 / 31.3.2015
of AADE, the postponement
of tax depreciation
does not include
the amortization
of the debit difference of article 27 par. 2 of law 4172/2013 (loss from the exchange of Greek government bonds) and of
the debit difference
of article 27
par.3 of Law
4172/2013 (loss
from final write
-off or transfer
of doubtful receivables).
From
1.7.2020, which
is the date of commencement
of the first fiscal year
of Alpha Bank S.A.,
tax depreciation of
€ 177.4 million
and deferred
tax of € 51.4
million, which is
included in the
item “Write-offs,
depreciation, impairment
of plant, property
and
equipment and leases“
was reversed.
As at
31.12.2021,
the Group
has not
recognized
deferred tax
asset related
to tax
losses of
FY 2021
amounting to
€ 420,138,
which have resulted mainly from the sale of the
51% of the mezzanine and junior notes of Galaxy securitisation.
Deferred tax assets that have not been recognized as at 31.12.2021 deriving
from relevant tax losses are presented in the
following table by
year of maturity.
Year of
maturity of
tax losses
Deferred Tax Assets
2022
52,406
2023
28,690
2024
21,503
2025
20,414
2026
295,990
2027
843
2028
292
Total
420,138
Moreover, thr Group
has not recognized deferred tax asset on temporary differences of amount €
282,264 out of which amount
€
267,503
derives
mainly
from
the
valuation
of
the
44%
of
the
junior
and
mezzanine
notes
held
by
Alpha
Services
and
Holdings S.A., due to the fact that it is not expected that there will be sufficient taxable profits
against which those losses can
be set off. The
year for the reversal of
the above temporary differences can not be reliably
determinated.
The non-recognized
deferred tax
assets as at
31.12.2020 amounted
to € 213,161.
A reconciliation between the effective and nominal tax
rate is provided below:
From 1 January
to
31.12.2021
31.12.2020
as
restated
%
%
Profit / (Loss)
before income tax
(2,928,725)
111,373
Income tax (nominal tax rate)
20.51
(600,623)
52.69
58,682
Increase / (Decrease) due to:
Non-taxable income
0.37
(10,853)
(4.05)
(4,511)
Non-deductible
expenses
(0.46)
13,366
6.36
7,084
Reversal of provision for legal claims
(32.57)
(36,274)
Adjustment in tax
rates for the estimation
of deferred tax
0.36
(10,453)
Non-recognition of deferred
tax for tax losses carried forward
(10.08)
295,260
29.66
33,031
Non-recognition
of deferred tax for temporary differences
of the current year
(8.71)
255,001
7.06
7,862
Other tax differences
(0.09)
2,507
(50.05)
(55,743)
Income tax (effective tax rate)
1.91
(55,795)
33.09
10,131
The nominal tax rate is the average tax rate resulting from the income tax, based on the nominal tax rate, and the pre-tax
results, for the
parent and
for each of
the Group’s
subsidiaries.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
176
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
In accordance
with the provisions
of No E.2075/9.4.2021
Circular of Independent
Authority for
Public Revenue,
following the
finalization
of transformation
plan by
way of
hive-down of
the banking
business
sector with
the incorporation
of a
new legal
entity named
Alpha Bank
S.A., Alpha
Services
and Holding
S.A. was
taxed for
the results
until the
Transformation
Balance
Sheet
date 30.6.2020
with a
rate of
29%,
whereas
for the
results from
1.7.2020
to 31.12.2020
with a
rate of
24%. In
accordance
with the
article 120
of Law
2799/2021,
from 1.1.2021
and afterwards
the tax
rate for
legal entities
has been
further reduced
to 22%.
The effect
of the
change in
the tax
rate from
29% used
for the
taxation of
the Bank
to 22%
used for
the taxation
of
Alpha Services and Holding S.A., is
included in the line
“Adjustment in tax rates for
the estimation of deferred tax”.
Income tax
of other comprehensive
income recognized
directly in
equity
From 1
January to
31.12.2021
31.12.2020
as
restated
Before
Income tax
Income tax
After
Income tax
Before
Income tax
Income tax
After
Income tax
Amounts that may
be reclassified to
the
Income Statement
Net change in the reserve of debt securities
measured
at
fair
value
through
other
comprehensive income
(238,152)
63,290
(174,862)
(363,946)
104,538
(259,408)
Net change in
cash flow hedge
reserve
20,785
(6,028)
14,757
20,841
(6,044)
14,797
Currency
translation
differences
from
financial
statements
and net investment
hedging of foreign
operations
319
(676)
(357)
(2,951)
(2,943)
(5,894)
(217,048)
56,586
(160,462)
(346,056)
95,551
(250,505)
Amounts
that
will
not
be
reclassified
to
the
Income Statement
Net change in actuarial gains/(losses) of defined
benefit obligations
3,480
(1,198)
2,282
(5,348)
1,745
(3,603)
Gains/(Losses)
from
equity
securities
measured
at
fair value through other comprehensive
income
13,834
(3,883)
9,951
3,619
(293)
3,326
17,314
(5,081)
12,233
(1,729)
1,452
(277)
Total
(199,734)
51,505
(148,229)
(347,785)
97,003
(250,782)
14.
Earnings/(losses)
per share
a. Basic
Basic earnings/(losses) per share are calculated
by dividing the net profit/(losses) for the year attributable to ordinary
equity
holders
of
the
Company,
by
the
weighted
average
number
of
ordinary
shares
outstanding
during
the
period,
excluding
the
weighted average number of
own shares held,
during the period.
It is noted
that in January
2021, 2,281,716
options rights
were exercised
which resulted
in the issuance
of 2,281,716
ordinary,
registered,
voting
shares
with
nominal
value
of
Euro
0.30
each.
The
share
capital
of
the
Company
increased
by
€ 685
and
the
share premium increased
by €
1,483.
Additionally,
the
share
capital
increase
of
Alpha
Services
and
Holdings
SA
was
completed
on
July,
and
the
share
capital
of
the
Company increased by € 240,000 with the issuance of 800,000,000 common, registered, voting shares with nominal value of
€ 0.30
each, while
the share
premium increased
by the
amount of
€ 560,000
which occurred
from the
difference between
the
nominal value of
€ 0.30
each and the
issue price of
€ 1.00
each.
From 1
January to
31.12.2021
31.12.2020
as restated
Profit/(Loss) attributable to equity
holders of the Company
(2,906,160)
103,800
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Basic earnings /(losses) per
share (in €)
(1.5046)
0.0672
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
177
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
178
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
From 1
January to
31.12.2021
31.12.2020
as restated
Profit / (Loss) from continued
operations attributable to equity holders
of the Company
(2,873,016)
101,034
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Basic earnings /(losses) per
share (in €)
(1.4875)
0.0654
From 1
January to
31.12.2021
31.12.2020
as restated
Profit / (Loss) from
discontinued operations attributable
to equity holders of the
Company
(33,144)
2,766
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Basic earnings /(losses) per
share (in €)
(0.0172)
0.0018
b, Diluted
Diluted
earnings/(losses)
per
share
are
calculated
by
adjusting
the
weighted
average
number
of
ordinary
shares
outstanding
during the period with the dilutive
potential ordinary shares.
The Company holds shares of this
category, which arise from a
plan of awarding stock options rights to employees of
the Company and its connected entities (note 8).
For the calculation of the diluted earnings per share, it is assumed that the option rights are exercised
and that the related
inflows derive from the issuance of common shares at the average
market price of the year during which the options were
outstanding. The
difference between
the number of
options to be
granted and the
ordinary shares
issued at the
average
market price for ordinary shares, is
recognized as issuance of ordinary shares
without exchange.
From 1
January to
31.12.2021
31.12.2020
as restated
Profit / (Loss) attributable to equity
holders of the Company
(2,906,160)
103,800
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Adjustment for options
870,098
4,598
Weighted average
number of
outstanding
ordinary shares
for diluted
earnings per
share
1,932,342,066
1,543,703,979
Diluted earnings /(losses)
per share (in
€)
(1.5040)
0.0672
From 1
January to
31.12.2021
31.12.2020
as restated
Profit / (Loss) from continued
operations attributable to equity holders
of the Company
(2,873,016)
101,034
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Adjustment for options
870,098
4,598
Weighted average
number of
outstanding
ordinary shares
for diluted
earnings per
share
1,932,342,066
1,543,703,979
Diluted earnings /(losses)
per share (in
€)
(1.4868)
0.0654
From 1
January to
31,12,2021
31,12,2020
as restated
Profit / (Loss) from
discontinued operations attributable
to equity holders of the
Company
(33,144)
2,766
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Adjustment for options
870,098
4,598
Weighted average
number of
outstanding
ordinary shares
for diluted
earnings per
share
1,932,342,066
1,543,703,979
Diluted earnings /(losses)
per share (in
€)
(0.0172)
0.0018
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
179
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ASSETS
15.
Cash and balances
with Central
Banks
31.12.2021
31.12.2020
Cash
394,820
387,224
Cheques receivables
4,816
2,992
Balances with
Central Banks
11,403,708
7,077,100
Total
11,803,344
7,467,316
Less: Deposits pledged
to Central Banks
(268,527)
(208,375)
Total
11,534,817
7,258,941
The
increase
in
Cash
and
Balances
with
Central
Banks
is
mainly
due
to
the
increase
in
customer
deposits,
the
issuance
of
bonds within
the year as
well as the
share capital
increase that
took place
in July 2021
while at the
same time
there is an
increase in Eurosystem
funding, as
mentioned in note
43.3.
Cash
and
cash
equivalents
(as presented
in the Statement
of Cash Flows)
31.12.2021
31.12.2020
Cash and balances
with central
banks
11,534,817
7,258,941
Securities purchased under
agreements to resell
(Reverse Repos)
783,238
240,049
Short-term placements
with other banks
551,045
491,910
Total
12,869,100
7,990,900
16.
Due from
banks
31.12.2021
31.12.2020
Placements with other banks
1,136,126
896,761
Guarantees
for derivative
securities
coverage and
repurchase
agreements
(note 39)
1,077,895
1,632,298
Securities purchased under
agreements to resell
(Reverse Repos)
783,238
240,049
Loans to credit institutions
36,965
42,527
Less:
Allowance for
expected credit
losses (note
43.1)
(70,168)
(70,088)
Total
2,964,056
2,741,547
The increase in Due from banks
is mainly attributable to the
increase of Reverse Repo
transactions which is partially
offset by
the decrease in Guarantees for
derivative securities coverage and repurchase agreements.
17.
Trading
securities
The following table presents an analysis of the carrying amount of trading portfolio per type of security.
31.12.2021
31.12.2020
Bonds:
Greek Government
3,819
29,154
Equity Shares:
Listed
1,007
860
Total
4,826
30,014
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
180
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
18.
Derivative financial instruments (assets and liabilities)
31.12.2021
Contractual
Nominal
Amount
Fair Value
Assets
Liabilities
Derivatives held
for trading purposes
a. Foreign
exchange
derivatives
Foreign exchange
forwards
461,085
10,603
6,384
Foreign exchange
swaps
1,432,168
3,307
7,253
Cross currency swaps
432,322
18,930
4,180
Currency options
9,361
109
35
Currency options
embedded
in customer
products
2,518
12
0
Total non-listed
2,337,454
32,961
17,852
b. Interest rate derivatives
Interest rate swaps
24,739,935
770,140
1,231,717
Interest rate
options (caps
and floors)
2,020,212
25,031
24,893
Total non-listed
26,760,147
795,171
1,256,610
c. Commodity
derivatives
Commodity
swaps
15,655
301
0
Total non-listed
15,655
301
0
d. Index
derivatives
Index swaps
40,668
1,027
1,027
OTC options
29,764
0
639
Total non-listed
70,432
1,027
1,666
Futures
146
0
1
Total listed
146
0
1
e. Other derivatives
GDP linked security
640,987
320
Total-listed
640,987
320
Derivatives for fair value hedging
a. Foreign exchange
derivatives
Foreign exchange
swaps
57,344
0
903
Cross currency swaps
96,035
1,465
0
Total non-listed
153,379
1,465
903
b. Interest rate derivatives
Interest rate swaps
2,950,100
110,364
11,373
Total non-listed
2,950,100
110,364
11,373
Grand Total
32,928,300
941,609
1,288,405
In the
context of
the daily
process for
setting off
and providing
collateral for
derivatives transactions
with credit
institutions
counterparties
the Group has
pledged as
collateral a
net amount of
€ 1,066,172 on 31.12.2021
(31.12.2020: € 1,628,493).
The respective fair value of derivatives
with credit institutions amounted to
€ 966,009 on 31.12.2021 (31.12.2020:
€ 1,516,821).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
181
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
Contractual
Nominal
Amount
Fair Value
Assets
Liabilities
Derivatives held for
trading purposes
a. Foreign
exchange
derivatives
Foreign exchange
forwards
257,295
5,634
4,846
Foreign exchange swaps
916,690
4,854
3,443
Cross currency swaps
580,954
12,092
16,001
Currency options
461,030
1,777
1,805
Currency options
embedded in
customer products
853
2
Total non-listed
2,216,822
24,359
26,095
b. Interest rate derivatives
Interest rate swaps
25,589,901
1,218,928
1,712,289
Interest rate options (caps and floors)
883,084
11,860
11,623
Total non-listed
26,472,985
1,230,788
1,723,912
c. Commodity
derivatives
Commodity
swaps
307,524
5,241
4,238
Total non-listed
307,524
5,241
4,238
d. Index
derivatives
Index swaps
40,668
262
262
OTC options
1,696
19
19
Total non-listed
42,364
281
281
Futures
259
40
Total listed
259
-
40
e. Other
derivatives
GDP linked security
636,920
2,420
Total-listed
636,920
2,420
Derivatives for fair value hedging
a. Foreign exchange
derivatives
Foreign exchange swaps
54,851
402
Cross currency swaps
97,029
1,930
Total non-listed
151,880
402
1,930
b. Interest rate derivatives
Interest rate swaps
2,086,800
3,592
11,861
Total non-listed
2,086,800
3,592
11,861
Grand Total
31,915,554
1,267,083
1,768,357
Hedging accounting
a.
Fair value hedges
The Group uses interest rate swaps to
hedge its exposure to changes in
the fair values due to
changes in market rates of fixed
interest rate: a) Greek Government Bonds, b)
retail loans and c)
a specific corporate loan.
For all hedges of
interest rate risk, the Group
determines the reference interest rate associated with the hedged
risk (Euro rate)
at inception of the
hedging relationship
and calculates the
changes in the fair
value of the hedging
instrument with respect
to
euro interest rate
curve.
The amendments of the
IFRS 39 that address
issues arising from the interest
rate benchmark reform
do not expect to have any
impact
to the
existing
fair value
hedges
considering
that
the hedging
instruments
are
applied
with
the corresponding
Euribor
referenced interest rate
and that it
is not replaced
with any
alternative interest rate.
In order to measure hedge
effectiveness, the changes
in the fair value of the hedged item
are compared to the changes
in the
fair value of the hedging instrument and in order for the hedge to qualify as effective, the ratio of the change in the fair value
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
180
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
of the
hedging instrument
over the
change in
the fair
value of
the hedged
item is
required to
be within
80% -125%
(dollar
offset method).
The Group
has identified
the following
sources
which
may
lead to
hedging
ineffectiveness:
a)
Credit risk of
the derivative counterparty, which is not
offset by the
hedged item. The Bank minimizes
counterparty credit risk
in derivative instruments by entering into transactions with high credit risk rating
counterparties.
b)
Difference in timing
of cash flows of hedged
items and hedging
instruments.
During the
year, the
Group
did not
identify any
other source
of hedging
ineffectiveness.
Hedging instruments of
31.12.2021 are summarized
as follows:
Risk category
Duration 1 - 5 years
Interest rate risk
Tier II Bond issued by the Alpha
Holdings and Services
Nominal amount
of the derivative
1,000,000
Average fixed interest rate
(0.21%)
Fixed rate retail loans
Nominal amount
of the derivative
200,000
Average fixed
interest
(0.39%)
Risk category
Duration > 5 years
Interest rate risk
Greek Government
Bond Nominal
amount of
€ 923,000
Nominal amount
of the derivative
1,203,800
Average fixed
interest
(0.05%)
Greek Government
Bond Nominal
amount of
€ 50,000
Nominal amount
of the derivative
46,300
Average fixed
interest
0.07%
Bond issued
by Senior
Bank Preferred
nominal amount
of € 500,000
Nominal amount
of the derivative
500,000
Average fixed
interest
(0.27%)
Hedging instruments of 31.12.2020 are summarized
as follows:
Risk category
Duration 1 - 5 years
Interest rate risk
Tier II Bond issued by the Bank
Nominal amount
of the derivative
491,800
Average fixed interest rate
(0.32%)
Fixed rate retail loans
Nominal amount
of the derivative
450,000
Average fixed
interest
(0.39%)
Risk category
Duration > 5 years
Interest rate risk
Greek Government
Bond Nominal
amount of
€ 800,000
Nominal amount
of the derivative
1,095,000
Average fixed
interest
(0.06%)
Greek Government
Bond Nominal
amount of
€ 58,000
Nominal amount
of the derivative
50,000
Average fixed
interest
(0.17%)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
181
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The balance
sheet and
the income
statement
amounts
relating to
fair value
hedging instruments
and the
hedge effectiveness
are analyzed as
follows:
2021
Hedging
relationship
Derivative
Type
Carrying
amount
of
hedging
instrument
Line item
in the
balance sheet
where the
hedging
instrument is
included
Change in fair value
of hedging
instrument used for
calculating the
hegde
effectiveness for
2021
Ineffectiveness
recognised in the
income statement
for 2021
Line item in the
Income statement
that included
hedge
ineffectiveness
Assets
Liabilities
Interest rate risk
Greek Government
Bonds
with
nominal value
€ 923
million
at AC
Interest rate
swap
109,494
Derivatives
120,279
(1,197)
Gains less
losses
on
financial
transactions
Greek Government
Bonds
with
nominal value
€
50
million
at
FVOCI
855
867
(11)
Bond
issues
and other loan
liabilities
11,351
(14,237)
(146)
Fixed rate retail
loans
15
23
1,107
(3)
2020
Hedging
relationship
Derivative
Type
Carrying
amount
of
hedging
instrument
Line item
in the
balance sheet
where the
hedging
instrument is
included
Change in fair value
of hedging
instrument used for
calculating the
hegde
effectiveness for
2021
Ineffectiveness
recognised in the
income statement
for 2021
Line item in the
Income statement
that included
hedge
ineffectiveness
Assets
Liabilities
Interest rate
risk
Greek
Government
Bonds
with
nominal
value
€ 720 million
(34,043)
(5,083)
Gains less
losses
on
financial
transactions
Greek
Government
Bonds
with
nominal
value
€ 667 million
(13,588)
550
Greek
Government
Bond
with
nominal
value
€
800
million
Interest rate
swap
11,027
Derivatives
(10,683)
(1,076)
Greek
Government
Bond
with
nominal
value € 58
million
Interest rate
swap
375
(280)
(18)
Tier
II
Bond
issued
by
the
Bank
Interest rate
swap
3,199
4,075
(18)
Corporate Loan
74
Fixed rate retail
loans
Interest rate
swap
18
834
Derivatives
(2,052)
29
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
182
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The amounts related to balance sheet
items designated as hedged items are
analyzed as follows:
2021
Hedging relationship
Carrying Amount
Accumulated amount of fair
value hedge
adjustments on
the hedged item
Line item
in the balance
sheet where the hedged
item is included
Change in
fair value
of
hedged item used for
calculating the hedge
effectiveness
Assets
Liabilities
Assets
Liabilities
Interest rate risk
Greek Government
bonds
Portfolio nominal
value
€ 923 million
1,192,362
(111,607)
Investment
securities
measured at amortized cost
(121,476)
Greek Government
bonds
Portfolio nominal
value
€ 50 million
47,772
(878)
Investment securities
measured at fair
value through other
comprehensive
income
(878)
Bond
issues
and
other
loan liabilities
1,483,753
(9,999)
Issued
bonds
and
other
loan liabilities
14,091
Fixed rate retail loans
200,148
148
Loans
and
advances
to
customers
(1,110)
2020
Hedging relationship
Carrying Amount
Accumulated amount of fair
value hedge
adjustments on
the hedged item
Line item
in the balance
sheet where the hedged
item is included
Change in
fair value
of
hedged item used for
calculating the hedge
effectiveness
Assets
Liabilities
Assets
Liabilities
Interest rate risk
Greek Government
bonds
Portfolio nominal
value
€ 800 million
1,201,665
9,607
Investment
securities
measured at amortized cost
9,607
Greek Government
bonds
Portfolio nominal
value
€ 58 million
59,046
262
Investment
securities
measured at amortized cost
262
Tier II Bonds issued by
the Bank
510,078
(4,092)
Issued
bonds
and
other
loan liabilities
(4,161)
Fixed rate retail loans
451,193
1,193
Loans
and
advances
to
customers
2,081
The amounts related to balance sheet items, the hedging relationship
of which has been terminated during the years 2021 and
2020 are analyzed
as follows:
2021
Hedging relationship
Carrying amounts of
items for
which hedging has been
terminated
Accumulated amount of fair
value hedge
adjustments on
the hedged item
Line item in the
balance
sheet where the hedged
item is included
Change in
fair value
of
hedged item used for
calculating the hedge
effectiveness
Assets
Liabilities
Assets
Liabilities
Interest rate risk
Fixed rate
retail loans
49,935
(65)
Loans
and
advances
to
customers
352
2020
Hedging relationship
Carrying value
of items for
which hedging has been
terminated
Accumulated amount of fair
value hedge
adjustments on
the hedged item
Line item in the
balance
sheet where the hedged
item is included
Change in
fair value
of
hedged item used for
calculating the hedge
effectiveness
Assets
Liabilities
Assets
Liabilities
Interest rate risk
Greek Government
bonds
Portfolio nominal value
€ 720 million
259,949
(1,531)
Investment securities
measured at fair value
through
other
comprehensive
income
28,960
Greek Government
bonds
Portfolio nominal value
€ 667 million
127,168
2,507
Investment
securities
measured at
amortized cost
14,138
Corporate loans
Loans
and
advances
to
customers
(74)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
183
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
b.
Cash flow hedges
In
regards
to
cash
flows
hedging
relationships,
the
Group
determines
the
referenced
interest
rate
associated
with
the
hedged
risk (Euro rate) at inception of the hedging relationship and measures the changes in the fair value of the hedging instrument
and a
hypothetical derivative relating
to Euro
interest rate
curve changes.
The floating
leg of the
hypothetical derivative
replicates the
cash flows
of the hedged
item, whereas
the fixed
leg cash flow
s
are determined so that the hypothetical derivative has a value equal to zero at inception.
In order to measure the effectiveness
of the hedge, the changes
of the hypothetical derivative
are compared to the changes
of the hedged item, and in
order for the
hedge to
qualify as
effective the
ratio of the
change in
the fair value
of the hypothetical
derivative over
the change
in the fair
values of the
hedged item should
be between 80%
- 125% (dollar
offset method).
The Group has identified the
following sources that may lead
to ineffective hedging:
a)
Credit risk of
the derivative counterparty, which
is not offset
by the hedged item.
The Group minimizes counterparty credit
risk in derivative instruments by entering into transactions with high credit rating
counterparties.
b)
Difference in timing of cash flows of hedged items and hedging instruments.
No other sources of ineffectiveness were identified
during the year.
On 31.12.2021
there are
no cash flow
hedging instruments
in force.
Regarding the
discontinued
hedging relationships,
on
31.12.2021
the amount
of € 20.78
million before
tax (31.12.2020:
€ 20.84 million)
was reclassified
from the
negative cash
flow hedging reserve
of time deposits to interest
expense of deposits
and therefore the negative
cash flow hedging
reserve
amounted to €
294.25 million before tax
(31.12.2020: €
315.03 million).
c.
Hedging of net
investment in foreign subsidiaries
The Group
hedges
part
of
the
net
investment
in
RON
through
loans
in
RON
and
foreign
exchange
swap
derivatives.
In
addition,
the Group
hedges part
of the net
investment in
GBP in the
subsidiary Alpha
Bank London
through forward
foreign exchange
derivative
transactions
that
are
renewed.
For
the
hedging
of
the
foreign
currency
risk
of
the
net
investment
in
foreign
operations,
valuation
of
the
net
assets
takes
place
using
the
spot
exchange
rate,
while
any
foreign
exchange
differences
arising
from this valuation are compared to exchange
rate differences from the derivative. In order to measure
the effectiveness of the
hedge, the changes
in the hedged item
are compared to the
changes in the hedging
instrument, and in
order for the hedge
to
qualify as
effective the
ratio of the
change in
the fair
value of
the hedging
instrument over
the change
in the fair
value of
the
hedged item
should be
between 80% -
125% (dollar offset
method).
The Group
recognizes
the following
sources
which may
lead to
ineffective
hedging:
a)
The credit
risk (counterparty
risk) of
the hedging
instruments
used to
hedge the
foreign currency
risk which
is minimized
by
entering into
transactions with high
credit risk counterparties.
b)
The difference in the timing of settlement of hedging instruments and hedged items.
During the year, no
other sources of ineffectiveness were identified.
The hedging instruments as at 31.12.2021 are summarized as follows:
Currency
Nominal amount
in Euro
Investment in
Alpha Bank
London
Duration < 1 year
FX Swaps - EUR/GBP
GBP
57,344
Exchange
rate GBP/EUR
0.84
Investment in subsidiaries
(RON)
Duration < 1 year
Deposit amount
RON
RON
282,885
Exchange
rate RON/EUR
4.95
Forward
transactions
CCIRS
-EUR/RON
RON
93,600
Exchange
rate RON/EUR
4.95
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
184
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The hedging instruments as at 31.12.2020 are summarized as follows:
Currency
Nominal amount
in Euro
Investment in
Alpha Bank
London
Duration < 1 year
FX Swaps - EUR/GBP
GBP
54,851
Exchange
rate GBP/EUR
0.89
Investment in subsidiaries
(RON)
Duration < 1 year
Deposit amount
RON
RON
287,575
Exchange
rate RON/EUR
4.87
Forward
transactions
CCIRS
-EUR/RON
RON
95,151
Exchange
rate RON/EUR
4.87
The
balance
sheet
and
the
income
statement
amounts
relating
to
hedging
of
net
investment
in
foreign
subsidiaries
and
the
effectiveness of the
hedge are analyzed
as follows:
31.12.2021
Hedging instrument
Assets
Liabilities
Line item in the
balance sheet where
the hedge item is
included
Change in
fair value
of
hedging instrument for
the measurement of
the hedge
effectiveness for the
year 2021
Change in the fair
value of the hedging
instrument recognized
in the reserve for the
year 2021
Change in the fair
value of the hedging
instrument recognized
in the income
statement in the year
2021
FX Swaps - EUR/GBP
903
Derivatives
(3,811)
(3,811)
Deposit amount
in RON
282,885
Due to
customers
4,689
4,689
Forward
transactions
CCIRS - EUR/RON
1,465
Derivatives
1,451
1,451
31.12.2020
Hedging instrument
Assets
Liabilities
Line item in the
balance sheet where
the hedge item is
included
Change in
fair value
of
hedging instrument for
the measurement of
the hedge
effectiveness for the
year 2020
Change in the fair
value of the hedging
instrument recognized
in the reserve for the
year 2020
Change in the fair
value of the hedging
instrument recognized
in the income
statement in the year
2020
FX Swaps - EUR/GBP
402
Derivatives
3,090
3,090
Deposit amount
in RON
287,575
Due to
customers
5,129
5,129
Forward
transactions
CCIRS - EUR/RON
1,930
Derivatives
1,697
1,697
The amounts related to hedged items as of 31.12.2021
and 31.12.2020 are analyzed as follows:
31.12.2021
Change in
fair value
for the
measurement of
the hedge
effectiveness
Foreign Exchange
differences
reserve
Balance of foreign
exchange
differences reserve due to
discontinued hedging
relationships
Investment in
Alpha Bank
London
(5,212)
(16,554)
Investment in
subsidiaries (RON)
61,014
(33,967)
31.12.2020
Change in
fair value
for the
measurement of
the hedge
effectiveness
Foreign Exchange
differences
reserve
Balance of foreign
exchange
differences reserve due to
discontinued hedging
relationships
Investment in
Alpha Bank
London
(1,402)
(17,035)
Investment in
subsidiaries (RON)
51,266
(32,037)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
185
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
19.
Loans and
advances
to customers
31.12.2021
31.12.2020
Loans measured at amortised
cost
37,890,744
47,260,897
Leasing
612,077
611,137
Less: Allowance for
expected credit
losses
(2,077,358)
(9,079,938)
Total
36,425,463
38,792,096
Advances to customers measured
at amortised cost
235,255
267,024
Advances to customers measured
at fair value through profit or loss
40,000
40,000
Loans measured at fair value
through profit or loss
159,696
280,882
Loans and
advances to
customers
36,860,414
39,380,002
As at 31.12.2021, “Advances to customers measured at amortised cost” include accumulated impairments
amounting to
€ 49,987 (31.12.2020:
€ 47,227).
The advances to customers measured at amortized
cost on 31.12.2021 include the net receivable
consideration amounting
to
€ 105,426
from
the
sale
of
the
non-performing
loan
portfolio
with
property
as
collateral
as
well
as
othe
advances
to
customers (“Neptune” transaction).
In addition,
advances to
customers measured
at fair
value through
profit or
loss includes
the fair
value of
receivable
from
variable payment
of the abovementioned
transaction for which
the fair value was
estimated at 31.12.2021
to € 40,000.
Finance
leases
derived
mainly
from
the
activities
of
the
subsidiary
Alpha
Leasing
S.A.
The following tables, present an analysis of
loans per type and
category.
Loans measured
at amortised cost
31.12.2021
31.12.2020
Individuals
Mortgages:
- Non-securitized
6,700,109
12,738,458
- Securitized
2,793,296
4,154,487
Consumer:
- Non-securitized
878,303
1,986,207
- Securitized
886,371
2,121,090
Credit
cards:
- Non-securitized
406,162
456,239
- Securitized
533,555
717,543
Other
1,367
1,368
Total loans to individuals
12,199,163
22,175,392
Corporate:
Corporate loans:
- Non-securitized
17,146,882
18,966,318
- Securitized
2,481,162
5,695,755
Leasing:
- Non-securitized
381,550
366,137
- Securitized
230,527
245,000
Factoring
581,049
423,432
Senior securitization
notes
5,482,488
Total corporate
loans
26,303,658
25,696,642
Total
38,502,821
47,872,034
Less: Allowance for
expected credit
losses
(2,077,358)
(9,079,938)
Total loans measured
at amortised cost
36,425,463
38,792,096
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
186
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
In the
context of
the reassessment
of the
hold to
collect business
model of
loans and
advances
to customers,
past sales
are
taken into account.
Considering that:
-
the majority
of the
Group’s
sales are
in accordance
with the
Group’s
business
model as
they concern
sales of
non-
performing loans due to
the credit
rating deterioration of the
debtor and
-
individual sale are not considered material both individually and in aggregate,
the Group has
assessed that the
“hold to
collect” business model is
not challenged.
On 30.4.2020
the Alpha
Bank S.A.
before
the demerger
completed,
in accordance
with the
provisions
of article
10 of
Law
3156/2003,
the securitization
of a portfolio
of consumer,
mortgage and
corporate loans
and receivables
to special
purpose
entities.
In
particular,
Alpha
Bank
S.A.
before
the
demerger
transferred
non-performing
loan
portfolios
to
four
special
purpose
entities,
Orion
Securitization
Designated
Activity
Company,
Galaxy
II Funding
Designated
Activity
Company,
Galaxy
IV
Funding
Designated
Activity
Company
and
Galaxy
III
Funding
Designated
Activity
Company,
set
up
for
this
purpose,
which
in
turn
issued
notes.
The
three
securitizations
follow
a
three-tranche
structure
and
have
issued
senior,
mezzanine
and
junior
notes.
The Company acquired the
total of the notes and maintained
in all cases the risks and rewards deriv
ing from the securitized
portfolios,
which
resulted
to
not
derecognizing
the
loans
as
it
retained
in
all
cases
the
risks
and
rewards
of
securitized
portfolios.
In
February
2021,
a
binding
agreement
was
concluded
with
Davidson
Kempner
Capital
Management
LP,
which
provided
for
the sale of 51%
of the mezzanine
and junior notes
of the Non-performing
Exposure portfolio issued
by Orion Securitization
Designated
Activity
Company,
Galaxy
II
Funding
Designated
Activity
Company
and
Galaxy
IV
Funding
Designated
Activity
Company.
The
sale
was
concluded
on
18.6.2021
for
a consideration
of
€ 5,778.
Following
the
sale
of
the
mezzanine
and
junior
notes,
the
Group ceased to have the control over the securitized loans, given that the special purpose entities have practically the right to
transfer them to third party. As a result the
Group derecognized the loans and recognised a loss from derecognition of financial
assets measured at
amortized
cost amounting to
€ 2,238,989.
The calculation of the
loss included besides the
consideration the following:
-
The carrying amount of the securitized loans amounting to € 5,810,559 from derecognition,
-
The carrying amount of the 100% of the senior notes and the 49% of the mezzanine and junior notes
which were
recognized after the
sale amounting to
€ 3,813,580.
-
The carrying amount of the financial receivables from the special purpose entities that were derecognized after the sale of
Galaxy Bonds amounting
to €
228,721.
-
The transaction costs amounting to € 19,067.
The derecognition of the abovementioned loan portfolio was preceded by the transfer of loans of
carrying amount
€ 28,497,491 to the new credit institution in the context of the hive-down of the banking business sector.
The
carrying
amount
of
securitized
loans
in
the
special
purpose
entity
Galaxy
III
Funding
Designated
Activity
Company
was
classified
at
31.12.2021
to
asets
held
for
sale
(note
48).
On
31.12.2020
the
total
amount
of
securitized
loans
in
the
special
purpose enterprizes of
the Galaxy
securitization was €
6,043,792.
Additionally,
the Bank
in the
context of
the galaxy
transaction
recognized
senior notes
amounting to
€ 3,839,596
in loans
measured at
amortized cost,
as well
as mezannine
and junior
notes amounting
to € 1,991
to loans
measured at
fair value
trough profit or
loss.
On
28.6.2021
the
Bank
transferred
portfolios
of
non-performing
loans
to
the
special
purpose
vehicle
“Gemini
Core
Securitization
Designated
Activity
Company”
based
in
Ireland
which
was
established
for
this
purpose
and
which
in
turn
issued
notes. The Bank
covered all issues,
which resulted
in the control
of the special
purpose vehicle
by the Bank and
the non-
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
187
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
derecognition of these loans
from its balance sheet as it retained
all risks and rewards arising
from the securitized portfolios.
The balance of securitized
loans of the aforementioned
transaction measured
at amortized cost amounted
to € 4,526,627 as
of 31.12.2021.
On 17.12.2021 the “Cosmos” transaction was
completed which included:
a)
The se
curitization
by the
Bank
of loans
and
advances
of carrying
amount
before
impairment
€ 3.4
bil. to
the special
purpose
entity Cosmos Securitization Designated Activity Company
in accordance with Law 3156/2003. In the context of the
securitization,
which was
conducted
on 8.10.2021,
the special
purpose
entity issued
bonds
in three
trances,
Series A
(senior
notes), Series B (mezzanine notes) and Series
C (junior notes), which were initially
acquired by the Bank.
b)
The sale of 51% of mezzanine and junior notes of the Cosmos portfolio securitization. The Bank held 100% of senior
notes by
making use
of the
terms
of the
“Hercules” Guarantee
Program, as
well as
5% of
mezzanine
and junior
notes. The
Group also held 44% of mezzanine and junior notes. The Group with the completion of the transasction preceded to the
derecognition of the loans by recognizing losses from
derecognition of financial assets measured at amortized cost of
€ 22,076.
As
a
result
of
the
above
the
Group
recognized
in
loans
measured
at
amortized
cost
the
senior
notes
amounting
to
€ 1,720,935
and also recognized in loans measured in
fair value through profit or
loss the mezzanine and junior notes
amounting to
€
570.
The
Cosmos
loan
portfolio
had
been
classified
in
assets
held
for
sale
as
of
30.9.2021.
Additionally,
the
Group
owns
a
portfolio of business
and consumer loans,
credit cards and receivables
from financial leases that
have been securitized through
special purpose
entities controlled
by the
Group. After
an examination
of the contractual
terms and
and structure
of the abov
e
transactions
(i.e.
guarantees
or/
and
credit
support
or
ownership
of
bonds
issued
by
special
purpose
entities)
it
occurs
that
the
Group
maintained
in all
cases
the
risks
and
rewards
deriving
from
the securitized
portfolios.
The
aforementioned
securitized
loans
and
advances
to customers
after
allowance
for
expected
credit
losses,
measured
at
amortized
cost,
as
of
31.12.2021
amounted to 1,378,329.
Mortgage
loans
as
at
31.12.2021
include
loans
amounting
to
€ 3,420,371
(2020:
€ 3.370.323)
which
have
been
used
as
collateral
in
the
Covered
Bond
Issuance
Program
I
and
Covered
Bond
Issuance
Program
II of
the
Bank
and
the
Direct
Issuance
Covered Bond Program
of Alpha Bank
Romania.
According to a) the Business Plan relating to the management
of Non Performing Exposures, that the Bank submitted
on
15 April 2020 and has been
prepared in accordance with the methodology and models of the
supervisory authorities and
b) the Strategic
Plan of the Bank
presented on May
2021, the Bank is
obliged to monitor
and report to the
SSM the level
of the achievement of the targets set in the Business Plan on a consolidated
basis, until the end of 2023, through relevant
supervisory reports. As at 31.12.2021, the
balance of the NPE
loans included in total
loans and advances to
customers
amounted to € 5.1 billion. It is noted
that the Bank is expected to submit
an updated Business plan for
thee management of
Non Performing Exposures on 31.3.2022 with a reference period spanning up to
the end of 2024.
The
carrying
amount
of
loans
guaranteed
by
the
Greek
Government
and
foreign
governments,
that
were
issued
in
the
context
of
the
Covid-19
pandemic
as
at
31.12.2021
amounted
to
€ 1,336,953
(31.12.2020:
€ 1,040,695)
and
is
included
in
the
balance of loans measured
at amortized cost. For this category
of loans an expected credit
loss allowance has been
formed
as at
31.12.2021
amounting
to € 1,997
(31.12.2020
€ 2,127). The
carrying amount
of loans
with interest
rate subsidy
from
the Entrepreneurship
Fund II
and the
Western Macedonia
Development
Fund of
the Hellenic
Development
Bank amounts
to € 367,947
on 31.12.2021
(31.12.2020:
€ 399,422) and
is included
in the
balance of
loans measured
at amortized
cost.
For the above loans the allowance for expected credit losses recognized as at 31.12.2021 amounts to € 1,392 (31.12.2020
€ 2,083).
As
at
31.12.2021,
the
Group
classified
the
Sky
and
Orbit
portfolios
under
“Assets
Held
for
sale”.
The
first
portfolio
concerned
a Cypriot
portfolio of
retail and
wholesale
loans, with
a book
value of
€ 555,496.
and the
second portfolio
related to
retail
banking
loans
mainly
unsecured
with
a
carrying
amount
of
€ 34,903.
In
addition,
on
31.12.2021
the
Group
classified
under
“Assets Held for sale” loans of Alpha Bank Albania with a carrying amount of € 278,099 in the context of the company’s sale
transaction.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
188
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The movement
of allowance
for expected
credit
losses
on loans,
that are
measured
at amortized
cost,
is presented
below:
Allowance
for expected
credit
losses
Balance 1.1.2020
8,682,370
Changes for the
year 1.1. -
31.12.2020
Impairment losses for the year
1,263,988
Transfer of allowance for expected credit losses to Assets held for sale
0
Derecognition due to substantial
modifications in loans’ contractual
terms
(9,038)
Change in present value of the impairment losses
117,495
Foreign exchange differences
(16,441)
Disposal of impaired loans
(77)
Loans written-off
during the year
(959,213)
Other movements
854
Balance
31.12.2020
9,079,938
Changes for the year
1.1 - 31.12.2021
Impairment losses for the year
1,425,853
Transfer of allowance for expected credit losses to Assets held for sale
(3,964,834)
Derecognition due to substantial
modifications in loans’ contractual
terms
(5,648)
Change in present value of the impairment losses
146,361
Foreign exchange differences
37,177
Disposal of impaired loans
(4,130,923)
Loans written-off
during the year
(473,162)
Other movements
(37,404)
Balance
31.12.2021
2,077,358
“Impairment
losses”
presented
above,
does
not
include
impairment
loss
of
€
528
(31.12.2020:
€
22,209)
which
relates
to
impairment losses
for loans classified
as held
for sale and
the fair value
adjustment for
the contractual
balance of
loans which
were impaired at their acquisition or
origination (POCI) which is included in
the carrying amount of the
loans.
Finance
lease receivable
are analyzed
by duration
as follows:
31.12.2021
31.12.2020
Up to 1 year
324,130
262,970
From 1 year to 5 years
188,633
227,312
Over 5 years
151,489
180,018
664,252
670,300
Non accrued
finance lease income
(52,175)
(59,163)
Total
612,077
611,137
The net amount
of finance lease
receivables are analyzed as follows,
based on their
duration:
31.12.2021
31.12.2020
Up to 1 year
313,159
250,926
From 1 year to 5 years
164,227
200,586
Over 5 years
134,691
159,625
Total
612,077
611,137
It is noted that during the previous year the reduction in receivables from finance leases amounts
to € 1,531 due to a sublease
modification (reduction in duration) which resulted in the discounting of new cash flows at the initial IBR rate and the difference
from the
carrying amount to
be recognized as
impairment loss.
There has been no significant impact from the application of the rent concession measures on the receivable from finance
leases.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
189
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Loans
measured
at
fair
value
through
profit
or loss
31.12.2021
31.12.2020
Corporate:
Corporate loans:
- Non-securitized
157,135
176,342
- Securitized
104,540
Galaxy and Cosmos
securitization bonds
2,561
Total corporate
loans
159,696
280,882
Total
loans
to customers
measured
at fair
value
through
profit
or loss
159,696
280,882
20.
Investment securities
31.12.2021
31.12.2020
Investment Securities
measured at fair value through other comprehensive
income
6,634,120
6,577,698
Investment Securities
measured at amortized cost
3,752,747
3,335,733
Investment Securities
measured at fair value through profit
or loss
253,347
137,675
Total
10,640,214
10,051,106
An analysis of investment securities is
provided in the following
tables per classification category, per type
of security.
a.
Securities
measured
at fair
value through
other comprehensive
income
31.12.2021
31.12.2020
Greek Government:
- Bonds
2,149,708
2,008,494
- Treasury bills
698,753
762,520
Other Sovereign:
- Bonds
1,670,701
1,831,950
- Treasury bills
82,695
16,257
Other issuers:
- Listed Bonds
1,968,610
1,902,890
-Non listed bonds
4,820
8,700
Equity securities
- Listed
23,425
18,074
- Non listed
35,408
28,813
Total
6,634,120
6,577,698
In December 2021, following
-
The significant change in the capital
base of the Bank
as a result of
the management actions for the reduction of
NPEs,
-
The supervisory
expectations,
as depicted
in the
decisions for
the Supervisory
Valuation (SREP)
from 2019
onwards with
respect to the use of business models that could have an impact on the regulatory capital and the Capital Adequacy ratio of
the Bank,
-
The new regulatory limits for MREL liabilities, with which the Bank needs to comply from 1. 1.2022, and the minimum
Capital Adequacy with the supervisory limits of the
Pillar II Guidance (P2G) with which
the Bank needs to comply
from
1.1.2023,
The
Executive
Committee
of
the
Bank
took
the
decision
to
minimize
the
usage
of
the
FVOCI
portfolio
towards
the
utmost
operational
needs
of the
Bank’s
Capital
Markets,
and long-term
securities
to be
used
to collect
interest
income
which
is also
consistent
with
the
Strategic
decision
of
the
Bank
and
to
reclassify
bonds
amounting
to
€
4.16
billion
to
the
hold
to
collect
category.
The above
decision
was
assessed
that
meets
the criteria
for
a change
in
the business
model
in
accordance
with
the
provisions
of IFRS 9 and therefore from 1.1.2022 the relevant investment
portfolio is reclassified to the portfolio of investment securities
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
190
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
measured at amortized
cost. The securities
will be reclassified at their
fair value on 1.1.2022
which however will
be adjusted
for the cumulative losses
of € 6.98 million that have
been recognized in equity,
and as a result the
value of the bonds will be
as they had always been measured at amortised cost. Their original interest rate
and expected credit losses that have already
been recognized
are not affected.
Investment portfolio equity securities measured at fair
value through other comprehensive income
The Group
has made
the irrevocable
election on
initial recognition
to measure
at fair
value through
other comprehensive
income equity
instruments that
have the
following characteristics:
a)
Shares in companies of
the financial sector (credit
institutions and interbank companies),
b)
Investments in private equity (shares of venture capital or private equity),
c)
Equity shares
received
in exchange
for debt
forgiveness
in the
context
of debt
restructurings
and
d)
Shares held
in long
term investment
horizon.
The
following
table
presents
the
equity
shares
of
investment
portfolio
measured
at
fair
value
through
other
comprehensive
income as of
31.12.2021 and as
of 31.12.2020.
Fair
Value
31.12.2021
Dividend
income
from
1.1 to 31.12.2021
Fair
Value
31.12.2020
Dividend
income
from
1.1 to 31.12.2020
Investments in financial
industry entities
6,068
1,327
5,429
757
Investments in private
equity
25,980
-
19,844
-
Long term equity holdings
26,785
380
21,614
1,693
Total
58,833
1,707
46,887
2,450
The increase in fair value compared to the previous year is due to the increase in the valuation of the shares. There were no
sales of equity shares measured at fair value
through other comprehensive income in 2021.
Within
the
year
2020,
for
liquidity
reasons,
the
Group
proceeded
with
the
disinvestment
of
shares
held
in
V
Telecom
Investments
SCA
and
V
Telecom
Investment
GEN
Partner
S.A.,
with
a
total
fair
value
of
€ 478
at
the
date
of
sale.
From
the
aforementioned sales, no
result was recognized.
In addition, in 2020 the Group proceeded
with the divestment of its equity holding in Mastercard,
following the participation in
the
Open
Conversion
and
Sale
Program
announced
by the
company,
according
to which
the right
to convert
Class
B shares
of
the Group
with issued
traded Class
A shares
was exercised.
The issued
Class A
shares, which
were classified
in the
category
of
shares valued
at fair value
through profit
or loss, were
sold within the
year and the
result from the
initial recognition
and the
sale of
shares was recognized
in gains
less losses on
financial transactions (note
5).
As
a consequence
of
the
completion
of
Galaxy
and
Cosmos
transactions
within
2021,
Group
ceased
to
have
control
over
the
special purpose
companies Reoco
Orion X MAE,
Reoco Galaxy
II MAE,
Reoco Galaxy IV
M,A, E and
Reoco Cosmos
MAE. The
investment
in these
companies
amounted
to €
193
were
reclassified
to the
portfolio
of securities
measured
at fair
value
through other comprehensive income.
b.
Securities
measured
at
amortized
cost
31.12.2021
31.12.2020
Greek Government:
- Bonds
3,088,893
2,779,179
Other Governments:
- Bonds
428,957
494,828
Other issuers:
- Listed
234,898
61,726
Total
3,752,748
3,335,733
For the
above securities
valued at
amortized
cost has
been recognized
accumulated
impairment losses
due to
credit risk
amount to € 15,371 (31.12.2020:
€ 10,332). The book value
before impairments
amounts to € 3,768,118
(31.12.2020
€ 3,346,065).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
191
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
c.
Securities
measured
at fair
value
through
profit
or loss
Securities
measured
at fair
value
through
profit
or loss
include
securities
for
which
it was
assessed
that
their contractual
cash
flows
do not
meet
the
solely
payments
of principal
and
interest
(SPPI)
as
required
by
IFRS
9, as
well
as the
equity
securities
which have
been classified
in this
category.
31.12.2021
31.12.2020
Other Governments:
- Bonds
Other issuers:
- Listed
36,332
10,870
- Non listed
3,009
2,373
Equities:
- Listed
6,598
6,064
- Non listed
32,439
32,836
Other variable
yield securities
174,968
85,532
Total
253,346
137,675
21.
Investments in associates and
joint ventures
31.12.2021
31.12.2020
Opening Balances
30,716
13,385
New associates/ joint ventures
15,399
Reclassification of APE
Commercial Property
3,917
Classification of
Cepal Holding
Societe Anonyme
29,764
Reclassification of
Cepal Holdings
Societe Anonyme
in subsidiaries
(1,550)
(Returns)/ Share Capital Increases
46
579
Reversal of impairment/
(impairment)
of joint venture
1,574
Share of
profits/(losses)
and other
comprehensive
income
6,167
(1,014)
Total
68,267
30,716
The classification of Cepal Holdings Societe Anonyme in associates for the year 2021 concerns the retention of 20% that the
Group
maintained
in
the
share
capital
of
the
company.
“(Returns)/
Share
Capital
Increases”
for
the
year
2021
concerns
the
share capital increase of the joint
venture Alpha TANEO AKES by €
46 (2020: €
579).
The subsidiaries
and joint ventures of
the Group are
as follows:
Name
Country
Group’s ownership
interest %
31.12.2021
31.12.2020
a. Associates
AEDEP Thessalias and Stereas Ellados
Greece
50.00
50.00
A.L.C. Novelle Investments Ltd
Cyprus
33.33
33.33
Olganos S.A.
Greece
30.44
30.44
Bank Information Systems
S.A.
Greece
23.77
23.77
Propindex Α.E.D.A.
Greece
35.58
35.58
Cepal
Holdings
S.A.*
Greece
20.00
Famar S.A.
Luxmbourg
47.04
Alpha Investment Property
Elaionas S.A.
Greece
50.00
50.00
Perigenis Commercial Property S.A.
Greece
31.97
31.97
b. Joint ventures
APE
Commercial
Property
S.A.
Greece
72.20
72.20
Alpha TANEO A.K.E.S.
Greece
51.00
51.00
Rosequeens Properties Ltd*
Greece
33.33
33.33
Panarae Saturn LP
Jersey
61.58
61.58
Alpha Investment
Property Commercial
Stores S.A.
Greece
70.00
70.00
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
192
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
*
Τhe companies are
parent companies
of groups as mentioned
in Note 40.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
193
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The Group’s
share in
equity and
profit/(losses)
of each
associate
and joint
venture is
set out
below:
Group’s share on
equity
Share of
profit/(losses)
Share
of
other
comprehensive income
From 1 January
to
From 1 January
to
From 1 January
to
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Name
a. Associates
AEDEP Thessalias
and Stereas
Ellados
73
73
A.L.C. Novelle
Investments Ltd
3,367
412
2,955
(3)
Olganos S.A.
Bank Information Systems S.A.
343
227
116
65
Propindex Α.E.D.A.
78
78
Alpha Investment Properties Elaionas
(252)
864
(1,116)
(1,139)
Cepal Holdings S.A.
32,593
2,829
(626)
Perigenis
Commercial Property
S.A.
15,230
15,363
(133)
(37)
Total (a)
51,432
17,017
4,651
(1,740)
-
-
b. Joint Ventures
APE Commercial
Property S.A.
3,917
3917
Alpha TANEO A.K.E.S.
7,029
3,794
1615
368
Rosequeens Properties
Ltd*
(13)
(9)
(4)
(8)
Panarae Saturn
LP
1,431
1,509
(78)
341
Alpha Investment Property Commercial Stores
4,471
4,488
(17)
25
Total (b)
16,835
13,699
1,516
726
-
-
Total (a) +
(b)
68,267
30,716
6,167
(1,014)
-
-
The
Group’s
associates
include
Zero
Energy
Buildings
Energy
Services
Societe
Anonyme,
in
which
the
subsidiaries
of
the
Group Alpha Ventures and Ionian Equity Participations
participate with 49% in the total share capital having preferred
shares
acquired
through
the
conversion
of
its
bonds.
The
significant
influence
that
the
Group
exercises
on
the
company
derives
from
the fact
that these
preferred shares
have voting
rights while
there is
also the
right of
appointing
a member
to the
Board of
Directors
of the
Company.
However,
the preferred
shares
based
on their
characteristics,
including
the term
for their
mandatory
redemption
by
the
issuer,
do
not
constitute
an
equity
instrument
and
are
therefore
valued
under
IFRS
9
as
Securities
valued
at
fair value through
profit or loss.
The
Group’s
associates
include
the
non-consolidated
special
purpose
company
Aurora
SME
I
DAC
through
which
the
Bank
in December
2021 made a
synthetic securitization
transaction of
small and
medium and large
business loans.
While the
activities and
returns of
the company
are predetermined,
the Bank reserves
the right to
make decisions
on specific
core
activities that arise if the special purpose company suffers a credit event and/or if the collateral of the bond issued to third
parties
is down
graded.
Therefore,
the
Bank
exerts
a significant
influence
on
the
special
purpose
company.
As
the
Bank
does
not
participate in its share capital and has no exposure to
any of its equity instruments, the equity method is not
applicable.
Investments
in
significant
associates
and
joint
ventures
The Group considers as significant the associates and joint ventures in which it participates by taking into account the activities
that are considered
to be of strategic
importance, the
book value of
the Group’s
participation in
the companies
and the loans
and receivables that consist part of the
Group’s net investment in the companies, if any.
On
the
basis
of
the
above,
the
associates
Cepal
Holdings
S.A.,
Alpha
Investment
Property
Elaionas
S.A.,
Perigenis
Commercial
Property S.A. and the
joint venture APE Investment Property
S.A. are considered as
significant.
It
is
noted
that
Cepal
Holdings
S.A.
which
was
evaluated
for
the
year
2021
as
a
significant
associate
was
reclassified
to
associates
as at
18.6.2021,
the date
on which
the Group
lost the
control of
the company
as a
result of
the sale
of 80%
of its
share capital as
described in note
40.
Alpha Investment
Property Elaionas
S.A. has
as main
activity the
construction
of buildings
and the
general exploitation
of real
estate.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
194
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
*
Τhe companies are
parent companies
of groups as mentio
ned in Note 40.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
195
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Perigenis Commercial Property S.A. has as main activity the management of real estate properties that obtains from the
restructuring of specific loans such as their
purchase and sale, their construction and exploitation.
APE Commercial Property S.A. carries out activities mainly relating to the acquisition of investments and real estate assets
and it has been characterized as a consortium due to the fact that the contractual agreement to exercise control requires a
unanimous decision of
its shareholders.
All the above-mentioned companies are established in Greece, are not listed on
a regulated market and therefore there is no
reference value for their fair
value. Except for the associates
and joint ventures that have
been classified as Assets held
for
sale and are valued in
accordance with the provisions of IFRS 5,
the other associates and joint ventures are
valued using the
equity method.
Condensed
financial
information
of
Alpha
Investment
Property
Eleonas
S.A.,
Cepal
Holdings
S.A.
(only
figures
for
the
year
2021) and Perigenis
Commercial Property
S.A., are accounted
for under the equity
method and are presented
below. For APE
Investment Property
S.A., that was classified
at Assets held for
sale, the disclosures
required by IFRS
5 are presented in
note 48.
Alpha Investment
Property
Elaionas S.A.
Condensed Statement
of Total Comprehensive
Income
31.12.2021
31.12.2020
Interest and
similar expenses
(1,840)
(1,753)
Other expenses
(399)
(524)
Profit/(losses)
before income
tax
(2,239)
(2,277)
Income tax
Profit/(losses) for the year
(2,239)
(2,277)
Other comprehensive
income
Other comprehensive income
for the year
after income tax
(2,239)
(2,277)
Amount attributed
to the participation
of the Group to profits/(losses)
of the associate
(1,116)
(1.139)
No dividends have been received from the entity within the years 2021 and 2020.
Condensed Balance Sheet
31.12.2021
31.12.2020
ASSETS
Other current
assets
4,211
9
Total current assets
4,211
9
Non-current
assets
105,069
111,432
Short-term liabilities
1,472
1,403
Total Short-term liabilities
1,472
1,403
Long-term financial
liabilities
108,322
108,309
Total long-term liabilities
108,322
108,309
Total equity
(514)
1,728
Group participation
(%)
50%
50%
Equity shareholding
(257)
864
Goodwill from the acquisition
Carying amount of participation
(252)
864
Loan that is
part of the net
investment
55,652
55,419
Net investment
55,400
56,283
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
196
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Cepal Holdings
S.A.
Condensed Statement
of Total Comprehensive
Income
31.12.2021
Interest and similar income
2
Interest and
similar expenses
(4,903)
Commission expense
(5)
Gains less losses
on financial
transactions
(21)
Other income
169,001
General Administrative
Expenses
(77,917)
Depreciation
(26,988)
Profit/(losses)
before income
tax
59,169
Income tax
(10,218)
Profit/(losses) for the year
48,951
Other comprehensive
income
Total comprehensive
income after
income tax
48,951
Amount attributed
to the participation
of the Group to profits/(l
osses) of the associate
2,829
The
amount
corresponding
to
the
profits
of
the
associate
Cepal
Holdings
SA.
concerns
the
period
from
18.6.2021
to
31.12.2021.
No dividend was received in
2021.
Condensed Balance Sheet
31.12.2021
Assets
Other current
assets
58,118
Total current assets
58,118
Non current assets
281,425
Other short term liabilities
27,470
Total short term liabilities
27,470
Other long term liabilities
96,753
Total long term liabilities
96,753
Provisions
6,075
Total Equity
209,245
Group participation
(%)
20%
Acquisition cost
41,849
Book value of participation
32,593
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
197
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Perigenis Commercial
Property S.A.
Condensed Statement
of Total Comprehensive
Income
31.12.2021
31.12.2020
Interest and
similar expenses
(3)
(6)
General Administrative
Expenses
(195)
(79)
Depreciation
(192)
(32)
Profit/(losses)
before income
tax
(390)
(117)
Income tax
Profit/(losses) for the year
(390)
(117)
Other comprehensive
income:
Total comprehensive
income after
income tax
(390)
(117)
Amount attributed
to the participation
of the Group to profits/(losses)
of the associate
(133)
(37)
No dividend was received in
2021.
Condensed Balance Sheet
31.12.2021
31.12.2020
Assets
Other current
assets
34,055
37,202
Total current assets
34,055
37,202
Non-current
assets
13,992
10,841
Other short-term
liabilities
422
Total short term liabilities
422
-
Total Equity
47,626
48,043
Group participation
(%)
31.97%
31.97%
Equity shareholding
15,240
15,374
Book value
of participation
15,230
15,363
Other
information
for
associates
and
joint
ventures
and
significant
restrictions
Apart
from
the associates
and
the
joint ventures
that
have
been
classified
as
Assets
Held for
Sale
and
are accounted
for
in
accordance
with the
provisions of
IFRS 5,
the rest
of the
associates and
the joint
ventures are
accounted
for using
the equity
method.
There
are no
cases
where
the
Group,
through
the application
of the
equity
method,
has ceased
recognizing
its portion
to losses
of associates and joint
ventures due to
the full impairment
of its participation to
them.
The Group has no contingent liabilities regarding its participation in associates or joint ventures. The Bank has the obligation
to contribute
with additional
funds in
the share
capital of
the joint
venture Alpha
TANEO AKES
up to
the amount
of € 19.
Further to this, there are no other unrecognized commitments
of the Group relating with its participation in associates and joint
ventures which could
result in future
cash or
other outflows.
There are no significant
restrictions for the associates
or joint ventures to transfer capital
in the Group or to repay the loans
that have been granted by the Group apart from the restrictions
imposed by Law 4548/2018 for Greek companies regarding
the minimum amount
of share
capital and equity
required and
the ability to
distribute dividends.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
198
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
22.
Investment property
Land – Buildings
Rights-of-use
on
Land
and Buildings
Total
Balance 1.1.2020
Acquisition Cost
562,086
10,765
572,851
Accumulated
depreciation
and
impairment
losses
(85,695)
(1,320)
(87,015)
1.1.2020 - 31.12.2020
Net book value
1.1.2020
476,391
9,445
485,836
Additions
40,834
40,834
Additions from expenses capitalization
741
741
Additions from companies
consolidated for
the first time in the year
102,682
102,682
Reclassification to
"Property, Plant
and Equipment"
12,156
12,156
Reclassification to
"Assets held for
sale"
(30,375)
(30,375)
Disposals /
Write-offs /
Terminations/ Reassessment
(11,369)
(11,369)
Foreign Exchange
differences
991
991
Disposals / Write-offs / Terminations
(19,029)
(19,029)
Depreciation charge
for the
year
(7,221)
(822)
(8,043)
(Impairment) / Reversal
of Impairment for the year
(13,752)
8,852
(4,900)
Net book value
31.12.2020
563,418
6,106
569,524
Balance
31.12.2020
Acquisition Cost
661,951
7,820
669,771
Accumulated
depreciation
and
impairment
losses
(98,533)
(1,714)
(100,247)
1.1.2021 - 31.12.2021
-
Net book value
1.1.2021
563,418
6,106
569,524
Additions
26,898
5,770
32,668
Additions from expenses capitalization
17,615
17,615
Additions from companies
consolidated for
the first time in the year
10,723
10,723
Reclassification to
"Assets held for
sale"
(96,766)
(96,766)
Foreign Exchange differences
(287)
(287)
Disposals / Write-offs / Terminations
(4,675)
(4,675)
Disposals of
subsidiary
(30,218)
(30,218)
Depreciation charge
for the
year
(9,346)
(6,510)
(15,856)
Impairment for
the year
(57,296)
(57,296)
Net book value
31.12.2021
420,066
5,366
425,432
Balance
31.12.2021
Acquisition Cost
526,301
7,826
534,127
Accumulated
depreciation
and
impairment
losses
(106,235)
(2,460)
(108,695)
The fair value
of investments
in land and buildings
as at 31.12.2021
amounts to € 430,169 (31.12.2020:
€ 612.258).
In 2021 an impairment
loss amounting to
€ 57,296 (31.12.2020: € 13,752), was
recognized, in order
for the carrying amoun
t
of
investment
property
not
to
exceed
the
recoverable
amount
as
at
31.12.2021,
as
the
latter
was
estimated
by
certified
valuers, as the
fair value after
deducing cost of sale.
The impairment amount was
recognized in “Other Expenses”. The
main
part
of
the
impairment
losses
of
the
year,concerns
property
of
book
value
€ 96,766
as
at
31.12.2021
that
have
been
transfered
to Held
for Sale
(note 48).
The recoverable
amount
of investment
property,
which was
impaired
during the
current
year, amounted to
€ 112,507
(31.12.2020: €
60,353).
The fair value
of the investment
property is
calculated in
accordance with
the methods
mentioned in
note 1.2.7
and
are classified, in terms of fair
value hierarcy, in Level 3
since assumptions and inputs relating to properties of
relevant
characteristics are used for the determination
of fair value and therefore encompass a wide range of unobservable
market
inputs. The
capitalization rate
used ranges
between 6.5% and
8%.
It is noted that further to the updated reports
obtained by the competent divisions
of the Bank relating to the effect of
Covid-19 on the values of real estate properties and based on the
assumptions of the basic scenario relating to the evaluation
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
199
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
of the pandemic and its effect on the values of the properties, and considering recent data from realized
property sales by the
Group to third parties, it is estimated that
the prices of Group’s properties have
not been affected by the pandemic
in order to
merit further impairment
in the fair
values.
In
2020,
the
Group
transferred
own
use
assets
of
€ 12,156
to
Investment
properties,
which
mainly
concern
buildings
leased
to
third parties.
Information about the caption “Assets held for sale” is
presented in note 48.
“Additions” of
the current year
as well as
the “Additions
from companies
that were consolidated
for the first
time in the
year”
mainly relates to investment
in properties acquired in the context
of the credit risk management
of the Group from real estate
loan collaterals as well as real estate properties of the new subsidiary of the Group
Engronmest, which is consolidated for the
first time
in December 2021
as described in
note 40.
With
regards
to
the
right-of-use
assets,
in
the
year
2020,
a
reversal
of
impairment
amounting
to
€ 8,852
was
recognized
under
“Other
Expenses”.
No corresponding
item
is recognized
in the
current
financial
year.
The recoverable
amound
of right
–of-
use assets on buildings is equal
to the discounted value of the
rental receivables from subleases.
The
Group,
as
a
lessor
of
buildings
owned
by
third
parties,
recognizes
in
the
results
of
the
period
rental
income.
Future receipts from
operating leases are
as follows:
31.12.2021
31.12.2020
- Up to
1 year
8,792
6,973
- From 1 year to 5 years
15,173
15,385
- Over 5 years
482
1,646
Total
24,447
24,004
Future income from finance
leases are disclosed in
note 19.
Income from operating leases for 2021
amount to € 12,489 (31.12.2020: € 10,211) and are included in “Other income”.
Group as a lessor did not have a material impact
from the implementation of the lease concession
measures in response to
the Covid-19 pandemic.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
200
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
23.
Property plant and
equipment
Land
and
Buildings
Equipment
Rights-of-use
on fixed
assets
Total
Balance 1.1.2020
Acquisition Cost
894,307
502,586
168,654
1,565,547
Accumulated
depreciation
and
impairment
losses
(268,468)
(405,430)
(39,317)
(713,215)
1.1.2020 –
31.12.2020
Net book value
1.1.2020
625,839
97,156
129,337
852,332
Additions
7,522
23,353
15,319
46,194
Additions
from
companies
that
were
consolidated
for
the
first
time
in
the
year
979
3,035
-
4,014
Disposals /
Write-offs /
Terminations /
Reassessments
(891)
(1,978)
(5,054)
(7,923)
Reclassification
from "Investment
Property"
(12,156)
-
-
(12,156)
Reclassification to "Other
Assets"
(837)
-
-
(837)
Reclassification to
"Assets held for
sale"
-
(324)
-
(324)
Foreign Exchange differences
1,484
(426)
(2,146)
(1,088)
Depreciation charge
for the
year
(17,143)
(29,860)
(32,150)
(79,153)
Impairment losses for the year
(10,415)
3,686
(6,729)
Net Book
value 31.12.2020
594,361
92,978
108,992
796,331
Balance
31.12.2020
Acquisition Cost
840,090
523,764
172,178
1,536,032
Accumulated
depreciation
and
impairment
losses
(245,729)
(430,786)
(63,186)
(739,701)
1.1.2021 –
31.12.2021
Net book value
1.1.2021
594,361
92,978
108,992
796,331
Additions
6,981
12,090
15,731
34,802
Additions
from
companies
that
were
consolidated
for
the
first
time
in
the
year
43
43
Disposals /
Write-offs /
Terminations /
Reassessments
(6,062)
(398)
5,739
(721)
Disposal of
subsidiaries
(2,400)
(6,189)
(8,589)
Reclassification to "Other
Assets"
(4,068)
(4,068)
Reclassification to
"Assets held for
sale"
(5,373)
(1,482)
(8,745)
(15,600)
Foreign exchange differences
(1,312)
(1,549)
2,436
(425)
Depreciation charge
for the
year
(16,365)
(19,376)
(28,163)
(63,904)
Impairment losses for the year
(94)
(43)
81
(56)
Net book value
31.12.2021
568,068
79,863
89,882
737,813
Balance
31.12.2021
Acquisition Cost
841,752
509,142
172,819
1,523,713
Accumulated
depreciation
and
impairment
losses
(273,684)
(429,279)
(82,937)
(785,900)
The
recoverable
amount
of
plant,
property
and
equipment
which
were
impaired
during
2021,
amounted
to €
2.084
(31.12.2020:
€ 239.752),
while
an
impairment
loss
of
€ 94
(31.12.2018:
€ 10.415)
was
recorded
in
“Other
Expenses”.
During
the
impairment
test of property,
the estimation of
the recoverable
amount is based
on the value in
use, which incorporates
in the value
of the
asset
all
the
improvements
realized
as
necessary
to
bring
the
asset
in
an
appropriate
condition
to
be
used
by
the
Group.
The
discount rates used range
between 6.5% and 8% depending
on the characteristics (location,
size use) of each asset.
The
fair
values
of
the
properties
are
calculated
in
accordance
with
the
methods
described
in
note
1.2.7
and
are
classified.
in
terms of
fair value
hierarchy.
in Level
3 since
assumptions
and
inputs relating
to properties
of relevant
characteristics
are used
for the determination of fair value
and therefore encompass
a wide range of unobservable
market inputs.
It is noted that further to the updated reports obtained by the competent
divisions of the Bank relating to the effect of Covid-19
on
the
values
of
real
estate
properties
in
Greece
it
is
estimated
that
these
values
have
not
been
affected
by
the
pandemic
in
order to
merit further
impairment in
the fair
values during
31.12.2021.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
201
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
In addition.
the Group
did not
have
an impact
from the
application
of the
lease concession
measures,
given that
the Bank
and
the Group
companies as
tenants. have
not been
favored in
this regard.
Information on
the transfers
to “Assets
Held for Sale”
is presented
in note 48.
With
regards
to the
right
of use
assets.
in 2021
there
were
no
transfers
from
the
“Investment
properties”
and
a loss
of €
0.15
was recognized
(31.12.2022:
€ 55)
as well
as a
reversal
of impairment
of €
81 (31.12.2020:
€ 3.741)
recorded
in “Other
Expenses”.
24.
Goodwill and
other intangible
assets
Goodwill
Software
Other intangible
Total
Balance 1.1.2020
Acquisition cost
908,034
141,484
1,049,518
Accumulated
depreciation
and
impairment
losses
(445,164)
(112,008)
(557,172)
1.1.2020 –
31.12.2020
Net book value
1.1.2020
462,870
29,476
492,346
Additions
103,406
128
103,534
Additions from
companies
that were consolidated
for the first time
in the year
59,656
19,339
78,995
Disposals / Write-offs
(1,225)
(1,225)
Foreign exchange differences
(71)
(2)
(73)
Amortisation charge
for the year
(63,596)
(10,605)
(74,201)
Impairment losses for the year
(131)
(131)
Net book value
31.12.2020
59,656
520,723
18,997
599,376
Balance
31.12.2020
Acquisition cost
59,656
1,009,289
141,641
1,210,586
Accumulated
depreciation
and
impairment
losses
-
(488,697)
(122,644)
(611,341)
1.1.2021 - 31.12.2021
Net book value
1.1.2021
59,656
520,592
18,997
599,245
Additions
97,076
97,076
Disposal of
subsidiaries
(55,333)
(23,130)
(78,463)
Reclassification to
"Assets held for
sale"
(1,327)
(1,327)
Foreign Exchange differences
(69)
(19)
(81)
(169)
Disposals / Write-offs
(4,088)
(4,088)
Amortisation charge
for the year
(74,635)
(2,657)
(77,292)
Impairment losses for the year
(4,254)
(36,327)
(16,218)
(56,799)
Net book value
31.12.2021
-
478,142
41
478,183
Balance
31.12.2021
Acquisition cost
1,014,213
125,341
1,139,554
Accumulated
depreciation
and
impairment
losses
(536,071)
(125,300)
(661,371)
Software additions
of the year
relate mainly
to purchase
of licenses
and software
applications
of the Bank.
Respectively
the
disposal
of subsidiaries
concerns
to the
deconsolidation
of Cepal
Holding
Societe
Anonyme
due
to the
fact
that
the Group
sold 80%
of its
share capital
on 18.6.2021
(note 40).
Respectively, the
goodwill impairments
relate to the goodwill
impairment of the
real estate company
Acarta Construct
Srl (note 40).
Within
software
programs
additions
of
the
year
is
included
an
amount
of
€
11,110
(31.12.2020:
11,565)
which
concerns
an
internally
produces
computer
applications.
The
depreciation
for
the
year
corresponding
to
these
applications
amounted
to
€ 2,545
(31.12.2020: €
233).
In
2021
an
impairment
loss
on
intangible
assets
of
41,811
(31.12.2020:
€ 131)
was
recognized
in
“Other
expenses”
and
an
amount of
€
10,734 was
recognized in
the Discontinued
Activities.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
202
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
25.
Deferred tax assets and liabilities
31.12.2021
31.12.2020
as restated
Assets
5,427,516
5,278,904
Liabilities
(23,011)
(32,379)
Total
5,404,505
5,246,525
Deferred tax assets and liabilities
are analyzed as follows:
1.1 - 31.12.2021
Balance
1.1.2021
Recognised
in
Disposal
of
subsidiaries
ABA
transfer
to held for sale
Foreign
exchange
differences
Balance
31.12.2021
Income
Statement
Equity
Debit difference
of Law
4046/2012 (Note 13)
935,652
(44,555)
891,097
Debit difference
of Law
4465/2017 (Note 13)
2,404,145
540,249
2,944,394
Write-offs, depreciation
and
impairment
of
fixed
assets
and leases
(8,490)
57,472
48,982
Loan portfolio
1,458,055
(422,643)
1,035,412
Valuation of
loans due to
hedging
(346)
322
(24)
Employee
defined
benefit
and insurance funds
11,301
(2,834)
(1,198)
7,269
Valuation
of
derivatives
financial
instruments
/
Valuation cash flow hedge
reserve
161,147
(40,952)
(6,028)
114,167
Valuation
of
liabilities
to
credit institutions
and other
borrowed
funds
due
to fair
value hedge
(11,620)
(5,172)
(16,792)
Valuation/impairment
of
investments
144,845
(7,610)
137,235
Valuation/impairment
of
debt securities and other
securities
(2,171)
57,364
59,407
114,600
Tax losses carried forward
11,386
(3,642)
7,744
Other temporary differences
157,496
(24,531)
(3,561)
3,441
3,127
135,972
Currency
translation
differences from
financial
statements
and
net
investment
hedging
of
foreign operations
(14,875)
(1,007)
(15,882)
Total
5,246,525
103,468
51,505
(3,561)
3,441
2,358
5,404,505
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
203
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1.1 - 31.12.2020
as restated
Balance
1.1.2020
Recognised
in
Acquisition
Cepal
Acquisition
Acarta
Foreign
exchange
differences
Balance
31.12.2020
Income
Statement
Equity
Debit difference
of Law
4046/2012 (Note 13)
980,207
(44,555)
935,652
Debit difference
of Law
4465/2017 (Note 13)
751,740
1,652,405
2,404,145
Write-offs, depreciation
and
impairment
of
fixed
assets
and leases
9,838
(14,761)
(3,567)
(8,490)
Loan portofolio
3,067,041
(1,608,986)
1,458,055
Valuation of
loans due to
hedging
236
(582)
(346)
Employee
defined
benefit
and insurance funds
11,181
(1,625)
1,745
11,301
Valuation
of
derivatives
financial
instruments
/
Valuation cash flow hedge
reserve
141,530
25,661
(6,044)
161,147
Valuation
of
liabilities
to
credit institutions
and other
borrowed
funds
due
to fair
value hedge
(11,065)
(555)
(11,620)
Valuation/impairment
of
investments
153,763
(8,918)
144,845
Valuation/impairment
of
debt securities and other
securities
(81,640)
(24,776)
104,245
(2,171)
Tax losses carried forward
12,021
(3,754)
3,119
11,386
Other temporary differences
104,447
52,914
137
(2)
157,496
Currency
translation
differences from
financial
statements
and
net
investment
hedging
of
foreign operations
(11,932)
(2,943)
(14,875)
Total
5,127,367
22,468
97,003
3,256
(3,567)
(2)
5,246,525
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
204
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEME
NTS AS AT 31.12.2021
205
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
26.
Other assets
31.12.2021
31.12.2020
Tax advances
and withholding
taxes
263,823
192,567
Deposit and
Investment Guarantee
Fund
634,048
635,323
Property obtained from auctions
and other property held for sale
393,233
418,006
Prepaid expenses
26,693
31,158
Accrued income
6,630
6,329
Other
248,370
304,560
Total
1,572,797
1,587,943
“Deposit
and
Investment
Guarantee
Fund”
relates
to
the
Bank’s
participation
in
the
assets
of
Investment
Cover
Scheme
and
Deposit Cover Scheme
and comprises the
following:
1.
the amount of the contribution to the Investment Cover Scheme and
2.
the difference on the regular annual contribution of credit institutions
deriving from the application of article 6 of Law
3714/2008 “Borrower’s protection and other provisions”, which increase the upper coverage level for
the amount of deposits
guaranteed by the
deposit guarantee scheme
from €
20 to
€ 100
per depositor.
The
above
difference
is
considered,
according
to
Law
4370/7.3.2016
in
“Deposit
Guarantee
Scheme
(transposition
of
Directive
2014/49/EU), Deposit and Investment
Guarantee Fund and other regulations” a distinct group of assets, which are considered
to be
assets of the
participating depository institutions according
to their
participation.
“Tax advances and withholding taxes” is presented, net of provisions amounted to € 64,763 in year 2021 (31.12.2020
€ 64,763).
As at 31.12.2021
the Group measured
“Property obtained
from auctions
and other property
held for sale”
at the lowest
value between
the carrying
amount and
fair value less
costs to sell.
For the cases
where the
fair value was
lower than
the
carrying
amount,
an impairment
loss
of €
15,452
was
recognized
in “Other
expenses”
of the
Income
Statement.
As
at
31.12.2020 the
relevant impairment
loss amounted
to € 7,471. The
main part of
the impairment
losses for the
current year
related to properties
with carrying amount
of € 20,384 on 31.12.2021
that were transferred to
the Assets for Sale
(note 48).
The recoverable amount of the property which was impaired during the current year amounted to € 22,372 (31.12.2020:
€ 133,280).
The fair value of the
assets has been estimated
based on the methods
mentioned in note 1.2.7
and are classified in
terms
of fair value hierarchy
in Level 3, since
is based on market
research data, assumptions
and inputs relating
to properties of
relevant characteristics and therefore
encompass a wide range of unobservable market inputs.
The capitalization rate used
was between 6.5%
and 8%.
It is noted that further to the updated reports
obtained by the competent divisions
of the Bank relating to the effect of
Covid-19
on
the values
of real
estate
properties
it is
estimated
that these
values
have
not been
affected
by the
pandemic
in
order to
merit further impairment
in the
fair values during
31.12.2021.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
206
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
207
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
LIABILITIES
27.
Due to Banks
31.12.2021
31.12.2020
Deposits:
- Current accounts
208,056
75,787
- Term deposits:
Central Banks
12,862,803
11,868,432
Other credit institutions
80,592
56,559
Cash collateral
for derivative
margin account
and repurchase
agreements
22,022
9,688
Securities sold
under agreement
to resell (Repos)
308,014
526,431
Borrowing funds
497,602
565,959
Deposits on demand:
- Other credit institutions
4,567
3,825
Total
13,983,656
13,106,681
In order
to cope
with the
effects of
Covid-19 pandemic,
ensure adequate
liquidity, normalize
market’s condition
and support
the
credit
expansion,
European
Central
Bank
gradually
announced
since
March
2020
a series
of measures
such
as
amendment
on
terms
of
the
Targeted
Longer
Term
Refinancing
Operations
III
and
a
new
bunch
of
non-targeted
longer
term
refinancing
operations
due
to
the
pandemic
(Pandemic
Emergency
Longer
Term
Refinancing
Operations).
On
24.6.2020
the
Bank
proceeded to the early termination
of the borrowed amount of € 3,1 billion, through
the existing program
of targeted long term
refinancing
II
(TLTRO
II)
with
an
interest
rate
of
-0,40%
and
raised
additional
liquidity
of
€
11.9
billion
through
the
Targeted
Long Term
Refinancing
Operations
III (TLTRO
III)
with an
interest
rate -0,50%
while
at the
same
date
an amount
of €
7.5 billion
that
was
raised
during
the
nine
month
period
of
2020
through
the
Long-Term
Refinancing
Operations
(LTRO)
matured.
It
is
noted that
the interest
rate of TLTRO
III can reach
-1% for the
period from
June 2020
to June 2021
and remain
to -0.5% for
the residual
period until maturity,
provided that
the amount
of loans falling
under the
program remain
for the period
between
March 2020 and
March 2021, at
March 2020’s levels.
The ECB announced
on 10.12.2020 a
further amendment
to the terms
of the TLTRO
III program,
according to
which if,
in addition
to the achievement
of the target
set for
the period
March 2020
-
March 2021,
loans for
the period
October 2020
- December
2021 remain
at the
levels of October
2020 the
interest rate
can
be set at -1% for
the next period from
June 2021 to June
2022. The Bank recognized
interest for the year
2020 based on the
interest rate of
-0.50%.
The additional funding
of € 1.0 billion received
in March 2021, the
repayments of €
1.9 billion and € 2.0
billion in Septembe
r
and December
2021 and
the concurrent
renewals
of € 4.0
billion,
resulted
in total
borrowing
through
the TLTRO
III program
of
€ 13 billion as at 31.12.2021. In terms
of loans, the target for the
period March 2020 - March
2021 has been achieved,
while
it is also
estimated, on
the basis of
the available
data, that
the target
for the period
October 2020
- December
2021 is also
being
achieved.
Following
the
above,
an
income
of
€ 152,759
was
recognized,
which
includes
the
retrospective
recognition
of
income amounting
to € 31,568 with
the additional
margin of
-0.50% for the
period 24.6.2020-31.12.2020
and an income
of
€ 121,191 relating to the current
fiscal year of which an
amount of € 56,800 relates to the additional
margin -0.50%.
In particular,
given that
changes in
the interest
rate based
on the level
of the achievement
of the objectives
are contractually
prescribed,
the
effective
interest
rate
will
be
adjusted
as
a
conventionally
predetermined
variable
interest
rate
when
the
estimates for
the achievement
of the objectives
become reliable
and cummulative
adjust of the
amount recognized
in interest
income.
It
is
also
noted
that
the
interest
rate
of
this
loan
has
not
been
treated
as
an
off-market
interest
rate
loan
as
the
European Central Bank
has provided it
to all
credit institutions under
its supervision.
Regarding
the
reduction
in
liabilities
to
other
credit
institutions,
the
increase
of
ECB
funding
led
to
reduction
in
repos
transactions.
The caption “Borrowing Funds” includes mainly
liabilities of the
Group towards
multilateral development banks.
The interest
income recognized
for the
period of
2021 and
2020 from
these transactions
is presented
in the caption
‘Interest
and similar income’
of the Statement
of Income.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
208
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
28.
Due to
customers
31.12.2021
31.12.2020
Deposits:
- Current account
22,022,946
17,411,869
- Saving accounts
14,959,750
12,623,780
- Term deposits
9,792,024
13,638,804
Deposits on
demand
42,906
51,070
46,817,626
43,725,523
Cheques payable
152,000
105,417
Total
46,969,626
43,830,940
In 2021,
due to
customers
increased
by € 3,138,6
86 compared
to the
comparative
year on
the one
hand due
to the
increase
in private
savings, as
a result
of the
uncertainty
caused by
the pandemic
and the
reduced amount
of consumer
spending, as
consumers
cannot
spend
- in
a degree
- due
to the
measures
of limiting
the
economic
activity,
and on
the other
hand
due to
the
increase
of the
saving accounts
of corporates,
as a
result
of the
restraint
of the
expenses,
due to
the uncertainty,
but also
due to
the extraordinary measures adopted by the Greek Government in order to support businesses.
29.
Debt securities
in issue
and other
borrowed funds
i.
Covered
bonds*
The following
table
presents
covered
bonds
in detail:
Balance 1.1.2021
710,587
Changes for the year
1.1 - 31.12.2021
Maturities / Repayments
(14,483)
Accrued Interests
14,018
Foreign Exchange differences
(80)
Balance
31.12.2021
710.042
The following tables presents additional information for the above
mentioned issuances:
a.
Held by the Group
Issuer
Currency
Interest Rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Alpha Bank S.A.
Euro
3m Euribor+0.50%, Minimum
0%
23.1.2023
1,000,000
1,000,000
Alpha Bank S.A.
Euro
3m Euribor+0.50%, Minimum
0%
23.1.2023
1,000,000
1,000,000
Alpha Bank S.A.
Euro
3m Euribor+0.35%, Minimum
0%
23.1.2023
200,000
200,000
Alpha Bank S.A.
Euro
2.50%
5.2.2023
1,000
1,000
Total
2,201,000
2,201,000
b.
Held by third parties
Issuer
Currency
Interest Rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Alpha Bank S.A.
Euro
2.5%
5.2.2023
499,000
499,000
Alpha Bank Romania S.A.
Euro
6m Euribor+1.5%
16.5.2024
200,000
200,000
Total
699,000
699,000
………CONSOLIDATED FINANCIAL STATEMENT
S
AS AT 31.12.2021
209
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
*
Financial
disclosures
regarding
covered
bond
issues,
as determined
by
the
2620/28.8.2009
Act of
the
Bank
of Greece,
have
been
published
on
the Bank’s site.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
210
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ii.
Common
bond loans
Under
the
Euro
Medium
Term
Note
Program
amounting
to
€ 15
billion,
the
Bank
issued
on
23.9.2021
a
high
repayment
priority
bond with a nominal value of € 500 million maturing on 23.3.2028,
with the possibility of revocation on 23.3.2027
and
with an
initially fixed
annual interest
rate of
5% which
is adjusted
to a
new interest
rate valid
from the
date of
withdrawal
until maturity, and which is determined based on the annual swap rate plus a margin of 2.849%. On 14.12.2021 the Bank
proceeded within
the framework
of the above
Program to
a new issue
of high repayment
priority with
a nominal value
of € 400
million
expiring
on 14.2.2024,
with the
possibility
of revocation
on 14.2.2023
and with
an initially
fixed annual
interest
rate
of
3.0%
which
is
adjusted
at
a
new
interest
rate
valid
from
the
date
of
withdrawal
until
maturity
and
determined
based
on
the
annual swap rate
plus a margin
of 3,468%.
The
above
two
issues
aim
to
meet
the
Bank’s
objectives
for
the
Minimum
Equity
and
Eligible
Liabilities
Requirements
as
defined by
the Single Resolution
Board.
Balance 1.1.2021
1,553
Changes for the year
1.1 - 31.12.2021
New issues
890,021
Repurchases
(4,969)
Maturities / Repayments
(43)
Hedging adjustments
(6,840)
Financial gains/losses
26
Accrued interest
4,455
Balance
31.12.2021
884,203
The following tables presents additional information for the above-mentioned issuances:
a.
Held by the Group
Issuer
Currency
Interest Rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Alpha Bank S.A.
Euro
2.50%
23.3.2028
5,000
-
Total
5,000
-
b.
Held by third parties
Issuer
Currency
Interest Rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Alpha Bank S.A.
Euro
2.50%
20.6.2022
350
350
Alpha Bank S.A.
Euro
2.50%
20.6.2022
1,345
1,345
Alpha Bank S.A.
Euro
2.50%
23.3.2028
495,000
Alpha Bank S.A.
Euro
3.00%
14.2.2024
400,000
Total
896,695
1,695
iii.
Liabilities
from
the
securitization
of
consumer
loans
Liabilities
arising
from
the
securitization
of consumer
loans,
business
loans
and
credit
cards
are
not
included
in the
account
“Bonds
and
other
loan
liabilities”,
because
the corresponding
securities,
nominal
amount
€ 1,441,800
(16.4.2021:
2.433.735)
issued by
special purpose
companies are held
by the
Group.
The following table presents additional information for the above mentioned issuance:
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
211
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Held by the Group
Issuer
Currency
Interest Rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Katanalotika Plc LDN - Class
Α
Euro
3m Euribor +2.6%.
minimum
0%
17.12.2019
220,000
Katanalotika Plc LDN - Class
Ζ
Euro
3m Euribor +1%. minimum0%
17.12.2029
360,000
Epihiro Plc LDN - Class
A
Euro
6m Euribor +0.3%.
minimum
0%
20.1.2035
400,000
400,000
Epihiro Plc LDN - Class B
Euro
6m Euribor. minimum 0%
20.1.2035
100,000
100,000
Pisti 2010-1 Plc LDN - Class A
Euro
2.50%
24.2.2026
294,200
369,300
Pisti 2010-1 Plc LDN - Class B
Euro
1m Euribor. minimum 0%
24.2.2026
172,800
216,900
Irida Plc LDN - Class A
Euro
3m Euribor +0.3%.
minimum
0%
3.1.2039
261,100
261,100
Irida Plc LDN - Class B
Euro
3m Euribor. mnimum 0%
3.1.2039
213,700
213,700
Alpha Quantum D.A.C.
Euro
6m Euribor+4.5%
15.11.2023
292,735
Total
1,441,800
2,433,735
On
15.1.2021
an amount
of nominal
value
of €
10,597
was repaid
from the
issue
of the
securitization
of the
Alpha
Quantum
DAC bond loan and on 23.3.2021 the total issue of
the remaining amount of €
282,138 was canceled.
On
17.6.2021
the
Class
A
and
Class
Z
versions
of
the
consumer
loan
securitization
transaction
were
repaid
and
the
respective
consumer loans were
declassified.
On 25.5.2021
the Class
A and
Class B
issues
of the
credit
card
securitization
transaction
at nominal
value
of € 75,100
and
€ 44,100 respectively were partially repaid.
iv.
Liabilities
from
the
securitization
of non
- performin
g
loans
On
30.4.2020,
the
Bank
has
proceeded
to
a
securitization
transaction
of
non-performing
consumer
and
corporate
loans
(“Galaxy”).
More
specifically,
non-performing
loans
were
transferred
to
special
purpose
entities
Orion
X
Securitisation
Designated
Activity
Company,
Galaxy
II
Funding
Designated
Activity
Company,
Galaxy
III
Funding
Designated
Activity
Company
and
Galaxy
IV
Funding
Designated
Activity
Company,
established
in
Ireland,
with
a
book
value
on
16.4.2021
€
6,022,689
(31.12.2020: €
6,148,332).
The bonds
issued by
the special
purpose
entities
with a
total nominal
amount of
€ 11,713,951
(31.12.2020:
€ 11,722,272)
and with a cost acquisition equal to the book value of the securitized loans, were owned
by the Group and therefore not were
included in the account
“ Debt securities
in issue and other
borrowed funds “.
It is noted that the
change in the total
nominal
amount in relation
to 31.12.2020 is
due to the
finalization of the
transaction perimeter.
Following
the sale
of 51%
of the
intermediate
versions and
low rating
of Orion
X Securitisation
Designated
Activity Company,
Galaxy II
Funding Designated
Activity Company
and Galaxy
IV Funding
Designated
Activity
Company
with a
nominal value
of
€
3,572.25,
which
ended
on
18.6.2021,
occurred
termination
of
recognition
of
the
respective
securitized
loans
and
the
Group
ceased to
exercise control over
the above
special purpose entities.
The obligation
from securitization
or non-performing
loans to
the special
purpose
company
Galaxy III
Funding
Designated
Activity Company is still not included in
the account “ Debt securities in
issue and other borrowed funds “ due
to the ownership
of the
above issue of
nominal value €
946,538.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
212
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The following table presents additional information for the above mentioned issuance:
Held by the Group
Issuer
Rating
Currency
Interest rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Orion
X Securitisation
D.A.C.
DUB
High
Euro
0.75%
25.10.2060
879,000
Orion
X Securitisation
D.A.C.
DUB
Medium
Euro
4%
25.10.2060
104,000
Orion
X Securitisation
D.A.C.
DUB
Low
Euro
Available amounts
after higher
priority payment coverage
25.10.2060
940,688
Galaxy II
Funding D.A.C.
DUB
High
Euro
0.75%
25.10.2060
2,053,000
Galaxy II
Funding D.A.C.
DUB
Medium
Euro
4%
25.10.2060
364,000
Galaxy II
Funding D.A.C.
DUB
Low
Euro
Available amounts
after higher
priority payment coverage
25.10.2060
3,329,849
Galaxy III
Funding
D.A.C. DUB
Single
discount
priority
Euro
Available amounts
25.4.2030
946,538
946,538
Galaxy IV
Funding D.A.C.
DUB
High
Euro
0.75%
25.10.2060
670,000
Galaxy IV
Funding D.A.C.
DUB
Medium
Euro
4%
25.10.2060
263,000
Galaxy IV
Funding D.A.C.
DUB
Low
Euro
Available amounts after
higher
priority payment coverage
25.10.2060
2,172,197
Total
946,538
11,722,272
v.
Liabilities
from
securitization
of
non-
performing
loans
Alpha Bank SA on
28.6.2021 carried out
an overdue loan portfolio
securitization transaction
managed by Cepal,
the amount
of which
may vary
on a
continuous
basis depending
on the
satisfaction
of specific
eligibility criteria.
In particular,
the loans
were
transferred
to
the
special
purpose
company
Gemini
Core
Securitisation
Designated
Activity
Company
based
in
Ireland,
which
issued
a
bond
with
an
initial
nominal
value
of
€ 8,712,547
which
was
purchased
in
its
entirely
by
Alpha
Bank
Societe
Anonyme. The nominal value
of the securitization amounts
to € 6,914,844 on 31.12.2021. Due
to the ownership of the bond,
the obligation from the said
securitization is not included in the
account “Debt securities in issue and
other borrowed funds”.
Issuer
Currency
Interest Rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Gemini Cοre Securitisation DAC
Euro
3m Euribor +0.4%,
minimum 0%
27.6.2050
6,914,844
Total
6,914,844
-
vi.
Subordinated
debt
In
the
context
of
the
Euro
Medium
Term
Note
Program
of
€
15
billion,
Alpha
Bank
A.E.
before
the
hive
down
issued
on
13.2.2020
a subordinated
debt at
a nominal
value of
€ 500 million
maturing on
13.2.2030, with
the possibility
of revocation
in five years and with
an initially fixed annual
interest rate of 4.25%
until 13.2.2025 which
is adjusted to a new valid
from the
date of withdrawal until expiration and determined based on the five-year swap rate plus a margin of 4.504%.
On 11.3.2021
Alpha Bank SA
before the hive
down, it issued
a new issue
of a subordinated
debt of a nominal
value of €
500
million, expiring on
11.6.2031, with the
possibility of revocation
between 5 and 5.25
years and an initially
fixed annual interest
rate
of
5.5%
until
11.6.2026,
which
is
adjusted
to
a
new
interest
rate
effective
from
the
date
of
cancellation
until
maturity,
which is determined
based on the
five-year swap rate
plus a margin
of 5.823%.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
213
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
2,593,003
Total of debtsecuritiesin
issueand
other borrowedfunds
as at31.12.2021
Balance 1.1.2021
510,729
Changes for the
year 1.1 -
31.12.2021
New issues
495,660
Repurchases
(15,908)
Maturities /
Repayments
(27,446)
Hedging adjustments
(7,252)
Financial (gains)/losses
(211)
Accrued interest
43,186
Balance 31.12.2021
998,758
The following table presents additional information for the above mentioned issuances:
a.
Held by the Group
Issuer
Currency
Interest Rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Alpha Services and Holdings S.A.
Euro
4.25%
13.2.2030
14,200
8,200
Alpha Services and Holdings S.A.
Euro
5.50%
11.6.2031
10,000
Total
24,200
8,200
b.
Held by third parties
Issuer
Currency
Interest Rate
Maturity
Nominal Value
31.12.2021
31.12.2020
Alpha Services and Holdings S.A.
Euro
3m Euribor+1.5%
Indefinite
650
650
Alpha Services and Holdings S.A.
Euro
4.25%
13.2.2030
485,800
491,800
Alpha Services and Holdings S.A.
Euro
5.50%
11.6.2031
490,000
Total
976,450
492,450
The following table presents the changes of debt securities and other
borrowed funds by separately disclosing the cash and
non-cash items:
Cash
flows
from
financing
activities
1.1.2021
Cash flows
Non-Cash flows
New
issues
Maturities
Repayments
Accrued
interest
Foreign
exchange
differences
Change
of
Fair Value
Other
31.12.2021
Senior debt securities(ii)
1,553
885,009
4,455
(6,840)
26
884,203
Subordinated
loans
510,729
452,306
43,186
(7,252)
(211)
998,758
Liabilities
from
the
securitization
of
other loans (i)
710,587
(14,483)
14,018
(80)
710,042
Cash
flows
from
financing
activities
1.1.2020
Cash flows
Non-Cash flows
New
issues
Maturities
Repayments
Accrued
interest
Foreign
exchange
differences
Change
of
Fair Value
Other
31.12.2020
Senior debt securities
(ii)
1,369
(43)
227
1,553
Liabilities
from
the
securitization
of
shipping loans
154,936
(165,134)
2,493
7,705
-
Bonds originated
from securitization
of consumer loans
220,090
(222,010)
2,064
(144)
-
Subordinated loans
(vi)
651
488,143
18,793
3,142
510,729
Liabilities
from
the
securitization
of
other loans *
(i)
711,647
(14,626)
13,634
(68)
710,587
The above cash flows are
included in the net
cash flows from financing activities in
the cash flow statement of
the year.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
214
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
30.
Liabilities for current income tax and other taxes
31.12.2021
31.12.2020
Income tax
22,249
53,847
Other taxes
37,335
16,294
Total
59,584
70,141
31.
Employee
defined
benefit
obligations
The total amounts recognized, in the financial statements for
defined benefit obligations are presented in the tables below:
Balance Sheet
- Liabilities
31.12.2021
31.12.2020
as restated
Alpha
Services
and
Holdings
S.A.
employee's
indemnity
provision
due
to
retirement
in
accordance
with
Law 2112/1920
30
24,725
Alpha Bank employee's
indemnity provision
due to retirement in accordance
with Law 2112/1920
19,040
Savings program
guarantee
512
2,761
Plans for Diners
(pension and health
care)
8,250
8,948
Greek Group companies’ employees
indemnity provision due to retirement
in accordance with Law 2112/1920
1,017
6,943
Other provision for retirement benefits
599
360
Total Liabilities
29,448
43,737
Income
Statement
Expense
/
(Income)
From 1 January
to
31.12.2021
31.12.2020
as restated
Alpha
Services
and
Holdings
S.A.
employee's
indemnity
provision
due
to
retirement
in
accordance
with
Law 2112/1920
1,790
8,085
Alpha Bank employee's
indemnity provision
due to retirement in accordance
with Law 2112/1920
4,733
Savings program
guarantee
134
(196)
Plans for Diners
(pension and health
care)
58
76
Greek Group companies’ employees
indemnity provision due to retirement
in accordance with Law 2112/1920
2,189
946
Other provision for retirement benefits
594
Total Liabilities
9,498
8,911
Balance Sheet and Income Statement amounts are analyzed per fund and
type of benefit as follows:
i.
Alpha Services
and Holdings
S.A. and Alpha
Bank S.A.
a.
Employee indemnity due to retirement
in accordance with Law
2112/1920
The contracts
of the
regular
employees
of Alpha
Services
and Holdings
S.A.
and Alpha
Bank
S.A.
are indefinite
term
employee
contracts
and
when
terminated,
the
provisions
of
Law
2112/1920
and
Law
3198/1955
apply,
as
amended
by
Law
4093/2012, which provide
a lump sum
benefit payment.
During the year,
the Company changed
the method of calculating
the defined benefit
obligation taking
into account a decision
of the
IFRS Interpretations
Committee (IFRIC
Committee)
issued in
May 2021.
With the
implementation
of this
decision, the
attributing of
benefits to
periods of service
will no longer
begin from
the first day
of employment
but as per
what is defined
in
article 8 of Law
3198/1955. The decision is treated as
a change in accounting policy
in accordance with the provisions of
IAS 8.
………CONSOLIDATED FINANCIAL STATEME
NTS AS AT 31.12.2021
215
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The amounts
recognized in
the balance sheet
are as follows:
31.12.2021
31.12.2020
as restated
Alpha Bank S.A.
Alpha Bank
Services and
Holdings
Alpha Bank A.E.
Present value of defined obligations
19,040
30
24,725
Liability
19,040
30
24,725
The amounts recognized in the
income statement are as follows:
From 1
January to
31.12.2021
31.12.2020
as restated
Alpha Bank S.A.
Alpha Bank
Services and
Holdings
Alpha Bank A.E.
Current service cost
1,553
643
2,061
Net interest cost
resulted from
net asset/liability
17
7
228
Past service cost
35
Settlement/Curtailment/Termination
(gain)/loss
3,163
1,140
5,761
Total (included in staff
costs)
4,733
1,790
8,085
The movement in the present value of
defined obligation is as follows:
2021
2020
as restated
Alpha Bank S.A.
Alpha Bank
Services and
Holdings
Alpha Bank A.E.
Opening Balance
24,725
76,312
Change in accounting
policy - Retained
Earnings
(28,520)
Change in
accounting policy
- Actuarial
gain/(loss)
22,433
New balance
24,725
25,359
Benefits paid
(10,039)
(1,355)
(8,182)
Total actuarial
gain/(loss) recognized
in profit
or loss
4,733
1,790
8,085
Total actuarial
gain/(loss) recognized
directly in
Equity
(317)
17
5,117
Reclassification
to voluntary
separation
scheme
provision
(434)
Transfer of staff to Cepal
(5,654)
Hive Down
25,147
(25,147)
Transfer of staff-Prometheus
(50)
Closing Balance
19,040
30
24,725
The amounts recognized directly in
equity during the
year are
analyzed as follows:
31.12.2021
2020
as restated
Alpha Bank S.A.
Alpha Bank
Services and
Holdings
Alpha Bank A.E.
Change
in
liability
gain/(loss)
due
to
changes
in
financial
and
demographic
assumptions
407
(1,201)
Change in
liability gain/(loss)
due to
experience adjustments
(90)
(17)
(3,916)
Total actuarial
gain/(loss)
recognized
directly
in Equity
317
(17)
(5,117)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
216
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
217
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
The movement in the defined obligation liability is as follows:
2021
2020
as restated
Alpha Bank S.A.
Alpha Bank
Services and
Holdings
Alpha Bank A.E.
Opening Balance
-
24,725
76,312
Change in accounting
policy- Retained Earnings
(Gain)/Loss
(28,520)
Change in accounting
policy- Actuarial
(Gain)/Loss
(22,433)
Balance
24,725
25,359
Benefits paid
(10,039)
(1,355)
(8,182)
Loss/(Gain) recognized
in Income
Statement
4,733
1,790
8,085
Loss/(Gain) recognized
in equity
(317)
17
5,117
Reclassification
to voluntary
separation
scheme
provision
(434)
Transfer of staff to CEPAL
(5,654)
Hive down
25,147
(25,147)
Transfer of staff - Prometheus
(50)
Closing Balance
19,040
30
24,725
The amount
of € 5,654
in 2020 corresponds
to the accrued
liability relating
to the Bank’s
personnel that
was transferred
to the
Bank’s NPL servicing subsidiary Cepal following the
spin-off and transfer of
non-performing loans business unit.
The amount of € 434 in 2021 corresponds to the provision
made for employees who made use of the long-term
leave under
the voluntary exit
scheme of September
2021.
The amount
of € 50
in 2021 corresponds
to the accrued
liability concerning
Bank’s staff
transfer in
the context
of hive down
of
the merger and
acquiring transaction.
b.
Savings plan
guarantee
For employees
hired by the
Bank and insured
from 1.1.1993
until 31.12.2004
the Bank has
guaranteed that
the lump sum
benefit payment,
according
to the
provisions
of the
insurance
plan, will
be at
least equal
to the
benefit as
defined
in Law
2084/1992 and the
Cabinet Act 2/39350/0022/2.3.99.
The amounts included in
the balance sheet
are analyzed as
follows:
31.12.2021
31.12.2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Present value of defined obligation
512
-
2,761
Liability
512
-
2,761
The amounts included in the income
statement are as follows:
From 1
January to
31.12.2021
31.12.2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Current Service Cost
86
35
124
Net Interest cost
resulted from
net asset/liability
9
4
22
(Gain)/Loss
from
Settlement/Curtailment/Termination
(342)
Total (Included in
staff costs)
95
39
(196)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
218
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
219
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The movement in the present value of defined
benefit obligation is as follows:
2021
2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Opening Balance
-
2,761
2,703
Current service cost
86
35
124
Interest cost
9
4
22
(Gain)/Loss
from
Settlement/Curtailment/Termination
-
(342)
Actuarial
(gain)/loss-financial
assumptions
(210)
-
(58)
Actuarial
(gain)/loss-experience
adjustment
(2,173)
-
312
Hive down impact
2,800
(2,800)
Closing Balance
512
-
2,761
The amounts
recognized
directly
in Equity
during the
year are
analyzed
as follows:
31.12.2021
31.12.2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Change in liability due to changes in financial and demographic assumptions - gain/(loss)
210
58
Change in liability due to experience adjustments - gain/(loss)
2,173
(312)
Total actuarial
gain/(loss)
recognized
in equity
2,383
-
(254)
The movement in the obligation is
as follows:
2021
2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Opening Balance
-
2,761
2,703
Loss/(gain)
recognized
in income
statement
95
39
(196)
Loss/(gain) recognized
in equity
(2,383)
-
254
Hive Down impact
2,800
(2,800)
Closing Balance
512
-
2,761
c.
Supplementary Pension
Fund and Healthcare
of Diners
The
Bank
guarantees
from
30.9.2014,
date
of
acquisition
of
Diners
Club
Greece
A.E.,
the
Supplementary
Pension
Fund
and
Health Care Plan of
the Company, which is managed
by an independent insurance company.
On 2.6.2015,
the merger through
absorption of the
company was completed.
These plans cover
the pensioners
and those who
have retired and
have the right
to receive supplementary pension
in the
future.
The amounts included in
the balance sheet
are analyzed as
follows:
From 1
January to
31.12.2021
31.12.2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Present value of defined obligation
9,895
10,943
Fair value of plan assets
(1,645)
(1,995)
Liability
8,250
-
8,948
The assets
of the scheme
include only
cash.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
220
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The amounts included in the
income statement are analyzed as follows:
From 1
January to
31.12.2021
31.12.2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Net interest cost
resulted from the
net asset/liability
36
15
69
Expenses
1
6
7
Total (included in staff
costs)
37
21
76
The movement in the present value of defined
benefit obligation is as follows:
2021
2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Opening Balance
-
10,943
10,726
Interest Cost
44
18
86
Benefits paid directly by the Bank
(9)
(20)
Benefits paid by the Plan
(270)
(73)
(343)
Actuarial
(gain)/loss-financial
assumptions
(810)
-
414
Actuarial
(gain)/loss-experience
adjustments
52
-
80
Hive Down impact
10,888
(10,888)
-
Closing Balance
9,895
-
10.943
The movement in the fair value of
plan assets is as follows:
2021
2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Opening Balance
-
1,995
2,346
Expected return
8
3
17
Benefits paid
(270)
(73)
(343)
Expenses
(1)
(6)
(7)
Actuarial losses
(11)
-
(18)
Hive Down impact
1,919
(1,919)
-
Closing Balance
1,645
-
1,995
The amounts
recognized
directly
in Equity
during the
year are
analyzed
as follows:
31.12.2021
31.12.2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Change in liability due to financial and demographic assumptions - gains/(loss)
810
-
(414)
Change in liability due to experience adjustments - gain/(loss)
(52)
-
(80)
Return on plan assets excluding amounts included in income statement
- gain/(loss)
(11)
-
(18)
Total actuarial
gain/(loss)
recognized
in equity
747
-
(512)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
221
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The movement in the
obligation/(asset) is as follows:
2021
2020
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Opening Balance
8,948
8,380
Benefits paid directly by the Bank
(9)
(20)
(Gain)/loss recognized
in Income
Statement
37
21
76
(Gain)/loss recognized in Equity
(747)
512
Hive Down impact
8,969
(8,969)
-
Closing Balance
8,250
-
8,948
The results
of the abovementioned
valuations are
based on the
assumptions of
the actuarial studies.
The principal actuarial assumptions used for
the abovementioned defined benefit plans are
as follows:
The
discount
rate
was
based
on
the
iBoxx
Euro
Corporate
AA+
adjusted
to
the
characteristics
of
the
programs.
The average duration per
program is depicted
in the table
below:
The
table
below
presents
the
sensitivity
analysis
of
the
financial
assumptions
in
regards
to
the
obligation
of
the
above
programs:
Percentage variation in liability
(%)
Increase in discount
rate by 0.5%
(4.9)
Decrease in discount
rate by 0.5%
5.4
Increase in future salary growth rate
by 0.5%
3.4
Decrease in future salary growth
rate by 0.5%
(2.7)
31.12.2021
31.12.2020
as restated
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Discount rate
0.61%-1.09%
0.59%
0.10%-0.58%
Inflation rate
2.00%
2.00%
1.30%
Return on plan
assets
2.00%
-
1.50%
Future salary growth
2.00%
2.00%
1.70%
Future pension
growth
0.00%
-
0.00%
31.12.2021
31.12.2020
as restated
Alpha Bank
S.A.
Alpha Bank
Services and
Holdings
Alpha Bank
A.E.
Bank employee's indemnity
provision due to retirement
in accordance with Law
2112/1920
8.0
5.2
7.7
Saving program
guarantee
13.9
-
16.4
Plans for Diners
(pension and health
care)
15.4
-
15.9
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
222
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
223
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ii.
Group
companies
The
employees
of
Greek
subsidiaries
with
employment
contracts
of
indefinite
duration,
receive
a
lump
sum
payment
on
retirement, as defined by
Law 2112/1920 as modified
by Law 4093/2012.
The total amounts recognized in
the financial statements regarding
the defined benefit obligations of the Group
are analyzed
as follows:
Balance Sheet
- Liabilities
31.12.2021
31.12.2020 as
restated
Indemnity of employees
of greek subsidiaries
due to retirement in accordance
with Law 2112/1920
1,017
9,127
Change in accounting
policy- Retained Earnings
(Gain)/Loss
(1,317)
Change in accounting
policy- Actuarial
(Gain)/Loss
(867)
New Balance
1,017
6,943
Other provision for retirement benefits
599
360
Total Liabilities
1,616
7,303
The balance of 31.12.2020 includes the obligation
corresponding to Cepal, in which 519 employees
from the Group were
transferred with recognition of their previous service, of which 504 from the Bank. The majority shareholding in Cepal was
disposed in 2021,
as it is
described in Note
40.
Income
Statement
Expenses
From 1 January
to
31.12.2021
31.12.2020 as
restated
Indemnity of employees
of greek subsidiaries
due to retirement in accordance
with Law 2112/1920
2,189
946
Other provision for retirement benefits
594
-
Total Liabilities
2,783
946
The
amount
of actuarial
gain/losses
that was
recognized
in equity
for the
defined
benefit
plans
of the
Group companies’
amounts to €
50 loss for
2021 against €
535 gain for
2020.
For all the mentioned above
plans, no contributions are expected to
be paid during 2022.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
224
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
225
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
32.
Other liabilities
31.12.2021
31.12.2020
Liabilities to third
parties
53,504
52,989
Brokerage services
25,451
21,537
Deferred income
7,766
8,281
Accrued expenses
92,852
93,004
Liabilities to merchants
for the use of credit cards
258,860
264,696
Leases liabilities
139,306
164,638
Other
310,291
286,435
Total
888,030
891,580
Lease
liabilities
mainly
relates
to
buildings
used
by
the
Bank
for
its
branches
and
other
business
units,
offsite
ATMs
and
executives’ leased cars.
Liabilities
to
merchants
arising
from
the
use
of
credit
cards,
despite
being
related
to
the
card
acquiring
industry,
are
not
included
in
the
assets
and
liabilities
classified
as
held
for
sale,
as
during
the
completion
of
the
spin-off
in
Alpha
Payment
Services and the
disposal of 51% of the
company, this obligation
will be replaced by an
obligation to Alpha Payment
Services
which will no
longer be
a subsidiary company
(note 43).
More specifically for the Bank, the duration of the lease agreement in new branches is set at three years with the possibility of
extension
by
the
Bank
for
an
additional
period,
taking
into
account
current
conditions
at
that
respective
period.
The
extensions
are performed
with the
same terms
as with
the initial
leases, retaining
the right
to terminate
the contract
at any
time within
the agreed
period. The
Bank’s policy
is to
renew these
contracts, if
needed.
In the case of renewals of existing leases,
the new lease is set at three years with the possibility
of an extension by the Bank
for an
additional
period,
which
decides
whether
to exercise
in
accordance
with
current
conditions
at that
respective
period.
The
extensions
performed is
with the
same terms
as of
the initial
lease, retaining
the right
to terminate
the contract
at any
time
within the agreed period. The Bank’s policy
is to renew these
contracts, if needed.
In particular, in the case
of branch leases, which the
Bank decided that the lease should
be extended, the term of
the lease is
set at
one or
two years
on the
basis of
the relevant
extension right.
Finally, for leases
of off-site ATMs,
for the majority
of them, the lease
duration is set at
one or two years
and if extended,
since
contractually the extension transpose them to indefinite, the duration of the lease is estimated for ten
years.
It is noted that there are no property leases which include a
variable lease term while variable leases have been included in the
expenses
relating
to
other
types
of
leases.
However,
variable
lease
terms,
which
concern
other
lease
categories,
were
recorded
in expenses.
It is
noted that
there are
initial lease
agreements
relating to
the operation
of Off
Site ATM
that were
signed in
the last
days of
2021 and have been implemented since 1.1.2022, however they do
not have a significant impact on
the Group’s amounts.
In addition,
there are
no cases
where the
Group has
sold and
subleased a
property owned.
The
following
table
presents
the
changes
of
lease
liabilities
as
a
result
of
the
implementation
of
IFRS
16,
by
disclosing
separately the cash flows, which are included in cash flows from
financing activities as depicted in the cash flow statement, and
the
non-cash
flows.
As
a
result
of
the
implementation
of
IFRS
16,
the
Group
recognized
lease
liabilities
amounted
to
€ 139,306
as of 31.12.2021
and €
164,638 as of
31.12.2020.
1.1.2021
Cash flows
Non-cash flows
31.12.2021
New leases
Other changes
Lease liabilities
164,638
(35,637)
7,340
2,965
139,306
1.1.2020
Cash flows
Non-cash flows
31.12.2020
New leases
Other changes
Lease liabilities
205,199
(42,765)
8,244
(6,040)
164,638
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
226
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
33.
Provisions
31.12.2021
31.12.2020
Insurance provisions
672,304
522,768
Provisions to cover
credit risk and other
provisions
161,725
180,862
Total
834,029
703,630
a.
Insurance
provisions
31.12.2021
31.12.2020
Life insurance
Mathematical reserves
668,188
517,559
Outstanding
claim reserves
4,116
5,209
Total
672,304
522,768
The movement of insurance provisions is
listed in the
table below:
Balance 1.1.2020
405,412
Changes for the year
1.1 - 31.12.2020
New provisions
and increase
of current
provisions
137,364
Provisons utilized
(20,008)
Balance
31.12.2020
522,768
Changes for the year
1.1 - 31.12.2021
New provisions
and increase
of current
provisions
177,135
Provisions used
(27,599)
Balance
31.12.2021
672,304
Insurance Risk
The Group
through the
subsidiary AlphaLife
A.A.E.Z. undertakes
insurance risk.
Insurance risk
is defined
as the risk
of a change
in the
liabilities
(technical
provisions)
of an
insurance
policy due
to a
deviation
from the
expected,
in relation
to mortality,
longevity,
maturity
of insurance
contracts
and
expenses.
In particular,
the
risks
of mortality
and
longevity
result
from
the
death or survival of more
than expected policyholders
(non-verification of the mortality
table), while the risks of acquisitions,
cancellations and expenses
arise from the change from
the expected cancellations
and redemptions and any
change in the
forecasted expenses.
The Group
performs a
liability adequacy
test in accordance
with IFRS 4
to determine
whether the
recognized mathematical
provisions,
less
carrying
forward
acquisition
costs,
are
sufficient
to
cover
liabilities
arising
from
insurance
policies.
These
liabilities
are
calculated
as
the
present
value
of
future
expenses
less
the
present
value
of
future
income.
Income
means
premiums
and
expenses
are
the
benefits
arising
from
the conclusion
of the
insurance
policy
as
well
as
the
management
expenses
of the
Group
as well
as the
commissions.
Assumptions
are
used for
the calculations
which
concern
the mortality,
the
discount rate, the cancellation of the contracts
and the expenses of the Group. These assumptions
are determined based on
the Group’s experience and the sensitivity of
the results to these changes is
checked.
In order
to limit
the insurance
risk, the
Group has
an insurance
risk-taking
policy based
on which
rules and
limits have
been established regarding the design of new products, the
pricing and the characteristics of the
contracts. The results are
monitored on a regular basis through profitability audits
and incorporate sensitivity assessments
into key risk factors such
as
mortality,
survival,
costs
and
acquisitions
and
risk
reduction
techniques
such
as
reinsurance.
In
addition,
the
Group
has
a policy of
calculation and control of
technical provisions ensuring the completeness, accuracy of
technical provisions and
the appropriateness of the methodology
used. For the most effective and substantial categorization
of the above, the risks
regarding their importance are monitored
and recorded through the results obtained
from the capital adequacy calculation
exercises as well as the Own Risk Self-Assessment (ORSA) and Operational Risk (RSC) Exercises.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
227
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
b.
Provisions
to cover
credit
risk and
other provisions
Balance 1.1.2020
194,129
Changes for the
year 1.1-31.12.2020
Provisions to cover credit
risk relating to letters of guarantee,
letters of credit and undrawn
loan commitments
(note 11)
(741)
Other provisions
11,086
Other provisions used
(9,331)
Use of
provision for
separation schemes
(12,509)
Foreign exchange differences
(1,773)
Balance
31.12.2020
180,862
Changes for the
year 1.1-31.12.2021
Provisions to cover credit
risk relating to letters of guarantee,
letters of credit and undrawn
loan commitments
(note 11)
(49,731)
Other provisions
11,352
Provision for
separation schemes
97,701
Other provisions used
(13,573)
Use of
provision for
separation schemes
(63,656)
Reclassification to
assets held
for sale
(2,573)
Foreign exchange differences
1,343
Balance
31.12.2020
161,725
The
amounts
of
other
provisions
are
included
in
“Other
Expenses”
(note
10)
and
“Other
Income”(
note
7),
the
amounts
of
provisions
to cover
credit
risk
relating
to
financial
guarantee
contracts
are
included
in
“Impairment
losses
and
provisions
for
credit risk”
(note 11),
and the amounts
for provisions
of staff separation
schemes are
included in “Staff
costs and expenses
for
separation schemes” (note 8).
On 31.12.2021
the balance
of provisions
to cover credit
risk relating
to Letters of
Guarantee, Letters
of Credit and
undrawn
loan commitments
amounts to
€ 42,683 (31.12.2020:
€ 91,482) of
which an
amount
of € 5,908.8
(31.12.2020:
€ 6,127) and
undrawn
loan
commitments
amounts
to €
36,774.52
(31.12.2020:
€ 85,355)
relates
to provisions
for Letters
of Guarantee
and Letters of
Credit.
The balance
of the
provision for
the separation
schemes as
at 31.12.2021
amounts to
€ 47,489 (31.12.2020
€ 15,112), which
relates to an amount of € 40,355 concerning the provision for the voluntary separation scheme of 2021, to an amount of
€ 5,592 (31.12.2020:
€ 12,937) to
cover the
cost of
employees
who departed
using the
long term
leave in
the context
of the
exit
programs
that
was in
force
for the
period
2016 and
onwards
and to
an amount
of € 1,542
(31.12.2019:
€ 2,175
for the
senior executives.
On 31.12.2021 the
balance of other provisions
amounts to € 71.553 (31.12.2020:
€ 74.268) out of which:
•
An amount of € 34.439 (31.12.2020: € 31.548) relates to pending
legal cases,
•
An amount of € 2.559 (31.12.2020: € 11.172) relates
to the Bank’s assessment for the year ended 31.12.2021,
for the
dismissal of the appeals submitted in previous years regarding the obligation to
make contributions to an insurance fund.
•
An amount of € 4.750 (31.12.2020: €
0) relates to provisions for indemnities included in sale agreement of Cepal.
•
The remaining balance of other
provisions relate mainly to other
provisions for operational loss events.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
228
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
EQUITY
34.
Share
capital
Changes for
the period from
1.1. to 31.12.2021
Open
Balance
as at 1.1.2021
Shares from Share
Capital Increase
through the
rights issue
Shares
from
Share
Capital
Increase in cash
Balance
as
at
31.12.2021
Share
Capital
paid
on 31.12.2021
Number of
ordinary registered
shares
1,543,699,381
2,281,716
800,000,000
2,345,981,097
703,794
The
Company’s
share
capital
on
31.12.2021
amounts
to
€
703,794
(31.12.2020:
€
463,110)
divided
into
2,345,981,097
(31.12.2020: 1,543,699,381)
ordinary, registered
shares with
voting rights
with a
nominal value
of €
0.30 each.
In
the
context
of
Stock
Options
Plan
for
the
granting
of
stock
options
to
key
management
personnel
of
the
Bank
and
its
connected
entities,
as
further
described
in
note
36,
within
January
2021,
2,281,716
options
rights
vested
and
exercised
from
the
beneficiaries,
in
accordance
with
Performance
Incentive
Program
for
the
fiscal
years
of
2018 and
2019.
As
a result
of
the
above,
2,281,716
ordinary,
registered,
voting
shares with
nominal
value of
Euro 0.30
were issued
and the
Share
Capital
of the
Bank increased
by € 684 according
to the
Resolution of
the Ordinary
General Meeting
of the
Shareholders
of 31.7.2020
and the
respective decisions of the Board
of Directors of the Alpha Bank S.A. before the
demerger of 31.12.2020 and 9.2.2021.
The trading
of 2,281,716
new common,
registered,
ordinary
shares
of the
Company
on the
Athens Stock
Exchange
commenced
on
22.2.2021.
In
addition,
the
Extraordinary
General
Meeting
of
Shareholders
of
15.6.2021
approved,
inter
alia,
the
issue
of
common
share
capital up to the amount of € 0.8 billion in cash, the
abolition of pre-emptive rights of existing shareholders and the
issuance of
new common shares
with voting with
a nominal value
of €
0.30 each, while
the Board of
Directors of 30.6.2021 decided to
set the
Offering Price
at € 1.00 per New
Share. The
above Share
Capital Increase
was completed
on 8.7.2021
and the share
capital of
the
Company increased
by € 240,000 with
the issuance
of 800,000,000
common, registered,
voting shares,
with a nominal
value of
€ 0.30 each.
Following the
above Share Capital
during the year
2021 increased
by € 240,684.
35.
Share premium
Balance as at
1.1.2021
10,801,029
Increase in Share Capital - share premium from the rights issue
1,483
Increase in Share Capital - share premium from the issuance of share capital
560,000
Balance as at
31.12.2021
11,362,512
Considering
the
share
capital
increase
described
above
from
the
exercise
of
the
rights
of
the
Company’s
shares,
the
share
premium increased
by € 1,483 resulting
from the fair
valuation, οn
the date of
awarding to
the employees,
of the option
right,
which were
exercised from
the beneficiaries during
the exercise
period.
In addition,
the share
capital
increase
in cash
on 8.7.2021
resulted
in the
increase
of the
share
premium
reserve
by
€ 560,000
as a result between the difference from the nominal value of
the shares of €
0.3 and the issue price of €
1.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
220
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
36.
Reserves
Reserves are
analyzed as
follows:
a.
Statutory
reserve
31.12.2021
31.12.2020
Statutory reserve
542,910
540,893
According
to
article
158
of
Law
4548/2018
(
relevant
clause
is
included
in
the
article
26
of
the
Bank’s
Article
Association,
as
in
force), one-twentieth (1/20) of the net
profit of the year is deducted annually
from each year’s net profit for the formation
of the
statutory reserve.
The deduction
for the formation
of the statutory
reserve ceases
to be mandatory
when the
reserve amounts
one-
third
(1/3)
of
the
share
capital.
Based
on
the
provisions
of
the
aforementioned
article
this
reserve
can
be
used
only
before
any
dividend distribution
in order
to offset
any debit
balance in
the
Retained Earnings.
For the remaining companies of
ths Group the
statutory reserve is established according to
local regulations.
b.
Reserve
of investment
securities
measured
at fair
value
through
other comprehensive
income
2021
2020
Opening Balance 1.1
228,123
487,531
Changes for the year
1.1 - 31.12
Valuation of debt securities measured
at fair value through other comprehensive
income, after income tax
(59,594)
25,875
Reclassification of
reserves related
to assets
held for
sale
(4,363)
Reclassification
to income statement
of reserve of debt securiti
es measured at fair value through
other
comprehensive income, after
income tax
(115,234)
(285,283)
Total
(179,191)
(259,408)
Balance 31.12
48,932
228,123
The
movements
for
the year
of
the
reserve
for
investment
securities
measured
at
fair
value
through
other
comprehensive
income that relate to
the revaluation of
the investment securities
and the transfer of the
related reserve to Income
Statement,
amounts
(before
income
tax)
to
a
credit
amount
of
€
106,177
and
a
debit
amount
of
€
135,107
(1.1-31.12.2020:
credit
amount of
€ 37,818
and debit amount
of €
401,764, respectively).
c.
Cash flow
hedge reserve
recognised
directly in
Equity
2021
2020
Opening Balance 1.1
(223,670)
(238,467)
Changes for the year
1.1 - 31.12
Change in cash
flow hedge reserve
after income tax
14,758
14,797
Balance 31.12
(208,912)
(223,670)
d.
Exchange
differences
on translating
and hedging
the net
investment
in foreign
operations
2021
2020
Opening Balance 1.1
(53,911)
(48,019)
Changes for the year
1.1 - 31.12
Change of
Foreign Exchange
differences on
translating and
hedging the
net investment
in foreign
operations
(356)
(5,892)
Reclassification of
reserves related
to assets
held for
sale
(10,764)
Balance 31.12
(65,031)
(53,911)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
221
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
e.
Share
of other
comprehensive
income
of associates
and joint
ventures
2021
2020
Balance 1.1
(311)
(189)
Changes for the year
1.1 - 31.12
Change in the share of other comprehensive income of associates and joint ventures
(122)
Balance 31.12
(311)
(311)
f.
Reserve
valuation
for stock
options
rights
to employees
2021
2020
Balance 1.1
1,667
-
Changes for the year
1.1 - 31.12
Exercise of rights
(1,667)
Reserve valuation for stock options right to employees
3,083
1,667
Balance 31.12
3,083
1,667
At 31.12.2021,
in the context
of the
Stock Options
Plan and
the stock
options granted
to key
management
personnel of
the Bank
and its
connected
entities,
as detailed
described
in note
8, a
reserve was
recognized
amounting
to € 3,083
from the
valuation
of
the abovementioned
options, while
rights were
exercised during
the period.
Total reserves
(a+b+c+d+e+f)
320,671
492,791
g.
Reserves
related
to
Assets
held
for
sale
2021
2020
Balance 1.1
-
-
Changes for the year
1.1 - 31.12
Change of
Foreign Exchange
differences on
translating and
hedging the
net investment
in foreign
operations
10,764
Reserve of portfolio held for sale
4,363
Balance 31.12
15,127
-
37.
Retained
earnings
i.
Since
2020 there
were no
distributable
profits,
in accordance
with article
159 of
Law 2190/1920,
the Ordinary
General
Meeting of Shareholders on 22.7.2021 decided the
non-distribution of dividends to ordinary shareholders of
the Company.
ii.
Pursuant to
article 159 of
Law 4548 /
2018 and due
to the fact that
there are no
distributable profits
for the year
2021,
the Board of Directors of the Company at
the Ordinary General Assembly Meeting of Shareholders will propose the non-
distribution of dividends
to the
shareholders of the
Company.
38.
Hybrid
securities
31.12.2021
31.12.2020
Perpetual with 1st
call option on 18.2.2015
and per year
15,232
15,232
Securities held by
Group companies
(1,003)
(533)
Total
14,229
14,699
On 18.2.22 a repayment was made in full of the remaining nominal amount of the
Hybrid Funds.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
222
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
ADDITIONAL
INFORMATION
39.
Contingent liabilities and commitments
a.
Legal
issues
There are certain legal claims against the
Group, in the ordinary course of
business. In the context of managing the
operational
risk
events
and
based
on
the
applied
accounting
policies,
the
Group
has
established
internal
controls
and
processes
to
monitor
all legal
claims and
similar actions
by third parties
in order to
assess the
probability of
a negative
outcome and
the potential
loss.
For cases
where there
is a
significant
probability
of a
negative
outcome,
and the
result may
be reliably
estimated,
the Group
recognizes
a provision
that is
included in
the Balance
Sheet under
the caption
“Provisions”.
On 31.12.2021
the amount
of the
provision stood at
€ 34,439
(31.12.2020: €
31,548).
For those
cases, that
according
to their
progress
and the
assessment
of the
legal department
as at
December
31, 2021,
a
negative
outcome
is not
probable
or the
potential
outflow
cannot
be estimated
reliably
due
to the
complexity
of
the cases,
and their duration the Group has not recognized a provision. As of
31.12.2021 the legal claims against the Group for the above
cases
amount
to
€ 242,417
(31.12.2020:
€ 60,745)
and
€ 586,541
(31.12.2020:
€ 214,764).
It
is
noted,
however,
that
in
March 2022, the plaintiffs in a lawsuit amounting to € 360,926 withdrew from the lawsuit.
According
to
the
legal
department’s
estimation,
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
Alpha
Services
and
Holdings
S.A.
has
been
audited
by
the
tax
authorities
for
the
years
up
to
and
including
2010.
Years
2011, 2012, 2013 and 2015 are considered
as closed, in accordance with the Ministerial
Decision 1208/20.12.2017
of the
Independent
Public
Revenue
Authority.
On
13.7.2020
a
regular
audit
order
was
issued
for
the
year
2014,
which
was
completed
in December 2020. For the years 2011 up to
2020 the Group 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.
The tax
audit for
the tax
certificate of
2021 is
in
progress. Alpha Bank resulted from the hive-down of the banking
sector and started its operation on 16.4.2021, and the first
fiscal year
is from
1.7.2020 to
31.12.2021.
Emporiki Bank
has been
audited by
the tax
authorities for
the years
up to
and
including 2008. Years 2009
-2013 are considered as closed,
in accordance with the Ministerial
Decision 1208/20.12.2017
of
the Independent Public
Revenue Authority
The Bank’s branch in London has been audited by the
tax authorities up to and including 2016, the end
of operation of which
was declared
in the
Companies Register on
23.12.2020.
The Bank’s branch in
Luxemburg started its operation on
June 2020 and
has not been
tax audited since its
operation.
On 2.6.2015,
the merger
by 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. Years 2011 to 2015 are considered
as closed, in
accordance with the Ministerial Decision 1208/20.12.2017 of the Independent Public Revenue Authority.
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, interest on late submission and
penalties may be imposed by tax authorities, as a result of tax audits for
unaudited tax years,
the amount of
which cannot be
accurately determined.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
223
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
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 S.A.
*
2. Alpha Bank London Ltd (voluntary
settlement of tax obligation)
2019
3. Alpha Bank Cyprus Ltd
2017
4. Alpha Bank Romania S.A. (tax audit is in progress for the years 2014 - 2019)
2006
5. Alpha Bank Albania SH.A.
2016
Leasing Companies
1. Alpha Leasing S.A.**
2015
2. Alpha Leasing Romania IFN S.A.
2014
3. ABC Factors S.A.**
2015
Investment
Banking
1. Alpha Finance A.E.P.E.Y.** / ***
2015
2. SSIF Alpha Finance Romania S.A.
(dissolve on 4.11.2021)
2002
3. Alpha Ventures S.A.**
/ ***
2015
4.Alpha A.E. Ventures Capital Management - AKES * / ***
2015
5. Emporiki
Ventures Capital
Developed Markets
Ltd
2011
6. Emporiki Ventures
Capital Emerging
Markets Ltd
2013
Asset Management
1. Alpha Asset Management A.E.D.A.Κ.**
/ ***
2015
2. ABL Independent Financial Advisers Ltd (voluntary
settlement of tax obligation)
2019
Insurance
1. Alpha Insurance Agents S.A. **
/ ***
2015
2. Alpha Insurance Brokers Srl
2006
3. Alphalife
A.A.E.Z.** /
***
2015
Real Estate and Hotel
1. Alpha Astika Akinita S.A. **
2015
2. Alpha Real
Estate Management
and Investments
S.A.
2015
3. Alpha Real
Estate Bulgaria
E.O.O.D. (commencement
of operation
2007)
*
4. Chardash Trading
E.O.O.D. (commencement
of operation 2006)
*
5. Alpha
Real Estate
Services Srl
(commencement
of operation
1998)
*
6 Alpha Investment Property Attikis S.A. (commencement
of operation 2012) */**
2015
7. Alpha Investment Property Attikis
ΙΙ S.A. (commencement of operation
2012-the company was transferred
on 12.2.2021) */**
2015
8. AGI-RRE
Participations 1
Srl (commencement
of operation
2010)
*
9. Stockfort Ltd (commencement
of operation 2010)
2012
10. Romfelt Real Estate
SA
2015
11. AGI-RRE
Zeus Srl (commencement
of operation
2012)
*
12. AGI-RRE
Poseidon Srl
(commencement
of operation
2012)
*
13. AGI-RRE
Hera Srl (commencement
of operation
2012)
*
14. Alpha
Real Estate
Services LLC
(commencement
of operation
2010)
2013
15. AGI-BRE
Participations 2
E.O.O.D. (commencement
of operation 2012)
*
16. AGI-BRE Participations
2BG E.O.O.D. (commencement
of operation 2012)
*
17. AGI-BRE
Participations 4
E.O.O.D. (commencement
of operation 2012)
*
18. APE Fixed Assets
A.E.** / ***
2015
19. AGI-RRE Cleopatra Srl (commencement
of operation 2014-the company was transferred on 17.3.2021)
*
20. SC
Carmel Residential
Srl (commencement
of operation
2013)
*
21. Alpha
Investment
Property Neas
Kifisias S.A.
(commencement
of operation
2014) *
2015
22. Alpha
Investment
Property Kalirois
S.A. (commencement
of operation
2014) *
2015
*
These companies
have not been
audited by the tax
authorities since
commencement
of their operations.
**
These companies
received tax
certificate for
the years
2011 up to
and including
2020 without
any qualification
whereas the
years up
to and
including
2015 are considered
as closed in
accordance with the
circular POL.1208/20.12.2017 (note
13).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
224
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
***
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.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
225
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Name
Year
23. AGI-Cypre
Tochni Ltd
(commencement
of operation
2014)
*
24. AGI-Cypre Mazotos Ltd (commencement
of operation 2014)
*
25. Alpha Investment Property Livadias S.A. (commencement
of operation 2014) *
2015
26. Asmita Gardens Srl
2015
27. Alpha Investment Property Kefalariou
S.A. (commencement
of operation 2015)
*
28. Cubic
Center Development
S.A. (commencement
of operation
2010)
2020
29. Alpha
Investment
Property Neas
Erythreas S.A.
(commencement
of operation
2015)
*
30. AGI-SRE
Participations 1
DOO (commencement
of operation
2016)
*
31. Alpha Investment Property Spaton A.E. (commencement
of operation 2017)
*
32. TH
Top Hotels
S.R.L (commencement
of operation
2009-the
company
was transferred
on 17.3.2021)
*
33. Alpha Investment Property Kallitheas
A.E. (commencement of operation
2017)
*
34. Kestrel
Enterprise E.O.O.D.
(commencement
of operation
2013)
*****
35. Alpha Investment Property Irakleiou A.E (commencement
of operation 2018)
*
36. AGI-Cypre Property 2 Ltd (commencement
of operation 2018)
*
37. AGI-Cypre
Property 4 Ltd (commencement
of operation 2018)
*
38. AGI-Cypre Property 5 Ltd (commencement
of operation 2018)
*
39. AGI-Cypre Property 6 Ltd (commencement
of operation 2018)
*
40. AGI-Cypre Property 7 Ltd (commencement
of operation 2018)
*
41. AGI-Cypre Property 8 Ltd (commencement
of operation 2018)
*
42. AGI-Cypre Property 9 Ltd (commencement
of operation 2018)
*
43. AGI-Cypre Property
10 Ltd (commencement
of operation 2018-the
company was transferred
on 31.1.2021)
*
44. AGI-Cypre Property
11 Ltd (commencement
of operation 2018-the
company was transferred
on 15.10.2021)
*
45. AGI-Cypre Property 12 Ltd (commencement
of operation 2018)
*
46. AGI-Cypre Property 13 Ltd (commencement
of operation 2018)
*
47. AGI-Cypre Property 14 Ltd (commencement
of operation 2018)
*
48. AGI-Cypre Property 15 Ltd (commencement
of operation 2018)
*
49. AGI-Cypre Property 16 Ltd (commencement
of operation 2018)
*
50. AGI-Cypre Property 17 Ltd (commencement
of operation 2018)
*
51. AGI-Cypre Property 18 Ltd (commencement
of operation 2018)
*
52. AGI-Cypre Property 19 Ltd (commencement
of operation 2018)
*
53. AGI-Cypre Property 20 Ltd (commencement
of operation 2018)
*
54. AGI-Cypre
RES Pafos
Ltd (commencement
of operation
2018)
*
55. AGI-Cypre
P&F Nicosia
Ltd (commencement
of operation
2018)
*
56. ABC RE P1 Ltd (commencement of operation
2018-the company was transferred
on 26.2.2021)
*
57. ABC
RE P2
Ltd (commencement
of operation
2018)
*
58. ABC
RE P3
Ltd (commencement
of operation
2018)
*
59. ABC RE L2 Ltd
(commencement
of operation 2018)
*
60. ABC
RE P4
Ltd (commencement
of operation
2018)
*
61. AGI-Cypre
RES Nicosia
Ltd (commencement
of operation
2018)
*
62. AGI-Cypre P&F Limassol Ltd (commencement
of operation 2018)
*
63. AGI-Cypre Property 21 Ltd (commencement
of operation 2018)
*
64. AGI-Cypre Property 22 Ltd (commencement
of operation 2018)
*
65. AGI-Cypre Property 23 Ltd (commencement
of operation 2018)
*
66. AGI-Cypre Property 24 Ltd (commencement
of operation 2018)
*
67. ABC RE L3 Ltd
(commencement
of operation 2018)
*
68. ABC
RE P&F
Limassol Ltd
(commencement of
operation 2018)
*
69. AGI-Cypre Property 25 Ltd (commencement
of operation 2019)
*
70. AGI-Cypre Property 26 Ltd (commencement
of operation 2019)
*
71. ABC RE
COM Pafos Ltd
(commencement of
operation 2019)
*
72. ABC RE
RES Larnaca Ltd
(commencement of
operation 2019)
*
73. AGI-Cypre
P&F Pafos
Ltd (commencement
of operation
2019)
*
74. AGI-Cypre Property 27 Ltd (commencement
of operation 2019)
*
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
226
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
*
These companies
have not been
audited by the tax
authorities since
commencement
of their operations.
*****
These comp
anies
entered
the Group
in 2017
through
bankruptcy
and have
not been
audited
by the
tax authorities
since.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
227
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Name
Year
75. ABC RE L4 Ltd
(commencement
of operation 2019)
*
76. ABC RE L5 Ltd
(commencement
of operation 2019)
*
77. AGI-Cypre Property 28 Ltd (commencement
of operation 2019)
*
78. AGI-Cypre Property
29 Ltd (commencement of operation
2019)
*
79. AGI-Cypre Property 30 Ltd (commencement
of operation 2019)
*
80. AGI-Cypre
COM Pafos
Ltd (commencement
of operation
2019)
*
81. ΑΕP
Industrial Assets
Μ.Α.Ε. (commencement
of operation
2019)
*
82. AGI-Cypre Property 31 Ltd (commencement
of operation 2019)
*
83. AGI-Cypre Property 32 Ltd (commencement
of operation 2019)
*
84. AGI-Cypre Property 33 Ltd (commencement
of operation 2019)
*
85. AGI-Cypre Property 34 Ltd (commencement
of operation 2019)
*
86. Alpha Group Real Estate Ltd (commencement
of operation 2019)
*
87. ABC RE
P&F Pafos Ltd
(commencement of
operation 2019)
*
88. ABC RE
P&F Nicosia
Ltd (commencement
of operation
2019)
*
89. ABC RE RES
Nicosia Ltd (commencement
of operation 2019)
*
90. Fierton Ltd (commencement
of operation 2019)
*
91. AIP residential
Assets Rog
S.M.S.A (commencement
of operation
2019)
*
92. AIP Attica
Residential Assets
I S.M.S.A. (commencement
of operation
2019)
*
93. AIP Thessaloniki
Residential Assets
S.M.S.A. (commencement
of operation
2019)
*
94. AIP Cretan
Residential Assets
S.M.S.A. (commencement
of operation
2019)
*
95. AIP Aegean
Residential Assets
S.M.S.A. (commencement
of operation
2019)
*
96. AIP Ionian
Residential Assets
S.M.S.A. (commencement
of operation
2019)
*
97. AIP Urban
Cetres Commercial
Assets S.M.S.A. (commencement
of operation 2019)
*
98. AIP Thessaloniki
Commercial Assets
S.M.S.A. (commencement
of operation
2019)
*
99. AIP Commercial
Assets Rog S.M.S.A.
(commencement of
operation 2019)
*
100. AIP
Attica Retail
Assets I S.M.S.A.
(commencement of
operation 2019)
*
101. AIP
Attica Retail
Assets II
S.M.S.A. (commencement
of operation
2019)
*
102. AIP
Attica Residential
Assets II
S.M.S.A. (commencement
of operation
2019)
*
103. AIP Retail
Assets Rog S.M.S.A.
(commencement of
operation 2019)
*
104. AIP Land
II S.M.S.A. (commencement
of operation
2019)
*
105. ABC RE P6 Ltd
(commencement
of operation 2019)
*
106. AGI-Cypre Property
35 Ltd (commencement
of operation 2019)
*
107. AGI-Cypre P&F Larnaca Ltd (commencement
of operation 2019)
*
108. AGI-Cypre Property
37 Ltd (commencement
of operation 2019)
*
109. AGI-Cypre
RES Ammochostos
Ltd (commencement
of operation
2019)
*
110. AGI-Cypre Property
36 Ltd (commencement
of operation 2019-the
company was transferred
on 15.2.2021)
*
111. AGI-Cypre Property
38 Ltd (commencement
of operation 2019)
*
112. AGI-Cypre
RES Larnaca
Ltd (commencement
of operation
2019)
*
113. ABC RE P7 Ltd
(commencement
of operation 2019)
*
114. AGI-Cypre Property
42 Ltd (commencement
of operation 2019)
*
115. ABC
RE P&F
Larnaca Ltd
(commencement
of operation
2019)
*
116. AGI-Cypre Property
43 Ltd (commencement
of operation 2019)
*
117. AGI-Cypre Property
44 Ltd (commencement
of operation 2019)
*
118. AGI-Cypre Property
45 Ltd (commencement
of operation 2020)
*
119. Reoco Orion X Μ.A.E. (commencement of operation 2020
-the company was transferred on 18.6.2021)
*
120. Reoco Galaxy II Μ.A.E. (commencement
of operation 2020-the company was transferred
on 18.6.2021)
*
121. Reoco Galaxy IV Μ.A.E. (commencement of operation 2020
-the company was transferred on 18.6.2021)
*
122. AGI-Cypre Property
40 Ltd (commencement
of operation 2020)
*
123. ABC RE
RES Ammochostos
Ltd (commencement
of operation
2020)
*
124. ABC RE RES
Paphos Ltd (commencement
of operation 2020)
*
125. Sapava Ltd
(commencement
of operation 2020)
*
126. AGI-Cypre Property
46 Ltd (commencement
of operation 2020)
*
127. AGI-Cypre Proprety
47 Ltd (commencement
of operation 2020)
*
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
228
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
*
These companies
have not been
audited by the tax
authorities since
commencement
of their operations.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
229
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Name
Year
128. AGI-Cypre Proprety
48 Ltd (commencement
of operation 2020)
*
129. Alpha Credit Property
1 Ltd (commencement
of operation 2020)
*
130. Office Park 1 Srl (commencement
of operation 2020)
*
131. AGI-Cypre
COM Nicosia
Ltd (commencement
of operation
2020)
*
132. AGI-Cypre Property
49 Ltd (commencement
of operation 2020)
*
133. AGI-Cypre Property
50 Ltd (commencement
of operation 2020)
*
134. AGI-Cypre
COM Larnaca
Ltd (commencement
of operation
2020)
*
135. Acarta Construct
Srl
2014
136. AGI-Cypre Property
51 Ltd (commencement
of operation 2021)
*
137. AGI-Cypre Property
52 Ltd (commencement
of operation 2021)
*
138. AGI-Cypre Property
53 Ltd (commencement
of operation 2021)
*
139. Alpha Credit Properties
Ltd (commencement
of operation 2021)
*
140. AGI-Cypre Property
54 Ltd (commencement
of operation 2021)
*
141. AGI-Cypre Property
55 Ltd (commencement
of operation 2021)
*
142. Reoco Cosmos Μ.A.E. (commencement
of operation 2021-the company was transferred
on 17.12.2021)
*
143. Engromest
(commencement
of operation 2021)
*
Special Purpose and Holdings Entities
1. Alpha Credit Group Plc (voluntary
settlement of tax obligation
– dissolve on 2.9.2021)
2019
2. Alpha Group Jersey Ltd
****
3. Alpha Group Investments
Ltd (commencement
of operation 2006)
2010
4. Ionian Equity Participations
Ltd (commencement
of operation 2006)
2011
5. AGI-BRE Participations 1 Ltd (commencement of operation 2009)
2012
6. AGI-RRE
Participations 1
Ltd (commencement
of operation
2009)
2012
7. Alpha Group Ltd (commencement
of operation 2012)
2012
8. Katanalotika
Plc (voluntary settlement
of tax obligation)
2019
9. Epihiro Plc (voluntary settlement
of tax obligation)
2019
10. Irida Plc (voluntary
settlement
of tax obligation)
2019
11. Pisti 2010
- 1 Plc (voluntary
settlement
of tax obligation)
2019
12. Alpha Shipping Finance Ltd
(voluntary settlement
of tax obligation)
2019
13. Alpha
Quantum D.A.C.
(commencement
of operation
2019)
*
14. AGI-RRE Athena Ltd (commencement
of operation 2011–
dissolve on 6.8.2021)
2012
15. AGI-RRE
Poseidon Ltd
(commencement
of operation
2012)
2012
16. AGI-RRE
Hera Ltd
(commencement
of operation
2012)
2012
17. Umera Ltd (commencement
of operation 2012)
2017
18. Alpha Holdings
S.M.S.A. **
2015
19. AGI-BRE Participations 2 Ltd (commencement
of operation 2011)
2012
20. AGI-BRE Participations 3 Ltd (commencement
of operation 2011)
2012
21. AGI-BRE Participations 4 Ltd (commencement of operation 2010)
2012
22. AGI-RRE
Ares Ltd
(commencement
of operation
2010)
2012
23. AGI-RRE
Venus Ltd
(commencement
of operation
2012-
dissolve on
6.8.2021)
*
24. AGI-RRE
Artemis Ltd
(commencement
of operation
2012)
2012
25. AGI-BRE Participations 5 Ltd (commencement
of operation 2012)
2012
26. AGI-RRE
Cleopatra Ltd
(commencement
of operation
2013)
*
27. AGI-RRE
Hermes Ltd
(commencement
of operation
2013)
*
28. AGI-RRE
Arsinoe Ltd
(commencement
of operation
2013)
*
29. AGI-SRE
Ariadni Ltd
(commencement
of operation
2013)
*
30. Zerelda Ltd (commencement
of operation 2012)
2012
31. AGI-Cypre
Evagoras
Ltd (commencement
of operation
2014)
*
32. AGI-Cypre Tersefanou Ltd (commencement
of operation 2014)
*
33. AGI-Cypre Ermis Ltd (commencement of operation 2014)
*
34. AGI-SRE Participations 1 Ltd (commencement of operation 2016)
*
35. Alpha Credit Acquisition Company
Ltd (commencement
of operation 2019)
*
………CONSOLIDATED FINANCIAL STATE
MENTS AS AT 31.12.2021
230
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
*
These companies
have not been
audited by the tax
authorities since
commencement
of their operations.
****
These companies are not subject to
a tax audit.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
231
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Name
Year
36. Alpha
International
Holding
Company
S.A. (commencement
of operation
2019)
*
37. Orion X Securitisation D.A.C. (commencement
of operation 2020-the company was transferred
on 18.6.2021)
*
38. Galaxy II Funding D.A.C. (commencement
of operation 2020-the company was transferred
on 18.6.2021)
*
39. Galaxy
III Funding
D.A.C. (commencement
of operation
2020)
*
40. Galaxy
IV Funding
D.A.C. (commencement
of operation
2020-the company
was transferred
on 18.6.2021)
*
41. Alpha
International
Holdings
S.M.S.A.
(commencement
of operation
2020)
*
42. Krigeo Holdings Ltd (commencement
of operation 2019)
*
43. Gemini
Core Securitisation
D.A.C. (commencement
of operation
2021)
*
44. SKY CAC LIMITED
(commencement of
operation 2021)
*
Other Companies
1. Alpha Bank
London Nominees
Ltd
****
2. Alpha Trustees Ltd (commencement
of operation 2002)
2011
3. Kafe Alpha S.A.**
/ ***
2015
4. Alpha Supporting Services S.A.** /
***
2015
5. Real Car
Rental S.A.**
/ ***
2015
6. Commercial
Management and
Liquidation of
Assets-Liabilities S.A.**
/ ***
2015
7. Alpha
Bank Notification
Services S.A.
(commencement
of operation
2015)
*
8. Alpha
Services ΜΑΕ
(commencement
of operation
2021)
*
c.
Off balance
sheet commitments
The
Group as
part of
its normal
operations,
make contractual
commitments,
that
in the
future
may result
in changes
in its
asset
structure.
These
commitments
are
monitored
in
off
balance
sheet
accounts
and
relate
to
letters
of
credit,
letters
of
guarantee and liabilities from undrawn loan commitments
as well as guarantees given for bonds issued and other guarantees
to subsidiary companies.
Letters of credit
are used to
facilitate trading
activities and
relate to the financing
of contractual agreements
for the transfer
of
goods locally or abroad, through
direct payment to the third party
on behalf of the Group’s customers.
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
customers will fulfill
the terms
of their contractual
obligations.
In
addition,
contingent
liabilities
for
the
Group
arise
from
undrawn
loan
commitments
that
may
be
drawn
upon
if
certain
requirements are fulfilled
by counterparties.
The outstanding
balances are as
follows:
31.12.2021
31.12.2020
Letters of credit
30,022
33,908
Letters of guarantee
and other guarantees
3,467,990
3,463,297
Undrawn loan commitments
4,107,682
4,472,897
The
Group
measures
the
expected
credit
losses
for
all
the
undrawn
loan
commitments
and
letters
of
credit
/
letters
of
guarantee, which are
included in
the caption
“Provisions”.
Expected credit
losses of
the aforementioned
exposures as
of 31.12.2021
amounts to €
42,684 (31.12.2020: €
91,482) (note 33).
The
Bank
has
committed
to
contribute
in
the
share
capital
of
the
joint
venture
Alpha
TANEO
AKES
up
to
the
amount
of
€
19
(31.12.2020: €
23).
*
These companies
have not been
audited by the tax
authorities since
commencement
of their operations.
**
These companies
received tax
certificate for
the years
2011 up to
and including
2020 without
any qualification
whereas the
years up
to and
including
2015 are considered
as closed in
accordance with the
circular POL.1208/20.12.2017 (note
13).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
232
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
***
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.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
233
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
d.
Pledged assets
Pledged assets, as at 31.12.2021 and 31.12.2010 are analyzed as follows:
•
Cash and balances with
Central Banks:
As at
31.12.2021
Cash and
balances
with Central
Banks amounting
to €
268,527
(31.12.2020:
€ 208,35)
concerning
the
Group’s
obligation
to
maintain
deposits
in
Central
Banks
according
to
percentages
determined
by
the
respective
country.
The
amount of reserved
funds that the
Bank has to
maintain to the
Bank of Greece
on average for
the period from
22.12.2021
to 8.2.2022, amounts
to €
428,210 (31.12.2020: €
382,442).
•
Due from Banks:
i.
Placements amounting
to € 205,335 (31.12.2020: € 190,871) relate to guarantees
provided, mainly, on behalf
of the
Greek Government.
ii.
Placements amounting to € 1,077,895 (31.12.2020:
€ 1,632,348) have been provided as guarantee for derivative
and
other repurchase agreements
(repos).
iii.
Placements amounting to € 105,070 (31.12.2020: € 64,125) have been provided for Letter of Credit or Guarantee
Letters that
the Bank
issue for facilitating
customer imports.
iv.
Placements
amounting to € 20,012 (31.12.2020: € 16,066) have been provided to the Resolution Fund as irrevocable
payment commitment,
as part of the 2016 up to 2021
contribution. This commitment
must be fully covered by collateral
exclusively in
cash, as
decided by
the Single
Resolution Board.
v.
Placements amounting to € 34,039 (31.12.2020: € 14,472) have been used as collateral for the issuance of bonds
with nominal
value of € 2,900,000
(31.12.2020: € 2,900,000)
out of which
bonds with
nominal value
of € 2,200,000
(31.12.2020:
€ 2,200,000) held
by the Bank,
as mentioned
below under
“Loans and
advances to
customers”
•
Loans and advances
to customers:
i.
Loans of € 5,285,333 (31.12.2020: € 5,256,013) have been pledged to central banks for liquidity purposes.
ii.
Corporate loans and credit cards
of carrying amount of € 1,226,422 (31.12.2020: € 1,577,200) have been
securitized
for the issuance of Special Purpose Entities’ corporate
bond of a nominal value of € 967,000 (31.12.2020: € 1,853,735)
held by the Bank, of which a
nominal amount of €
166,000 has been given as collateral for repos transactions.
iii.
Shipping loan of carrying amount of € 151,907 (31.12.2020: € 206,787), has been securitized for the purpose of
financing the
Group’s
Special Purpose
Entity. This
loan was
repurchased
by the
Bank within
September
while its
nominal
value on
31.12.2021 amounts to
€ 129,051
(31.12.2020: €
154,793).
iv.
Consumer loans of a carrying amount of € 493,145 was securitized on 31.12.2020 for the issuance of bonds of a special
purpose company of the Group with a nominal value of € 580,000 owned by the Bank. Within 2021 the loans of this
securitization were repurchased / de-securitized and the existing securities were canceled
v.
An amount of nominal value € 3,689 (31.12.2020: € 6,236) which relates to corporate loans, has been pledged as
collateral for other
loan facilities.
vi.
An amount of
mortgage loans of
a nominal value
of € 3,420,371 (31.12.2020:
€ 3,370,323) has been
used as
collateral in the following
covered bond issuance
programs: Covered
Bonds Issuance
Program I and Covered
Bond
Issuance Program
II and in
Direct Issuance
of Covered
Bonds Program
of Alpha
Bank Romania.
The nominal
value of
the
aforementioned bonds
amounted to € 2,900,000 (31.12.2020:
€ 2,900,000) out of which the Bank
owns € 2,200,000
(31.12.2020: € 2,200,000) and has been
pledged to Central Banks for liquidity
purposes.
•
Investment
securities:
i.
Bonds issued by the Greek Government with book value of of € 4,612,517 (31.12.2020: € 4,118,026) have been given to
the European
Central Bank for
liquidity purposes.
ii.
Treasury Bills issued by the
Greek government with book value of €
681,004 (31.12.2020: € 708,784), have been given
to tha
European Central Bank
for liquidity purposes.
iii.
Bonds issued by Other governments with book value of € 2,719,845 (31.12.2020: € 2,489,904 have been given as a
collateral to Central
Banks for liquidity
purposes
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
234
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
iv.
Securities
issued
by the
European
Financial
Stability
Facility
(EFSF)
of book
value
€ 97,070
(31.12.2020:
€ 224,201),
which has been pledged to Central
Banks with the purpose to
participate in main refinancing operations.
v.
Bonds issued by the Greek government with book value of € 295,838 (31.12.2020: € 361,694) which have been given as
a collateral in
the context of
repo agreements.
vi.
Other securities issued with book value of € 18,869 (31.12.2020: € 47,937) have been given as a collateral in the
context of repo
agreements
Additionally,
the Group
has obtained:
i.
Greek
Government
treasury
bills
of
nominal
value
of
€
750,000
(31.12.2020:
€
900,000)
as
collateral
for
derivatives
transactions
with
the
Greek
State
of
which
a
nominal
value
of
€
0
(31.12.2019:
€
20,000)
have
been
given
as
a
collateral in the
context of repo
agreements.
ii.
Bonds with a
nominal value
of € 734,536 (31.12.2020
€ 219,582) and a
fair value of
€ 773.330 (31.12.2020
€
240,081)
which
are
not
recognized
in
Banks’
balance
sheet.
From
these
bonds
fair
value
amount
of
€
714,467
(31.12.2020
€ 215,206)
has
been
pledged
to
Central
Banks
for
liquidity
purposes
and
fair
value
amount
of
€
11,065
(31.12.2019: € 5,698) has been pledged as a
collateral in the context of repo agreements.
40.
Group Consolidated Companies
The
consolidated
financial
statements,
apart from
the parent
company
Alpha Services
and Holdings
SA include
the following
entities:
a.
Subsidiaries
Name
Country
Group’s ownership
interest %
31.12.2021
31.12.2020
Banks
1
Alpha Bank A.E.
Greece
100.00
2
Alpha Bank London
Ltd
United Kingdom
100.00
100.00
3
Alpha Bank Cyprus Ltd
Cyprus
100.00
100.00
4
Alpha Bank Romania S.A.
Romania
99.92
99.92
5
Alpha Bank Albania SH.A.
Albania
100.00
100.00
Financing 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
4
Cepal Holdings
A.E.
Greece
100.00
Investment
Banking
1
Alpha Finance A.E.Π.E.Υ.
Greece
100.00
100.00
2
SSIF Alpha
Finance
Romania
S.A.
Romania
99.98
3
Alpha Ventures A.E.
Greece
100.00
100.00
4
Alpha A.E. Ventures Capital Management - AKES
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 A.E.Δ.A.Κ.
Greece
100.00
100.00
2
ABL Independent Financial
Advisers Ltd
United Kingdom
100.00
100.00
Insurance
1
Alpha Insurance Agents A.E.
Greece
100.00
100.00
2
Alpha Insurance Brokers Srl
Romania
100.00
100.00
3
Alphalife A.A.E.Z.
Greece
100.00
100.00
Real Estate and
Hotel
1
Alpha Astika Akinita A.E.
Greece
93.17
93.17
2
Alpha Real
Estate Management
and Investments
S.A.
Greece
100.00
100.00
3
Alpha Real Estate Bulgaria E.O.O.D.
Bulgaria
93.17
93.17
4
Chardash Trading
E.O.O.D.
Bulgaria
93.17
93.17
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
235
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Name
Country
Group’s ownership
interest %
31.12.2021
31.12.2020
5
Alpha Real Estate Services Srl
Romania
93.17
93.17
6
Alpha Investment
Property Attikis A.E.
Greece
100.00
100.00
7
Alpha Investment Property
Attikis II A.E.
Greece
100.00
8
AGI-RRE Participations 1 Srl
Romania
100.00
100.00
9
Stockfort Ltd
Cyprus
100.00
100.00
10
Romfelt Real Estate S.A.
Romania
99.99
99.99
11
AGI-RRE Zeus Srl
Romania
100.00
100.00
12
AGI-RRE Poseidon
Srl
Romania
100.00
100.00
13
AGI-RRE Hera Srl
Romania
100.00
100.00
14
Alpha Real Estate Services LLC
Cyprus
93.17
93.17
15
AGI-BRE
Participations
2 E.O.O.D.
Bulgaria
100.00
100.00
16
AGI-BRE
Participations
2BG E.O.O.D.
Bulgaria
100.00
100.00
17
AGI-BRE
Participations
4 E.O.O.D.
Bulgaria
100.00
100.00
18
APE Fixed Assets A.E.
Greece
72.20
72.20
19
AGI-RRE
Cleopatra
Srl
Romania
100.00
20
SC Carmel Residential Srl
Romania
100.00
100.00
21
Alpha Investment Property Neas
Kifissias A.E.
Greece
100.00
100.00
22
Alpha Investment Property
Kallirois A.E.
Greece
100.00
100.00
23
AGI-Cypre Alaminos Ltd
Cyprus
24
AGI-Cypre Tochni Ltd
Cyprus
100.00
100.00
25
AGI-Cypre Mazotos Ltd
Cyprus
100.00
100.00
26
Alpha Investment
Property Livadias A.E.
Greece
100.00
100.00
27
Asmita Gardens Srl
Romania
100.00
100.00
28
Alpha Investment
Property Kefalariou
A.E.
Greece
54.17
29
Cubic Center Development S.A.
Romania
100.00
100.00
30
Alpha Investment Property Neas
Erythreas A.E.
Greece
100.00
100.00
31
AGI-SRE
Participations
1 D.O.O.
Serbia
100.00
100.00
32
Alpha Investment
Property Spaton
A.E
Greece
100.00
100.00
33
TH Top Hotels Srl
Romania
97.50
34
Alpha Investment
Property Kallitheas
A.E.
Greece
100.00
100.00
35
Kestrel
Enterprise
E.O.O.D.
Bulgaria
100.00
100.00
36
Alpha Investment
Property Irakleiou A.E.
Greece
100.00
100.00
37
AGI-Cypre Property 2 Ltd
Cyprus
100.00
100.00
38
AGI-Cypre Property 4 Ltd
Cyprus
100.00
100.00
39
AGI-Cypre Property 5 Ltd
Cyprus
100.00
100.00
40
AGI-Cypre Property 6 Ltd
Cyprus
100.00
100.00
41
AGI-Cypre Property 8 Ltd
Cyprus
100.00
100.00
42
AGI-Cypre Property 7 Ltd
Cyprus
100.00
100.00
43
AGI-Cypre Property 9 Ltd
Cyprus
100.00
100.00
44
AGI-Cypre Property 10
Ltd
Cyprus
100.00
45
AGI-Cypre Property 11
Ltd
Cyprus
100.00
46
AGI-Cypre Property 12
Ltd
Cyprus
100.00
100.00
47
AGI-Cypre Property 13
Ltd
Cyprus
100.00
100.00
48
AGI-Cypre Property 14
Ltd
Cyprus
100.00
100.00
49
AGI-Cypre Property 15
Ltd
Cyprus
100.00
100.00
50
AGI-Cypre Property 16
Ltd
Cyprus
100.00
100.00
51
AGI-Cypre Property 17
Ltd
Cyprus
100.00
100.00
52
AGI-Cypre Property 18
Ltd
Cyprus
100.00
100.00
53
AGI-Cypre Property 19
Ltd
Cyprus
100.00
100.00
54
AGI-Cypre Property 20
Ltd
Cyprus
100.00
100.00
55
AGI-Cypre
RES Pafos
Ltd
Cyprus
100.00
100.00
56
AGI-Cypre P&F Nicosia Ltd
Cyprus
100.00
100.00
57
ABC RE P1 Ltd
Cyprus
100.00
58
ABC RE P2 Ltd
Cyprus
100.00
100.00
59
ABC RE P3 Ltd
Cyprus
100.00
100.00
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
236
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Name
Country
Group’s ownership
interest %
31.12.2021
31.12.2020
60
ABC RE L2
Ltd
Cyprus
100.00
100.00
61
ABC RE P4 Ltd
Cyprus
100.00
100.00
62
AGI-Cypre
RES Nicosia
Ltd
Cyprus
100.00
100.00
63
AGI-Cypre P&F Limassol Ltd
Cyprus
100.00
100.00
64
AGI-Cypre Property 21
Ltd
Cyprus
100.00
100.00
65
AGI-Cypre Property 22
Ltd
Cyprus
100.00
100.00
66
AGI-Cypre Property 23
Ltd
Cyprus
100.00
100.00
67
AGI-Cypre Property 24
Ltd
Cyprus
100.00
100.00
68
ABC RE L3
Ltd
Cyprus
100.00
100.00
69
ABC RE P&F Limassol
Ltd
Cyprus
100.00
100.00
70
AGI-Cypre Property 25
Ltd
Cyprus
100.00
100.00
71
AGI-Cypre Property 26
Ltd
Cyprus
100.00
100.00
72
ABC RE COM
Pafos Ltd
Cyprus
100.00
100.00
73
ABC RE RES Larnaca
Ltd
Cyprus
100.00
100.00
74
AGI-Cypre P&F Pafos Ltd
Cyprus
100.00
100.00
75
AGI Cypre Property 27 Ltd
Cyprus
100.00
100.00
76
ABC RE L4
Ltd
Cyprus
100.00
100.00
77
ABC RE L5
Ltd
Cyprus
100.00
100.00
78
AGI-Cypre Property 28
Ltd
Cyprus
100.00
100.00
79
AGI-Cypre Property 29
Ltd
Cyprus
100.00
100.00
80
AGI-Cypre Property 30
Ltd
Cyprus
100.00
100.00
81
AGI-Cypre COM Pafos Ltd
Cyprus
100.00
100.00
82
AIP Industrial Assets Athens
S.M.S.A.
Greece
100.00
100.00
83
AGI-Cypre Property 31
Ltd
Cyprus
100.00
100.00
84
AGI-Cypre Property 32
Ltd
Cyprus
100.00
100.00
85
AGI-Cypre Property 33
Ltd
Cyprus
100.00
100.00
86
AGI-Cypre Property 34
Ltd
Cyprus
100.00
100.00
87
Alpha Group Real Estate
Ltd
Cyprus
100.00
100.00
88
ABC RE P&F
Pafos Ltd
Cyprus
100.00
100.00
89
ABC RE P&F
Nicosia Ltd
Cyprus
100.00
100.00
90
ABC RE RES Nicosia
Ltd
Cyprus
100.00
100.00
91
Fierton Ltd
Cyprus
100.00
100.00
92
AIP Industrial
Assets
Rog S.M.S.A.
Greece
100.00
100.00
93
AIP Attica Residential Assets I
S.M.S.A.
Greece
100.00
100.00
94
AIP
Thessaloniki
Residential
Assets
S.M.S.A.
Greece
100.00
100.00
95
AIP Cretan
Residential
Assets
S.M.S.A.
Greece
100.00
100.00
96
AIP Aegean
Residential
Assets
S.M.S.A.
Greece
100.00
100.00
97
AIP Ionian
Residential
Assets
S.M.S.A.
Greece
100.00
100.00
98
AIP Commercial
Assets
City Centres
S.M.S.A.
Greece
100.00
100.00
99
AIP
Thessaloniki
Commercial
Assets
S.M.S.A.
Greece
100.00
100.00
100
AIP Commercial
Assets
Rog S.M.S.A.
Greece
100.00
100.00
101
AIP Attica Retail
Assets I S.M.S.A.
Greece
100.00
100.00
102
AIP Attica Retail
Assets II S.M.S.A.
Greece
100.00
100.00
103
AIP Attica Residential Assets II
S.M.S.A.
Greece
100.00
100.00
104
AIP Retail
Assets Rog
S.M.S.A.
Greece
100.00
100.00
105
AIP Land II S.M.S.A.
Greece
100.00
100.00
106
ABC RE P6 Ltd
Cyprus
100.00
100.00
107
AGI-Cypre Property 35
Ltd
Cyprus
100.00
100.00
108
AGI-Cypre P&F Larnaca Ltd
Cyprus
100.00
100.00
109
AGI-Cypre Property 37
Ltd
Cyprus
100.00
100.00
110
AGI-Cypre RES Ammochostos Ltd
Cyprus
100.00
100.00
111
AGI-Cypre Property 36
Ltd
Cyprus
100.00
112
AGI-Cypre Property 38
Ltd
Cyprus
100.00
100.00
113
AGI-Cypre RES Larnaca
Ltd
Cyprus
100.00
100.00
114
ABC RE P7 Ltd
Cyprus
100.00
100.00
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
237
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Name
Country
Group’s ownership
interest %
31.12.2021
31.12.2020
115
AGI-Cypre Property 42
Ltd
Cyprus
100.00
100.00
116
ABC RE P&F
Larnaca Ltd
Cyprus
100.00
100.00
117
Krigeo Holdings Ltd
Cyprus
100.00
100.00
118
AGI-Cypre Property 43
Ltd
Cyprus
100.00
100.00
119
AGI-Cypre Property 44
Ltd
Cyprus
100.00
100.00
120
Reoco Orion X Μ.A.E.
Greece
100.00
121
Reoco Galaxy
II Μ.A.E.
Greece
100.00
122
Reoco Galaxy
IV Μ.A.E.
Greece
100.00
123
AGI-Cypre Property 40
Ltd
Cyprus
100.00
100.00
124
ABC RE
RES Ammochostos
Ltd
Cyprus
100.00
100.00
125
ABC RE RES Paphos Ltd
Cyprus
100.00
100.00
126
Sapava Ltd
Cyprus
100.00
100.00
127
AGI-Cypre Property 46
Ltd
Cyprus
100.00
100.00
128
AGI-Cypre Property 47
Ltd
Cyprus
100.00
100.00
129
AGI-Cypre Property
48 Ltd-
Cyprus
100.00
100.00
130
Alpha Credit Property
1 Ltd
Cyprus
100.00
100.00
131
Office Park I Srl
Romania
100.00
100.00
132
Acarta Construct Srl
Romania
100.00
100.00
133
AGI-Cypre Property 45
Ltd
Cyprus
100.00
100.00
134
AGI-Cypre Com Nicosia Ltd
Cyprus
100.00
100.00
135
AGI-Cypre Property 49
Ltd
Cyprus
100.00
100.00
136
AGI-Cypre Property 50
Ltd
Cyprus
100.00
100.00
137
AGI-Cypre Com Larnaca Ltd
Cyprus
100.00
100.00
138
AGI-CYPRE PROPERTY
51 LIMITED
Cyprus
100.00
139
AGI-CYPRE PROPERTY
52 LIMITED
Cyprus
100.00
140
AGI-CYPRE PROPERTY
53 LIMITED
Cyprus
100.00
141
ALPHA CREDIT
PROPERTIES LIMITED
Cyprus
100.00
142
AGI-CYPRE PROPERTY
54 LIMITED
Cyprus
100.00
143
Engromest
Romania
Special purpose
and holding
entities
1
Alpha Credit Group Plc
United Kingdom
100.00
2
Alpha Group Jersey Ltd
Jersey
100.00
100.00
3
Alpha Group
Investments Ltd
Cyprus
100.00
100.00
4
Ionian Equity
Participations Ltd
Cyprus
100.00
100.00
5
AGI-BRE Participations 1 Ltd
Cyprus
100.00
100.00
6
AGI-RRE Participations 1 Ltd
Cyprus
100.00
100.00
7
Alpha Group Ltd
Cyprus
100.00
100.00
8
SKY CAC LIMITED
Cyprus
100.00
9
Katanalotika
Plc
United Kingdom
10
Epihiro Plc
United Kingdom
11
Irida Plc
United Kingdom
12
Pisti 2010-1 Plc
United Kingdom
13
Alpha Shipping Finance
Ltd
United Kingdom
14
Alpha Quantum DAC
Ireland
15
AGI-RRE Athena Ltd
Cyprus
100.00
16
AGI-RRE Poseidon
Ltd
Cyprus
100.00
100.00
17
AGI-RRE Hera
Ltd
Cyprus
100.00
100.00
18
Umera Ltd
Cyprus
100.00
100.00
19
Alpha Holdings
S.M.S.A.
Greece
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
AGI-RRE Ares Ltd
Cyprus
100.00
100.00
24
AGI-RRE Venus
Ltd
Cyprus
100.00
25
AGI-RRE Artemis Ltd
Cyprus
100.00
100.00
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
238
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Name
Country
Group’s ownership
interest %
31.12.2021
31.12.2020
26
AGI-BRE Participations 5 Ltd
Cyprus
100.00
100.00
27
AGI-RRE Cleopatra Ltd
Cyprus
100.00
100.00
28
AGI-RRE
Hermes
Ltd
Cyprus
100.00
100.00
29
AGI-RRE Arsinoe
Ltd
Cyprus
100.00
100.00
30
AGI-SRE
Ariadni
Ltd
Cyprus
100.00
100.00
31
Zerelda Ltd
Cyprus
100.00
100.00
32
AGI-Cypre Evagoras Ltd
Cyprus
100.00
100.00
33
AGI-Cypre Tersefanou Ltd
Cyprus
100.00
100.00
34
AGI-Cypre Ermis Ltd
Cyprus
100.00
100.00
35
AGI-SRE Participations 1 Ltd
Cyprus
100.00
100.00
36
Alpha Credit
Acquisition Company
Ltd
Cyprus
100.00
100.00
37
Alpha International Holding
Company S.A.
Luxembourg
100.00
100.00
38
Galaxy Iii Funding
Designated Activity
Company
Ireland
39
Alpha International Holdings
M.A.E.
Greece
100.00
100.00
40
Gemini Core
Securitisation Designated
Activity Company
Ireland
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
4
Alpha Supporting Services A.E.
Greece
100.00
100.00
5
Real Car Rental
A.E.
Greece
100.00
100.00
6
Emporiki Management A.E.
Greece
100.00
100.00
7
Alpha Bank Notification Services A.E.
Greece
100.00
100.00
8
Alpha Payment Services MAE
Greece
100.00
b.
Joint Ventures
Name
Country
Group’s ownership
interest %
31.12.2021
31.12.2020
1
APE Commercial
Property
A.E.
Greece
72.20
72.20
2
APE Investment Property A.E.
Greece
71.08
71.08
3
Alpha TANEO AKES
Greece
51.00
51.00
4
Rosequeens Properties Ltd
Cyprus
33.33
33.33
5
Panarae Saturn LP
Jersey
61.58
61.58
6
Alpha Investment Property
Commercial Stores
A.E.
Greece
70.00
70.00
c.
Associates
Name
Country
Group’s ownership
interest %
31.12.2021
31.12.2020
1
AEDEP Thessalias and Stereas Ellados
Greece
50.00
50.00
2
ALC Novelle Investments
Ltd
Cyprus
33.33
33.33
3
Banking Information
Systems A.E
Greece
23.77
23.77
4
Propindex
AEDA
Greece
35.58
35.58
5
Olganos A.E.
Greece
30.44
30.44
6
Alpha Investment Property
Elaiona A.E
Greece
50.00
50.00
7
Famar S.A.
Luxembourg
47.04
8
Cepal Holdings
A.E.
Greece
20.0
9
Perigenis Commercial Assets A.E.
Greece
31.97
31.97
10
Aurora SME I
DAC
Ireland
11
Zero Energy Buildings
Energy Services S.A.
Greece
49.00
49.00
Detailed information
on corporate
events for
the companies
included in
the consolidated
financial statements
is set out
in note 49.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
239
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
With respect to Subsidiaries
the following are noted:
The subsidiary
Stockfort Ltd
is a group
of companies
that includes
the company
Pernik Logistics
Park E.O.O.D.
The Group hedges the foreign exchange risk arising from the net investment in subsidiaries through the use of derivatives in
their functional currency.
In 2020 the Group acquired the control of Acarta Construction
Srl. Within December of 2021 there was an adjustment to the
temporary fair values recognized for the acquisition of the company compared
to the acquisition date as further detailed
in
note
40
of
the
annual
consolidated
financial
statements
of
2020
as
the
valuation
of
the
assets,
liabilities
as
well
as
the
evaluation of
any contingent liabilities
was finalized.
With respect to
Associates and Joint Ventures
the following are
noted:
APE Investment
Property A.E.
is the parent company
of a group that
includes SYMET
A.E., Astakos Terminal
A.E., Akarport
A.E.
and NA.VI.PE A.E. Furthemore, Rosequeens
Properties Ltd is the parent company of Rosequeens Properties
Srl.
The
Group’s
investment
in
Rosequeens
Properties
Ltd
is
accounted
for
using
the
equity
method,
while
the
group
of
APE
Investment Property
A.E. has
been classified
as asset held
for sale
and is measured
in accordance
with IFRS
5 (note 48).
Acquisitions
of companies
On 15.12.2020, the Group acquired the control of Acarta Construct Srl by acquiring 100% of its share capital (note 49) by
paying an amount
of € 0.2 and with
an additional payment
of one euro for
the assignment of
the right to collect
the loan
liability amount of the company to a subsidiary of
the same group to which Acarta Construct Srl belonged, amounting to
€
68,260.
Acarta
Construct
Srl
is
a
real
estate
company
and
owns
a
modern
office
building
in
Bucharest,
with
a
total
area
of
41,500 sq.m.,
which the
Group intends
to use
for investment
purposes.
In December
2021, the
fair value
of the
net assets
of the
company at
the date
of acquisition
were finalized.
It is
noted that
in
relation to the temporary fair values that were initially disclosed, the below movement presented in the table occurred.
Temporary Fair Value
Movement
Final Fair Value
Receivables from
customers
212
212
Due from Banks
2,479
2,479
Property, plant and equipment
195
195
Investment
Property
71,700
(351)
71,349
Other assets
1,170
1,170
Deferred tax assets
625
625
Due to banks
(75,836)
(75,836)
Liabilities for current income
tax and other taxes
(4)
(4)
Deferred tax liabilities
(6,492)
2,299
(4,193)
Provisions
(93)
(93)
Other liabilities
(228)
(228)
Net Identifiable
Assets recognized
(A)
(6,897)
2,573
(4,324)
Consideration (B)
Goodwill (Β-Α)
6,897
(2,573)
4,324
Based on the final values
of the assets and liabilities
acquired by the Group, a recognition
of goodwill amounting
to € 4,324
(note 24) occured, which was impaired on 31.12.2021, taking into account the updated valuation of the
company’s property.
There are
no contingent
liabilities
of Acarta
Construct
Srl to
be recognised.
Following
the
acquisition
of
control
of
Acarta
Construct
Srl,
the
Group
recognized
after
eliminations
total
revenue
of
€ 237
and
losses before income tax of € 364 from the consolidation of its results in 2020. If the acquisition of control had taken place on
1.1. 2020, the Group’s total revenue
would have amounted to € 2,595,109 and the profits before tax to € 110,706.
On
30.12.2021,
the
group
acquired
the
control
of
the
company
Engromest,
which
operates
in
the
business
of
real
estate
management,
as the
lender of
the company
that based
on the
agreement mentioned
below, it
is the
one who
decides on
its
main business activities
related to the management
of its property while
it is also the one
that is most exposed
to the variable
returns of the
company due to
the borrowing.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
240
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
More
specifically,
the
shares
of
the
borrower
Engromest
were
transferred
to
a
SPV
which
has
undertaken
to
provide
management
services
of
the
property
of
Engromest
for
a
fee.
On
the
same
date,
an
agreement
was
signed
between
the
Group,
Engromest
and
the
SPV,
which
acquired
its
shares,
according
to
which
it
is
determined
that
the
property
is managed
in
accordance with
the instructions
received from
the lender of
Engromest. In
particular, the management
is based on
an initial
business
plan approved
by the
lender,
any amendments
to the
business
plan are
also approved
by the
lender,
and any
decision
to transfer
Engromest’s property
or shares
requires the
lender’ s
approval. The
lender has
the right
to acquire
the shares
of
Engromest (call option) for
€ 1.
The table
below presents
the temporary
values of
the company’s
net assets
at the date
of acquisition
of control.
Based on
the temporary values
of the assets and liabilities
acquired by the Group, negative
goodwill (burgain purchase)
of € 589 was
recognised, which derives from the zero consideration. In the context of temporary fair value measurement of the company’s
assets and liabilities at fair value, the investment property held by the company was valued
at € 8,200.
Temporary Fair Value
Cash
2,246
Property, plant and equipment
25
Investment
Property
8,200
Other assets
263
Due to banks
(9,595)
Other liabilities
(550)
Net Identifiable
Assets recognized
(A)
589
Consideration (B)
Negative Goodwill
(Β-Α)
589
Due
to
the
short
period
of
time
since
the
acquisition
date,
the
valuation
of
assets,
liabilities
and
the
valuation
of
any
contingent liabilities of
Engromest have
not been
finalized.
Following the acquisition of control of Engromest, the Group did not recognize, after eliminations, results from the consolidation
of its
results
in 2021.
If the
acquisition
of control
had
taken
place
on 1.1.2021,
the Group’s
total
revenue
would
have been
formed at a loss of € 226,681 and the losses before income tax from ongoing activities in the amount of € 2,928,912.
Group subsidiaries
with non
controlling
interests
The table
below
presents
information
concerning
the Group’s
subsidiaries
with
non controlling
interests.
Name
Country
Non controlling
interests %
Profit/(loss) attributable
to non controlling
interests
Other comprehensive
income recognized
directly in Equity
for non
controlling interests
Non controlling
interests
31.12.2021
31.12.2020
From 1 January to
From 1 January to
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
1. APE
Fixed Assets A.E.
Greece
27.80
27.80
(78)
(77)
10,939
11,016
2. Alpha Astika Akinita
A.E.
Greece
6.83
6.83
112
194
(10)
(3)
9,988
9,876
3. Alpha Real Estate Bulgaria E.O.O.D.
Bulgaria
6.83
6.83
(1)
(1)
29
30
4. Chardash Trading E.O.O.D.
Bulgaria
6.83
6.83
(34)
(14)
(3)
(164)
(130)
5. Alpha Bank
Romania S.A.
Romania
0.08
0.08
17
13
(1)
(6)
340
328
6. Romfelt Real Estate
S.A.
Romania
0.01
0.01
1
7. Alpha Real Estate
Services Srl
Romania
6.83
6.83
8
11
(2)
99
94
8. Alpha Real
Estate Services LLC
Cyprus
6.83
6.83
6
24
71
64
9. SSIF Alpha Finance Romania S.A.
Romania
0.02
0.02
(13)
10.
Alpha
Investment
Property
Kefalariou AE
Greece
45.83
71
8,083
11. TH Top Hotels
Srl
Romania
2.50
2.50
(3)
(13)
4
4
21
Total
27
208
(10)
(10)
21.290
29,382
The percentage
of voting
rights owned
by third
parties in
subsidiaries does
not differ
from their
participation
in their
share
capital.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
241
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
With respect to the above mentioned subsidiaries, significant
non controlling interests as at 31.12.2021 exist in Alpha Astika
Akinita A.E.
and in
APE Fixed
Assets A.E.,
while in
31.12.2020
there were
also for
Investment
Properties
Kefalariou
A.E which
sold within 2021.
A
condensed
set
of
financial
information
of
Alpha
Astika
Akinita
A.E.,
Alpha
Investment
Property
Kefalariou
A.E.
and
APE
Fixed
Assets A.E. where Intra-group balances and
transactions have not been eliminated is
presented below.
Condensed Statement
of Total Comprehensive
Income
Alpha Astika Akinita A.E.
Alpha
Investment
Property
Kefalariou A.E.
APE Fixed Assets A.E.
From 1 January
to
From
1
January to
From 1 January
to
31.12.2021
31.12.2020
31.12.2020
31.12.2021
31.12.2020
Total income
11.491
12,982
502
Total expenses
(9.421)
(8,936)
(292)
(324)
(314)
Profit/(loss) for the year after income tax
1.743
2,846
155
(279)
(278)
Total
comprehensive
income
for
the
year,
after income tax
1.743
2,846
155
(279)
(278)
Condensed Balance Sheet
Alpha Astika Akinita A.E.
Alpha
Investment
Property
Kefalariou AE
APE Fixed Assets A.E.
31.12.2021
31.12.2020
31.12.2020
31.12.2021
31.12.2020
Total non-current
assets
57,136
54,768
16,980
39,222
39,338
Total current
assets
83,784
85,769
745
268
445
Total short-term
liabilities
2,901
3,951
99
68
42
Total long-term
liabilities
1,026
1,652
219
82
127
Total Equity
136,993
134,933
17,458
39,340
39,615
Condensed Statement of Cash
Flows
Alpha Astika Akinita A.E.
Alpha
Investment
Property
Kefalariou A.E.
APE Fixed Assets A.E.
From 1 January
to
From 1 January
to
From 1 January
to
31.12.2021
31.12.2020
31.12.2020
31.12.2021
31.12.2020
Total inflows/(outflows)
from operating activities
2,202
3,277
383
(144)
(230)
Total inflows/(outflows)
from investing activities
(2,922)
379
(36)
(144)
Total inflows/(outflows)
from financing activities
(129)
(133)
4
801
Total inflows/(outflows) for the
year
(849)
3,523
383
(177)
427
Cash and
cash equivalents
at the
beginning
of the year
77,227
75,706
362
445
18
Cash and cash
equivalents at the
end of the
year
76,378
79,229
745
268
445
No dividends were distributed by the aforementioned companies, for the years 2021 and 2020.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
242
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Significant
Restrictions
The
Group’s
significant
restrictions
regarding
the
use
of
assets
or
the
settlement
of
liabilities,
are
those
imposed
by
the
regulatory
framework
in
which
its
subsidiaries
operate
and
concerns
mainly
those
that
are
subject
to supervision
for
their
capital
adequacy. In
particular, the
regulatory authorities
request, where
appropriate and
depending on
the nature of the
company,
the
compliance
with
specific
thresholds,
for
example
maintaining
minimum
capital
adequacy
ratios,
holding
a
predetermined
level of
highly
liquid assets,
minimizing
their exposure
to other
Group companies
and complying
with specified
ratios. The
total
assets
and
liabilities
of
the
subsidiaries
operating
in
the
banking,
insurance
and
other
mainly
financial
sectors
with
significant
restrictions
amount
to
€
10.276
million
(31.12.2020
€
9.226
million)
and
€
9.082
million
(31.12.2020
€
7.988
million)
respectively.
In addition,
all
Greek
subsidiaries
are
subject
to the
restrictions
imposed
by
the
regulatory
framework
(Codified
Law
4548/2018
or any
other specific
legislation depending
on the
nature of
their operations)
regarding the
minimum threshold
of the
share
capital and net assets as
well as the
ability to distribute dividends and
to transfer equity shares.
Moreover,
the
cash
withdrawals
and
capital
restrictions
imposed
by
Legislative
Act
within
2015
and
applied
to
all
companies
operating
in
Greece,
ceased
to
be
effective
within
2019,
according
to
a
relevant
amendment
incorporated
in
Law
4624/2019,
causing the whole removal of
existing restrictions on capital movement until then.
There are
no options
of protection
rights
held by
third parties
in the
share
capital
of subsidiaries
that could
otherwise
limit
the
Group’s ability
to utilize
those assets
or settle
the Group’s
liabilities.
Consolidated
structured
entities
The Group
on 31.12.2021
consolidates
six special
purpose entities
that serve
securitization
transactions
of loan
portfolios
held by
companies
of the
Group.
The Group
exercises
control
over these
special
purpose
entities
as it
has authority
over their
activities and significant
exposure to their
returns.
During 2021 the Group carried out two new securitization
transactions of non-performing loans
by transferring loan portfolios
to
the
special
purpose
entities
Gemini
Core
Securitisation
DAC
and
Cosmos
Securitization
DAC,
which
were
established
for
this
purpose
and
issued
notes
covered
by
the
Group.
During
the
year,
51%
of
the
mezzanine
and
junior
notes
of
Cosmos
Securitization
DAC were transferred
by the Group
to a third
party investor,
which resulted
in a loss
of control
of the special
purpose
entity
and
termination
of
its
consolidation.
Regarding
the
securitization
transactions
of
non-performing
loans
established in 2020, it
is noted that the Group in
2021 sold 51% of the mezzanine
and junior notes issued by
the companies
Orion Securitisation
DAC, Galaxy
II Funding
DAC and
Galaxy IV
Funding DAC,
which resulted
in the loss
of control
of the
above
special purpose
entities and
the cessation
of their consolidation.
The Group
continues to
hold all
of the issued
notes of the
Galaxy III Funding
DAC, which it
consolidates.
The other securitization
of loan portfolio
transactions that
were in force
on 31.12.2021 and
31.12.2020 were
established in
previous years for liquidity purposes through the issuance of notes or other legal form of lending. Within 2021, securitizati
on
transactions were revoked through Katanalotika Plc and Alpha
Quantum DAC with the repayment
of all notes issued.
The
table
below
presents
the
nominal
value
of
notes
or
other
forms
of
lending,
excluding
subordinated
loans,
issued
by
a
company with
a special
structure that
is consolidated
by the Group.
On 31.12.2021
and 31.12.2020
all the following
notes and
other financial
instruments issued
by the
entities were
held by
the Group.
Company name
Nominal value
31.12.2021
31.12.2020
Epihiro Plc
500,000
500,000
Katanalotika
Plc
580,000
Pisti 2010-1 Plc
467,000
586,200
Irida Plc
474,800
474,800
Alpha Shipping Finance
Ltd
39,771
Alpha Quantum DAC
292,735
Orion X Secutitisation DAC
1,923,688
Galaxy II Funding DAC
5,746,849
Galaxy III Funding DAC
946,538
946,538
Galaxy IV Funding
DAC
3,105,197
Gemini Core Securitisation DAC
6,914,843
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
243
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
With
resepct
to
securitization
transactions
aimed
to
raise
liquidity,
depending
on
the
criteria
to
be
met
for
each
securitized
portfolio,
the
Group,
without
having
any
relevant
contractual
obligation,
proceeds
as
appropriate
in
ad
hoc
repurchases
of
securitized
loans.
In
addition,
for
those
securitization
transactions
that
are
in
replacement
period,
the
Group
engages
in
new
securitization
transactions
of
loan
portfolios
by
transferring
them
to
those
entities,
in
order
to
meet
the
specific
quantitative
criteria related to the amounts of the
bonds issued. The intention of the
Group is to continue this practice.
Furthermore, on
31.12.2021 the
Group had
granted subordinated
loans amounting
to € 148,043
(31.12.2020: € 174,171)
to
the special purpose
entities for credit
enhancement purposes
of the securitization
transactions. It is
noted that on 22.1.2021
the high
repayment priority
loan of
Alpha Shipping
Finance Ltd
was repaid
with an
equal increase
of the reduced
collateral
loan also
held by
the Group.
This loan
is now
the only
form of
lending by
Alpha Shipping
Finance Ltd
and therefore
under these
circumstances
is preceded
in
the
repayment
priority
order.
Apart
from
the
above
mentioned
loan,
the
Group
has
no contractual
obligation to
grant additional
funding to
the entities,
except for
the loan
to the Alpha
Shipping Finance
Limited to
which the
Group is obliged,
if needed, to
grant additional amounts.
Regarding
non-performing
loan
transactions,
in
particular
the
Gemini
transaction,
repurchases
and
new
securitizations
are
carried out to ensure that the eligibility
criteria are met. Repurchases
and new securitizations are not
settled in cash but adjust
the value
of the bond
issued by
the company.
Also, the
Group has
granted a
loan of
€ 50 million
in order
to provide
liquidity
to the
special
purpose
entity and
has no
contractual
obligation
to provide
additional
financing.
In the
Galaxy III
transaction,
repurchases and
new loan securitizations
may be made
on an ad hoc
basis to optimize
the amount of
the portfolio in
relation
to the nominal value of the note issued, as well as individual loan repurchases in order to meet specific eligibility criteria
set for
the transaction.
Changes
of ownership
interest
in subsidiaries
which
did not
result in
loss of
control
During 2021 and 2020,
there was no
change in the
shareholder structure of the Group’s
subsidiaries.
Loss of
control
in subsidiary
due to
sale or
liquidation
On 22.2.2021 a binding agreement was signed with the company Davidson Kempner Capital Management LP in the context
of the Galaxy transaction which includes
the sale of 80% of the share capital of Cepal Holdings, while the remaining
20% is
retained by Alpha Bank. The
sale of the shares
took place on 18.6.2021. The
consideration of the transaction amounted to
€ 117,672 and the result from the sale amounted to € 111,296 profit,
which was recognized in Gains less losses from financial
transactions and
includes the loss
from the valuation
of the remaining
20% of the share
capital held
by the Group
amounting
to €
10.863.
It is
noted that
for the
determination
of the
consideration
of the
transaction were
taken into
account, the
amount of
€ 62,698
paid by
the buyer
in cash,
the present
value of
the deferred
consideration
that is
expected to
be collected
in 18
months and
the valuation of the contingent consideration already received,
as well as the provision for indemnity of the buyer based on the
conditions provided
in the contract of sale. At
the date of sale the Company’s
Assets and Liabilities are
presented in the table
below:
Assets
18.6.2021
Cash
-
Due from Banks
12,849
Total Current Assets
12,849
Non current
Assets
329,002
Other current liabilities
13,898
Total Currents
Liabilities
13,898
Long-term financial
liabilities
130,270
Total long-term liabilities
130,270
On 6.8.2021, the liquidation of
the group subsidiary AGI-RRE Athena Ltd. was
completed. The total cash of
the subsidiary at
the time of
sale amounted to €
2.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
244
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
On
6.8.2021,
the
liquidation
of
the
group
subsidiary
AGI-RRE
Venus
Ltd.
was
completed.
The
total
cash
of
the
subsidiary
at
the
time of sale
amounted to €
1.
On 2.9.2021, the liquidation
of the group subsidiary Alpha
Credit Group Plc was completed. The
total cash of the subsidiary at
the time of
sale amounted to €
604.
On 15.10.2021,
the sale
of all
the shares
of the
group subsidiary
AGI-CYPRE
PROPERTY
11 LTD
was completed
for a
total price
of € 1,345,
while a loss of €
288 was recognized. The subsidiary had no cash available at the
time of the sale.
On 4.11.2021, the liquidation of the group subsidiary Alpha Finance Romania was completed. The total cash
of the subsidiary
at the time
of sale amounted to
€ 168.
On 12.12.2021, the sale of all
the shares of the group
subsidiary AEP Kefalariou SA was completed for a
total price of
€ 15,231, while a loss of €
8,230 was recognized. The total cash holdings of the subsidiary at the time of sale amounted to
€ 1,288.
Exposure
to non-consolidated
structured
entities
The
Group,
through
its
subsidiary
Alpha
Asset
Management
AEDAK,
manages
41
(31.12.2019:
41)
mutual
funds
which
meet
the definition of structured
entities and at each reporting date,
it assesses whether it controls
any of these according with
the
provisions of IFRS
10.
The Group, acting as the manager
of the mutual funds has the ability to direct the activities
which significantly affect the level
of their
return by
selecting the
investments
made by
the funds
within the
framework
of permitted
investments
as described
in the regulation of each fund. As a result, the Group has power over the mutual funds under management but within a clearly
defined decision making framework.
Moreover the Group is exposed to variable
returns through its involvement in the mutual
funds as it receives fees for the
purchase, redemption and management of the funds under normal market levels for similar
services.
The Group
also
holds
direct
investments
in some
of the
funds
under
management,
the level
of which
is assessed
to be
determined
whether it
leads to
a significant
variability
in its
returns
compared
to the
variability
of the
respective
total rate
of
return of the mutual fund. Due to these
factors, the Group assessed that,
for all mutual funds under management,
it exercises,
for the benefit of unit holders, the decision making rights assigned to it acting as an agent without controlling the mutual funds.
The following table
presents by category
of investments the total
assets of the mutual
funds managed but
not controlled by
the Group.
In particular, the below table shows
the total assets of the mutual funds under management
but not controlled by the Group
by category of investment.
During the year 2020, the
commision income from
the management fees of these
Mutual Funds
amounted to €
31,379 (2020: €
17,819).
Total assets
31.12.2021
31.12.2020
Category of
Mutual Funds
Bond Funds
669,910
526,439
Money Market Funds
39,009
48,075
Equity Funds
688,284
475,899
Balanced Funds
957,576
471,377
Total
2,354,779
1,521,790
On
1.1.2018,
the direct
investment
of the
Group
in the
above
mutual
funds
was classified,
in the
portfolio
of investment
securities
measured
at
fair
value
through
profit
or
loss,
under
the
IFRS
9,
as
they
did
not
meet
the
definition
of
equity
instrument. The carrying
amount of the investment
in mutual funds as
at 31.12.2021 amounts
to € 149,533 (31.12.2020:
€ 65,318). The
change in
the fair
value of
the aforementioned
mutual funds
during the
year 2021
resulted in
a gain
of € 3,644
(year 2020: gain
of €
747).
It
is noted
that
there
is no
contractual
obligation
for
the
Group
to provide
financial
support
to any
of the
mutual
funds
under
management nor does
it guarantee their
rate of
return.
In addition, the Group
manages Alpha TANEO
AKES through its
subsidiary Alpha A.E.
Venture Capital Management
-AKES. The
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
245
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
mutual fund shareholders of this mutual fund are the Bank owning 51% and the Hellenic Development Bank of Investments
S.A.
owning
49%.
Both
parties
jointly
control
the mutual
fund
and as
a result
the
Group’s
investment
in Alpha
ΤΑΝEO
A.Κ.E.S
is accounted for under the equity method. The carrying
amount of the Group’s investment on 31.12.2021
amounts to € 7,029
(31.12.2020:
€ 3,794)
and
has
been
classified
in
“Investements
in
Associates
and
Joint
Ventures”.
The
Group’s
share
of
Alpha
TANEO AΚES
profit or
loss is presented
in note
21. The
total assets
amounted
to € 8,388
as at
31.12.2021 (31.12.2020:
€ 8,128). The Group’s commission
income for the management
of the mutual fund for 2021
amounted to € 90 (2020: € 97).
The Bank
has undertaken
the obligation
to participate
in additional
investments in
the share capital
of the joint
venture up
to €
19. The
aforementioned
commitment
along
with carrying
amount of
the Group’s
investment
represent
the maximum
exposure of
the Group to
Alpha TANEO AKES.
In the
context of
Galaxy and
Cosmos
transactions
carried out
within the
year 2021,
the Group
acquired notes
issued by
the
special purpose entities
Orion Securitisation
DAC, Galaxy II Funding
DAC, Galaxy IV Funding
DAC and Cosmos
Securitization DAC
that were
established
to serve
the respective
non-performing
loan securitization
transactions.
Initially, the
Group covered
all
the issues, which
resulted in the
exercise of control
over the special
purpose entities.
With the sale
of 51% of the
mezzanine
and junior notes
to a third party investor
within the year 2021,
the Group ceased
to control and consolidate
these companies.
The Group
maintained
100% of
the senior
notes which
were classified
in the
category of
loans measur
ed at
amortized
cost
and
49%
of
the
mezzanine
and
junior
notes,
of
which
5%
were
classified
in
the
category
of
loans
measured
at
fair
value
through profit or
loss and 44% was
classified in the category
of securities measured
at fair value through
profit or loss, based
on the business model and
the contractual terms of these
notes. The following table
presents the book value of 31.12.2021
of
the above notes and the results recognized by the Group from the
respective securities during the year. It is noted that the total
nominal value of the securities issued by the aforementioned special purpose entities
on 31.12.2021 amounts to € 14 billion.
Book
value
31.12.2021
Profit or Loss
31.12.2021
Interest income
Gains
less
losses
on
Financial Transactions
Impairment
Losses
Investment securities - measured at fair value through
Profit or Loss
Notes issued
by special
purpose entities
22,537
5,203
2,940
Loans
and
Advances
to
Customers
measured
at
amortized cost
Notes issued
by special
purpose entities
5,481,594
13,946
(894)
Loans
and
Advances
to
Customers
measured
at
fair
value through profit or loss
Notes issued
by special
purpose entities
2,561
54
1,744
The Group
has granted
loans with
a book
value of
€ 112.4
million as
of 31.12.2021
to the
special purpose
entities
Orion
Securitisation
DAC,
Galaxy
II Funding
DAC,
Galaxy
IV Funding
DAC
and
Cosmos
Securitization
DAC
in order
to finance
their
reserves.
The
total
results
recognized
by
the
Group
from
these
loans
in
the
year
2021
amounted
to
€
505.
The
above
companies hold deposits with
the Group amounting
to €
270.7 as of
31.12.2021.
Regarding
the
Group’s
liabilities
arising
from
the
specific
securitization
transactions,
it
is
pointed
out
that
the
securitized
portfolios that were transferred
included letters of guarantee.
In case of forfeiture of any
of them, the Group disburses
a loan
which it
transfers directly
to the
respective special
purpose entity
at a
price equal
to the
value of
the loan.
The payment
of
the price
is made
from special
deposit accounts,
with pledged
balances kept
by the aforementioned
companies specifically
for
the
specific
purpose
in
the Group.
Also,
the
Group
has
undertaken
to
issue
letters
of guarantee
for the
above
securitization
companies, up to a total limit of € 205 million, in exchange
for a commission. In case of forfeiture
of a guarantee, the amount
paid becomes immediately due and is repaid
through the reserves and accounts of the securitization
company, while in case
these are not enough, it is
placed in a high order
of payment priority and it is
repaid through interest payments.
Also,
in
the
context
of
the
above
transactions
Galaxy
and
Cosmos,
the
special
purpose
entities
Reoco
Orion
X
MAE,
Reoco
Galaxy II
MAE, Reoco
Galaxy IV
MAE and Reoco
Cosmos MAE
were established,
whose main
activity is to
participate in
auctions
for the
purchase of
properties that
are collaterals
of the respective
securitized portfolios
and their
subsequent management.
The Group retains 100% of the share capital of these
companies, however it does not control them
as their main activities are
performed by the manager according to the instructions given
by the holders of the
mezzanine notes, the majority of which are
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
246
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
owned
by
the
third
investor.
The
Group’s
participation
in
the
above
companies
has
been
classified
in
the
portfolio
of
securities
measured at
fair value
through other
comprehensive
income and
on 31.12.2021
amounted to
€ 133. It is
noted that
the Group
has undertaken
to provide
financing
through granting
of loans
to the
above companies
for the
acquisition
of properties.
In the
event
that
a
relevant
loan
is
required
to
be
granted,
this
is
transferred
immediately
to
the
respective
special
purpose
entity
holding
the securitized
portfolio with
an advance
payment of
the relevant
price to
the Group.
In the
event that
the price
is not
prepaid, the Group is
not obliged to proceed
with the disbursement
of the loan and therefore
the Group’s exposure
to credit risk
from the above transaction is zero. The above companies keep deposits with the Group that amount to
€ 175 on
31.12.2021.
The
aforementioned
book
values
of
Notes,
loans
and
participations
together
with
the
aforementioned
commitments
of
the
Group for the provision of loans and guarantees constitute the maximum possible exposure of the
Group to the special purpose
entities established
in the
context of
Galaxy and
Cosmos transactions.
In December 2021,
the Group entered into
a synthetic securitization
transaction of a portfolio of
small and medium-sized
and
large
business
loans,
through
which
the
non-consolidated
special
purpose
entity
Aurora
SME
I
DAC,
in
which
the
Group
has
a
significant influence, provides
the Group with a guarantee
for a part of credit losses of the securitized
portfolio, in accordance
with the
terms specified
in the
contract
between
them.
For this
purpose,
Aurora SME
I DAC
issued
a bond
with a
nominal
value
of € 152 million, which was covered
by third parties not affiliated with
the Group, and the proceeds from
the issuance that are
a collateral for the
Group’s compensation
in case of forfeiture
of the quarantee.
The Group pays a
commission to the
special
purpose entity
for the provision
of the guarantee
and has also
undertaken to
cover its expenses.
During the year,
a relevant
expense
of
€
588
was
recognized
in
the
results.
Also,
the
Group
is
the
collateral
manager,
investing
in
eligible
securities
according to specified
criteria.
In
addition,
the
Group
has
investments
in
special
purpose
entities
through
its
participation
in venture
capital
mutual
funds
which it
does not
manage as
well as
in companies
subject to
the issuance
of securities
secured by
its assets
(asset-backed
securities).
The
following
table
analyzes
the
said
participations
of
the
Group.
An
indication
of
the
size
of
special
purpose
entities is the
total assets of the
venture capital mutual
funds based on the
most recent available
balance sheet and
the total
nominal value of
the issues of
asset backed securities.
Carrying Amount
Total Assets
/ Value
of issue
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Category of structured entity
Investment securities - measured at fair value through other
comprehensive income
Venture capital
mutual funds
11,383
15,153
319,432
247,442
Asset-backed
securities
886
1,018
231,395
268,774
Investment securities - measured at fair value through profit or loss
Asset-backed
securities
10,357
10,036
28,500
28,500
Investments in associates
and joint ventures
Venture capital
mutual funds
1,907
1,814
3,708
3,186
The
Group
is
committed
to
participate
in
additional
investments
of
the
above
mutual
funds
up
to
the
amount
of
€
4,367
(31.12.2020:
€ 4,582).
This
commitment
together
with
the
book
value
of
the
participation
constitute
the
maximum
possible
exposure of the
Group to these
investments.
From the participations
in asset-backed securities,
the Group recognized
within the year 2021
interest income amounting
to
€
256
(2020:
€
249)
and
no
gains
or
losses
(2020:
profits
€
2)
were
recognized
in
the
Gains
less
losses
on
financial
transactions. The Group has no
contractual obligation to provide financial support
to the companies that
have issued these
securities.
The
Group’s
maximum
possible
exposure
to
losses
from
asset
backed
securities
does
not
differ
from
their
carrying
amount.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
247
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
41.
Disclosures of Law
4261/5.5.2014
Article 81
of Law
4261/5.5.2014
transposed
into Greek
legislation
the Article
89 of
Directive
2013/36/EU
of the
European
Parliament
and
of the
Council
of
26 June
2013,
according
to which,
it is
enacted
for
first time
the
obligation
to disclose
information
on a
consolidated
basis by
Member
State and
third country
in which
the Group
has a
head office
as follows:
company
name
or
company
names,
nature
of
operations,
geographic
location,
turnover,
results
before
tax,
income
tax,
public
subsidies received and
the number
of full time
employees.
The required
information
is presented
below:
Greece
Turnover
in
Greece
for
the
year
ended
31.12.2021
amounted
to
€ (46,940),
losses
before
tax
amounted
to
€ 2,988,836,
income
taxes amounted to € (42,488), the
number of employees
was 5,931 and the following
companies are included:
Banks
1
Alpha Bank S.A.
Holding companies
Alpha Services and Holdings SA
Alpha Holdings M.A.E.
ALPHA International Holdings M.A.E.
Financing Companies
1
Alpha Leasing A.E.
2
ABC Factors A.E.
3
Cepal Holdings S.A.
Investment
Banking
1
Alpha Finance A.E.P.E.Υ.
2
Alpha Ventures A.E.
3
Alpha A.E. Ventures Capital
Management-AΚES
Asset Management
1
Alpha Asset Management A.E.D.A.Κ.
Insurance
1
Alpha Insurance Agents A.E.
2
Alphalife
A.A.E.Z.
Real Estate and Hotel
1
Alpha Astika Akinita A.E.
2
Alpha Real
Estate Management
and Investments
S.A
3
Alpha Investment
Property Attikis
A.E.
4
Alpha Investment Property
Attikis II A.E.
5
APE Fixed Assets A.E.
6
Alpha Investment Property
Neas Kifisias A.E.
7
Alpha Investment
Property Kallirois
A.E.
8
Alpha Investment
Property Livadias
A.E.
9
Alpha Investment
Property Kefalariou
A.E.
10
Alpha Investment Property
Neas Erythraias
A.E.
11
Alpha Investment
Property Spaton A.E.
12
Alpha Investment
Property Kallitheas
A.E.
13
Alpha Investment
Property Irakleiou
A.E
14
Alpha Investment Property Gi A.E.
15
AIP Industrial
Assets
S.M.S.A.
16
AIP Residential
Assets Rog
S.M.S.A.
17
AIP Attica Residential Assets I
S.M.S.A.
18
AIP Thessaloniki Residential Assets
S.M.S.A.
19
AIP Cretan
Residential
Assets
S.M.S.A.
20
AIP
Aegean
Residential
Assets
S.M.S.A.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
248
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
21
AIP Ionian Residential Assets
S.M.S.A.
22
AIP Commercial
Assets
City Centres
S.M.S.A.
23
AIP Thessaloniki Commercial Assets S.M.S.A.
24
AIP Commercial
Assets Rog
S.M.S.A.
25
AIP Attica Retail
Assets I S.M.S.A.
26
AIP Attica Retail
Assets II S.M.S.A.
27
AIP Attica Residential Assets II
S.M.S.A.
28
AIP Retail
Assets Rog
S.M.S.A.
29
AIP Land II S.M.S.A.
30
Reoco Orion X S.M.S.A.
31
Reoco Galaxy
II S.M.S.A.
32
Reoco Galaxy
IV S.M.S.A.
Other
1
Kafe Alpha A.E.
2
Alpha Supporting Services A.E.
3
Real Car Rental
A.E.
4
Emporiki Management A.E.
5
Alpha Bank Notification Services
A.E.
6
Reoco Cosmos
S.M.S.A.
7
Alpha Payment Services M.A.E.
United
Kingdom
Turnover in
United Kingdom
for the
year ended
31.12.2021 amounted
to € 20,102,
profit before
tax amounted
to €
2,258,
income taxes amounted to € (427),
the number of employees was 59 and the
following companies are included:
Banks
1
Alpha Bank London Ltd
Asset Management
1
ABL Independent
Financial Advisers
Ltd
Special purpose
and holding
entities
1
Alpha Credit Group Plc
2
Irida Plc
3
Alpha Shipping Finance
Ltd
Other
1
Alpha Bank London
Nominees Ltd
Cyprus
Turnover in Cyprus for the year ended 31.12.2021 amounted
to € (279.698), losses before tax amounted to € (824.992),
income taxes amounted to € (656), the
number of employees was 514 and the following companies
are included:
Banks
1
Alpha Bank Cyprus Ltd
Investment
Banking
1
Emporiki Ventures
Capital Developed
Markets Ltd
2
Emporiki Ventures
Capital Emerging
Markets Ltd
Real Estate and Hotel
1
Stockfort Ltd
2
AGI-Cypre Tochni Ltd
3
AGI-Cypre Mazotos Ltd
4
AGI-Cypre Property 2 Ltd
5
AGI-Cypre Property 4 Ltd
6
AGI-Cypre Property 5 Ltd
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
249
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
7
AGI-Cypre Property 6 Ltd
8
AGI-Cypre Property 8 Ltd
9
Alpha Real Estate Services LLC
10
AGI-Cypre Property 7 Ltd
11
AGI-Cypre Property 9 Ltd
12
AGI-Cypre Property 10
Ltd
13
AGI-Cypre Property 11
Ltd
14
AGI-Cypre Property 12
Ltd
15
AGI-Cypre Property 13
Ltd
16
AGI-Cypre Property 14
Ltd
17
AGI-Cypre Property 15
Ltd
18
AGI-Cypre Property 16
Ltd
19
AGI-Cypre Property 17
Ltd
20
AGI-Cypre Property 18
Ltd
21
AGI-Cypre Property 19
Ltd
22
AGI-Cypre Property 20
Ltd
23
AGI-Cypre Pafos Ltd
24
AGI-Cypre P&F Nicosia Ltd
25
ABC RE P1 Ltd
26
ABC RE P2 Ltd
27
ABC RE P3 Ltd
28
ABC RE L2 Ltd
29
ABC RE P4 Ltd
30
AGI-Cypre
RES Nicosia
Ltd
31
AGI-Cypre P&F Limassol Ltd
32
AGI-Cypre Property 21
Ltd
33
AGI-Cypre Property 22
Ltd
34
AGI-Cypre Property 23
Ltd
35
AGI-Cypre Property 24
Ltd
36
ABC RE L3 Ltd
37
ABC RE P&F
Limassol Ltd
38
AGI-Cypre
Property 25 Ltd
39
AGI-Cypre Property 26
Ltd
40
ABC RE COM Pafos
Ltd
41
ABC RE RES Larnaca
Ltd
42
AGI-Cypre P&F Pafos Ltd
43
AGI Cypre Property 27 Ltd
44
ABC RE L4 Ltd
45
ABC RE L5 Ltd
46
AGI-Cypre Property 28
Ltd
47
AGI-Cypre Property 29
Ltd
48
AGI-Cypre Property 30
Ltd
49
AGI-Cypre COM Pafos Ltd
50
AGI-Cypre Property 31
Ltd
51
AGI-Cypre Property 32
Ltd
52
AGI-Cypre Property 33
Ltd
53
AGI-Cypre Property 34
Ltd
54
Alpha Group Real Estate Ltd
55
ABC RE P&F
Pafos Ltd
56
ABC RE P&F
Nicosia Ltd
57
ABC RE RES Nicosia Ltd
58
Fierton Ltd
59
ABC RE P6 Ltd
60
AGI-Cypre Property 35
Ltd
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
250
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
61
AGI-Cypre P&F Larnaca Ltd
62
AGI-Cypre Property 37
Ltd
63
AGI-Cypre RES Ammochostos Ltd
64
AGI-Cypre Property 36
Ltd
65
AGI-Cypre Property 38
Ltd
66
AGI-Cypre RES Larnaca Ltd
67
ABC RE P7 Ltd
68
AGI-Cypre Property 42
Ltd
69
ABC RE
P&F Larnaca
Ltd
70
Krigeo Holdings Ltd
71
AGI-Cypre Property 40
Ltd
72
AGI-Cypre Property 43
Ltd
73
AGI-Cypre Property 44
Ltd
74
AGI-Cypre Property 45
Ltd
75
ABC RE
RES Ammochostos
Ltd
76
ABC RE RES Paphos Ltd
77
Sapava Ltd
78
AGI-Cypre Property 46
Ltd
79
AGI-Cypre Property 47
Ltd
80
AGI-Cypre Property 48
Ltd
81
Alpha Credit Property
1 Ltd
82
AGI-Cypre COM Nicosia Ltd
83
AGI-Cypre Property 49
Ltd
84
AGI-Cypre Property 50
Ltd
85
AGI-Cypre COM Larnaca Ltd
86
AGI-Cypre Property 51
Ltd
87
AGI-Cypre Property 52
Ltd
88
AGI-Cypre Property 53
Ltd
89
Alpha Credit Properties
Ltd
90
AGI-Cypre Property 55
Ltd
91
AGI-Cypre Property 54
Ltd
92
SKY CAC Ltd
Special purpose
and holding
entities
1
Alpha Group
Investments Ltd
2
Ionian Equity
Participations Ltd
3
AGI-BRE Participations 1 Ltd
4
AGI-RRE Participations 1 Ltd
5
Alpha Group Ltd
6
AGI-RRE
Athena
Ltd
7
AGI-RRE
Poseidon
Ltd
8
AGI-RRE Hera
Ltd
9
Umera Ltd
10
AGI-BRE Participations 2 Ltd
11
AGI-BRE Participations 3 Ltd
12
AGI-BRE Participations 4 Ltd
13
AGI-RRE Ares Ltd
14
AGI-RRE Venus
Ltd
15
AGI-RRE Artemis Ltd
16
AGI-BRE Participations 5 Ltd
17
AGI-RRE Cleopatra Ltd
18
AGI-RRE
Hermes Ltd
19
AGI-Cypre Arsinoe Ltd
20
AGI-SRE
Ariadni
Ltd
21
Zerelda Ltd
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
251
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
22
AGI-Cypre Evagoras Ltd
23
AGI-Cypre Tersefanou Ltd
24
AGI-Cypre Ermis Ltd
25
AGI-SRE Participations 1 Ltd
26
Alpha Credit
Acquisition Company
Ltd
Other
1
Alpha Trustees Ltd
Luxembourg
Turnover in
Luxembourg for
the year
ended 31.12.2021
amounted
to € 0,
losses before
tax amounted
to € (44),
income taxes
amounted to €
(1) and the
following company is
included:
Special purpose
and holding
entities
1
Alpha International
Holding Company
S.A.
Romania
Turnover
in Romania
for the
year
ended 31.12.2021
amounted
to € 172,617,
profit before
tax amounted
to €
25,871,
income
taxes amounted to € (4,309), the
number of employees was 2,022 and the following companies are included:
Banks
1
Alpha Bank Romania S.A.
Financing Companies
1
Alpha Leasing Romania IFN S.A.
Investment
Banking
1
SSIF Alpha
Finance
Romania
S.A.
Insurance
1
Alpha Insurance Brokers Srl
Real Estate and Hotel
1
Alpha Real Estate Services Srl
2
AGI-RRE Participations 1 Srl
3
Romfelt Real Estate S.A.
4
AGI-RRE Zeus Srl
5
AGI-RRE Poseidon
Srl
6
AGI-RRE Hera Srl
7
AGI-RRE
Cleopatra
Srl
8
SC Carmel Residential Srl
9
Asmita Gardens Srl
10
Cubic Center Development S.A.
11
TH Top Hotels Srl
12
Office Park I
Srl
13
Acarta Construct Srl
14
Engromest
Serbia
Turnover in Serbia for the year ended 31.12.2021 amounted to € 1, losses before tax amounted
to € (338) and the following
company is included:
Real Estate and Hotel
1
AGI-SRE Participations 1 DOO
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
252
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Albania
Turnover in Albania
for the year ended 31.12.2021
amounted to € 23,669,
losses before tax amounted
to € (154), the number
of employees
was 410 and
the following company
is included:
Banks
1
Alpha Bank Albania SH.A.
Bulgaria
Turnover in Bulgaria for the year ended 31.12.2021 amounted
to € (50), losses before tax amounted to € (1,301), the number
of employees
was 3
and the
following companies are
included:
Real Estate and Hotel
1
Alpha Real Estate Bulgaria E.O.O.D.
2
Chardash
Trading
E.O.O.D.
3
AGI-BRE
Participations
2 E.O.O.D.
4
AGI-BRE
Participations
2BG E.O.O.D.
5
AGI-BRE
Participations
4 E.O.O.D.
6
Kestrel
Enterprise
E.O.O.D.
Jersey
Turnover in Jersey for the year ended 31.12.2021 amounted to €
1 and the losses before tax
amounted to € (732).
Special purpose
and holding
entities
1
Alpha Group Jersey Ltd
Ireland
Turnover in Ireland for the year ended 31.12.2021 amounted to €
0.
Special purpose
and holding
entities
1
Alpha Proodos DAC
2
Alpha Quantum Plc
3
Galaxy III Funding
Designated Activity
Company
Neither the
Bank nor
any of
the Group
companies
have received
any public
subsidies.
Article 82
of Law
4261/5.5.2014
transposed into
Greek Law
article 90
of Directive
2013/36/EU of
the European
Parliament
and of the Council of 26 June 2013, which establishes for the first time the requirement to disclose
total return on assets.The
total return on the assets of the Group for the
year 2021 amounted to -4.05% (31.12.2020: 0.16%).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
253
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
42.
Operating
segments
a.
Analysis
by operating
segment
(In millions of
Euro)
1.1 - 31.12.2021
Retail
Banking
Corporate
Banking
Asset
Management/
Insurance
Investment
Banking/
Treasury
South-
Eastern
Europe
Other /
Elimination
Center
Group
Net interest income
508.8
464.3
13.6
210.0
173.8
5.4
1,375.9
Net fee and commission income
140.5
111.5
78.0
33.6
36.7
0.1
400.4
Other income
17.8
(48.0)
11.0
153.7
2.9
(2,135.6)
(1,998.2)
Total income
667.1
527.8
102.6
397.3
213.4
(2,130.1)
(221.9)
Total expenses (excluding
expenses for
separation schemes)
(538.0)
(171.5)
(41.3)
(34.4)
(260.3)
(130.6)
(1,176.1)
Impairment
losses
and
provisions
to
cover
credit risk and other related expenses
(846.8)
(88.6)
1.0
(476.6)
(1.0)
(1,412.0)
Impairment losses on other financial
instruments
(1.2)
(19.8)
(21.0)
Expenses for separation
schemes
(97.7)
(97.7)
Profit/(losses) before
income tax from
continued operations
(717.7)
267.7
60.1
344.1
(523.5)
(2,359.4)
(2,928.7)
Income tax
55.8
Profit/(losses) after income tax from
continued operations
(2,872.9)
Profit/(losses) after income tax from
discontinued operations
(33.1)
(33.1)
Profit/(losses) after
income tax
(2,906.0)
Assets 31.12.2021
15,374.1
15,190.2
1,612.2
21,336.3
8,466.8
11,376.4
73,356.0
Liabilities
31.12.2021
31,063.1
8,807.4
2,597.3
18,016.3
6,394.4
397.9
67,276.4
Capital expenditure
66.5
27.6
3.8
4.0
31.8
9.2
142.9
Depreciation
and
Amortization
(81.9)
(31.7)
(5.4)
(4.9)
(23.6)
(9.6)
(157.1)
Investments in associates
and joint
ventures
68.27
Losses
before
income
tax
of
the
operating
segment
named
“Other/Elimination
Center”
totaling
to
€
2,359
million
include
expenses from
eliminations betwee
n
operating segments
totaling to
€ 1.3 million and
unallocated amounts
totaling to
€ 230
million,
losses
from
derecognition
of financial
assets
in the
context
of the
sale
of
51%
of the
medium
and
low repayment
priority Notes
of the Galaxy
securitization transaction
amounting to
€ 2,239 million and
the profit from
the Cepal transacti
on
amounting
to
€
111.3
million.These
unallocated
amounts
refer
to
a)
non-reccuring
items
that
do
not
relate
to
a
specific
operating
segment
and
therefore
cannot
be
allocated
and
b)
results
from
operations
that
do
not
represent
reportable
operating segments.
………CONSOLIDATED FINANCIAL STATEM
ENTS AS AT 31.12.2021
254
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1.1 - 31.12.2020
as restated
Retail
Banking
Corporate
Banking
Asset
Management/
Insurance
Investment
Banking/
Treasury
South-
Eastern
Europe
Other /
Elimination
Center
Group
Net interest income
650.4
520.5
14.5
154.1
186.6
1.2
1,527.3
Net fee and commission income
110.6
106.8
51.9
32.1
30.6
(0.1)
331.9
Other income
61.8
(9.0)
4.5
610.1
18.1
27.4
712.9
Total income
822.8
618.3
70.9
796.3
235.3
28.5
2,572.1
Total expenses (excluding
expenses for
separation schemes)
(566.3)
(166.1)
(38.1)
(30.3)
(208.6)
(106.1)
(1,115.5)
Impairment
losses
and
provisions
to
cover
credit risk and other related expenses
(898.4)
(236.2)
(2.7)
(168.4)
0.1
(1,305.6)
Impairment losses on other financial
instruments
(1.1)
(11.7)
(0.6)
(13.4)
Expenses for separation
schemes
(26.2)
(26.2)
Profit/(losses) before
income tax from
continued operations
(641.9)
216.0
31.7
751.6
(168.5)
(77.5)
111.4
Income tax
(10.1)
Profit/(losses) after income tax from
continued operations
101.3
Profit/(losses) after income tax from
discontinued operations
2.7
2.7
Profit/(losses) after
income tax
104.0
Assets 31.12.2020
22,512.2
15,901.2
1,505.5
18,589.9
7,807.5
3,723.8
70,040.1
Liabilities
31.12.2020
28,664.2
8,378.4
2,504.3
16,070.2
5,913.0
140.5
61,670.6
Capital expenditure
102.1
34.8
3.8
4.4
37.4
18.0
200.5
Depreciation
and
Amortization
(82.8)
(30.4)
(4.4)
(3.9)
(21.1)
(16.4)
(159.0)
Investments in associates
and joint
ventures
30.72
Losses
before
income
tax
of
the
operating
segment
named
“Other/Elimination
Center”
totaling
to
€
77.5
million
include
expenses
from eliminations
between operating
segments
totaling to
€ 0.9 million
and unallocated
amounts totaling
to € 76.6
million.
These
unallocated
amounts
refer
to
a)
non-reccuring
items
that
do
not
relate
to
a
specific
operating
segment
and
therefore cannot be allocated and b) results from operations that
do not represent reportable operating segments.
i.
Retail Banking
It includes
all individuals
(retail banking
customers), self
-employed professionals,
small and
very small
companies operating
in
Greece and
abroad, except from
South-Eastern Europe countries.
The
Group,
through
its
extended
branch
network,
offers
all
types
of
deposit
products
(deposits/
savings
accounts,
working
capital/
current
accounts,
investment
facilities/
term
deposits,
Repos,
Swaps),
loan
facilities
(mortgages,
consumer,
corporate
loans, letters
of guarantee),
debit
and credit
cards as
well as
the income
of insurance
partnership
fees in
Greece.
Also
included
are
the
securitized
loans
of
the
special
purpose
company
Galaxy
III
Funding
Designated
Activity
Company
as
well
as
Cepal
Hellas, a company providing loan and credit receivables management services until 18/6/2021.
ii.
Corporate Banking
It
includes
all
medium-sized
and
large
companies,
corporates
with
international
business
activities,
enterprises
which
cooperate
with
the
Corporate
Banking
Division,
as
well
as
shipping
corporations
operating
in
Greece
and
abroad
except
for
South
Eastern
European
countries.
This
operating
segment
offers
working
capital
facilities,
corporate
loans,
and
letters
of
guarantee
to
the
abovementioned
corporations.
This
segment
offers
also
leasing
products
through
the
Group’s
subsidiary
named Alpha Leasing A.E. as well
as factoring services provided
by the Group’s subsidiary named
ABC Factors A.E.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
255
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
250
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
iii.
Asset Management
/ Insurance
It
includes
a wide
range
of asset
management
services
offered
through
Group’s
private
banking
units,
its
subsidiary
Alpha
Asset
Management
A.E.D.A.K.
as
well
as
the proceeds
from the
sale
and
the
management
of mutual
funds.
In addition,
it
includes income
received
from the
sale of
a wide
range of
insurance
products through
the Group’s
subsidiary
Alphalife A.A.E.Z.
iv.
Investment
Banking/Treasury
It includes stock exchange, advisory and brokerage
services related to capital markets, and also investment
banking facilities,
which are
offered either
by the
Bank or
specialized
subsidiaries
(Alpha Finance
A.E.P.E.Y.,
Alpha Ventures
S.A.). It
also includes
the activities
of the
Dealing
Room
in the
interbank
market
(FX Swaps,
Bonds,
Futures,
IRS, Interbank
placements-
loans
etc.) as
well as operations
related to securitization
transactions.
v.
South-Eastern Europe
It consists of
the Group’s subsidiaries,
which operate
in South Eastern
Europe as well
as in Cyprus.
vi.
Other /
Elimination Center
This
segment
includes
the
non-financial
operations
of
the
Goup,
as
well
as
unallocated
/
non-recurring
income
and
expenses
and intersegment transactions. In addition, this segment includes
a) the results related to the Galaxy transaction b) the Notes
of
the
Galaxy
and
Cosmos
securitization
transactions
held
by
the
Group
and
c)
the
special
purpose
entities
for
securitization
transactions that are no longer consolidated. Income and expenses per segment also include transactions between operating
segments. All transactions are conducted on market terms. Intersegment transactions are eliminated.
The assets of the
operating segments
“Retail” and “Corporate
Banking” include the
following Bank’s loans
as well as those
provided by
the Group’s
subsidiaries
ABC Factors
A.E. and
Alpha Leasing
A.E., that
have been
placed under
the supervision
of
the
Non-Performing
Exposures
Strategy,
Recovery
and
Monitoring
Division
following
a
full
outsourcing
to
providers
of
Non-
Performing Exposures Management Services
(Servicers) from 1.12.2020.
31.12.2021
31.12.2020
Balance before
allowance for
expected credit
losses
Allowance for
expected credit
losses
Balance after
allowance for
expected credit
losses
Balance before
allowance for
expected credit
losses
Allowance for
expected credit
losses
Balance after
allowance for
expected credit
losses
Mortgages
1,435,055
230,599
1,204,456
6,840,339
1,920,069
4,920,270
Consumer Loans
597,419
257,707
339,712
2,844,517
1,650,657
1,193,861
Corporate Loans
2,658,427
1,226,952
1,431,475
8,121,832
3,965,965
4,155,867
Total
4,690,901
1,715,258
2,975,643
17,806,688
7,536,691
10,269,998
………CONSOLIDATED FINANCIAL STATEME
NTS AS AT 31.12.2021
251
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
b.
Analysis
by
geographical
sector
The breakdown
by geographical
segment is
defined by
the country
of the
business operations
of the
Group Company.
(in millions of
Euro)
1.1-31.12.2021
Greece
Othercountries
Group
Net interest income
1,188.9
187.0
1,375.9
Net fee and commission income
361.0
39.4
400.4
Other income
(2,001.0)
2.8
(1,998.2)
Total income
(451.1)
229.2
(221.9)
Total expenses
(excluding provision
for separation
scheme)
(900.2)
(275.8)
(1,176.0)
Impairment losses
and provisions
to cover credit
risk
(935.5)
(476.5)
(1,412.0)
Impairment losses on other financial
instruments
(21.1)
(21.0)
Expenses for separation
schemes
(97.7)
(97.7)
Profit/(losses) before
income tax
from continued
operations
(2,405.6)
(523.1)
(2,928.7)
Income tax
55.8
Profit/(losses) before
income tax
from continued
operations
(2,405.6)
(523.1)
(2,872.9)
Profit/(losses)
before
income
tax from
discontinued
operations
(33.1)
(33.1)
Profit/(losses) after
income tax
(2,405.6)
(556.2)
(2,906.0)
Non current assets
31.12.2021
1,423.9
217.5
1,641.4
(in millions of
Euro)
1.1 - 31.12.2020
as restated
Greece
Othercountries
Group
Net interest income
1,328.9
198.4
1,527.3
Net fee and commission income
298.7
33.2
331.9
Other income
694.5
18.4
712.9
Total income
2,322.10
250.00
2,572.10
Total expenses
(excluding provision
for separation
scheme)
(889.7)
(225.8)
(1,115.5)
Impairment losses
and provisions
to cover credit
risk
(1,137.1)
(168.5)
(1,305.6)
Expenses for separation
schemes
(12.8)
(0.6)
(13.4)
Profit/(losses) before
income tax
from continued
operations
(26.2)
(26.2)
Income tax
282.5
(171.1)
111.4
Profit/(losses) before
income tax
from continued
operations
(10.1)
Profit/(losses)
before
income
tax from
discontinued
operations
282.5
(171.1)
101.3
Profit/(losses) after
income tax
2.7
2.7
Non current assets
31.12.2021
282.5
(171.1)
104.0
For the
purposes of
the above
note, Non-current
Assets include:
-
Investment property
-
Property, Plant
and Equipment
-
Goodwill and other intangible assets
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
252
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
253
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
43.
Risk Management
The Group
has established
a thorough
and prudent
risk management
framework
which is
being built
on best
supervisory
practices
which,
considering
on
the
common
European
legislation
and
banking
system
rules,
principles
and
standards
is
evolved
over time
in order
to be
implemented
in a
coherent
and effective
manner
on the
Bank’s
and Group’s
companies
conduct of the day-to-day business to ensure the
effectiveness of the corporate governance of the Group entities.
The Group’s
critical focus in
2021 was to
maintain high standards
in corporate governance
and compliance
with regulatory
risk
rules and retain confidence
in the conduct
of its business
activities through sound and
robust provision of financial
services.
RISK MANAGEMENT FRAMEWORK
Board of Directors
(BoD)
The
Board
of
Directors
supervises
the
overall
operations
of
the Risk
Management
Unit.
Regarding
Risk
Management,
the
Board
of Directors
has established
a Risk
Management
Committee
(RMC),
which
convenes
on a
monthly
basis and
reports
to the
BoD.
The
RMC
recommends
to
the
BoD
risk
undertaking
and
capital
management
strategy,
checks
its
implementation
and
evaluates
its effectiveness.
The risk management framework and its effectiveness are re-assessed on
a regular basis in
order to ensure compliance with
supervisory and regulatory
requirements.
For a more comprehensive and effective identification and monitoring of all risk types, Management Committees have been
established (Assets and Liabilities Committee, Operational Risk Committee and
Credit Risk Committee).
Risk Management
Unit
The General
Manager
- Group
Chief
Risk
Officer
supervises
the Risk
Management
Unit of
the Group
and reports
on a
regular
basis and ad hoc to the Management Committees, the Risk Management Committee and to the Board
of Directors. As far as
credit risk is concerned the reporting to
the above-mentioned Committees covers the following areas:
•
The risk profile of
portfolios by rating grade.
•
The transition among rating grades (migration matrix).
•
The estimation of the relevant risk
parameters by rating grade, group of
clients, etc.
•
The trends of
basic rating criteria.
•
The changes
in the rating
process,
in the criteria
or in each
specific parameter.
•
The concentration
risk (by risk
type, sector,
country, collateral
etc.).
•
The evolution
of Gross
Loans,
+90 days
past due
loans, Non
-Performing
exposures
and the
monitoring
KPIs per
segment
on
a Group basis.
•
The Cost of Risk.
•
The IFRS 9 Staging
transition of
exposures per
asset class.
•
The maximum
risk appetite
per country,
sector, currency,
business
Units, limit
breaches
and mitigation
plans.
Organizational
Structure
of Risk
Management
Divisions
In
the
Group,
under
the
supervision
of
the
General
Manager
-
Group
Chief
Risk
Officer,
the
following
Risk
Management
Divisions
operate
within
the
Group
and
have
been
assigned
with
the
responsibility
of
implementing
the
risk
management
framework,
according to the
principles of the
RMC.
•
Credit Control
Division
-
Credit Risk Policy and Control Division
-
Credit Risk
Methodologies
Division
-
Credit Risk Cost Assessment
Division
•
Credit Risk Data
and Analysis
Division
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
254
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Credit Risk
Data Management
Division
-
Credit Risk Analysis Division
•
Market and
Operational
Risk Division
•
Risk Models
Validation Division
•
Wholesale Credit
Division
•
Credit Workout
Division
•
Retail Credit
Division
For credit
risk management
purposes,
facilities
are separated
into Whole
sale and
Retail,
as described
below.
43.1
Credit Risk
WHOLESALE
BANKING
credit
facilities
Wholesale Banking credit facilities are
included in each of the following categories subject to the characteristics
of the credit
facility and
the obligor, as
shown in the
table below:
Portfolio
Characteristics
Obligors
under
the
competence
of
Wholesale Banking
Corporate
Companies with turnover > Euro 75 million
Includes financing
in shipping companies,
as well as,
obligors under
the
management of the Investment Banking Division
SME
Companies with turnover
> Euro 2.5 million and up to Euro 75 million or
companies with credit limit > Euro
1 million
1.
Credit Risk Approval Process
The
Group,
following
best
international
practices
and
taking
into
account
the
prevailing
institutional
framework
set
by
legislation,
regulations,
ministerial
decrees/decisions,
etc,
has
established
a
robust
credit
risk
framework,
where
the
key
principles and
guidelines, the
procedures and
actions followed
and the responsibilities
of all related
Units and Officers
are
clearly defined based
on the four
eyes principle.
Within
this
context,
all
credit
proposals
are
prepared
by
the
Business
Units,
are
reviewed
by
the
Credit
Units
and
are
subsequently
forwarded
for
assessment
and
final
decision
to
the
respective
Credit
Committee
based
on
the
total
credit
exposure, the borrower risk rating, the
provided collaterals and the environmental and social
risk evaluation.
The
limits
of
the
Wholesale
Banking
Credit
Committees
are
determined
in
accordance
to
Total
Credit
Exposure,
defined
as
the
sum
of all
credit
facilities
of the
obligor
(single
company
or group
of associated
companies)
which can
be approved
by the
Group and include
the following:
•
Total credit
requested
exposure
•
Working Capital limits
•
Withdrawal limits from unclear deposits
•
Letters of Credit/Letters of Guarantee limits
•
Factoring limits
•
Derivative transaction
limits
•
Corporate Cards
limits
•
Medium and long-term loans (current
outstanding/exposure for facilities
that have been fully drawn or limit amount of
undrawn facilities).
•
Leasing Facilities (current outstanding/exposure
for leasing facilities that have been fully drawn or limit amount for
undrawn/unused facilities).
•
Special
credit
limits
or loans,
or any
form of
personal
financing
to the
company’s
business
owners
(mortgage
loans,
consumer loans,
shares’ purchase, credit
cards etc.).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
255
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Wholesale Banking
Credit Committees
Credit Committees decisions are multidimensional, with the
main assessments performed being as
following:
•
Approval of the terms of new loans, renegotiations or restructuring of existing credit facilities.
•
Approval of the
loan pricing, considering the overall
profitability of a
client’s relationship based on the
Return on Risk
Adjusted Capital - RoRAC
(historical RoRAC and post -
new money RoRAC).
•
Credit Limit
Expiry/Renewal
date (depending
on the
customer’s
credit risk
zone) and
any deviations
from the
rule.
•
Amendment on the collateral structure.
•
Decision on actions in
case of activation of
early warning triggers.
•
Financial Difficulty assessment.
•
Unlikeliness to Pay (UTP)
assessment.
•
Credit Rating decisioning.
•
Environmental
and Social
(E&S) risk
assessment.
Credit
Committees
Structure:
•
Wholesale
Banking
Credit Committee
I
•
Wholesale
Banking
Credit Committee
II
•
Wholesale
Banking
Credit
Committee
III
•
Wholesale
Banking
Credit
Committee
IV
•
Wholesale
Banking
Credit Committee
V
Credit Limit
Expiry/Renewal
date:
The
credit
limits’
expiry/renewal
date
is
determined
by
the
relevant
Wholesale
Banking
Credit
Committees.
The
basic
factor
for
the determination
of the credit limit expiry
is the client’s credit
rating, which is not
a standalone approval
or rejection criterion,
but the
basis for
determining
the minimum
security/collateral
required and
the respective
pricing. As
a rule,
for obligors
that
have been rated in
the Low, Medium and
Acceptable credit risk
zones, reviews are
carried out on an annual
basis, for Watch
List clients,
on a
semi-annual
basis
while
obligors
that have
been rated
in the
High Risk
zone
are reviewed
on a
quarterly
basis.
Deviations
from
the
above
rule
are
not
allowed,
except
when
the
request
by
the
responsible
Business
Units
is
approved
by the
competent Credit Committees.
2.
Credit Risk
Measurement and
Internal Ratings
The
assessment
of
the
borrower’s
creditworthiness
and
their
rating
in
credit
risk
scales
is
established
through
rating
systems.
The rating of the Group’s borrowers with
the use of credit
risk rating systems constitutes a basic tool
for:
•
The decision-making process of Credit Committees for the approval/ renewal of credit limits and the implementation of the
appropriate pricing policy
(interest rate
spreads etc.).
•
The estimation of the future behavior of borrowers which belong to a
group with similar characteristics.
•
The early recognition of potential troubled facilities
(early alert mechanism) and the prompt, effective action
for the
minimization of
the expected loss
for the
Group.
•
The assessment of the quality
of the Group’s loan
portfolio and the credit risk
undertaken.
The
aim of
the credit
risk rating
systems
is the
estimation
of the
probability
that the
borrowers
will not
meet
their
contractual
obligations to
the Group
as well
as the
Expected Credit
Loss estimation.
The
rating
systems
employed
by
the
Group
are
the
Alpha
Bank
Rating
System
(ABRS)
and
Moody’s
Credit
Lens
which
incorporate different credit
rating models.
All
current
and
future
clients
of
the
Group
are
assessed
based
on
the
appropriate
credit
risk
rating
model
and
within
pre-
specified time frames.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
256
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
For
the
estimation
of the
probability
of default
of
the obligors
of the
Group
the
credit
risk
rating
models
evaluate
a series
of
parameters, which can
be grouped as
follows:
•
Financial
Analysis:
obligor’s
Financial
Ability (liquidity
ratios,
debt to
income, etc.)
•
Peers’ Analysis: obligor’s comparative position in
the market in
which it operates
mostly compared to its
peers.
•
Behavioral status and history of the obligor with
the Group and with third
parties (debt in arrears, adverse transaction
records, etc).
•
Obligor’s qualitative characteristics (solid
and healthy administration, management succession,
appropriate infrastructure
and equipment etc.).
The credit
rating models
which
are currently
employed
by the
Group
are differentiated
according
to:
•
The turnover
of the
company.
•
The level of
the total credit risk
exposure.
•
The credit
facility’s
specific
characteristics.
•
The available information for the obligor’s assessment. Specifically,
for the financial analysis the differentiation relates to
the type of the
local accounting standards and the International Financial Reporting Standards.
For
each
of
the
credit
rating
models,
different
parameters
may
be
used,
each
of
which
contributes
in
a
specific
manner
the
relevant assessment.
The statistical validation of the credit risk rating models is reviewed
regularly in order to ensure the maximum predictive
and
discriminatory ability according to the supervisory and regulatory framework for credit risk management.
Obligors Rating Scale
Borrowers are rated in
the following rating
scales:
ΑΑ, Α+, Α, A-,
ΒΒ+, ΒΒ, ΒΒ-, B+,
Β, Β-, CC+, CC,
CC-, C, D,
D0, D1, D2
For
special
purpose
finance
(Structured
and
Shipping
Financing)
special
models
have
been
designed
(slotting)
with
the
following categorization scale:
Strong (Class 1), Good (Class 2), Satisfactory (Class 3), Weak (Class 4), Default (D, D0, D1, D2).
For
presentation
purposes
of
table
“Loans
by
credit
quality
and
IFRS9
Stage”,
the
“strong”
rating
includes
the
rating
scales
AA, A+,
A, A-, BB+
and BB and
Categories 1
and 2,
“satisfactory”
rating includes
the rating
scales BB-,
B+, B,
B-, CC+,
CC and
Category 3,
and “
under close
monitoring”
(higher risk)
includes the
rating scales
CC-, C
and Category
4. Last,
default category,
includes the rating scales
D, D0, D1,
D2.
RETAIL BANKING CREDIT FACILITIES
Retail
banking
involves
the
lending
facilities
offered
from
the
Group
to
borrowers
covering
traditional
banking
products
and
services such as:
•
Housing
loans/Mortgages
•
Consumer Loans and Credit
Cards
•
Small businesses and professionals (SB):
Individuals and Legal entities
with turnover up
to Euro 2.5
million and credit
limit
up to Euro
1 million.
1.
Credit Risk Approval Process
The
Group
monitors
customer
Total
Credit
Risk
Exposure
(For
Individuals
and
Small
Businesses),
which
refers
to
the
sum
of
all
revolving
limits of
an obligor,
all the
balances of
long term
facilities and
for the
case of
small businesses
the total
exposure of
facilities
given to
stakeholders
of customer
companies.
Additionally,
facilities for
which the
customer
is guarantor
or co-debtor
are also taken
into account.
The Group has developed and implemented a strict framework for the conduct of credit policy (legislative and supervisory /
regulatory) and has also formulated and put into effect
an internal system of credit principles, procedures
and rules clearly
applicable to the Group’s lending business, in
order to promote sound practices
for managing credit risk.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
257
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Credit policies establish the framework for lending and guide
the credit-granting activities of Retail Banking through:
•
Sound
lending
management.
•
Prudent client selection through in-depth
assessment of both financial and qualitative data of the borrower
•
Assessing the risk/reward relationship with a respective determination
of pricing policy and collateral coverage after taking
into account the
level of credit risk.
•
Monitoring and management of the total credit risk, i.e. the consolidated risk from any type of credit facility granded by the
Alpha Bank Group.
The enforcement of
the Credit Policy requires
certain criteria to be
met. These criteria
play a significant role
in the achievement
and maintenance of a healthy portfolio and in
the Group’s Capital allocation. In particular:
Individuals
The approval
process of
credit to
individuals (individuals
with earnings
from salaries,
pensions or
other sources
of income
not
related with
business activities)
is performed
on the
basis of
the classification
of borrowers
into risk
groups, which
represent a
certain
level
of
undertaken
risk.
The
level
of
risk
undertaken
by
the
Group
is
adjusted,
when
deemed
necessary,
according
to
its
credit policy.
The credit assessment for
individuals is based upon
the following pillars:
•
Application fraud detection;
•
Willingness
to pay;
•
Ability to pay;
•
Collateral risk.
Small Businesses
Small Businesses
are defined
as following:
•
Personal Companies with turnover up to € 2.5 million and a
credit limit up to €
1 million
•
Entrepreneurs with a credit limit up to € 1 million
•
Legal entities with turnover up to € 2.5 million and a credit limit up to € 1 million.
The creditworthiness
of Small
Businesses
in the
Retail
Banking
sector
is related
to the
creditworthiness
of company’s
stakeholders/
managers of the company and vice versa. Therefore, the evaluation
of claims in this category is based on two dimensions:
•
The valuation
of
the creditworthiness
of
company’s
stakeholders
or business
managers.
•
The valuation of the creditworthiness of the company.
The creditworthiness
of a
company’s
stakeholders
or managers
is based
on the
specific pillars:
•
Willingness to
pay.
•
Ability to pay.
The credit
assessment
for the
small businesses
is based
on the
following:
•
Application fraud detection;
•
Demographics;
•
Financials;
•
Behavior;
•
Credit Bureau;
•
Qualitative data; and
•
Collateral risk.
2.
Internal
Models
The fundamental
parameter in
assessing
Retail Banking
Credit
Risk is
the Credit
Scoring Models
that are
developed
and
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
258
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
employed
throughout
the credit
cycle at
the Group
level. The
above models
segments
populations
into homogenous
risk
groups (pools) and
are categorized as
follows:
•
Behavior Models, which assess the customer’s performance and
predict the probability of defaulting within the following
months;
•
Application Credit Scoring Models, which assess
application data—mainly demographic
that predict the probability of
defaulting within the
following months;
•
Models for the
assessment of regulatory parameters. It
is noted that
since 1.1.2018, the Bank’s
and Group’s companies
credit risk assessment models are
in line with
International Financial Reporting Standard 9 (IFRS
9).
These
models
and
the
probabilities
of
default
that
derive
from
them,
contribute
a
significant
role
in
risk
management
and
decision making throughout
the Group.
Specifically,
the models
are used
in the
following
segments:
•
Decision making of credit assessment and
credit limit assignment.
•
Impairment assessments
•
Predicting future performance of customers belonging to the same pool
of common characteristics.
•
Tracing high
risk accounts
in time to
schedule all
necessary actions
so as to
reduce expected
losses for the
Group.
•
Assessing
the Group’s
portfolio
quality and
credit risk.
The parameters
taken into account
vary, according
to the model’s
type and product
category that
it assesses.
Indicatively,
some factors are:
•
Personal/demographic
data:
the customer’s
age,
profession,
marital
status,
or current
address;
•
Loan characteristics:
product
applied
for, loan
term,
loan amount,
or financing
purpose;
•
Behavioral data: payments during latest period of time, maximum delinquency, outstanding
loan balance versus loan limit,
transaction type;
•
Qualitative
data: Activity
Sector,
Number of
Employees,
Company
Type.
Models
are reviewed,
validated
and updated
on a
yearly
basis and
are subject
to quality
control
so as
to ensure
at their
predictive power at
any point in
time.
Furthermore,
on
a
regular
basis
the
Group
conducts
exercises
simulating
crisis
situations
(Stress
Tests),
which
explore
the
potential impact on the financial
results of the Group due to unfavorable
developments both in obligors’
transactional behavior
as well
as in
the broader
financial macroeconomic environment.
For
presentation
purposes
of
table
“Loans
by
credit
quality
and
IFRS
9
Stage”,
the
classification
in
“Strong”,
“Satisfactory”
and “Watchlist” categories, for Retail Banking
loans is generally based on the twelve-month Probability
of Default as well
as
Staging
criterion
and
EBA
status.
Specifically,
for
Alpha
Bank
Greece,the
range
of
probabilities
that
determines
this
classification, has derived from an analysis aiming
at optimizating discriminatory power between categories. Therefore
ranges might differ for each portfolio and for each subsidiary
-
Specifically for the Bank, the range of probability default which
determine the
classification of a
loans is presented
below:
Range of probability of default
Rating Classification
Mortgages
Consumer
Credit cards
Small Businesses
Strong
up to 5%
up to 5%
up to 3%
up to 5%
Satisfactory
from 5% up to
13%
from 5% up to
13%
from 3% up to
13%
from 5.0% up
to 13%
Watchlist
over 13%
over 13%
over 13%
over 13%
CREDIT
CONTROL
According
to the
risk management
and control
framework,
there are
three “lines
of defence”
with distinctly
allocated
roles and
responsibilities
and
specifically
the
Business
and
Operations
Units
(first
“Line
of
Defence”),
the
Risk
Management
Units
(second
“Line of
Defence”) and
the Internal
Audit Unit
(third “Line
of Defence”).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
259
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
In the
context
of the
second
line of
defence
operation
and within
the single
context
of operations
set out
for the
sectors
of
Retail
Banking,
Wholesale
Banking and
Private and
Investment
Banking,
credit controls
are carried
out in
order to
optimise
Credit Risk management, to assess the quality
of the loan portfolio and to ensure that the first “line of defence” operates within
the framework set
out for
effective Credit Risk
management.
This second
line of
defence is
independent
and aims,
among else,
to:
•
Design and
develop
procedures
and controls
for credit
risk management.
•
Monitor the adequacy and effectiveness of
existing credit risk management procedures.
•
Highlight
critical issues
and deviations
from the
Group’s
Manuals
and Policies.
•
Provide guidelines and instructions related to
the procedures for the
management of credit risk.
•
Provide information to concerned Units about the
findings of the controls and
any recommendations made.
In
order
to
reinforce
the
second
line
of
defense
the
Group
has
established,
the
Risk
Models
Validation
Division,
an
independent
division from model development activities, with direct reporting line to
General Manager and CRO.
The
role
of
Risk
Models
Validation
Division,
in
the
context
of
the
MRM
Framework,
encompasses
different
responsibilities
and
activities related
to the monitoring
of the performance
of the models
undertaken by the
first line of defense.
Its primary task
is
to independently challenge and ensure
that models are sound, fit-for-purpose as well as aligned
with the regulatory guidelines.
Risk
Models
Validation
Division
responsibility
is
to
develop
systematic
procedures
for
the
evaluation
of
models’
performance
as
well as model
related processes, on
a periodic basis.
The frequency, rigor and sophistication
of the validation process followed
for each model is determined
by the overall use,
complexity and materiality of models, as well as the size and complexity
of the Group’s operations. The associated level of
inherent
model
risk,
as
assessed
by
the
Tiering
methodology,
determines
the
validation
requirements
in
terms
of
frequency,
extent and intensity.
CREDIT
RISK
MITIGATION
Collaterals
Collaterals
are
received
in
order
to
mitigate
credit
risk
that
may
arise
from
the
obligor’s
inability
to
fulfill
his
contractual
obligations,
at the
loan origination
or during
the loan
lifetime,
either
by consensus
or after
forced
executions,
auctions,
etc.
Collaterals include all kind of assets and rights which are made available to the Group either by
their debtors or by third parties,
in order
to be
used as
complementary liquidity sources
of relative
loans.
In any
case, the
necessary legal
control of
the offered
collaterals
is carried
out, in
order to
ensure their
validity, as
well as
the
possibility to
be liquidated
or to
come into
the possession of
the Group.
The mitigation tools applied by the
Group include two broad categories: intangible and tangible
collaterals.
1.
Intangible
Collaterals-
Guarantees
Intangible
collaterals
form
the
framework
of
the
obligations
and
rights
that
are
typically
included
and
described
in
specific
contractual
documents
that
bind
the
Group
and
the
borrowers
during
the
lending
process
with
specific
commitments.
The
commitments
involve
a
third
party
who
substitutes
for
the
primary
debtor
in
the
event
of
the
latter’s
default
or
the
primary
debtor itself
(natural or legal
entities) to honor
the contractual
loan agreements
and their prompt
repayment to
the Group and
on the
other hand
the Group has
the right to
claim them.
The main type of
intangible collateral used to protect the
Group against debtor insolvency is the
Guarantee.
The guarantee constitutes
a legal relationship between
the guarantor and the lender
(Bank), through which the
guarantor
assumes the responsibility that the debt will be paid. It is drafted in writing and presupp
oses the existence of a basic legal
relationship between the Bank and the
borrower (principal debt), i.e. it is
a relationship of principal to
ancillary.
The guarantor can
be an individual
or a legal entity
and the guarantee
can be provided
for future or conditional
debt.
It is noted
that the intangible
collaterals include
the guarantees
of the Greek
State which
are taken
into account
in the calculation
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
260
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
of
the
expected
credit
loss,
unlike
other
intangible
collaterals
which
are
not
counted
in
the
calculation
of
the
allowance
for
expected credit losses.
2.
Tangible Collaterals
Tangible
collaterals
provide
the
Group
with
the
rights
over
an
asset
(movable
or
immovable),
owned
by
the
obligor
or
the
guarantor, providing priority in the satisfaction of the creditor by the
liquidation proceeds of the asset.
Tangible collaterals
are distinguished
between mortgages
and prenotation
on mortgages
which are
registered over
immovable
properties and pledges on
movable assets (e.g., commodities, checks, bills
of exchange) or
on claims and
rights.
In order
to better
secure credit
facilities
granted,
all mortgage
and pledged
assets are
covered
by an
insurance
contract, with
assignment of the
relevant insurance contract
to the
Bank.
2.1.
Mortgages
- Prenotation
on Mortgages
Mortgages are registered on real
estate or immovable assets which
can be liquidated as indicatively reported
below:
•
Residential Real
Estate;
•
Commercial Real
Estate;
•
Industrial
Buildings;
•
Land;
•
Mines;
•
Ships or
aircraft
and engines,
whether
or not
movable;
•
Machinery
or other
facilities
(engineering,
mechanical,
electrical,
etc.),
if
they
are
permanently
and
consistently
connected
with the mortgaged
estate.
Methods and
Frequency
of real
estate
property
valuations
According
to
the
Group’s
Credit
Policy,
the
existence
and
the
valuation
of
mortgaged
property
are
closely
monitored.
The
property
revaluations
should be
carried out
on a
yearly basis
all property
types, except
for cases
where contract
foresees
something
different,
in cases
of known
changes
on the
property
or in
the business
process,
or in
case there
are urban
planning
changes
or
any
other
considerable
factors.
In
addition
to
the
review
of
collateral
values,
the
Group
also
validates
such
collateral values on
an annual basis.
The
initial valuations
of a
real estate
property,
provided
as collateral,
are carried
out through
on site
appraiser
visits and
internal inspection.
Revaluations
of
properties,
which
are
collaterals
to
performing
exposures,
are
mainly
carried
out
using
the
following
methodologies:
•
Alignment with the property price
statistical index of the
Bank of Greece, for
the Residential Properties used as
collateral on
performing exposures of
amount up to
Euro 3 million.
•
Expert input by the authorized engineers, after their visit
to the residential property used as
collateral or via desktop
valuation, if
the amount
of exposure exceeds
Euro 3
million.
•
Alignment with the property price
statistical index of commercial real
estate (CRE) that has
been developed by Alpha
Astika
Akinita S.A.
taking into
account indices
published
by Bank
of Greece,
for certain
categories
of commercial
property, used
as
collateral on performing
exposures up to
Euro 1
million.
•
Expert input by authorized engineers, after their visit to the professional property used as collateral or by desktop valuation,
in cases where the statistical index does not cover the type
of business property or the amount of exposure exceeds Euro 1
million.
The revaluations for property used as collateral to non-performing exposures, are mainly carried out using the following
methodologies:
•
Alignment with the property price statistical index of the Bank of Greece, for
Residential Properties and for non-performing
exposures up to
Euro 300 thousand.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
261
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
•
Alignment with the property price
statistical index of commercial real
estate (CRE) that has
been developed by Alpha
Astika
Akinita S.A.
taking into
account indices
published
by Bank
of Greece,
for certain
categories of
commercial
property used
as
collateral for non-performing exposure of
amount up to
Euro 300 thousand
•
Expert input by authorised engineers, after their visit to the property serving as collateral or by desktop valuation, provided
that either the amount of non-performing exposure that cover the property under valuation exceeds the amount of Euro 300
thousand or in the cases where
the indices do not
cover the type of the
property under revaluation.
The Group
in the context
of the credit
control process
performs on
a regular basis
and through proper
sampling, audits
for
the procedures
of implementation
of the
Group Loan
Collateral Policy,
audits (back-testing)
for the
verification of
property
valuations. Audits
are based on indices
and individual assessmentsin
order to ensure
that the proper
collateral valuation
is
captured
in the
Group’s
Companies
core systems
according
to the
values
mentioned
in the
relevant
Committee
approvals.
2.2.
Pledges
Pledges provide seniority rights over
liquidation proceeds from a
movable third party asset.
Pledges
can
be
registered
on
movable
assets,
securities,
rights
or
claims
that
have
not
been
excluded
or
banned
from
exchanges and which
can be
liquidated, including:
•
Raw
materials,
products
or commodities;
•
Machinery
(movable);
•
Bill of Lading;
•
Bill of exchange;
•
Cheques;
•
Securities;
•
Deposit; and
•
Any type of claim that can be pledged
Frequency
of pledges
revaluation
Depending on the right or the underlying asset on which a pledge is registered, the periodic revaluation varies from one month
to one year.
3.
Acceptable Value
During the approval
process, the Group
calculates the value
of the collaterals
received based on
the potential proceeds
that
could arise if and when
these are liquidated, in
order to reduce potential
risk. This estimation
is referred to as the accept
able
guaranteed value
of the collaterals
provided to
the Group
for the determination
of which
the quality
of the assets
as well as
their market value are taken into account. In this way, the ratio of acceptable guaranteed
values are determined for each type
of collateral, those are expressed as a percentage
of their market value, nominal or weighted value, depending
on the type of
collateral.
CREDIT
RISK
EARLY
WARNING
SYSTEM
In order
to optimise
the management
of Lending
and, in
particular, limit
the loans
whose status
changes
from Performing
Loans
(PLs)
to
Non-Performing
Loans
(NPLs),
the
Group
has
developed
the
Credit
Risk
Early
Warning
System,
which
is
defined as the aggregation of actions, processes and reports required to ensure the
early identification of events, at borrower
(corporate
and individuals)
and portfolio
level, which
may possibly
lead to
either
an increase
in NPLs
due to
the debtor’s
negligence or financial
difficulty of a temporary
or permanent nature or
an increase in exposures
with significant increase in
credit risk, as well as
the relevant actions that must be
taken in order to
manage the borrowers concerned.
A comprehensive
and effective
Credit Risk
Early Warning
System is
composed
of the
following
stages:
•
Identification of early warning
triggers
•
Actions (timely and appropriate action taken)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
262
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
•
Monitoring the effectiveness of the procedure
•
Quality control of the procedure’s implementation
The perimeter
to which
the Credit
Risk
Early Warning
System
is implemented
encompasses
all
performing
exposures,
as well
up
to up
to 10
days-past-due for
Retail (beyond
11 days-past-due
assignments
for management)
and 30
days delinquent
loans
(PLs) for
Wholesale which have
not been forborne.
Additionally to the
early identification and
management of borrowers
or loan portfolio segments
with signals of deterioration,
the Group also monitors through the Early Warning System
the loan portfolio, regardless of days past due, to ensure that the
evolution and performance of
the lending portfolio are
in accordance with the
Bank’s and Group’s Credit
Risk Appetite.
The
Group
enhanced
its
Early
Warning
(EW)
system
to
introduce
Covid-19-specific
events
and
expanded
policies
to
ensure
their
applicability to
the Covid-19
general moratoria
perimeter. Specifically:
•
Separate monitoring of the Covid-19 general payment moratoria perimeter
for Retail and Wholesale portfolio, irrespective
of EBA status.
•
Enhancement of borrower
communication through
interviews in order to detect
early signs of financial difficulty,
provide
adequate
support
measures
to
viable
distressed
borrowers
and
classify
exposures
appropriately.
Customer
outreach
has
prioritised high-risk segments and customers under Covid-19 moratoria ahead of expiration.
•
Enhancement
of borrower
-level
EW
triggers,
such
as
inclusion
in Covid
-19
moratoria
perimeter,
expiration
of Covid
-19
moratoria.
•
Enhancement of portfolio level EW metrics, such as one-month to expiration moratoria population,
actual vs. target portfolio
under EAT/TEPIX II.
The effectiveness
of the Credit
Risk Early
Warning System
is being
monitored on
a regular
basis by
three “lines
of defence”:
•
The first “line of defence” consists of
controls within the Units of the Group that
participate in the process.
•
The second
“line of defence”,
i.e. the Risk
Management
Unit, is responsible
for ensuring
on an ongoing
basis and at
least
once per year, that
the controls of the
“first line of defence” are
applied effectively, through the Credit Control Mechanism.
•
The third “line of defence” is the internal audit function that carries out regular evaluations and proposes potential
improvements.
CLIMATE-RELATED,
ENVIRONMENTAL
-
SOCIAL
AND
GOVERNANCE
(ESG)
RISKS
The Group has updated
its Risk Inventory to include
in the internal risks definitions
the dimension of climate-related
risks. The
main climate
risk transmission
channels
in the
area of
credit risk
include transition
risk (e.g.
the energy
efficiency
standards
may trigger
substantial adaptation
costs and
therefore lower
profitability
for counterparties
as well
as lower
collateral values)
and physical
risk (e.g. a
damage to counterparties’
physical capital
reduces the
value of
their assets
and therefore,
collateral
valuations). Thus, climate risks may have
an impact on Group’s main credit risk parameters
(PD, LGD, EAD).
The Group is currently in the process of identifying the sectors mostly sensitive to climate related risks, through a materiality
assessment
exercise.
In this
vein,
the Group
is in
the process
of conducting
a transition
risk
assessment
exercise
in its
corporates
portfolio,
to
identify
its
exposure
per
sector
and
the
allocation
of
portfolio
to
potentially
high
transition
risk
categories.
Furthermore,
the Group
is in
the process
of conducting
a qualitative
analysis on
its top
15 clients
in terms
of
transition
risk.
On
physical
risk,
the
Group
is
in
the
process
of
conducting
a
materiality
assessment
for
flood
risk
as
regards
the allocation of
its real estate secured
exposures per risk
class of the geographical
location of exposures,
taking also into
consideration the collateral assurance against natural disasters for its whole secured building portfolio.
In alignment with the
ECB expectations and
in the context of the
Action Plan submitted
to the ECB in May 2021,
the Group has
incorporated in its Risk Appetite
Framework, the following qualitative statements on climate risks
in the context of
Credit Risk:
•
The Group is committed to
integrate climate risks into its
overall risk management framework. In this context,
the Group
regularly monitors its exposure concentration in climate-sensitive sectors and areas of its loan portfolio.
•
The Group
aims to
enhance its
due diligence
process with
respect to
the assessment
of its
clients’ ESG/climate
risk profile,
through the collection of relevant information. In this setting, the Group will take initiatives to encourage its clients to clearly
………CONSOLIDATED FINANCIAL STATEMENTS
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ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
define
and
communicate
their
client
related
commitments
and
to
develop
and
execute
effective
strategies
to
mitigate
climate risks.
•
The Group aims to finance its counterparties’ green /
sustainable transition both in the short-term and in the long-term.
•
The Group, to
the extent possible, will
start collecting EPC rating
certificates from its clients,
in order to
monitor the energy
performance class of
its real
estate secured
exposures.
•
The Group
applies an
exclusion list
in line with
the Environmental
and Social
Exclusion
List developed
by the European
Bank for
Reconstruction
and Development
(EBRD),
for the
avoidance
of financing,
directly
or indirectly,
specific
activities
considered as harmful
to the
environment and society.
It should be also
underlined that the
Group has already
updated its Credit
Policy to expand the
exclusion list activities
i.e
the activities that does not finance. Specifically, the Group does not finance the following activities: Thermal coal mining or
coal-fired electricity
generation capacity;
Upstream oil exploration;
Upstream oil development
projects, except in
rare and
exceptional circumstances
where the proceeds of
the project exclusively
target the reduction of
GHG emissions or flaring
from existing producing
fields.
In 2022, the
Group is participating
in the following
ECB supervisory
initiatives regarding
climate related
and environmental
risks:
ECB
Climate
Risk
Stress
Test
and
the
Thematic
Review
on
the incorporati
on
of
climate-related
and
environmental
risks
into Groups’ risk strategies, governance and risk
management frameworks and processes.
The
ECB
Climate
Risk
Stress
Test
is
a
learning
exercise
for
banks
and
supervisors.
It
aims
to
identify
vulnerabilities,
best
practices and challenges that banks face when
managing climate risk. Importantly, this is
not a success or
failure exercise, nor
does it
have a direct
impact on banks’
capital levels.
The purpose
of the
2022 Thematic
Review, is
to carry
out further
deepenings
in institutions’
strategies
related to
climate
and environmental
risks,
governance
risks
as
well
as
risk
management
frameworks
and
procedures.
In this
way,
the ECB
will
assess and assess the soundness and completeness of its
key policies and processes, as well
as the ability of
institutions to
effectively steer their strategies and risk profiles for the
climate and the environment.
Regarding
the impact
of climate
risk on
the calculation
of Expected
Credit Risk
Loss, detailed
information
on the
location of
collateral as well as information on energy performance
certificates is being collected. The information
will be incorporated into
the
respective
data systems
and
methodological
approaches
will be
developed
in order
to adapt
the models
for calculating
expected credit
risk loss.
More specifically, the
following are
in progress:
•
Perform enhancements or additions to the current
set of models used
for risk parameter estimation and prediction, in
order
to integrate ESG
risks.
•
Identify ESG-related data needs leveraging on the data
that will be
collected for the borrower’s assessment and
supplementing with additional
information where needed.
•
Examine alternative
methodological
approaches for
the quantification
and integration
of ESG risks
in the credit
risk parameters.
•
Enhance the Credit Risk Model Validation framework so as to review and validate whether environmental
risks are
captured in the
risk parameters, or whether
sectoral / geographical segmentations have been
addressed during the model
development phase.
CREDIT
RISK
CONCENTRATION
MANAGEMENT
Concentration
Risk
is
a
specific
form
of
credit
risk
and
arises
due
to
the
low
degree
of
diversification
between
counterparties,
products or group
of counterparties, sectors, geographic
regions, or
collaterals.
The Group
monitors on
a regular
basis concentration
risk at
sector level
and at
borrower/group
of borrowers
level as
well
through detail reporting which informs senior management and Committees of the Board of
Directors.
The
Group
categorizes
the
financed
companies
according
to
their
NACE
Rev.2
codes
into
Industry
groups/Sectors,
which
are
rated
into
risk
zones.
The
Sectors
ranking
relative
to
their
credit
risk
is
carried
out
by
an
independent
and
certified
company
and is
based on
a predictive
indicator
that, focusing
on future
estimates
rather than
solely on
past data,
captures the
risks
and prospects
of each
sector. The
Group determines
the Credit
Risk Appetite
per sector
and manages
the concentration
risk by
monitoring the evolotion
of its portfolio.
………CONSOLIDATED FINANCIAL STATEMENTS
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264
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
Additionally,
the
Group
manages
concentration
risk
at
borrower/group
of
borrowers
level
by
setting
and
monitoring
compliance
with limits set both by regulatory guidelines and by
internal policies that have been developped.
Regulatory limits are mandated externally as following:
•
Hard Regulatory Limit is
determined to 25%
of CET
1 and
no exception is
allowed.
•
Soft Regulatory
Limit is
set to
10% of
CET 1,
serving as
a threshold
above which,
cases should
be reported
to the European
Central Bank.
Apart
from
the
above
limits
set
by
external/
regulatory
guidelines,
the
Bank
has
developed
internal
Policies
that
set
limits
aiming at
managing
and monitoring
the concentration
risk at
borrower/group
of borrowers
level, taking
into account
the total
credit limits as
well as the credit
rating of Borrowers.
It is noted that,
the relevant Policy
is approved by the
Board of Directors
through the Risk
Management Committee.
In
line
with
the
supervisory
framework,
the
Group
applies
and
complies
with
the
regulatory
directives
regarding
large
exposures, while the capital requirements for single name and sector concentration risks are estimated in the context of Pillar 2
of Basel II.
DEFINITIONS
The following definitions are provided as guidance to tables that
follow:
Public Sector
The Public Sector includes:
•
The Greek Central Government;
•
Local Authorities;
•
Companies controlled and fully or partially owned by
the State (excluding those engaged in
commercial activity)
Past
Due Exposures
An Exposure
is past
due if
the counterparty’s
exposure
is, materially,
more than
one day
past due
(sum of
the principal,
interests and charges/commissions due
more than
one day
at an
account level).
Non-Performing Exposures
An exposure
is considered as
Non-Performing when
at least one
of the following
criteria apply at
the time of the
credit risk
rating assessment:
•
The exposure is
more than 90
days past due
(NPL): The amount
due exceeds € 100 for
Retail Exposures
or € 500 for
Wholesale
Exposures
and the
amount due
exceeds
1% of
the total
on balance
sheet exposures.
In particular,
for overdraft
facilities, an exposure
is past
due after having
exceeded its approved
limit.
•
Legal actions
have been
undertaken
by the Bank
-Legal (NPL).
•
The exposure
is classified
as Forborne
Non-Performing
Exposure
(FNPL), as
defined in
the Implementing
Regulation
(EU)
227/9.1.2015.
•
It is assessed as Unlikely to Pay (UTP).
When
a Wholesale
Banking
borrower
has
an exposure
that is
more than
90 days
past
due
and
the amount
of this
exposure
exceeds
20%
of
total
exposures
of
the
borrower,
then
all
exposures
of
the
borrower
are
considered
as
non-performing
(Pulling
Effect).
Performing Exposures
An exposure
is considered
as performing
when
the following
criteria
are met:
•
The exposure
is less than
90 days past
due;
•
No legal
actions
have been
undertaken
against the
exposure;
………CONSOLIDATED FINANCIAL STATEMENTS
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265
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
•
No unlikeliness to pay
is reported on
its credit obligation;
•
The exposure
is not
classified
as impaired;
or
•
The exposure
is classified
as forborne
performing
exposure,
as
defined
in the
aforementioned
Implementing
Regulation
(EU)
2015/227 of 9
January 2015.
Unlikeliness to Pay
An
exposure
is
flagged
as
‘Unlikely
To
Pay’
(UTP)
when
it
is
less
than
90
days
past
due
and
the
Group
assesses
that
the
borrower is unlikely to fully meet his
credit obligations without the
liquidation of collateral, regardless
the existence of any past
due amount or the number of days past
due, with the exception of collaterals
that are part of the production and trade chain
of
the borrower (e.g. properties for
Real Estate companies, corporate shares for Holding
companies).
For Wholesale
Banking,
the procedure
is the
following:
(a)
Identification of events which when occur lead to the transfer of the exposure to Non-Performing status without requiring
an assessment
by any
Credit Committee
(Hard UTP
Triggers),
(b)
Identification
of triggers
which
when occur,
lead to
borrower’s
credit assessment
by the
relevant
Wholesale
Banking
Credit
Committee in order to determine whether borrower’s exposures
should be
classified
as
Non-Performing
or
not
(Soft
UTP
Triggers).
This assessment
takes place
when reviewing
borrower’s
credit
limits depending
on its
credit ratings
and in
accordance
with Wholesale Banking Credit Manual. If a borrower is flagged as UTP,
then
his
credit
risk
rating
should
be
D
(Default)
according to Group’s rating system or Default for Borrowers assessed using Slotting Models.
If
a
borrower
flagged
as
UTP
belongs to a
group of companies, then
the group should also
be assessed by
the competent Credit Committee for
the existence
or not of
UTP trigger.
For Wholesale Banking
exposures the
following Hard
UTP Triggers
exist:
•
Denouncement of loan agreement
•
Liquidation of collaterals and initiation of foreclosure measures by the
Group when the borrower does not have
operational
cash flows for the repayment of
his debt obligations (excluding e.g. checks).
•
Legal actions, sale or
judicial sale in
order to collect
the claim (e.g.
foreclosure instead of debt
collection).
•
Withdrawal of a
license of particular
importance in companies
that require public authorisation
to carry out their activities
such
as
banks
and
insurance
companies.
The
same
applies
for
technical
and
construction
companies,
telecommunications
companies, pharmaceutical,
mining, transport, food, chemical, petroleum, recycle, media etc.
•
Refinancing/Extensions of loans whose lifetime exceeds the economic lifetime of the
funded investment.
•
There are strong indications that
the borrower is unable
to meet his
debt obligations (e.g. termination of business).
•
Fraud cases
•
Excess of
the minimum
acceptable
Loan to
Value
(LTV),
as depicted
contractually,
for loans
collateralised
with securities,
e.g. bonds, shares etc (Margin
Financing).
•
Disappearance of an active market for
the debtor’s financial instruments, hold by
the Group.
•
Write-off because
of default
•
Debt Forgiveness with or without forbearance (conditional or not) at least for the first
12 months since the debt forgiveness.
•
The
credit
institution
or
the
leader
of
consortium
starts
bankruptcy/insolvency
proceedings
(application
for
insolvency).
•
A credit
event is
declared
under
the International
Swaps and
Derivatives
Association
- ISDA).
•
Out-of-court settlement/negotiation
between Banks and Borrower for settlement
/ debt repayment of borrowers that are
under bankruptcy
proceedings (application for
the bankruptcy).
•
The borrower
has
requested
to
enter
into
bankruptcy
or insolvency
status
(application
for
bankruptcy).
•
A Bank
has
initiated
bankruptcy
or insolvency
proceedings
(application
for
bankruptcy).
Additionally, for Wholesale
Banking exposures
the following Soft
UTP Triggers exist:
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266
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
•
Exposures that were modified by providing a ‘balloon’ payment while the initial terms of the loan agreement did not
include this repayment method, as well as exposures that the initial terms of the loan agreement included the ‘balloon’
payment and were modified by including an increase of the “balloon”
amount of and simultaneously by reducing the current
installment.
•
Multiple modifications in the same exposure.
•
Deterioration of the leverage ratio (Debt to Equity).
•
An exposure was purchased or
sold with deep discount that
reflects the low credit quality
of the borrower.
•
The debt service coverage ratio
indicates that debt is
not viable.
•
5 Years
Credit Default
Swaps (CDS)
above 1.000
bps in the
last 12
months.
•
Loss of an important customer or lessee representing a significant percentage of entity’s turnover or the total property
income, respectively.
•
A turnover decrease resulting in
a significant reduction of
cash flows.
•
An affiliated customer, who represents a
significant percentage of entity’s turnover, has applied
for bankruptcy.
•
An external auditor report with restrictions or reservations
that results to significant deterioration of key financial ratios of
the borrower and
to worsened estimated future
cash flows of
the borrower.
•
It is expected that an exposure with repayment at maturity or a due installment cannot be refinanced under current market
conditions.
•
Disappearance
of an active market for
the debtor’s financial instruments, not hold by
the Bank.
•
The borrower has breached the
financial terms of the
loan agreement.
•
There is significant deterioration of
the borrower’s sector activity prospects.
•
Adverse changes in the
ownership structure or the
management of the company or
serious administrative problems.
•
A third
party
(excluding
Banks)
has started
bankruptcy
or insolvency
proceedings
(application
for Bankruptcy).
•
Over due payments to Tax Authorities and Social Security Funds.
For Retail Banking, the
procedure is the following:
(a)
Identification of events which when occur lead to the transfer of the exposure to Non-Performing status without requiring an
assessment by
any Credit
Committee (Hard
UTP Triggers),
(b)
Identification of triggers which when occur, lead to borrower’s credit assessment by the relevant Retail Banking Credit
Committee in
order to
determine
whether borrower’s
exposures
should be
classified as
Non-Performing
or not
(Soft UTP
Triggers). This
assessment
takes place
at the date
of a forbearance
request. If
an exposure
is flagged
as UTP,
then it
should
be classified as
Non-Performing in the
systems of the
Group’s companies.
For Retail Banking
exposures the
following Hard UTP
Triggers exist:
•
A trial date has been set for filling for Bankruptcy
L.3869/2010
•
Fraud has been
confirmed at the
expense of the
Bank.
•
The borrower has
passed away.
•
Multiple forbearances for the same exposure within a 12 months’ time period.
•
An out-of-court settlement / negotiation
is underway between banks and borrower
for settlement / repayment of debts of
borrowers who are under bankruptcy proceedings (application for bankruptcy).
•
Denouncement of loan agreement.
•
Collaterals
liquidation
and foreclosure
procedures
have
been
initiated
by the
Bank
in case
the borrower
cannot
repay
its debt
obligation with
the existing
operating cash
flows (excluding
e.g. checks).
•
Legal actions, sale or
forced sale have
been initiated in order
to collect the
debt (e.g. foreclosure measures against
debt
collection).
•
Debt Forgiveness with or without forbearance (conditional or not), at least for
the first 12 months since the
debt forgiveness.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
267
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Additionally,
for Retail Banking
exposures the
following Soft
UTP Triggers
exist:
•
Multiple forbearances in the
same exposure
•
The borrower
has other
exposures
in the
Bank in
default.
•
The borrower
is unemployed.
•
The borrower
has applied
for bankruptcy
or insolvency
(application
for bankruptcy).
•
The borrower
is the
sole owner
of a
company with
exposures
in default
and for
which he
has provided
personal
guarantees.
It is
noted
that
the
Group
has adopted
the new
Definition
of Default
that
applies
from 1.1.2021,
according
to the
EBA
guideline (Article 178 of Regulation (EU) No 575/2013), adjusting its Policies and updating the Hard and Soft UTP triggers
by implementing
new ones
(see par.
“NEW Definition
Of Default”),
for both
the Retail
and Wholesale
Banking Portfolios.
DEFINITION
OF
DEFAULT
In order
to support
a more
harmonised
approach
with regard
to the
definition
of default,
the European
Banking
Authority
(EBA) has adopted
the following,
that guide the
application of
the definition
of default:
the Guidelines
for the application
of
the
default
definition,
EBA/GL/2016/07
and
the
Regulatory
Technical
Standards
(RTS)
on
the
materiality
threshold
for
credit
obligations in arrears;
EBA/RTS/2016/06.
The
Group
adopts
the new
Definition
of Default
of credit
exposures
that applies
from 1.1.2021.
The main changes introduced by the
new Definition of Default are
presented as follows:
•
Additional “Unlikeliness
To Pay”
trigger events
such as
Diminished
Financial obligations
(NPV Loss),
Sale of
Credit
Obligations, Default to
Subsidiaries.
•
Change on the way of
counting of Days Past Due meaning that
hereafter the counting will be based on
the existence of
concecutive days of
material past due.
•
An additional three-month probation period from the moment the obligor is no longer materially past due and no
indication of
Unlikeliness To Pay
occurs.
The Group has
decided since
2018 to align
Default, NPE
and IFRS
9 “Credit Impaired”
perimeter.
Definition
A Default
event is considered
to have occurred,
regarding a particular
Borrower, when
at least one
of the following
criteria
has taken place:
1.
Past Due Criterion
The Borrower is past due
more than 90 consecutive days on
any material amount of the
credit obligation(s).
Particularly,
for
Alpha
Bank
Greece,
exposures
at
Alpha
Leasing
and
ABC
Factors
are
taken
into
consideration
at
the
calculation of the
Past Due Criterion.
2.
Unlikeliness to Pay (UTP) Criterion
The
Bank
considers
that
the
Borrower
is
unlikely
to
pay
its
credit
obligations
without
recourse
by
the
Bank
to
actions
such
as
realizing security.
Additionally
the
Default
classification
and
the
EBA
classification
should
be
aligned
and
thus
any
FNPL
or
NPL
exposure
is
considered as Defaulted.
For Retail exposures, the above specified definition of Default is applied
at the level of
an individual credit facility.
For Non-Retail
exposures,
the definition
of Default
is applied
at the
obligor level
meaning that
when at
least one
of the
above specified criteria
are met, the Obligor
is considered as Defaulted.
The Past Due Criterion
is applied both at facility
and at
obligor
level
for
exposures
classified
as
Non-Retail,
in
order
to be
able to
identify
exposures
for
which
the
Past
Due
Criterion is satisfied
at facility level,
but not
at obligor level.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
268
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Credit impaired
exposures
An exposure
is considered
as Credit
Impaired when
the criteria
specified
by the
definition
of Non-Performing
Exposures
are met.
Default
exposures
An exposure
is considered
as Default
when the
criteria
specified
by the
definition
of Non-Performing
Exposures
are met.
Allowance
for expected
credit losses
For
credit
risk
reporting
purposes,
the
allowance
for
expected
credit
losses
of
loans
measured
at
amortised
cost
includes
also
the fair
value adjustment
for the
contractual
balance of
loans which
were impaired
at their
acquisition
or origination
(POCI)
since the
Bank, from
credit risk
perspective,
monitors the
respective adjustment
as part of
the provisions.
These loans
were
recognized
either
in the
context
of acquisition
of specific
loans
or companies
(i.e.
Emporiki
Bank
and Citibank’s
retail
operations
in
Greece),
or
as
a
result
of
significant
modification
of
the
terms
of
the
previous
loan
that
led
to
derecognition.
Relevant
adjustment has been performed to the carrying amount of
the loans before allowance for expected credit losses.
Collateral value
The collateral
value taken
into account
is the latest
market value
available. In
the case
of immovable
properties, collateral
value
is considered
the lower
amount
between
the prenotation
amount
and the
market
value
of the
real estate.
Value of
guarantees only
includes the
amount that
exceeds the
value of collatera
ls. All collateral
values are
capped at 100%
of the
outstanding amount of
the loan.
EXPECTED
CREDIT
LOSS
ESTIMATION
METHODOLOGY
The
Group,
at
each
reporting
date,
recognizes
a
provision
for
expected
credit
losses
on
loans
and
advances
to
customers
not measured
at fair
value
through profit
or loss
as well
as for
letters of
guarantee,
letters of
credit
and undrawn
loan
commitments.
The Loan
Impairment
Methodology
is common
and
applicable
for both
the Wholesale
and
Retail
Banking
Portfolios.
Default definition
The
Group
has
fully
aligned
the
perimeters
of
the
portfolios
characterized
as
“EBA
Non-performing
Exposures”,
“Exposures
in
Default” and
“IFRS 9 Impaired
Exposures”.
The
definition
of
Non-Performing
Exposures
is
consistently
used
to
develop
models
for
estimating
credit
risk
parameters
(Probability of
Default, Loss
Given Default,
Exposure at
Default).
In
addition,
the
definition
of
default
is
consistent
with
the
one
used
for
internal
credit
risk
management
purposes,
as
well
as
capital adequacy measuring
objectives.
Portfolio Classification
in Stages
based on
the Credit
Risk (Staging)
Following
an
exposure’s
initial
recognition,
exposure
is
classified
into
stages
based
on
its
credit
risk
characteristics.
The
classification of loans in stages is based on
the changes of the credit quality compared to
its initial recognition.
Upon
initial
recognition
of
an
exposure,
the
Group
must
determine
whether
this
exposure
is
considered
as
credit
impaired
(Credit Impaired at
Initial Recognition).
The POCI category
(Purchased or Originated
Credit Impaired,
POCI) includes
the following:
•
Exposures that at the
time of purchase (Purchased) meet
the criteria of
non-performing exposures.
•
Exposures
that as
per accounting
rules are
derecognised
and a
new exposure
is recogniszed
and for
which the
following
apply (Originated):
if the
exposure
was classified
as impaired
(hence NPE)
prior to
derecognition,
the new
exposure
will
continue to maintain
this classification and it
will be classified
as POCI.
For exposures
not classified
as POCI,
the classification
in stages
is performed
as follows:
•
The Stage 1 includes performing credit exposures that have no significant increase in
credit risk since the initial
recognition
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
269
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
date. The expected credit losses calculated
are based on the probability of default within the next 12 months and
the
assessment is carried out on
a collective basis with
the exception of borrowers assessed
on an individual basis
•
The Stage 2 includes credit exposures with significant increase in credit risk since the initial recognition
date but which are
not non-performing. The expected credit losses calculated are lifetime credit losses and the assessment is carried out on a
collective basis with
the exception of
borrowers assessed on
an individual basis
•
The Stage 3 includes the non-performing / default exposures. The expected
credit losses calculated are the lifetime losses
and the
assessment is performed
on a
collective or individual
basis.
With
regards
to the
POCI
exposures,
the expected
credit losses
calculated
are the
lifetime
losses.
All possible movements between Stages of credit risk are
presented below
•
An exposure which has been
classified in Stage 1 in previous
quarter of reference could
be classified either in Stage
1 in the
next reporting quarter,
if the credit risk has not
deteriorated and
the exposure is still performing,
or in Stage 2, if the exposure
is
still performing but the credit risk has deteriorated, or in
Stage 3 if the exposure is
non-performing/default.
•
An exposure which has been classified in Stage 2 in previous quarter of reference could be classified either in Stage 1 in
the next reporting quarter, if the exposure is performing and does not meet any of the criteria of “Significant increase in
credit risk” and
in particular, for
case of Forborne Performing exposure, if
the exit criteria
from the 2-years probation period
are met. It could also remain in Stage 2, if the credit risk has not
substantially changed, or be transferred to Stage 3, if the
exposure is non-performing/default.
•
An exposure which has
been classified in
Stage 3 in
previous quarter of reference
could be classified
either in Stage
1 in
the next reporting quarter, if the exposure is performing and does not meet any of the criteria of “Significant increase in
credit risk”, or transferred in
Stage 2, if
it is no
longer considered as non-performing, or remain in
Stage 3, if
it is still
non-
performing/default.
All exposures in default
status (Stage 3),
except from those
related to distressed
restructuring, in order
to be reclassified as
non-default,
a probation
period of
at least
3 months
is needed
from the
time when
the conditions
leading to
default status
are not applied. Exposures with distressed restructuring, regardless of whether the restructuring took place before
or after the
default, should have a minimum probation period of 12 months from the most recent event of the following:
1.
the
time of restructuring
2.
the
time when the exposure
has been classified as
default
3.
the
end of the grace period provided by the restructuring terms
The Group
does not
make use
of the
exemption
provided by
the standard
for low
credit risk
exposures.
For
classification
purposes,
for
wholesale
banking
revolving
exposures,
initial
recognition
date
is
the
date
of
the
most
recent
credit assessment reflecting the annual thorough credit risk review practice of
the Group.
Significant Increase
in Credit Risk
For the
timely
identification
of significant
increase
in
credit
risk
for an
Exposure
after
the initial
recognition
(SICR)
leading
to the
calculation of lifetime
credit lossed of the
exposure instead of
twelve months credit
losses, the risk of default
at the reference
date is compared to the risk of default at the initial recognition
date for all Performing Exposures, including
those with no days
past due (Delinquencies).
The assessment to
determine whether an exposure shows significant increase in
credit risk or not
is based on the
following
three types of
Indicators:
•
Quantitative
Indicators:
They refer
to the
use of
quantitative
information
and specifically
to the
comparison
between
the
probability of default (PD) at the reference date and the probability of default at the initial recognition date.
The assessment of significant increase in
credit risk is
based either on a
relative or on an
absolute increase of PD between
the reporting
date and the
initial recognition
date. The
relative increase
can range between
125% and
200% depending
on the asset
class of the
loans. For Wholesale exposures, the
relative increase can range between
50% and 200% as
Obligor
rating
is
taken
into
consideration.
The
absolute
threshold,
when
used,
can
range
between
3
and
5
percentage
points
depending on the asset class of
the loans and acts as
a backstop to the relative
(i.e., just one of the
two triggers needs to
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
270
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
be hit
in order
to trigger
stage 2).
Also, the
threefold
increase
in annualized
PD as
backstop
is ensured.
The SICR
thresholds
are
derived
based
on
portfolio
level
analyses.
The
assessment
of
the
exposures
for
significant
increase
in
credit
risk
is
applied on account level. Absolute and relative thresholds determining the significant
increase between reporting and initial
recognition date
are validated
on an annual
basis, in order
to ensure the
correct application
of stage 1
and stage 2
along
with the
verification that the
criteria capture
the credit
risk deterioration.
•
Qualitative
Indicators: They
refer to use of
qualitative information
which is not necessarily
depicted in the
probability of
default,
such as
the assessment
of an
exposure as
performing
forborne
(“FPL” within
2 years
probation
period according
to
EBA ITS)
or as
exposure
with
Financial
Difficulty.
Additional
qualitative
indicators
for the
Wholesale
Banking
portfolios
and
the Retail
Banking portfolios
are included
in Early
Warning Policy.
According to
the abovementioned
policy and
as per the
assessment
performed,
an exposure
may be
considered
to show
significant
increase
in credit
risk. Especially
for Specialized
Lending portfolios additional
qualitative indicators are
identified).
•
Backstop Indicators:
In addition to the above, and with a view to addressing cases where there is no evidence of
significant credit risk deterioration based on the quantitative and qualitative indicators,
exposures over 30 days past due
are considered by definition to show a
significant increase in credit risk.
Allowance
for expected
credit
losses
estimation
Exposures assessed
on individual
basis (Individual
Assessment)
The
Expected
Credit
Losses
calculation
is
carried
out
either
on
an
individual
basis,
taking
into
account
the
significance
of
the
exposure, the
fact that certain
exposures do
not share
common credit
risk characteristics
and the
existence or
not of sufficient
historical data, or
on a
collective basis.
For companies where the corporate
guarantee from the parent company represent
100% of the exposure of the companies, or
for other important interdependencies between group of companies, the assessment may be performed at a
group level.
Regarding
the exposures
to companies,
with at
least one
non-performing
exposure, they
are individually
assessed if
they
exceed the limits set by each
company of the Group (following
the permission/approval
of the Bank). All other exposures
to
Companies are collectively
assessed.
Specifically
for the
Bank, Exposures
to Companies
assessed
on an
individual
basis are
the following:
•
Borrowers
with at
least
one Non
-Performing
Exposure
whose
Customer
overall
credit
Limit
in the
Bank exceeds
the amount
of Euro 2
million.
•
Borrowers of the Shipping
Division and the
Structured Finance Division regardless the overall
credit limit with
at least one
Non-Performing Exposure.
•
Exposures
that do not
share common risk characteristics or for
which no relevant historical data
that enables a collective
analysis is available.
Any remaining
Exposure to
Companies is
assessed collectively.
Non-performing
Exposures
to Individuals
are
individually
assessed,
if
the
exposures
of
retail
banking
customers
exceed
the defined limits according to the
specifications of each Group company. All other
exposures to individuals are collectively
assessed.
Specifically
for
the Bank,
Exposures
to Individuals
are
assessed
individually,
if they
are
Non-Performing
Exposures
(NPE),
and
if
the following threshold,
per portfolio, applies:
•
Consumer
Loans: Accounts
of Consumer
Credit Borrowers
with total
on balance
exposures
over € 500
thousand.
•
Mortgage
Loans: Accounts
of Mortgage
Credit Borrowers
with on
balance
exposures
over € 2
million.
Any remaining exposure
to Individuals is
assessed collectively.
Exposures assessed
on collective basis (Collective
Assessment)
Collective
Assessment
applies
to credit
exposures
which
are
not assessed
individually,
i.e.
exposures
classified
in
Stage
1 and
Stage 2 as well as non-performing exposures that do not meet the above criteria for individual assessment, after having been
categorised based
on similar
credit risk characteristics
by portfolio.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
270
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
For the classification of credit
facilities into groups with similar
credit risk characteristics, the followings are
considered:
•
Staging according
to Credit Risk
•
Type of Product
•
Days Past Due
•
Time in default
•
Indication of unlikeliness to pay
•
Modification of contractual terms for borrowers showing financial difficulty (Forbearance Measures)
•
Modification Type
•
Existence of Collateral taking into account the
type and Loan to
Value ratio
•
Existence of
Greek State
Guarantee
•
Partial Write-Off
•
Credit Risk Rating
•
Activity Sector
The
groupings
are
reviewed
on
a
regular
basis
to
ensure
that
each
group
is
comprised
of
homogenous
exposures.
Expected Credit Loss
is calculated
on account
level.
Calculation
of allowance
for expected
credit
losses
Allowance
for
expected
credit
losses
is
updated
at
each
reporting
date
to
reflect
the
changes
in
the
credit
risk
since
initial
recognition and thus
provide timely information
on evolution of
expected credit losses.
The measurement
of Expected
Credit Losses
is performed
as follows:
-
For financial assets, a credit loss
is the present value
of the difference between:
(a)
the contractual cash flows and
(b)
the cash flows that the
Group expects to receive
-
For undrawn
loan
commitments,
Expected
Credit
Losses
are the
present
value
of the
difference
between:
(a)
the contractual cash flows that will be due if the loan commitment is drawn down; and
(b)
the cash flows
that the Group expects to
receive if this amount is
disbursed.
-
For letters of guarantee and letters of credit, the loss is equal to the expected payments to reimburse the holder for a credit
loss that it
incurs less any
amounts that the
Group expects to
receive from the
holder.
Credit risk parameters
Calculation
of
Expected
Credit
Loss
is
based
on
the
following
credit
risk
parameters
which
are
developed
through
internal
statistical models based
on historical data.
Specifically, regarding
2021, in the context
of the annual update
of Credit Risk parameters,
the following adjustments
have
been performed:
•
New DoD:
Credit Risk
parameters
have been
updated,
taking
into account
the new
default
definition
(DoD).
•
Covid-19 Moratoria: Moratorium period due to Covid-19 effect has been excluded from the updated measurements
under
a rolling window approach according to which the duration of the moratorium is excluded from the measurement and an
equivalent time window
after the
end of
the moratorium is
used.
•
Probability of Default
(PD):
Wholesale portfolio
It is an estimate of the probability of a borrower to default over a specific time horizon.
For assessing
the probability
of default,
the credit
risk rating
models assess
a series
of parameters
that can
be grouped
as
follows:
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
271
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Financial Analysis:
The Borrower’s
Financial Capacity
(Liquidity
Indicators, Debt
to Revenue
etc.)
-
Competitor’s analysis: the borrower’s comparative position in the
market in which operates,
mainly in relation to
its competitors (mainly applicable
to debtors of
Wholesale Banking)
-
Current
and
historical
debtor’s
behavioral
data
either
towards
the Group
or towards
third
parties
(delinquencies,
repayment behavior, etc.), and
-
Qualitative characteristics of the debtor (strong and
sound management, management succession, appropriate
facilities and equipment,
etc.).
Regarding
Specialized
Lending
the
Probability
to
Default
is
estimated
on
facility
level
based
on
dedicated
expert
based
models.
Retail portfolio
It is an estimate of the probability of an account to default over a specific time horizon.
For
assessing
the
probability
of
default,
credit
risk
behavioural
models
have
been
developed
which
assess
a
series
of
parameters that can
be grouped as
follows:
•
Qualitative
data: Activity
Sector,
Number
of Employees,
Company
Type
•
Loan characteristics:
product
applied
for, loan
term,
loan amount,
or financing
purpose;
•
Behavioral
data:
payments
during
latest
period
of time,
delinquencies
(i.e.
overdue
amount,
bucket
etc),
exposure,
transaction type, credit
limit usage.
Credit
Risk models/Ratings
models
constitute
the main
input
in
order
to
determine
the
probability
of
default.
The
Group
uses
statistical
models
in
order
to
analyze
the
collected
data
and
make
estimates
of
the
remaining
probability
of
default
over the
life of
the exposures
and how
they will
evolve
over time
based, among
other
things,
on macroeconomic
variables. Specifically,
based on historical
time series of observations,
specialized models
have been developed
per
portfolio and
portfolio type,
which evaluate
separately the
twelve-month probability
of default (12
-month PD model
s) as
well as
the probability
of default
throughout
the lifetime
of exposures
(Lifetime PD
models).
The twelve
-month default
models basically
evaluate the
behavioural
models of
the loan,
while the
Lifetime
models evaluate
two types
of factors:
the
endogenous
such
as
the
maturity
of
the
loan
and
the
exogenous
ones
such
as
the
macroeconomic
environment
(indicatively
unemployment,
annual
percentage
change
in
GDP,
change
in
property
prices).
The
final
estimate
of
the
probability of default is derived from
the combination of the two
components (12-month PD & Lifetime PDs).
•
Exposure at
default (EAD):
Exposure at Default is an estimate
of the amount of the exposure
at the time of the
default taking into account: (a) expected changes in the exposure after the reporting date, including principal and
interest payments; (b) the expected use of credit limits and (c) accrued interest. The approved credit limits that have
not been fully disbursed represent a potential credit exposure and are converted into a credit exposure equal to the
approved undrawn
loan commitments
multiplied by
a Credit
Conversion Factor
(CCF). The
Credit Conversion
factor of
credit
exposure
is calculated
based
on statistical
models.
The maximum
period
for which
credit
losses
are calculated
is
the remaining contractual maturity of a financial instrument
unless the Group has the legal right to recall the financial
instrument earlier. In particular, for Credit Cards and loan agreements to individuals, the maximum period
is set at
three years,
while for
revolving loans
to Small
Businesses,
the corresponding
maturity is
set at
four years.
Regarding
Wholesale Banking loan agreements, the
period is set
to one year,
given the throrough credit
review performed at least
once a year. If the residual maturity of the loan agreements classified in Stage 2 was increased by one year, Expected
Credit Losses would
increase by €
7.5 million
as at
31.12.2021.
The Group uses models
that reflect the characteristics of
the portfolios.
•
Loss given
default (LGD): Loss
given default is an estimate
of the loss that will occur
if the default occurs at a
given
time. It is based
on the difference between the
contractual cash flows due and those
expected to be received, including
the liquidation of collaterals, probability of cure and probability to modify which are both based on historical data.
For unsecured loans,
the Estimated Expected
loss at the time of
the default, takes
into account expected
recovery rates
which vary throughout the recovery period as well as
the probability of curing and probability to modify.
Expected recoveries from tangible collaterals are based on the following inputs: the
most recent (updated within the
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
272
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
year) market value
of the collateral,
the time requir
ed for the
liquidation or
sale of the
collateral (ranging
between 1 to
4
years depending on
the legal action status
of the loan), the expected
market
value at liquidation
/sale date based on the
evolution of
RRE/ CRE
indices for
the next
4 years,
the expected
recoveries
through foreclosure
process
or sale
(as derived
from historical
data obtained
for foreclosures
and sales
of collateral).
The recovery
rate is adjusted
at the end
to reflect
value of preferential claims. Expected cash flows are
discounted using the original effective interest rate.
Last,
it is
noted
that for
exposures
secured
with tangible
collaterals
and with
cash
recoveries,
the LGD
may vary
following
changes
of
macroeconomic
scenarios.
The
estimates
for
expected
recovery
through
payments
are
adjusted
by incorporating
macroeconomic
indicators
(indicatively
unemployment,
annual
percentage
change
in GDP,
change
in
property prices) through
the development of
corresponding statistical
models. More specifically,
based on historical
time
series
of
observations,
specialized
models
(regression)
have
been
developed
per
portfolio,
which
assess
the
expected
recovery combined
with the
impact of
macroeconomic indicators.
Regarding
the cure
rate
estimates,
statistical
models
(regression)
per
portfolio
have
been developed
on
the basis
of
historical time series of observations, which
incorporate the impact of the macroeconomic environment
through relevant
indicators (indicatively
unemployment,
annual percentage change
in GDP, change in property prices).
•
Management
overlays:
Management overlays
refer to temporary
adjustments applied
to allowance
for expected
credit losses,
in the context
of the preparation of financial
statements, in order
to incorporate recent developments
and information that cannot
be
captured by the internal models used for the
estimation of the expected credit losses.
The
Group
implements
a
robust
governance
framework
to
review
and
support
the
management,
calculation
and
application of these adjustments. The
Group’s governance framework requires
such adjustments to be well documented,
controlled and appropriately approved.
More
specifically,
the
adjustments
performed
by
the
Group
relate
to
the
incorporation
of alternative
recovery
scenarios
in
relation to the objectives of reducing the
stock of outstanding non-performing loans, included in its business plans.
Where
the
business
plan
of
the
Group
includes
objectives
and
recovery
strategies
through
portfolio
disposals,
then
for
the
portfolio of non-performing
loans that may be disposed of, the recoverable
amount is quantified by weighting (i) the value
in the event
of sale (fair
value) and
(ii) the amount
expected to
be recovered
according to the
internal methods
adopted
by
the
Group
for
the
impairment
of
non-performing
loans,
i.e.
based
on
the
individual
assessment
for
the
exposures
exceeding a defined threshold and based on
collective assessment for the others.
The
weighting
is
based
on
the
probability
assigned
to
each
non-performing
loan
portfolio
by
assessing
the
stage
of
preparation of the
underlying portfolios,
the significance of
the conditions precedent
for materialization
of the sale as
well
as the recovery
time.
For 2021,
the portfolios
where a
sale scenario
was considered
include
the Solar
portfolio and
the Leasing
portfolio
for
which
the
probability
of
sale
was
estimated
at
20%.
For
the
Sky
and
the
Orbit
portfolios
the
probability
of
sales
was
estimated at 100%.
The effect of the incorporation of the sale scenario in the ECL calculation for 2021 amounted to € 1,038 mil.
(2020:
€ 320 mil.) (note 11).
In
addition,
the
Group
performed
an
overlay
in
the
output
of
the
ECL
for
specific
non
performing
residential
and
non
residential loan
portfolios, in order
to incorporate
the effect of ad
hoc management
actions (i.e. conditional
write downs)
on these
portfolios determined on
the basis of
the time
in default.
The effect of the incorporation of the sale scenario in the ECL
calculation for 2021 amounted to € 93 mil.
Incorporation of
forward-looking information
The
Group
calculates
allowance
for
expected
credit
losses
based
on
the
weighted
probability
of
three
alternative
scenarios.
More
specifically,
the
Economic
Research
Division
produces
forecasts
for
the
possible
evolution
of
macroeconomic
variables
that
affect
the level
of allowance
for expected
credit
losses of
loan
portfolios
under
a baseline
and under
two alternative
macroeconomic scenarios
(an upside and
a downside one)
and also produces
the cumulative probabilities
associated with
these scenarios.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
273
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The
macroeconomic
variables
affecting
the
level
of
expected
credit
losses
are
the
Gross
Domestic
product
(hereinafter
“GDP”),
the unemployment rate and forward-looking prices of residential and commercial real estates.
The Bank updated the existing scenarios
on 31.12.2020, which for 31.12.2021
provide growth rates for 2021, ranging
from
9.1% (upside scenario) of quasi-V shape to return to pre-Covid-19 and strong
growth rates in the coming years, up to 7.6%
(downside scenario) of quasi-shape (incomplete) with relatively lower growth rates in the medium term.
Regarding
Alpha
Bank
Cyprus,
the
growth
rate
for
2021
ranges
from
5.9%
(upside
scenario)
to
4.7%
(downside
scenario),
while
for Alpha Bank Romania it
ranges from 7.0% (upside scenario) to
2.5% (downside scenario).
The
above
approach
is
due
to
the
gradual
weakening
of
the
pandemic
phenomenon,
the
scale
and
effectiveness
of
its
containment
efforts, combined
with the
scope and
speed of
fiscal and
monetary policy
measures. In
this context,
an important
negative factor was
the maintenance of
a degree
of uncertainty and
supply chain disruptions.
The main
features
of these
scenarios can
be described
as follows:
Baseline Scenario
The
baseline
scenario
predicts
a
strong
recovery
in
comparison
to
the
initial
shock.
This
positive
impact
on
domestic
economic
activity is estimated
to come from:
•
first, the better than expected performance of exports of services, due to the remarkable recovery of tourism in the summer
of 2021,
•
secondly,
the strong
increase
in private
consumption,
which was
supported
by the
rapid growth
of savings
and the
improvement of employment; and
•
third, to increase investment.
Fiscal
support
remained
in
place
in
2021,
weakening
the
negative
impact
on
economic
activity
and
confidence,
as
the
government
adopted additional
fiscal measures
of Euro
17 billion,
while the
Budget for
2022 provides
for additional
budgetary
interventions for of the consequences of the pandemic, amounting to Euro
3.3 billion.
The dynamics
of the
baseline scenario
in 2022
is based
on the
formation of
conditions
for a
change in
the composition
of
economic growth, which is expected to come to a greater extent from investment expenditure. The conditions for the increase
of investments,
in the next
period, will be
determined
(a)
from the course of the debt of
the Greek economy to the investment grade, and
(b)
the inflow
of funds
from the
Recovery and
Resilience
Fund (RRF)
- which
is the
central element
of the
European Union
(Next
Generation EU) recovery plan to address the negative effects of the pandemic, as well as the implementation of structural
reforms that
create an entrepreneurial environment.
Regarding real estate prices, their growth rate was revised
to improve over the forecasts of December 2020 for both 2021 and
cumulatively for
the period 2021-23,
due to the strong
recovery of econo
mic activity. The
above revision
on the improvement
of the Group’s estimates
for real estate prices
for 2021 and beyond
(eg from 3.2% to 6.3%
on an annual basis
for the current
year) is
significantly link
ed to enrichment
of the analysis
with the
historical data
of the second
quarter (+
6.1% on
an annual
basis) and
the third
quarter (+
7.9% on
an annual
basis) of
the BoG
index, a
development
that shows
a strong
dynamics of
housing prices real estate
Upside Scenario
In
the
upside
scenario
the
development
of
the
pandemic
crisis
is
more
favorable
than
originally
expected.
It
is
believed
that
the
economy will recover at a stronger pace, achieving a rapid and complete return to normalcy before the pandemic.
Real estate
prices exceed
their pre-Covid-19
potential, assisted
by other structural
factors besides
the rise of
construction
activity
Downside Scenario
The downside
scenario shows
a partial restoration
of losses in
terms of GDP
in 2020, predicting
a relatively
limited increase
in
2021 and
the next
two years.
The scenario
reflects inflationary
pressures,
but also
geopolitical tensions,
as well
as a
possible
deterioration
of epidemiological
data, which
are the main
factors of uncertainty
in the short
term, slowing
down the
recovery of
the Greek economy.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
274
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Specifically in Greece,
the macroeconomic
variables per year
for the period
2022-2025, which affect
both the estimation
of
the probability
of default
and the
estimation
of the
expected Loss
in case
of default
when calculating
the expecte
d
credit
loss are the
following:
Downside scenario
2022
2023
2024
2025
Real GDP growth (% change)
3,00%
2,00%
0,90%
0,40%
Unemployment
(% change)
13,90%
13,60%
12,30%
11,70%
RRE prices
(% change)
3,30%
0,40%
1,00%
1,70%
CRE Price
Index (%
change)
3,50%
2,90%
2,50%
3,00%
Baseline scenario
2022
2023
2024
2025
Real GDP growth (% change)
5,20%
4,10%
2,80%
2,20%
Unemployment
(% change)
13,20%
11,90%
10,50%
9,70%
RRE prices
(% change)
5,40%
2,20%
2,20%
2,60%
CRE Price
Index (%
change)
4,50%
4,20%
4,40%
3,90%
Upside scenario
2022
2023
2024
2025
Real GDP growth (% change)
7,40%
6,30%
4,70%
4,10%
Unemployment
(% change)
12,40%
10,20%
8,60%
7,70%
RRE prices
(% change)
7,60%
4,00%
3,50%
3,50%
CRE Price
Index (%
change)
5,70%
5,70%
6,60%
5,00%
Respectively,
the
macroeconomic
variables
per
year
for
the
period
2021-2024
that
affect
the
expected
credit
risk
loss
of
31.12.2020, are the
following:
Downside scenario
2021
2022
2023
2024
Real GDP growth (% change)
2,00%
2,60%
1,90%
0,50%
Unemployment
(% change)
17,10%
17,00%
15,50%
14,80%
RRE prices
(% change)
0,90%
0,00%
1,40%
1,90%
CRE Price
Index (%
change)
0,60%
2,40%
3,60%
1,30%
Baseline scenario
2021
2022
2023
2024
Real GDP growth (% change)
4,10%
4,70%
3,70%
2,10%
Unemployment
(% change)
16,40%
15,20%
13,40%
12,30%
RRE prices
(% change)
3,20%
2,50%
3,40%
3,50%
CRE Price
Index (%
change)
1,80%
4,40%
5,60%
3,30%
Upside scenario
2021
2022
2023
2024
Real GDP growth (% change)
6,20%
6,80%
5,60%
3,80%
Unemployment
(% change)
15,60%
13,30%
11,20%
9,70%
RRE prices
(% change)
5,60%
5,00%
5,60%
5,30%
CRE Price
Index (%
change)
3,10%
6,50%
7,90%
5,50%
In the countries
where the Group
operates mainly, the
average per year
for the period 2022-2024
that affects the expected
credit risk
loss of
31.12.2021, is presented
in the
following tables:
CYPRUS
2022 - 2024
Downside
scenario
Baseline
scenario
Upside
scenario
Real GDP growth (% change)
1,60%
3,50%
5,40%
Unemployment
(% change)
8,20%
6,30%
4,30%
RRE prices
(% change)
1,10%
3,30%
5,60%
CRE Price
Index (%
change)
(2,20)%
0,00%
2,30%
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
275
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ROMANIA
2022 - 2024
Downside
scenario
Baseline
scenario
Upside
scenario
Real GDP growth (% change)
2,50%
4,00%
4,90%
Unemployment
(% change)
6,50%
4,50%
3,00%
RRE prices
(% change)
3,40%
5,00%
7,00%
CRE Price
Index (%
change)
0,40%
5,70%
8,00%
Respectively, the average
for the period 2021-2023 of the macroeconomic
variables that affect the expected
credit risk loss
of 31.12.2020, is
presented in the
following tables:
CYPRUS
2021 - 2023
Downside
scenario
Baseline
scenario
Upside
scenario
Real GDP growth (% change)
1,60%
3,60%
5,50%
Unemployment
(% change)
8,50%
6,60%
4,60%
RRE prices
(% change)
1,40%
3,60%
5,70%
CRE Price
Index (%
change)
0,90%
2,70%
4,50%
ROMANIA
2021 - 2023
Downside
scenario
Baseline
scenario
Upside
scenario
Real GDP growth (% change)
1,20%
3,80%
4,90%
Unemployment
(% change)
6,50%
5,50%
4,80%
RRE prices
(% change)
1,30%
2,00%
4,00%
CRE Price
Index (%
change)
-1,70%
-0,30%
3,00%
The
production
of
baseline
scenario,
supported
by
a
consistent
economic
description,
constitutes
the
most
likely
scenario
according to the current
economic conditions and the Group’s
basic assessment of the
course of the
economy.
The cumulative
probabilities
of the
macroeconomic
scenarios
for the
Greek economy
indicate that
the economy
performs
better
or
worse
than
forecasts
of
the
baseline
scenario
and
the
alternative
scenarios,
i.e.
the
upside
and
downside
scenario.
For each
one of the
alternative scenarios,
the allowance
for expected
credit losses
is calculated
and weighted
against the
probability of each
scenario in order
to calculate the
weighted expected credit loss
The cumulative probability assigned
to the baseline scenario remained 60%, while cumulative
probability assigned to the
downside and
upside scenario remained
20% for
each of
the scenario.
If the assigned cumulative probability
of the downside scenario was weighted at 100%, Expected
Credit Losses would
increase
by
€ 88.0
million
as at
31.12.2021
(31.12.2020:
€ 275.3
million).
If
the
assigned
cumulative
probability
of
the
upside
scenario
was
weighted
at
100%,
Expected
Credit
Losses
would
decreaseby
€ 87.2
million
as
at
31.12.2021
(31.12.2020: €
261.0 million).
The following table shows in
more detail this impact
per Classification Stage.
(In millions of
Euro)
Baseline Scenario
Downside Scenario
Upside
Scenario
31.12.2021
31.12.2020
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Retail Exposures
(0.6)
(0.5)
55.9
174.1
(54.6)
(169.9)
Stage 1
(0.1)
(0.4)
2.6
5.1
(5.5)
(5.5)
Stage 2
(0.6)
(0.8)
34.2
49.7
(30.3)
(43.9)
Stage 3
0.1
0.6
19.1
119.3
(18.8)
(120.4)
Wholesale Exposures
(2.4)
(2.1)
32.1
101.2
(32.6)
(91.1)
Stage 1
(0.3)
(1.8)
1.4
10.3
(8.3)
(10.9)
Stage 2
(1.9)
(1.1)
17.0
24.6
(11.8)
(12.2)
Stage 3
(0.2)
0.9
13.7
66.2
(12.4)
(68.0)
Total
(3.0)
(2.6)
88.0
275.3
(87.2)
(261.0)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
276
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Undrawn
loan
commitments
According
to IFRS
9, these
contracts fall
within the
scope for
expected
credit losses
recognition.
In estimating
the allowance
for expected
credit
losses
over the
life of
an undrawn
loan commitment,
the Group
assesses
the
expected part of
the loan commitment that
will be used
throughout its expected life.
Inherent Model Risk
Τhe
Group
recognizing
the
inherent
model
risk,
derived
from
the
model
complexity
and
aggregated
model
risk,
has
adopted
a
Model
Risk management
framework
which includes
the principles
of credit
risk models
development
policy and
risk models
validation framework.
In this context,
the independent
Risk Models
Validation division
validates all credit
risk models used
for
the calculation of
IFRS 9
allowance for
expected credit losses.
Governance
The
Credit
Risk
Committee
is
responsible
for
approving
the
Expected
Credit
Losses
as
well
as
the
methodologies
developed
by
the Group for calculating the expected credit
loss (ECL Methodology) for loan portfolio.
The Board
of Directors
approves
the Group
Loan Impa
irment
Policy through
the Risk
Management
Committee.
EFFECT
FROM
THE
COVID-19
PANDEMIC
Perimeter
affected
by the
Covid-19
pandemic
The
Group,
in
order
to
support
its
customers
who
are
affected
by
the
crisis
due
to
the
Covid-19
pandemic,
has
taken
a
series
of
measures in order to support
businesses as well as individuals facing temporary payment difficulties
and liquidity shortages.
Initially, the
Group provided
its customers
with “installment
suspension payment”
programs until
31.3.2021, according
to
the relevant EBA guidelines (EBA /
GL / 2020/02, EBA
/ GL /
2020/08 and EBA / GL
/ 2020/15). It is
noted that on the
31
st
of
December 2021, there were no
active exposures that have received payment
suspension scheme. Since 01/04/2021, for
those customers
whose ability
to pay
has not
been restored
to the
pre-Crisis
levels, by
the “installment
suspension
payment”
programs, the
Group proceeded to
the following actions:
•
For retail banking exposures, the Bank has individually assessed any financial difficulty, in order to
return to the repayment
levels
applicable
prior
to
the
installment
suspension
schemes,
by
providing
step
up
scheduling
programs,
which
have
been
flagged as per
the EBA
Guidelines (EBA/ITS/2017/01, EBA/GL/2016/07).
•
For business exposures, an individual analysis has been performed with
the most updated financial data, as to
the existence
of financial difficulty. Based on this individual assessment,
customers have been granted with personalized solutions,
which
have been flagged as per
EBA Guidelines (EBA/ITS/2017/01, EBA/GL/2016/07)
Moreover,
it
is
noted
that
the
Bank
closely
monitors
and
actively
participates
in
Business
as
well
as
Individual
Financing
Support
Programs
running
either
by
the
Greek
Government
or
by
the
competent
European
Institutions
(Program
”Gefyra”
Ι
&
ΙΙ,
EAΤ, ΤEPIX,
European Investment
Fund, COSME,
EIF etc.).
Amendments
in the
loan impairment
policy
due to
Covid-19 pandemic
During
the
second
quarter
of 2021,
the
Bank
Loan
Impairment
Policy
has
been
amended
by
the Group,
as the
EBA
guidelines
on legislative and non-legislative
loan payment moratoria, applied due to the Covid
-19 crisis (EBA / GL / 2020/02, EBA / GL /
2020/08) cease to be valid from 1.4.2021 and no further
payment suspensions are granted due
to Covid-19. In addition, Post
model
adjustments
(PMAs)
are
no
longer
applicable
to
exposures
affected
by
the
Covid-19
pandemic.
More
specifically,
the
following are no
longer applicable:
•
Performing retail credit exposures, under payment moratoria that are classified
in high Credit risk zones, were classified
in Stage 2 and Lifetime ECL is calculated for the remaining maturity of the exposure, as a result of respective qualitative
evaluation for possible
credit risk deterioration.
•
Temporary short term modifications granted to
Retail Credit exposures, that are
no longer under payment moratoria
and
as per the individual assessment performed, are viable customers who are
facing temporary liquidity problems with no
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
277
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
indicaton
of permanent
financial
difficulty,
were
classified
in Stage
2 and
Lifetime
ECL is
calculated
for the
remaining
maturity of the
exposures.
Adjustments in the calculation
of allowance for expected credit
losses
During
2020
the
Group
adopted
sound
staging
and
provisioning
policies
and
procedures,
in
line
with
established
IFRS
9 best
practices,
in order
to ensured
appropriate
credit
risk
management
and coverage
during
the
COVID-19
crisis.
To that
direction,
the following post model adjustments were performed both in terms of risk
parameters and Stage Classification criteria.
More
specifically,
in
order
to
adress
the
delays
anticipated
in
the
liquidation
of
the
collaterals,
the
expected
time
to
sale
increased by one year compared to 31.12.2019,
both for the collectively assessed
exposures and for the individually assessed
exposures for which the recovery is
not based on the
operating cash flows (gone concern).
Additionally, the Group has
enhanced its credit rating assessment
and risk parameter quantification
processes to ensure they
remain
appropriate
in the
Covid-19
environment.
More
specifically,
the
Group
conducted
an
extensive
sectoral
analysis
in
order to inform its Covid
-19-adjusted segmentation
framework. The segmentation
was used to identify
high-risk segments for
prioritisation in terms of the customer outreach. The feedback
from the borrower campaign fed the Bank’s:
•
Rating assessments:
Rating
downgrades
informed
the SICR
triggers
and Stage
2 classification
as well
as the
frequency
of
review based on
the Risk Zone.
•
Mitigating actions: Following customer feedback,
the Group offered appropriate credit mitigation strategies to viable
borrowers,
where necessary.
In turn,
this informed
the Forbearance
classification
and eventually
Stage 2
migration.
Moreover,
necessary
adjustments
were applied
to the
results of
the models
used to
calculate
the expected
credit loss.
These adjustments reflect the risks
and other uncertainties that are not included
in the underlying credit risk models. The
adjustments to the results of the
existing models are approved by the credit risk
committee. More specifically:
•
Performing retail exposures under payment moratoria that are classified
in high and satisfactory risk zones (average PD
6.9%), transferred from Stage 1 to Stage
2 and Lifetime ECL is
calculated for the remaining maturity of the exposures as
a
result of respective
qualitative evaluation for
possible increase of
credit risk.
•
Temporary short-term modifications granted to Retail exposures that are no
longer under payment moratoria and according
to individual evaluation that has been performed are viable customers who are facing temporary liquidity problems with
no
indication
of permanent
financial
difficulty,
were
classified
in
Stage
2 and
Lifetime
ECL
is calculated
for
the
remaining
maturity of the
exposures.
•
For all loans that were already under modification terms and for which a Covid modification has been provided, based
on the above
mentioned measures that the Group
applied, the cure rate
remained unchanged for the period
of the Covid
modification.
•
In order
to assess the impact of the pandemic on the cash flows of the borrowers for which the exposures are assessed
on an individual basis for the estimation of expected credit losses, adjustments were made to the estimated credit losses
depending on
the sector of
activity of the
borrower.
The aforementioned
adjustments
were still
in force
in 2021,
until the
expiration
of the
supporting
measures
taken by
the Group.
Considering that the aim of overlays is to reduce any uncertainty that cannot be captured by the existing models, any decision
whether
these
adjustments
should
be
factored
in
the
model
is
examined
during
the
regular
update
of
the
model.
To
that
direction,
and
in
line
with
Group’s
Model
Management
Policy
and
ECL
methodology
framework,
all
credit
risk
parameters
have
been calibrated with 2021 figures in order to account for any post covid effect. In addition,
the most recent financial data were
used
for
the
calculation
of
ECL
for
the
individually
assessed
exposures
and
for
the
rating
of
Wholesale
Banking
obligors.
With
this
approach,
the
calculation
of
Expected
Credit
Risk
Loss
was
based
on
the
updated
Credit
Risk
parameters
and
the
most
recent financial data,
without any additional
adjustment.
Finally,
as
the
Group’s
models
assess
the
evolution
of
next
year’s
GDP
(forward-looking),
in
order
to
ensure
a
strong
model
estimate and
avoid abrupt
effects, for the
purpose of calculating
the expected
loss, the estimate
of the period
2020-2021 has
been used
for GDP as
more representative.
This approach
was applied
until 30.9.2021.
As of 31.12.2021,
and given that
the
templates were
updated incorporating
the trading
behaviour of
2021, they
take into account
the evolution
of next year’s
GDP
without any specific adjustment.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
278
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
FORBEARANCE
Maintaining a healthy
loan portfolio depends
on the constant
monitoring and assessment
of the borrowers
in order to allow
early detection of future liquidity problems, which could affect the normal repayment of their obligations to the Group.
The
credit
tools
which are
normally
used
by the
Group
for managing
the liquidity
problems
that
borrowers
are facing
for
repaying their
obligations are
the restructuring
of debt through
the renegotiation
of the original
terms and conditions
of the
loan agreement they
have entered into.
The
Executive
Committee
“Act
175/2/29.7.2020
of
the
Bank
of
Greece,
has
determined
the
supervisory
framework
for
the
management
of
loans
in
arrears
and
non-performing
loans,
over
and
above
the
already
applicable
requirements
of
Law
4261/2014, the CRR 575/2013, and delegated the decision authority to the Bank
of Greece.
Furthermore,
in
the
context
of
the
Commission
Implementing
Regulation
(EU)
2015/227
of
the
European
Commision
dated
January
9, 2015
and
the executive
technical
standards
of
the European
Banking
Authority,
the Group
assumes
the resulting
regulatory obligations for
forborne exposures.
Forbearance
measures should
be applied
on the
basis of
the risk,
cooperativeness
and viability
of each
debtor and
consist of
concessions
assessed
to be
robust
and
sustainable,
through
the
renegotiation
of the
initial
terms
and
conditions
of
the debt
contract duly taking
into account the
causes of the
debtor’s financial difficulties.
Forbearance measures
may be applied
a) on the basis
of a customer’s
request, b) in
accordance with
the Code of Conduct
under Law 4224/2013,
as currently
is in force,
which is a State
initiative under
the supervision
of the Bank
of Greece. Apart
from
the
forbearance
measures
applied
to
existing
Retail
lending
exposures,
which
are
initiated
by
the
Group
in
accordance
with
the
directives
of the
Executive
Committee
Acts of
the Bank
of Greece
(No. 175/2/29.7.2020)
and
Arrears
Resolution
Process
(ARP) of
the Code
of Conduct
under L.4224/2013
as currently
is in
force, there
are restructuring
solutions
according
to
the Legislative Framework.
The
existence
of more
favorable
terms
for renegotiating
and modifying
the terms
and conditions
of the
bilateral
arrangement
between
the
Group
and
the
debtor
(concession),
who
is
facing
or
is
about
to
face
difficulties
in
meeting
his
financial
commitments (“financial difficulty”),
are defined
with respect to:
•
Respective terms existing and applied to customers with no financial difficulty; and
•
Corresponding terms existing in market for
debtors with similar credit
rik profile.
Financial Difficulty
is defined as the situation
where the debtor is
unable to comply or
is about to face difficulties
in servicing his
credit obligations as per the current loan
repayment schedule due to the worsening of his
financial status.
MONITORING
OF
FORBORNE
EXPOSURES
Following the
Executive Committee
Act 42/30.5.2014,
(“Act 42”)
as subsequently
amended by
the Act
47/9.2.2015 (“Act
47”)
and by the
Act 102/30.8.2016
(“Act 102”)
134/5.3.2018, 136/2.4.2018
and 175/2/29.7.2020
of the Bank
of Greece,
the Group
has undertaken a series of actions to ensure adherence to the supervisory obligations and requirements arising from the above
Acts. These
changes cover the
following distinct sections:
•
Adaptation of Information Systems of the Group;
•
Amendments of the existing processes, such
as the customization of
new types of
forborne exposures according to what
is
provided in Act
42/47/102/134/136/175.
•
Creation of data structures (Data Marts) aiming at:
-
Automation of the processes related to
the production of both
internal (Risk Management) and external (Supervisory)
reports;
-
Perform analyses on the
portfolio of the
Group; and
-
Production
of
Management
Information
Reporting
(MIS)
WRITE-OFFS
AND
WRITE-DOWNS
OF
BAD
DEBTS
Bad Debt Write-off
is defined as the reduction of the gross carrying amount of a financial asset, when there is no reasonable
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
279
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
expectation
of
recovery.
The
write-off
refers
to
the
accounting
write-off
of
a
debt
or
a
portion
of
it,
i.e.
the
removal
of
the
financial asset or part of it from the balance sheet,
which does not necessarily entail the
waiver of the legal right to recover the
debt. In
the event
that the
Group decides
to waive
its legal right
to recover
the debt,
this is called
Debt Forgiveness
and this
waiver may include
either on
or off-balance sheet
items as
well.
Bad Debt
Write-down is defined
as the definitive reduction
of a debt or portion
of it, as a result of a
legally binding decision
or
agreement
(court
judgment,
contractual
agreement
etc.),
which
is
not
further
claimable.
It
is
noted
that
this
category
encompasses
Definitive
write-downs
which
are
unconditional
and
Conditional
Write-Downs
(Contingent
Write-Down)
subject to the achievement by the Customer of
a specific performance (usually, upon the successful implementation of
a
specific
repayment
program).
In
the
case
of
Definitive
Write-downs,
both
the
accounting
and
the
legal
reduction
(Debt
Forgiveness)
take
place
immediately
and
simultaneously,
whereas
in
the
case
of
Contingent
Write-downs,
the
accounting
reduction takes place when the relevant
decision is taken or when the agreement
is concluded, while the legal reduction (Debt
Forgiveness)
takes place
either simultaneously
with the relevant
decision or
at a later
(future) time,
depending on
the type of
the condition.
Contingent Write-downs of debts are
in turn classified into:
(a)
Resolutive Condition,
i.e. the debt is accounting
and legal write down at the time
of reaching the agreement
with the
Debtor and is revived only in the
event that the debtor does not pay
the remaining amount and
(b)
Condition Precedent,
i.e. the debt is legally written down if the Debtor repays the debt
in accordance with the relevant
agreement.
Indicative
conditions
for
the
submission
of
proposals
for
writing-off
part
or
total
amount
of
the
exposure
include,
but
are
not
limited to, the
following:
•
The relevant Agreements with
the Customers have
been terminated.
•
Payment
Orders have
been issued
against all
liable parties
to such
Agreements.
•
The actions regarding the investigation of immovable property have been completed without any results.
•
The procedure
for the
registration
of encumbrances.
•
At least one real estate property has been auctioned, so that the preferential claims (through the final creditor’s
classification list) and, by extension, the Group’s potential losses,
are finalised.
•
In cases where the
likelihood of further recovery of
the debt is
considered to be particularly low, due
to:
-
the fact that the debtors are placed under special liquidation;
-
the proven existence of preferential claims of a significant amount
and the adoption of a decision to cease litigation
actions, in
order to
avoid non-collectable enforcement
costs;
-
the fact that further litigation actions
seeking collection of the claim is economically
unprofitable (e.g. low-value
collateral);
The
write-off
requires
the
existence
of an
equal
amount
of provision
for
impairment,
established
no
later
than
in
the
quarter
preceding the submission
of the proposal.
DUE
FROM
BANKS
Exposure
to credit
institutions
relates to
loans, interbank
transactions
(which
include positions
in derivatives),
reverse repos
transactions
and International
Trade activities.
Following the
basic rules
of designation,
monitoring
and revision
of corporate
lending, boundaries are established
by the relevant Credit Committees
for the monitoring of credit risk for the overall
exposure
per
credit
institution
counterparty,
excluding
positions
related
to
bonds
issued
by
them.
The
approved
credit
limits
are
monitored
on a
daily
basis.
The
validity
period
of the
limits is
specified
in the
approval
of the
limits
in accordance
with the
counterparty credit institutions rating
from international credit rating
agencies.
In addition
to the regular
revisions of
counterparty credit
institutions limits,
interim revisions
may be carried
out either
due
to circumstances associated with the trading activity of the Group or
due to markets conditions or problems associated with
counterparty
credit institutions.
Trigger events
for an
extraordinary
review are
regularly
monitored
per counterparty
in order
to
review the
relevant limits when
such trigger events
exist.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
280
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
At each
reporting date,
a loss
allowance for
expected
credit losses
on due
from banks
is recognized.
The loss
allowance
is based
on expected
credit losses
related to
the probability
of default
within the
next twelve
months,
unless there
has been
a significant
increase in
credit risk
from the
date of initial
recognition in
which case
expected credit
losses are
recognized over
the life of
the instrument.
In addition,
if the receivable
falls under the
definition of
purchased or
originated
credit
impaired
(POCI)
financial
assets,
a loss
allowance
equal
to the
lifetime
expected
credit
losses
is recognized.
Due from bank’s credit
risk is assessed based on
credit rating of rating agencies
or internal credit rating of
the counterparty
when a
loan exposure exists
at bank
level.
The Group defines as low credit risk
all investment grade counterparties, for which it calculates a credit allowance equal to
a
12-month expected credit
loss (Stage 1).
For counterparties which do
not meet the criteria of investment grade,
the assessment of the significant increase
in credit
risk for which calculation
of lifetime expected credit
losses is required
(Stage 2), is based on
the two following conditions
(whichever occurs first):
-
Downgrade by at least two notches of the counterparty credit rating between the reporting date and the initial recognition
date
-
The 12-month PD at reporting date is
above 5% in absolute terms and
has increased more than 50% compared to the
respective PD existing
at initial recognition
date.
INVESTMENTS
IN
DEBT
SECURITIES
Investments
in
debt
securities
relate
to
securities
that
are
classified
into
investment
security
portfolio.
If
there
is
a
loan
relationship
with
the counterparty
issuer
at the
time
of classification
of
the security
position
as
investment,
the
Corporate
Credit
Policy
procedures
apply.
These
positions
are
subject
to Group
investment
limits
and issuer’s
limits
and are
monitored
on
a daily basis.
At
each
reporting
date,
a
loss
allowance
for
expected
credit
losses
on
bonds,
which
are
not
measured
at
fair
value
through
profit or loss,
is recognized.
The
loss allowance
is based
on
expected
credit
losses
related
to the
probability
of default
within
the next
twelve
months,
unless
there has
been a
significant
increase
in credit
risk from
the date
of initial
recognition
in which
case expected
credit
losses are recognized over the life of the instrument. In addition, if the debt securities
fall under the definition of purchased or
originated
credit impaired
(POCI)
financial
assets,
a loss
allowance
equal to
the lifetime
expected
credit losses
is recognized.
Credit risk of investment in debt securities is assessed based
on credit ratings of rating agencies or internal credit rating in
case
of Greek
corporate issuers for
which loan exposure
exists.
The Group defines as low credit
risk all investment grade securities, for which it
calculates a credit allowance equal to a
12-month expected credit
loss (Stage 1).
For debt securities, which do not meet
the criteria of investment grade, the assessment
of the significant increase in credit risk
for which calculation of lifetime expected credit
losses is required (Stage 2), is
based on the two
following conditions:
-
Downgrade by at least two notches of the counterparty credit rating between the reporting date and the initial recognition
date
-
The 12-month PD at reporting date is
above 5% in absolute terms and
has increased more than 50% compared to the
respective PD existing
at initial recognition
date
In addition,
the Group
is monitoring,
the change
in credit
spreads
since the
initial
recognition
date.
A change
in the
credit
spread
of the issue of more than 500bps since the initial recognition date is a trigger for the review of the debt instrument staging.
Depending
on
the
outcome
of
the
above
review
the
debt
instrument
will
remain
at
Stage
1
or
be
allocated
at
Stage
2,
regardless of whether the primary staging criteria for allocation to Stage 2
have been triggered or not.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
281
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
282
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
FINANCIAL
ASSETS
EXPOSURE
TO
CREDIT
RISK
The
maximum
credit
risk
exposure
per
category
of
financial
asset
in
which
the
Group
is
exposed
is
depicted
in
the
“Net
exposure to credit
risk” column.
31.12.2021
Exposure
before
impairment
Provision for
impairment
losses
Net
exposure
to
credit risk
A. Credit
risk exposure
relating to
balance sheet
items
Balances with
central Banks
11,403,708
11,403,708
Receivables from credit institutions
3,034,223
70,167
2,964,056
Loans and
advances to
customers:
- Loans measured at amortised
cost
38,588,769
2,163,306
36,425,463
- Advances to customers measured
at amortised cost
285,242
49,987
235,255
- Loans measured at fair value
through profit or loss
159,696
159,696
- Advances to customers measured
at fair value through profit or loss
40,000
40,000
Total
39,073,707
2,213,293
36,860,414
Derivative financial assets
941,609
941,609
Trading securities:
- Government
bonds
3,819
3,819
Total
3,819
-
3,819
Investments securities
measured at fair value through other comprehensive income:
- Securities measured at fair value through other comprehensive
income
(Government bonds)
4,609,185
7,328
4,601,857
- Securities measured at fair value through other comprehensive
income (other)
1,988,607
15,177
1,973,430
Total
6,597,792
22,505
6,575,287
Investment securities
measured at amortised cost:
- Securities
measured at
amortised cost
(Government
bonds)
3,098,703
9,809
3,088,894
- Securities measured at amortised cost (other)
669,417
5,563
663,854
Total
3,768,120
15,372
3,752,748
Investment securities
measured at fair value through profit
or loss:
- Securities measured at fair value
through profit or loss (other)
39,342
39,342
Total
39,342
-
39,342
Held for sale assets - Loan’s portfolio:
- Loan’s portfolio measured
at amortised cost
3,711,262
2,782,573
928,689
- Loan’s portfolio measured
at fair value through profit
or loss
52,896
52,896
Total
3,764,158
2,782,573
981,585
Total amount of
balance sheet items exposed
to credit risk (a)
68,626,478
5,103,910
63,522,568
Other balance sheet items not exposed to credit risk
10,211,932
378,544
9,833,388
Total Assets
78,838,409
5,482,453
73,355,956
Β. Credit risk
exposure relating
to off balance
sheet items:
Letters of guarantee,
letters of credit and other
guarantees
3,498,012
36,775
3,461,237
Undrawn loan commitments
4,092,711
5,909
4,086,802
Total amount of off
balance sheet items exposed
to credit risk (b)
7,590,723
42,684
7,548,039
Total credit
risk exposure
(a+b)
74,507,508
5,146,594
71,070,607
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
283
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
as revised
Exposure
before
impairment
Provision for
impairment
losses
Net
exposure
to
credit risk
A. Credit
risk exposure
relating to
balance sheet
items
Balances with
central Banks
7,077,100
7,077,100
Receivables from credit institutions
2,811,635
70,088
2,741,547
Loans and
advances to
customers:
- Loans measured at amortised
cost
48,403,731
9,611,635
38,792,096
- Advances to customers measured
at amortised cost
314,251
47,227
267,024
- Advances to customers measured
at fair value through profit or loss
40,000
40,000
- Loans measured at fair value
through profit or loss
280,882
280,882
Total
49,038,864
9,658,862
39,380,002
Derivative financial assets
1,267,083
1,267,083
Trading securities:
- Government
bonds
29,154
29,154
Total
29,154
-
29,154
Investments securities
measured at fair value through other comprehensive income:
- Securities measured at fair value through other comprehensive
income
(Government bonds)
4,626,389
7,170
4,619,219
- Securities measured at fair value through other comprehensive
income (other)
1,920,335
8,743
1,911,592
Total
6,546,724
15,913
6,530,811
Investment securities
measured at amortised cost:
- Securities
measured at
amortised cost
(Government
bonds)
2,788,310
9,132
2,779,178
- Securities measured at amortised cost (other)
557,755
1,200
556,555
Total
3,346,065
10,332
3,335,733
Investment securities
measured at fair value through profit
or loss:
- Securities measured at fair value
through profit or loss (other)
13,243
13,243
Total
13,243
-
13,243
Held for sale assets - Loan’s portfolio:
- Loan’s portfolio measured
at amortised cost
602,465
459,147
143,318
- Loan’s portfolio measured
at fair value through profit
or loss
Total
602,465
459,147
143,318
Total amount of
balance sheet items exposed
to credit risk (a)
70,732,333
10,214,342
60,517,991
Other balance sheet items not exposed to credit risk
9,902,811
380,728
9,522,083
Total Assets
80,635,144
10,595,070
70,040,074
Β. Credit risk
exposure relating
to off balance
sheet items:
Letters of guarantee,
letters of credit and other
guarantees
3,497,205
85,355
3,411,850
Undrawn loan commitments
4,472,897
6,127
4,466,770
Total amount of off
balance sheet items exposed
to credit risk (b)
7,970,102
91,482
7,878,620
Total credit
risk exposure
(a+b)
78,702,435
10,305,824
68,396,611
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
284
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
Certain figures of the
previous year have been
restated as described in
note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
285
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
LOANS
AND
ADVANCES
TO
CUSTOMERS
For
credit
risk
disclosure
purposes,
the
allowance
for
expected
credit
losses
of
loans
measured
at
amortised
cost
includes
also
the fair
value adjustment
for the
contractual
balance of
loans which
were impaired
at their
acquisition
or origination
(POCI)
since the Group,
from credit risk perspective,
monitors the respective
adjustment as part
of the provisions.
These loans were
recognized
either
in the
context
of acquisition
of specific
loans
or companies
(i.e.
Emporiki
Bank
and Citibank’s
retail
operations
in
Greece),
or
as
a
result
of
significant
modification
of
the
terms
of
the
previous
loan
that
led
to
derecognition.
Relevant
adjustment has also been performed at the carrying amount of
loans before allowance for expected credit losses.
It is noted
that the
credit risk
tables do
not include
the outstanding
balances and
allowance for
expected credit
losses of loans
that have been
classified as assets
held for
sale.
Loans per IFRS 9 Stage (past due and
not past due)
The following tables present
past due and not past due
loans, measured at amortise
d
cost, per IFRS 9 Stage as
well as loans
that are measured
at fair value
through profit or
loss, as at
31.12.2021 and 31.12.2020:
31.12.2021
Loans
measured
at
fair
value
through
profit or loss
(FVPL)
Loans measured
at amortised
cost
Not past due
Past due
Net
carrying
amount
Value
of
collateral
Stage 1
Not past due
Past due
Carrying
amount
(before
allowance for
expected
credit losses)
Allowance for
expected
credit losses
Net
carrying
amount
Retail lending
-
-
-
-
7,299,642
62,584
7,362,226
12,089
7,350,137
Mortgage
5,292,200
36,334
5,328,534
3,347
5,325,187
Consumer
562,273
14,004
576,277
3,754
572,523
Credit Cards
761,719
2,816
764,535
2,679
761,856
Small
Businesses
683,450
9,430
692,880
2,309
690,571
Corporate
lending
114,384
45,311
159,696
151,995
20,385,741
118,655
20,504,396
35,860
20,468,536
Large
corporate
114,384
45,311
159,696
151,995
15,065,973
36,900
15,102,873
32,350
15,070,523
SME’s
5,319,768
81,755
5,401,523
3,510
5,398,013
Public sector
-
-
-
-
35,542
35,542
54
35,488
Greece
33,372
33,372
39
33,333
Other countries
2,170
2,170
15
2,155
Total
114,384
45,311
159,696
151,995
27,720,925
181,239
27,902,164
48,003
27,854,161
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
286
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2021
Loans measured
at amortised cost
Stage 2
Stage 3
Not past due
Past due
Carrying
amount
(before
allowance for
expected
credit losses)
Allowance for
expected
credit losses
Net
carrying
amount
Not past due
Past due
Carrying
amount
(before
allowance for
expected
credit losses)
Allowance
for
expected
credit losses
Net
carrying
amount
Retail
lending
3,097,482
427,045
3,524,527
163,844
3,360,683
1,069,307
1,225,165
2,294,472
625,968
1,668,504
Mortgage
1,922,919
248,820
2,171,739
67,858
2,103,881
658,806
536,459
1,195,265
189,777
1,005,488
Consumer
371,251
93,569
464,820
52,765
412,055
131,750
309,307
441,057
196,680
244,377
Credit Cards
86,192
20,413
106,605
12,613
93,992
3,715
61,690
65,405
33,331
32,074
Small
Businesses
717,120
64,243
781,363
30,608
750,755
275,036
317,709
592,745
206,180
386,565
Corporate
lending
1,295,871
61,823
1,357,694
20,425
1,337,269
652,102
1,121,223
1,773,325
910,482
862,843
Large
corporate
799,968
29,798
829,766
15,990
813,776
349,236
297,113
646,349
272,374
373,975
SME’s
495,903
32,025
527,928
4,435
523,493
302,866
824,110
1,126,976
638,108
488,868
Public sector
588
23
611
60
551
512
595
1,107
464
643
Greece
362
23
385
51
334
512
595
1,107
464
643
Other
countries
226
226
9
217
Total
4,393,941
488,891
4,882,832
184,329
4,698,503
1,721,921
2,346,983
4,068,904
1,536,914
2,531,990
31.12.2021
Loans measured
at amortised cost
Purchased or originated credit impaired
loans (POCI)
Total net
carrying
amount at
amortised cost
Value of collateral
Not past due
Past due
Carrying amount
(before allowance
for expected
credit
losses)
Allowance for
expected credit
losses
Net
carrying
amount
Retail
lending
979,418
391,344
1,370,762
246,473
1,124,289
13,503,613
10,592,303
Mortgage
662,475
145,480
807,955
80,081
727,874
9,162,430
8,722,590
Consumer
198,783
98,539
297,322
72,927
224,395
1,453,350
482,496
Credit Cards
901
7,621
8,522
5,350
3,172
891,094
3,536
Small
Businesses
117,259
139,704
256,963
88,115
168,848
1,996,739
1,383,681
Corporate
lending
168,912
195,195
364,107
147,587
216,520
22,885,168
17,890,238
Large
corporate
147,173
57,451
204,624
38,693
165,931
16,424,205
13,156,372
SME’s
21,739
137,744
159,483
108,894
50,589
6,460,963
4,733,866
Public sector
-
-
-
-
-
36,682
36,311
Greece
34,310
33,979
Other
countries
2,372
2,332
Total
1,148,330
586,539
1,734,869
394,060
1,340,809
36,425,463
28,518,852
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
287
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
Loans
measured
at
fair
value
through
profit or loss
(FVPL)
Loans measured
at amortised
cost
Not past due
Past due
Net
carrying
amount
Value
of
collateral
Stage 1
Not past due
Past due
Carrying
amount
(before
allowance for
expected
credit losses)
Allowance for
expected
credit losses
Net carrying
amount
Retail lending
-
-
-
-
7,116,251
307,665
7,423,916
25,958
7,397,958
Mortgage
5,052,325
253,965
5,306,290
4,309
5,301,981
Consumer
663,648
38,989
702,637
6,443
696,194
Credit Cards
745,794
8,646
754,440
11,453
742,987
Small
Businesses
654,484
6,065
660,549
3,753
656,796
Corporate
lending
200,402
80,480
280,882
252,848
12,805,360
187,701
12,993,061
69,138
12,923,923
Large
corporate
200,163
75,654
275,817
252,570
7,969,210
57,684
8,026,894
48,886
7,978,008
SME’s
239
4,826
5,065
278
4,836,150
130,017
4,966,167
20,252
4,945,915
Public sector
-
-
-
-
78,127
747
78,874
465
78,409
Greece
42,297
747
43,044
253
42,791
Other countries
35,830
35,830
212
35,618
Total
200,402
80,480
280,882
252,848
19,999,738
496,113
20,495,851
95,561
20,400,290
31.12.2020
Loans measured
at amortised cost
Stage 2
Stage 3
Not past due
Past due
Carrying
amount
(before
allowance for
expected
credit losses)
Allowance for
expected
credit losses
Net
carrying
amount
Not past due
Past due
Carrying
amount
(before
allowance for
expected
credit losses)
Allowance
for
expected
credit losses
Net
carrying
amount
Retail
lending
3,781,709
648,188
4,429,897
290,113
4,139,784
2,003,394
8,507,051
10,510,445
4,472,441
6,038,004
Mortgage
2,421,601
507,996
2,929,597
116,168
2,813,429
1,130,209
4,699,193
5,829,402
1,991,503
3,837,899
Consumer
427,169
65,561
492,730
82,957
409,773
349,630
1,444,680
1,794,310
1,111,188
683,122
Credit Cards
109,225
45,364
154,589
32,762
121,827
12,701
217,423
230,124
142,800
87,324
Small
Businesses
823,714
29,267
852,981
58,226
794,755
510,854
2,145,755
2,656,609
1,226,950
1,429,659
Corporate
lending
1,682,976
107,571
1,790,547
51,636
1,738,911
1,353,730
3,698,266
5,051,996
2,497,120
2,554,876
Large
corporate
1,171,033
60,940
1,231,973
38,052
1,193,921
625,345
1,636,518
2,261,863
1,053,738
1,208,125
SME’s
511,943
46,631
558,574
13,584
544,990
728,385
2,061,748
2,790,133
1,443,382
1,346,751
Public sector
339
146
485
18
467
920
884
1,804
746
1,058
Greece
146
146
146
920
884
1,804
746
1,058
Other
countries
339
0
339
18
321
Total
5,465,024
755,905
6,220,929
341,767
5,879,162
3,358,044
12,206,201
15,564,245
6,970,307
8,593,938
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
288
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
31.12.2020
Loans measured
at amortised cost
Purchased or originated credit impaired
loans (POCI)
Total net
carrying
amount at
amortised cost
Value of collateral
Not past due
Past due
Carrying amount
(before allowance
for expected
credit
losses)
Allowance for
expected credit
losses
Net
carrying
amount
Retail
lending
1,618,637
3,446,943
5,065,580
1,668,277
3,397,303
20,973,049
17,672,580
Mortgage
1,004,277
1,938,229
2,942,506
716,276
2,226,230
14,179,539
13,928,449
Consumer
405,250
791,618
1,196,868
519,782
677,086
2,466,175
1,120,501
Credit Cards
2,534
41,119
43,653
31,560
12,093
964,231
14,306
Small
Businesses
206,576
675,977
882,553
400,659
481,894
3,363,104
2,609,324
Corporate
lending
415,882
641,185
1,057,067
535,669
521,398
17,739,108
13,462,572
Large
corporate
305,012
171,070
476,082
156,823
319,259
10,699,313
7,970,331
SME’s
110,870
470,115
580,985
378,846
202,139
7,039,795
5,492,241
Public sector
-
59
59
54
5
79,939
43,902
Greece
59
59
54
5
44,000
36,659
Other
countries
35,939
7,243
Total
2,034,519
4,088,187
6,122,706
2,204,000
3,918,706
38,792,096
31,179,054
“Purchased or
originated credit
impaired loans”
include loans amounting
to € 871,520 as
at 31.12.2021
(31.12.2020:
€ 1,015,682) which are not
credit impaired/non
performing.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
289
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Loans by credit quality
and IFRS 9 Stage
The
following
tables present
loans
measured
at amortised
cost by
IFRS 9
Stage
and credit
quality,
as well
as loans
that are
measured at fair value through profit or loss by credit quality, as
at 31.12.2021 and 31.12.2020.
31.12.2021
Loans measured
at amortised cost
Loans
measured
at
fair
value
through
profit or loss (FVPL)
Stage 1
Stage2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
MORTGAGE
Strong credit quality
5,041,126
911
5,042,037
Satisfactory credit quality
276,896
793,177
228,477
1,298,550
Watch list (higher
risk)
10,512
1,377,651
256,635
1,644,798
Default
1,195,265
322,843
1,518,108
Carrying amount
(before allowance
for
expected credit losses)
5,328,534
2,171,739
1,195,265
807,955
9,503,493
-
Allowance for
expected
credit losses
(3,347)
(67,858)
(189,777)
(80,081)
(341,063)
Net Carrying
Amount
5,325,187
2,103,881
1,005,488
727,874
9,162,430
-
Value of collateral
5,075,320
1,953,492
1,015,231
678,547
8,722,590
CONSUMER
Strong credit quality
456,167
456,167
Satisfactory credit quality
118,281
211,749
57,770
387,800
Watch list (higher
risk)
1,829
253,071
104,178
359,078
Default
441,057
135,374
576,431
Carrying amount
(before allowance
for
expected credit losses)
576,277
464,820
441,057
297,322
1,779,476
-
Allowance for
expected
credit losses
(3,754)
(52,765)
(196,680)
(72,927)
(326,126)
Net Carrying
Amount
572,523
412,055
244,377
224,395
1,453,350
-
Value of collateral
183,564
100,919
78,715
119,298
482,496
CREDIT CARDS
Strong credit quality
709,612
709,612
Satisfactory credit quality
54,795
55,916
551
111,262
Watch list (higher
risk)
128
50,689
239
51,056
Default
65,405
7,732
73,137
Carrying amount
(before allowance
for
expected credit losses)
764,535
106,605
65,405
8,522
945,067
-
Allowance for
expected
credit losses
(2,679)
(12,613)
(33,331)
(5,350)
(53,973)
Net Carrying
Amount
761,856
93,992
32,074
3,172
891,094
-
Value of collateral
1,706
11
1,789
30
3,536
SMALL
BUSINESSES
Strong credit quality
547,093
547,093
Satisfactory credit quality
123,848
414,678
40,138
578,664
Watch list (higher
risk)
21,939
366,685
56,298
444,922
Default
592,745
160,527
753,272
Carrying amount
(before allowance
for
expected credit losses)
692,880
781,363
592,745
256,963
2,323,951
-
Allowance for
expected
credit losses
(2,309)
(30,608)
(206,180)
(88,115)
(327,212)
Net Carrying
Amount
690,571
750,755
386,565
168,848
1,996,739
-
Value of collateral
461,452
500,440
306,598
115,191
1,383,681
LARGE
CORPORATE
Strong credit quality
11,424,157
9,083
11,433,240
72,465
Satisfactory credit quality
3,616,831
468,544
40,436
4,125,811
27,073
Watch list (higher
risk)
61,885
352,139
79,519
493,543
Default
646,349
84,669
731,018
60,158
Carrying amount
(before allowance
for
expected credit losses)
15,102,873
829,766
646,349
204,624
16,783,612
-
Allowance for
expected
credit losses
(32,350)
(15,990)
(272,374)
(38,693)
(359,407)
Net Carrying
Amount
15,070,523
813,776
373,975
165,931
16,424,205
159,696
Value of collateral
11,883,974
664,095
446,202
162,101
13,156,372
151,995
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
290
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2021
Loans measured
at amortised cost
Loans measured
at fair value
through profit or
loss (FVPL)
Stage 1
Stage2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
SME’s
Strong credit quality
2,158,669
17,071
2,175,740
Satisfactory credit quality
3,218,751
305,378
5,111
3,529,240
Watch list (higher
risk)
24,103
205,179
1,487
230,769
Default
300
1,126,976
152,885
1,280,161
Carrying amount
(before allowance
for
expected credit losses)
5,401,523
527,928
1,126,976
159,483
7,215,910
-
Allowance for
expected
credit losses
(3,510)
(4,435)
(638,108)
(108,894)
(754,947)
Net Carrying
Amount
5,398,013
523,493
488,868
50,589
6,460,963
-
Value of collateral
3,601,379
408,848
657,341
66,298
4,733,866
PUBLIC SECTOR
Strong credit quality
6,404
6,404
Satisfactory credit quality
29,138
259
29,397
Watch list (higher
risk)
352
352
Default
1,107
1,107
Carrying amount
(before allowance
for
expected credit losses)
35,542
611
1,107
-
37,260
-
Allowance for
expected
credit losses
(54)
(60)
(464)
(578)
Net Carrying
Amount
35,488
551
643
-
36,682
-
Value of collateral
35,430
249
632
36,311
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
291
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
Loans measured
at amortised cost
Loans
measured
at
fair
value
through
profit or loss (FVPL)
Stage 1
Stage2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
MORTGAGE
Strong credit quality
4,823,363
160,793
92,469
5,076,625
Satisfactory credit quality
480,190
1,569,401
202,359
2,251,950
Watch list (higher
risk)
2,737
1,199,403
314,502
1,516,642
Default
5,829,402
2,333,176
8,162,578
Carrying amount
(before allowance
for
expected credit losses)
5,306,290
2,929,597
5,829,402
2,942,506
17,007,795
-
Allowance for
expected
credit losses
(4,309)
(116,168)
(1,991,503)
(716,276)
(2,828,256)
Net Carrying
Amount
5,301,981
2,813,429
3,837,899
2,226,230
14,179,539
-
Value of collateral
4,996,702
2,600,966
4,079,225
2,251,556
13,928,449
CONSUMER
Strong credit quality
527,089
15,222
15,037
557,348
Satisfactory credit quality
175,138
149,903
43,767
368,808
Watch list (higher
risk)
410
327,605
152,479
480,494
Default
1,794,310
985,585
2,779,895
Carrying amount
(before allowance
for
expected credit losses)
702,637
492,730
1,794,310
1,196,868
4,186,545
-
Allowance for
expected
credit losses
(6,443)
(82,957)
(1,111,188)
(519,782)
(1,720,370)
Net Carrying
Amount
696,194
409,773
683,122
677,086
2,466,175
-
Value of collateral
229,858
108,132
310,310
472,201
1,120,501
CREDIT CARDS
Strong credit quality
585,934
8,046
419
594,399
Satisfactory credit quality
168,429
28,732
472
197,633
Watch list (higher
risk)
77
117,811
731
118,619
Default
230,124
42,031
272,155
Carrying amount
(before allowance
for
expected credit losses)
754,440
154,589
230,124
43,653
1,182,806
-
Allowance for
expected
credit losses
(11,453)
(32,762)
(142,800)
(31,560)
(218,575)
Net Carrying
Amount
742,987
121,827
87,324
12,093
964,231
-
Value of collateral
1,722
67
12,482
35
14,306
SMALL
BUSINESSES
Strong credit quality
491,347
1,436
8,688
501,471
Satisfactory credit quality
158,259
235,130
29,139
422,528
Watch list (higher
risk)
10,943
616,415
81,978
709,336
Default
2,656,609
762,748
3,419,357
Carrying amount
(before allowance
for
expected credit losses)
660,549
852,981
2,656,609
882,553
5,052,692
-
Allowance for
expected
credit losses
(3,753)
(58,226)
(1,226,950)
(400,659)
(1,689,588)
Net Carrying
Amount
656,796
794,755
1,429,659
481,894
3,363,104
-
Value of collateral
384,285
552,326
1,292,925
379,788
2,609,324
LARGE
CORPORATE
Strong credit quality
5,322,646
103,240
5,425,886
67,911
Satisfactory credit quality
2,636,686
799,132
46,669
3,482,487
32,012
Watch list (higher
risk)
67,562
329,601
15,340
412,503
41,527
Default
2,261,863
414,073
2,675,936
134,367
Carrying amount
(before allowance
for
expected credit losses)
8,026,894
1,231,973
2,261,863
476,082
11,996,812
-
Allowance for
expected
credit losses
(48,886)
(38,052)
(1,053,738)
(156,823)
(1,297,499)
Net Carrying
Amount
7,978,008
1,193,921
1,208,125
319,259
10,699,313
275,817
Value of collateral
5,268,379
969,808
1,442,660
289,484
7,970,331
252,570
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
292
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
Loans measured
at amortised cost
Loans measured
at fair value
through profit or
loss (FVPL)
Stage 1
Stage2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
SME’S
Strong credit quality
2,046,914
39,092
2,086,006
Satisfactory credit quality
2,899,013
430,687
10,886
3,340,586
Watch list (higher
risk)
20,240
88,795
118
109,153
Default
2,790,133
569,981
3,360,114
5,065
Carrying amount
(before allowance
for
expected credit losses)
4,966,167
558,574
2,790,133
580,985
8,895,859
-
Allowance for
expected
credit losses
(20,252)
(13,584)
(1,443,382)
(378,846)
(1,856,064)
Net Carrying
Amount
4,945,915
544,990
1,346,751
202,139
7,039,795
5,065
Value of collateral
3,211,503
461,111
1,592,038
227,589
5,492,241
278
PUBLIC SECTOR
Strong credit quality
6,080
6,080
Satisfactory credit quality
72,794
485
73,279
Watch list (higher
risk)
Default
1,804
59
1,863
Carrying amount
(before allowance
for
expected credit losses)
78,874
485
1,804
59
81,222
-
Allowance for
expected
credit losses
(465)
(18)
(746)
(54)
(1,283)
Net Carrying
Amount
78,409
467
1,058
5
79,939
-
Value of collateral
42,647
485
770
43,902
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
293
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Letters of guarantee, letters of
credit and undrawn loan commitments by
credit quality and IFRS
9 Stage
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Letters of guarantee, letters of credit and other
guarantees
Strong credit quality
2,253,646
22
2,253,668
Satisfactory credit quality
584,921
124,790
709,711
Watch list (higher
risk)
86,678
128,240
214,918
Default
319,715
319,715
Carrying
amount (before
allowance
for expected
credit losses)
2,925,245
253,052
319,715
-
3,498,012
Allowance for
expected
credit losses
(627)
(997)
(35,151)
(36,775)
Net Carrying
Amount
2,924,618
252,055
284,564
-
3,461,237
Value of collateral of impaired letters of guarantee, letters of credit
and other guarantees
45,769
45,769
Undrawn loan
commitments
Strong credit quality
3,088,898
1,342
3,090,240
Satisfactory credit quality
808,957
149,395
769
959,121
Watch list (higher
risk)
15,270
23,088
193
38,551
Default
4,681
118
4,799
Carrying
amount (before
allowance
for expected
credit losses)
3,913,125
173,825
4,681
1,080
4,092,711
Allowance for
expected
credit losses
(2,621)
(2,218)
(1,069)
(1)
(5,909)
Net Carrying
Amount
3,910,504
171,607
3,612
1,079
4,086,802
Value of collateral of undrawn loan commitments
203
7
210
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Letters of guarantee, letters of credit and other
guarantees
Strong credit quality
2,077,772
294
2,078,066
Satisfactory credit quality
715,774
198,977
914,751
Watch list (higher
risk)
48,531
125,012
173,543
Default
330,845
330,845
Carrying
amount (before
allowance
for expected
credit losses)
2,842,077
324,283
330,845
-
3,497,205
Allowance for
expected
credit losses
(4,048)
(7,825)
(73,482)
(85,355)
Net Carrying
Amount
2,838,029
316,458
257,363
-
3,411,850
Value of collateral of impaired letters of guarantee, letters of credit
and other guarantees
49,874
49,874
Undrawn loan
commitments
Strong credit quality
3,235,017
13,607
744
3,249,368
Satisfactory credit quality
1,061,720
103,172
3,311
1,168,203
Watch list (higher
risk)
10,810
38,735
202
49,747
Default
5,377
202
5,579
Carrying
amount (before
allowance
for expected
credit losses)
4,307,547
155,514
5,377
4,459
4,472,897
Allowance for
expected
credit losses
(3,570)
(1,514)
(1,040)
(3)
(6,127)
Net Carrying
Amount
4,303,977
154,000
4,337
4,456
4,466,770
Value of collateral of undrawn loan commitments
165
23
188
The value of the collaterals
that relates to impair
ed exposures, amounts
to € 3,009,853 as at 31.12.2021 (31.12.2020:
€ 11,655,870).
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
294
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Ageing analysis by
IFRS 9 Stage and
product line of loans
31.12.2021
Loans measured at
fair value through
profit or loss
(FVPL)
Loans measured
at amortised cost
Retail lending
Corporate lending
Total
Retail lending
Consumer
Large
Corporate
SME’s
Mortgage
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired loans
(POCI)
Total
Current
114,384
114,384
5,289,085
1,861,698
581,662
610,902
8,343,347
1 - 30 days
24,531
24,531
36,102
157,262
30,538
23,875
247,777
31 - 60 days
56,949
27,985
13,553
98,487
61 - 90 days
27,972
23,040
8,997
60,009
91 - 180 days
87,439
22,159
109,598
181 - 360
days
115,885
27,788
143,673
> 360 days
20,781
20,781
138,939
20,600
159,539
Total
159,696
-
159,696
5,325,187
2,103,881
1,005,488
727,874
9,162,430
Value of
collaterals
151,995
151,995
5,075,320
1,953,492
1,015,231
678,547
8,722,590
31.12.2021
Loans measured
at amortised cost
Retail lending
Consumer
Credit Cards
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit impaired
loans (POCI)
Total
Current
558,709
329,908
95,585
169,230
1,153,432
759,073
76,484
2,326
781
838,664
1 - 30 days
13,814
40,867
10,647
13,096
78,424
2,783
10,593
655
47
14,078
31 - 60 days
9,998
6,483
4,999
21,480
4,678
427
18
5,123
61 - 90 days
31,282
6,053
3,136
40,471
2,237
289
29
2,555
91 - 180 days
21,599
6,730
28,329
4,186
55
4,241
181 - 360
days
42,412
12,688
55,100
10,498
311
10,809
> 360 days
61,598
14,516
76,114
13,693
1,931
15,624
Total
572,523
412,055
244,377
224,395
1,453,350
761,856
93,992
32,074
3,172
891,094
Value of
collaterals
183,564
100,919
78,715
119,298
482,496
1,706
11
1,789
30
3,536
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
295
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2021
Loans measured
at amortised cost
Retail lending
Corporate
lending
Small Business
Large Corporate
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit impaired
loans (POCI)
Total
Current
681,317
689,655
227,173
104,651
1,702,796
15,033,647
784,685
243,943
136,834
16,199,109
1 - 30 days
9,254
43,189
12,772
5,721
70,936
36,876
12,194
66,919
115,989
31 - 60 days
8,011
12,129
3,404
23,544
1,726
1,726
61 - 90 days
9,900
8,875
1,857
20,632
15,171
10,066
25,237
91 - 180 days
22,989
4,822
27,811
2,083
2,083
181 - 360
days
34,905
8,127
43,032
278
7,759
8,037
> 360 days
67,722
40,266
107,988
50,686
21,338
72,024
Total
690,571
750,755
386,565
168,848
1,996,739
15,070,523
813,776
373,975
165,931
16,424,205
Value
of
collaterals
461,452
500,440
306,598
115,191
1,383,681
11,883,974
664,095
446,202
162,101
13,156,372
31.12.2021
Loans measured
at amortised cost
Corporate
lending
Public Sector
SME’s
Greece
Other Countries
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
loans (POCI)
Total
Stage 1
Stage 2
Total
Current
5,316,381
491,853
200,966
17,098
6,026,298
33,333
311
512
0
34,156
2,155
217
2,372
1 - 30 days
81,632
19,001
48,737
3,505
152,875
31 - 60 days
12,442
6,058
3,142
21,642
61 - 90 days
197
6,533
6,730
23
23
91 - 180 days
11,129
11,129
181 - 360
days
21,871
35
21,906
> 360 days
193,574
26,809
220,383
131
131
Total
5,398,013
523,493
488,868
50,589
6,460,963
33,333
334
643
-
34,310
2,155
217
2,372
Value
of
collaterals
3,601,378
408,848
657,341
66,298
4,733,866
33,324
23
632
33,979
2,106
226
2,332
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
296
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
Loans measured at
fair value through
profit or loss
(FVPL)
Loans measured
at amortised cost
Retail lending
Corporate lending
Total
Retail lending
Consumer
Large
Corporate
SME’s
Mortgage
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit impaired
loans (POCI)
Total
Current
200,163
239
200,402
5,048,675
2,323,194
984,031
909,938
9,265,838
1 - 30 days
15,683
15,683
253,306
274,815
154,218
111,178
793,517
31 - 60 days
4,343
4,343
112,873
96,136
56,196
265,205
61 - 90 days
102,547
189,690
100,640
392,877
91 - 180 days
83,993
23,767
107,760
181 - 360
days
1,807
1,807
99,062
35,591
134,653
> 360 days
58,164
483
58,647
2,230,769
988,920
3,219,689
Total
275,817
5,065
280,882
5,301,981
2,813,429
3,837,899
2,226,230
14,179,539
Value of
collaterals
252,570
278
252,848
4,996,702
2,600,966
4,079,225
2,251,556
13,928,449
31.12.2020
Loans measured
at amortised cost
Retail lending
Consumer
Credit Cards
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit impaired
loans (POCI)
Total
Current
658,034
354,475
200,027
323,651
1,536,187
734,687
87,248
6,516
1,772
830,223
1 - 30 days
38,160
32,186
25,467
14,477
110,290
8,300
24,141
1,144
315
33,900
31 - 60 days
14,125
17,797
9,305
41,227
6,839
2,957
366
10,162
61 - 90 days
8,987
8,697
4,410
22,094
3,599
2,400
233
6,232
91 - 180 days
24,977
8,057
33,034
4,213
159
4,372
181 - 360
days
38,566
8,909
47,475
20,441
1,949
22,390
> 360 days
367,591
308,277
675,868
49,653
7,299
56,952
Total
696,194
409,773
683,122
677,086
2,466,175
742,987
121,827
87,324
12,093
964,231
Value of
collaterals
229,858
108,132
310,310
472,201
1,120,501
1,722
67
12,482
35
14,306
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
297
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
Loans measured
at amortised cost
Retail lending
Corporate
lending
Small Business
Large Corporate
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
loans (POCI)
Total
Current
650,844
767,345
421,802
178,955
2,018,946
7,920,486
1,133,823
436,518
260,263
9,751,090
1 - 30 days
5,952
19,601
11,702
3,913
41,168
57,522
33,386
139,181
17,056
247,145
31 - 60 days
5,179
10,823
3,345
19,347
18,102
2,250
20,352
61 - 90 days
2,630
6,496
1,876
11,002
8,610
20,393
29,003
91 - 180 days
14,405
1,629
16,034
14,461
14,461
181 - 360
days
14,862
1,823
16,685
101,841
101,841
> 360 days
949,569
290,353
1,239,922
493,481
41,940
535,421
Total
656,796
794,755
1,429,659
481,894
3,363,104
7,978,008
1,193,921
1,208,125
319,259
10,699,313
Value
of
collaterals
384,285
552,326
1,292,925
379,788
2,609,324
5,268,379
969,808
1,442,660
289,484
7,970,331
31.12.2020
Loans measured
at amortised cost
Corporate
lending
Public Sector
SME’s
Greece
Other Countries
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
loans (POCI)
Total
Stage 1
Stage 2
Total
Current
4,817,542
499,678
534,088
64,228
5,915,536
42,045
725
42,770
35,618
321
35,939
1 - 30 days
128,361
36,880
202,547
13,469
381,257
746
746
31 - 60 days
12
5,217
29,097
3,920
38,246
61 - 90 days
3,215
27,495
2,473
33,183
146
146
91 - 180 days
41,779
1,926
43,705
181 - 360
days
23,565
2,041
25,606
> 360 days
488,180
114,082
602,262
333
5
338
Total
4,945,915
544,990
1,346,751
202,139
7,039,795
42,791
146
1,058
5
44,000
35,618
321
35,939
Value
of
collaterals
3,211,503
461,111
1,592,038
227,589
5,492,241
35,743
146
770
36,659
6,904
339
7,243
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
298
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation of loans by IFRS 9 Stage
The following tables present the movement of the loans measured at
amortised cost by IFRS 9 Stage for the
years 2021 and 2020:
31.12.2021
Retail
lending
Corporate
lending
and public
sector
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Balance 1.1.2021
7,423,916
4,429,897
10,510,445
5,065,580
27,429,838
13,071,935
1,791,032
5,053,800
1,057,126
20,973,893
20,495,851
6,220,929
15,564,245
6,122,706
48,403,731
Changes for the year
1.1 - 31.12.2021
Transfers to Stage
1
from Stage
2 or 3
1,688,905
(1,626,171)
(62,734)
-
930,339
(869,395)
(60,944)
-
2,619,244
(2,495,566)
(123,678)
-
Transfers to Stage
2
from Stage
1 or 3
(1,714,647)
2,420,775
(706,128)
-
(768,199)
873,547
(105,348)
-
(2,482,846)
3,294,322
(811,476)
-
Transfers to Stage
3
from Stage
1 or 2
(85,826)
(1,067,653)
1,153,479
-
(32,287)
(98,492)
130,779
-
(118,113)
(1,166,145)
1,284,258
-
New loans
originated
or purchased
954,622
13,251
967,873
4,850,843
11,961
4,862,804
5,805,465
25,212
5,830,677
Initial recognition of senior notes
5,560,531
5,560,531
5,560,531
5,560,531
Derecognition of
loans
(18,724)
(194,793)
(4,636,117)
(2,441,143)
(7,290,777)
(1,029,202)
(91,276)
(2,463,102)
(570,602)
(4,154,182)
(1,047,926)
(286,069)
(7,099,219)
(3,011,745)
(11,444,959)
Changes due to modifications
that did
not result in
derecognition
(1,225)
(1,183)
(11,302)
(1,400)
(15,110)
(1,477)
1,855
(2,963)
(70)
(2,655)
(2,702)
672
(14,265)
(1,470)
(17,765)
Write-offs
(233)
(4,146)
(268,454)
(86,177)
(359,010)
(1)
(105,063)
(33,434)
(138,498)
(234)
(4,146)
(373,517)
(119,611)
(497,508)
Repayments, foreign exchange and other
movements
(726,713)
(106,472)
145,225
72,956
(615,004)
(1,932,464)
(218,295)
(64,591)
16,674
(2,198,676)
(2,659,177)
(324,767)
80,634
89,630
(2,813,680)
Reclassification of
loans to “Assets held
for sale”
(157,849)
(325,727)
(3,829,942)
(1,252,305)
(5,565,823)
(110,080)
(30,671)
(608,136)
(117,548)
(866,435)
(267,929)
(356,398)
(4,438,078)
(1,369,853)
(6,432,258)
Balance 31.12.2021
7,362,226
3,524,527
2,294,472
1,370,762
14,551,987
20,539,938
1,358,305
1,774,432
364,107
24,036,782
27,902,164
4,882,832
4,068,904
1,734,869
38,588,769
Allowance for expected credit
losses
(12,089)
(163,844)
(625,968)
(246,473)
(1,048,374)
(35,914)
(20,485)
(910,946)
(147,587)
(1,114,932)
(48,003)
(184,329)
(1,536,914)
(394,060)
(2,163,306)
Balance of loans
31.12.2021
7,350,137
3,360,683
1,668,504
1,124,289
13,503,613
20,504,024
1,337,820
863,486
216,520
22,921,850
27,854,161
4,698,503
2,531,990
1,340,809
36,425,463
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
299
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Retail
lending
Corporate
lending
and public
sector
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Balance 1.1.2020
7,531,720
4,138,463
11,049,390
5,176,802
27,896,375
12,772,573
1,211,622
5,171,408
1,068,656
20,224,259
20,304,293
5,350,085
16,220,798
6,245,458
48,120,634
Changes for the year 1.1 -
31.12.2020
Transfers to Stage
1
from Stage
2 or 3
1,586,565
(1,563,902)
(22,663)
-
927,982
(834,684)
(93,298)
-
2,514,547
(2,398,586)
(115,961)
-
Transfers to Stage
2
from Stage
1 or 3
(1,771,306)
2,503,854
(732,548)
-
(1,784,289)
1,843,148
(58,859)
-
(3,555,595)
4,347,002
(791,407)
-
Transfers to Stage
3
from Stage
1 or 2
(48,734)
(532,301)
581,035
-
(142,502)
(286,010)
428,512
-
(191,236)
(818,311)
1,009,547
-
New loans originated or purchased
815,557
24,481
840,038
4,086,469
27,075
4,113,544
4,902,026
51,556
4,953,582
Derecognition of
loans
(2,515)
(3,712)
(19,282)
(3,044)
(28,553)
(227,069)
(20,100)
(49,973)
(1,342)
(298,484)
(229,584)
(23,812)
(69,255)
(4,386)
(327,037)
Changes due to modifications
that did
not result in
derecognition
(4,213)
(17,154)
(23,331)
(8,194)
(52,892)
(8,612)
(3,636)
(3,513)
54
(15,707)
(12,825)
(20,790)
(26,844)
(8,140)
(68,599)
Write-offs
(1,317)
(12,725)
(444,833)
(200,871)
(659,746)
-
(1,034)
(301,440)
(43,018)
(345,492)
(1,317)
(13,759)
(746,273)
(243,889)
(1,005,238)
Repayments, foreign exchange and other
movements
(681,841)
(82,626)
122,677
76,406
(565,384)
(2,552,617)
(118,274)
(39,037)
5,701
(2,704,227)
(3,234,458)
(200,900)
83,640
82,107
(3,269,611)
Reclassification of
loans to “Assets held
for sale”
-
-
-
Balance 31.12.2020
7,423,916
4,429,897
10,510,445
5,065,580
27,429,838
13,071,935
1,791,032
5,053,800
1,057,126
20,973,893
20,495,851
6,220,929
15,564,245
6,122,706
48,403,731
Allowance for expected credit
losses
(25,958)
(290,113)
(4,472,441)
(1,668,277)
(6,456,789)
(69,603)
(51,654)
(2,497,866)
(535,723)
(3,154,846)
(95,561)
(341,767)
(6,970,307)
(2,204,000)
(9,611,635)
Balance of loans
31.12.2020
7,397,958
4,139,784
6,038,004
3,397,303
20,973,049
13,002,332
1,739,378
2,555,934
521,403
17,819,047
20,400,290
5,879,162
8,593,938
3,918,706
38,792,096
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
300
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation of
allowance for expecte
d
credit losses
of loans by
IFRS 9 Stage
The following tables include the movement of allowance for expected credit losses of loans measured at amortized cost for the years 2021 and 2020:
31.12.2021
Allowance
for expected
credit losses
Retail
lending
Corporate
lending
and public
sector
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans (POCI)
Total
Stage
1
Stage
2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit
impaired
loans (POCI)
Total
Balance
1.1.2021
25,958
290,113
4,472,441
1,668,277
6,456,789
69,603
51,654
2,497,866
535,723
3,154,846
95,561
341,767
6,970,307
2,204,000
9,611,635
Changes for
the year
1.1 - 31.12.2021
Transfers to stage
1
from
stage
2 or 3
67,615
(61,531)
(6,084)
20,421
(18,995)
(1,426)
88,036
(80,526)
(7,510)
-
Transfers to stage
2
from
stage
1 or 3
(8,633)
132,558
(123,925)
(4,411)
7,709
(3,298)
(13,044)
140,267
(127,223)
-
Transfers to stage
3
from
stage
1 or 2
(1,058)
(85,077)
86,135
(180)
(3,408)
3,588
(1,238)
(88,485)
89,723
-
Net remeasurement
of expected credit
losses(a)
(56,814)
(15,834)
80,555
(5,042)
2,865
(16,339)
9,082
12,755
4,834
10,332
(73,153)
(6,752)
93,310
(208)
13,197
Impairment
losses on new loans
(b)
3,248
(3,327)
(79)
8,805
4,133
12,938
12,053
806
12,859
Impairment
losses on senior notes (c)
894
894
894
894
Change in risk parameters
(d)
(14,509)
(34,793)
888,101
244,794
1,083,593
(37,335)
(28,088)
256,291
100,434
291,302
(51,844)
(62,881)
1,144,392
345,228
1,374,895
Impairment
losses
on loans
(a) + (b) + (c)+(d)
(68,075)
(50,627)
968,656
236,425
1,086,379
(43,975)
(19,006)
269,046
109,401
315,466
(112,050)
(69,633)
1,237,702
345,826
1,401,845
Derecognition
of loans
(4,152)
(40,756)
(1,793,225)
(851,711)
(2,689,844)
(1,032)
(110)
(1,384,949)
(419,657)
(1,805,748)
(5,184)
(40,866)
(3,178,174)
(1,271,368)
(4,495,592)
Write offs
(233)
(4,146)
(268,454)
(86,177)
(359,010)
(1)
(105,063)
(33,434)
(138,498)
(234)
(4,146)
(373,517)
(119,611)
(497,508)
Foreign exchange and other movements
1,807
1,054
(18,792)
34,620
18,689
(1,446)
3,626
(20,524)
15,453
(2,891)
361
4,680
(39,316)
50,073
15,798
Change in the present value
of the
impairment
losses
50,373
18,430
68,803
51,500
15,768
67,268
101,873
34,198
136,071
Reclassification of allowance
for
expected credit
losses to "Assets
held for
sale"
(1,140)
(17,744)
(2,741,157)
(773,391)
(3,533,432)
(3,065)
(985)
(395,794)
(75,667)
(475,511)
(4,205)
(18,729)
(3,136,951)
(849,058)
(4,008,943)
Balance
31.12.2021
12,089
163,844
625,968
246,473
1,048,374
35,914
20,485
910,946
147,587
1,114,932
48,003
184,329
1,536,914
394,060
2,163,306
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
301
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
In the above table which presents the movement of allowance for expected credit losses for the year 2021, the amount of
€ 497 which is
related to impairment losses of loans classified to assets
held for sale in the
previous periods is not included in
“Impairment losses on
loans”.
During 2021, allowance for expected credit losses
have been affected by the
following movements:
•
Transfer to Stage 1 from Stage 2 and Stage 3 of loans amount to € 2,619,244 due to the improvement of the
creditworthiness compared to
their initial recognition
•
The impairment losses of loans classified in Stage
3 were affected by:
-
incorporation in the calculation of the allowance for expected credit losses of non performing portfolios for which the
Group contemplates recovery strategies that include a sales scenario affected
by a number of
variable factors and,
-
further deterioration of the portfolio
remaining in Stage 3.
Finally, loans written off in 2021 amounted to € 497,508, and led to an equal reduction of allowance for expected credit losses.
It is noted that loans that have been
written off within 2021 but can still
be legally claimed amounted
to € 78,886.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
302
ANNUAL FINANCIAL REPORT
The amount are presented in thousands
of Euro unless otherwise indicated
31.12.2020
Allowance
for expected
credit losses
Retail
lending
Corporate
lending
and public
sector
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit
impaired
loans (POCI)
Total
Balance
1.1.2020
30,210
296,431
4,202,904
1,630,785
6,160,330
88,061
40,958
2,519,718
523,923
3,172,660
118,271
337,389
6,722,622
2,154,708
9,332,990
Changes for
the year
1.1 - 31.12.2020
Transfers to stage
1
from
stage
2 or 3
82,948
(78,961)
(3,987)
-
20,869
(15,443)
(5,426)
-
103,817
(94,404)
(9,413)
-
Transfers to stage
2
from
stage
1 or 3
(16,260)
107,322
(91,062)
-
(22,843)
26,916
(4,073)
-
(39,103)
134,238
(95,135)
-
Transfers to stage
3
from
stage
1 or 2
(406)
(60,282)
60,688
-
(2,535)
(33,444)
35,979
-
(2,941)
(93,726)
96,667
-
Net remeasurement
of expected credit
losses(a)
(67,861)
57,414
32,488
3,462
25,503
(11,677)
9,027
47,836
(49)
45,137
(79,538)
66,441
80,324
3,413
70,640
Impairment losses on new
loans
(b)
9,196
(953)
8,243
21,053
(6,430)
14,623
30,249
(7,383)
22,866
Change in risk parameters (c)
(9,150)
(19,065)
731,423
228,828
932,036
(23,196)
25,125
145,382
40,835
188,146
(32,346)
6,060
876,805
269,663
1,120,182
Impairment losses on loans (a)
+ (b) +
(c)
(67,815)
38,349
763,911
231,337
965,782
(13,820)
34,152
193,218
34,356
247,906
(81,635)
72,501
957,129
265,693
1,213,688
Derecognition
of loans
(1)
(71)
(2,409)
(946)
(3,427)
(128)
(6,678)
(541)
(7,347)
(129)
(71)
(9,087)
(1,487)
(10,774)
Write offs
(1,317)
(12,725)
(444,833)
(200,871)
(659,746)
(1,034)
(301,440)
(43,018)
(345,492)
(1,317)
(13,759)
(746,273)
(243,889)
(1,005,238)
Foreign exchange and other movements
(1,401)
50
(15,128)
10,204
(6,275)
(1)
(451)
(3,129)
3,720
139
(1,402)
(401)
(18,257)
13,924
(6,136)
Change in the present value
of the
impairment
losses
2,357
(2,232)
125
69,697
17,283
86,980
72,054
15,051
87,105
Reclassification of allowance
for expected
credit losses to "Assets held
for sale"
-
-
-
Balance
31.12.2020
25,958
290,113
4,472,441
1,668,277
6,456,789
69,603
51,654
2,497,866
535,723
3,154,846
95,561
341,767
6,970,307
2,204,000
9,611,635
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
302
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
In the above table which presents the movement of allowance for expected credit losses for the year 2020, the amount of
€ 22,188 which is
related to impairment losses of loans classified to assets
held for sale in the
previous periods is not included
in “Impairment losses on
loans”.
During 2020, allowance for expected credit losses
have been affected by the
following movements:
•
Transfer to Stage 1 from Stage 2 and Stage 3 of loans amount to € 2,514,547 due to the improvement of the
creditworthiness compared to
their initial recognition
•
The impairment losses of loans classified in Stage
3 were affected by:
-
incorporation in the calculation of the allowance for expected credit losses of non performing portfolios for which the
Group contemplates recovery strategies that include a sales scenario affected
by a number of
variable factors and,
-
further deterioration of the portfolio
remaining in Stage 3
Finally, loans written off in 2020 amounted to € 1,005,238, and led to an equal reduction of allowance for expected credit
losses. It is noted that loans
that have been written off
within 2020 but can still be legally
claimed amounted to € 911,275.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
303
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation of letters of
guarantee, letters of credit
and undrawn loan
commitments by IFRS 9
Stage
The movement for the years 2021
and 2020 of letters of guarantee, letters
of credit and undrawn loan commitments
is
presented in the
tables that follow:
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated
credit
impaired (POCI)
Total
Balance 1.1.2021
7,149,624
479,797
336,222
4,459
7,970,102
Changes for
the year
1.1.-
31.12.2021
Transfers to
Stage 1
from Stage
2 or
3
245,121
(217,921)
(27,200)
-
Transfers to
Stage 2
from Stage
1 or
3
(329,056)
337,272
(8,216)
-
Transfers to
Stage 3
from Stage
1 or
2
(7,759)
(13,800)
21,559
-
New letters
of guarantee,
letters of
credit and undrawn
loan
commitments
1,558,303
1,558,303
Foreign exchange,
repayments and
other movements
(1,777,863)
(158,471)
2,031
(3,379)
(1,937,682)
Balance 31.12.2021
6,838,370
426,877
324,396
1,080
7,590,723
Allowance for expected
credit losses
(3,248)
(3,215)
(36,220)
(1)
(42,684)
Balance 31.12.2021
6,835,122
423,662
288,176
1,079
7,548,039
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated
credit
impaired (POCI)
Total
Balance 1.1.2020
6,995,024
127,038
346,058
1,055
7,469,175
Changes for
the year
1.1.-
31.12.2020
Transfers to
Stage 1
from Stage
2 or
3
370,158
(353,771)
(16,387)
-
Transfers to
Stage 2
from Stage
1 or
3
(727,618)
736,286
(8,668)
-
Transfers to
Stage 3
from Stage
1 or
2
(8,642)
(1,808)
10,450
-
New letters
of guarantee,
letters of
credit and undrawn
loan
commitments
1,148,437
1,148,437
Foreign exchange,
repayments and
other movements
(627,735)
(27,948)
4,769
3,404
(647,510)
Balance 31.12.2020
7,149,624
479,797
336,222
4,459
7,970,102
Allowance for expected
credit losses
(7,618)
(9,339)
(74,522)
(3)
(91,482)
Balance 31.12.2020
7,142,006
470,458
261,700
4,456
7,878,620
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
304
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation of allowance for expected credit losses of letters
of guarantee, letters of credit and undrawn loan
commitments by IFRS 9 Stage
The Group has recognized allowance for
expected credit losses for
the undrawn loan
commitments, letters of credit and
letters
of guarantee, the reconciliation of which is presented in the following tables for the years 2021 and
2020:
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Balance 1.1.2021
7,618
9,339
74,522
3
91,482
Changes for the
year 1.1-31.12.2021
Transfers to stage 1
(from stage 2 or
3)
2,721
(1,564)
(1,157)
-
Transfers to stage 2
(from stage 1 or
3)
(758)
1,108
(350)
-
Transfers to stage 3
(from stage 1 or
2)
(89)
(86)
175
-
Net remeasurement
of expected
credit losses(a)
(3,074)
2,083
1,204
213
Impairment losses on new exposures (b)
3,137
3,137
Change in risk parameters
(c)
(6,043)
(7,937)
(37,957)
(1,149)
(53,086)
Impairment
losses (a)+(b)+(c)
(5,980)
(5,854)
(36,753)
(1,149)
(49,736)
Foreign exchange
and other movements
(264)
272
(217)
1,147
938
Balance
31.12.2021
3,248
3,215
36,220
1
42,684
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Balance 1.1.2020
16,026
2,289
75,118
7
93,440
Changes for the
year 1.1-31.12.2020
Transfers to stage 1
(from stage 2 or
3)
5,327
(4,031)
(1,296)
-
Transfers to stage 2
(from stage 1 or
3)
(2,702)
2,779
(77)
-
Transfers to stage 3
(from stage 1 or
2)
(112)
(220)
332
-
Net remeasurement
of expected
credit losses(a)
(4,294)
4,986
884
1,576
Impairment losses on new exposures (b)
3,746
3,746
Change in risk parameters
(c)
(9,772)
2,956
(62)
815
(6,063)
Impairment
losses (a)+(b)+(c)
(10,320)
7,942
822
815
(741)
Foreign exchange
and other movements
(601)
580
(377)
(819)
(1,217)
Balance
31.12.2020
7,618
9,339
74,522
3
91,482
“Foreign exchange and other movements” includes a
provision for a letter
of guarantee given as
collateral to cover credit
risk of
subsidiary that was forfeited and transferred to the other loan
and advances to customers.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
305
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Advances to
customers
Advances to customers derive mainly from Group’s commercial activity other than lending,
including mainly receivables from
letters of guarantee, receivables from credit cards and other
receivables from banking activities. The calculation of allowance
for expected
credit losses
for the
receivables
that are
exposed
to credit
risk, is
being performed
using the
simplified
approach,
taking into account their lifetime (without being allocated into stages), as
provided by IFRS 9.
The expected
credit
loss rate
applied
by the
Group
was determined
based
on the
assessment
of expected
credit losses
taking
into account the time that the aforementioned receivables, which are mainly short-term, remain due.
Advances to customers
as at 31.12.2021 amounted
to € 285,242 (31.12.2020: € 314,251), while
allowance for expected
credit losses amounted
to €
47,987 (31.12.2020: €
47,227).
The following tables present the reconciliation of advances to customers for the years 2021 and 2020:
Balance 1.1.2021
314,251
Repayments, foreign
exchange and other
movements
7,554
Reclassification to ‘Assets held
for sale’
(36,563)
Balance
31.12.2021
285,242
Allowance for
expected credit
losses
(49,987)
Balance of
advances to
customers 31.12.2021
235,255
Balance 1.1.2020
212,500
Repayments, foreign
exchange and other
movements
101,751
Balance
31.12.2020
314,251
Allowance for
expected credit
losses
(47,227)
Balance of
advances to
customers 31.12.2020
267,024
The reconciliation of the allowance for expected credit losses for the years 2021 and 2020 presented in the following tables
below:
Balance 1.1.2021
47,227
Impairment losses on advances to customers
7,503
Amounts used in the year for depreciation
(2,614)
Foreign exchange, write-offs and other movements
(2,129)
Balance
31.12.2021
49,987
Balance 1.1.2020
41,011
Impairment losses on advances to customers
3,385
Foreign exchange, write-offs and other movements
2,831
Balance
31.12.2020
47,227
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
306
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
PLEDGED
COLLATERALS
Collaterals are received in order to mitigate credit risk that may arise from the borrower’s inability to fulfill his contractual
obligations.
Collaterals include all kind of
assets and rights which
are made available to
the Group either by
its borrowers or by
third parties,
in order
to be
used as complementary
liquidation sources of
the relevant receivables.
The breakdown
of collaterals
and guarantees
received
to reduce
the credit
risk exposure
is summarized
below:
Breakdown of collaterals
and guarantees
31.12.2021
Value of
collateral
Loans measured at fair value through profit or
loss (FVPL)
Loans measured at amortised cost
Real estate
collateral
Financial
collateral
Other
collateral
Total value
of collateral
Value of
Guarantees
Real estate
collateral
Financial
collateral
Other
collateral
Total
value of
collateral
Value of
Guarantees
Retail
lending
9,635,949
237,495
718,859
10,592,303
1,380,508
Corporate
lending
69,300
82,695
151,995
4,985,239
779,901
12,125,098
17,890,238
3,075,888
Public
sector
1,575
45
34,691
36,311
475
Total
69,300
-
82,695
151,995
-
14,622,763
1,017,441
12,878,648
28,518,852
4,456,871
31.12.2020
Value of collateral
Loans measured at
fair value
through profit or
loss (FVPL)
Loans measured
at amortised
cost
Real estate
collateral
Financial
collateral
Other
collateral
Total value
of
collateral
Value of
Guarantees
Real estate
collateral
Financial
collateral
Other
collateral
Total value
of
collateral
Value of
Guarantees
Retail
lending
16,534,362
244,269
893,949
17,672,580
3,670,168
Corporate
lending
80,620
1,850
170,378
252,848
18,134
6,471,044
981,485
6,010,043
13,462,572
4,283,157
Public
sector
508
5,894
37,500
43,902
29,414
Total
80,620
1,850
170,378
252,848
18,134
23,005,914
1,231,648
6,941,492
31,179,054
7,982,739
There are no cases of
transfer or reassignment of collaterals received from borrowers for
which an obligation to return
them
has been recognized.
Loan-to-value ratio
(LTV)
The loan-to-value ratio of loans reflects the relationship between the loan and the value of the property held as collateral.
The table
below presents
the mortgage
loan portfolio by
LTV ratio.
Loans measured
at amortised
cost
31.12.2021
31.12.2020
< 50%
1.421.921
1,575,675
50% - 70%
1.686.796
1,976,380
71% - 80%
1.050.729
1,276,882
81% - 90%
1.083.831
1,320,823
91% - 100%
1.622.902
3,041,642
101% - 120%
885.280
1,991,097
121% - 150%
661.487
1,707,335
> 150%
1.090.547
4,117,961
Total exposure
9.503.493
17,007,795
Simple average of LTV (%)
72%
83%
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
307
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
REPOSSESSED
ASSETS
Policy of
disposal of
repossessed assets
Within 2018 the Group created a uniform management
strategy for repossessed assets by setting
up two new Committees
and assigning to a group company the management of all the repossessed properties of the Bank and its subsidiaries. When
the Group acquires the legal title of properties in the context of the management of non-performing exposures (NPEs), the
respective company is in charge of monitoring the repossession procedures (asset
on - boarding), determining the best
property management strategy and assigning to the appropriate channels,
within or outside the Group, the management of the
properties.
Depending on
the defined
strategy, the
property is classified
for accounting
purposes, in the
appropriate category.
The
classification process is repeated periodically so that the
classification of each property is updated
based on its current
status.
Finally, there is continuous supervision and co-ordination of collaborating asset
management channels on the implementation
of the defined strategies as well as of the asset commercialization in accordance with the Group’s policy and monitoring of
their performance
through appropriate
Key Performance
Indicators (KPIs).
Repossessed
assets
31.12.2021
Balance
Disposals during the
year
Value of
collaterals
repossessed
31.12.2021
Of which in
2021
Accumulated
impairment
31.12.2021
Of which in
2021
Net carrying
amount of
collaterals
repossessed
31.12.2021
Net disposal
value
Net gain/ (loss)
on disposal
Real estate collaterals
1,095,404
89,107
249,414
84,765
845,990
117,680
1,274
Other collaterals
6,025
6,025
31.12.2020
Balance
Disposals during the
year
Value of
collaterals
repossessed
31.12.2020
Of which in
2020
Accumulated
impairment
31.12.2020
Of which in
2020
Net carrying
amount of
collaterals
repossessed
31.12.2020
Net disposal
value
Net gain/ (loss)
on disposal
Real estate collaterals
1,178,328
188,205
238,727
32,711
939,601
55,505
5,433
Other collaterals
7,140
7,140
90
The net carrying amount of the collaterals
repossessed as of 31.12.2021, includes
an amount of € 124,208 (31.12.2020:
€ 46,542) that relates to properties that were classified as “Assets held for
sale”.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
308
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Loans and allowance
for expected
credit losses
by IFRS 9
Stage, industry
and geographical
region
31.12.2021
Greece
Loans
measured
at
fair
value
through
profit or loss
(FVPL)
Loans measured at amortised cost
Net amount
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Carrying amount
(before allowance
for expected
credit losses)
Allowance for
expected credit
losses
Net carrying
amount
Retail
lending
-
5,521,825
3,182,246
2,149,710
1,323,701
12,177,482
979,640
11,197,842
Mortgage
3,718,873
1,898,425
1,103,449
772,961
7,493,708
313,473
7,180,235
Consumer
384,758
404,338
393,337
286,881
1,469,314
288,248
1,181,066
Credit cards
740,348
102,832
63,286
8,522
914,988
51,658
863,330
Small Businesses
677,846
776,651
589,638
255,337
2,299,472
326,261
1,973,211
Corporate
lending
91,254
11,434,478
581,434
1,634,831
304,335
13,955,078
984,099
12,970,979
Financial institutions and
other financial services
43,611
96
1,040
44,747
170
44,577
Manufacturing
16,412
4,532,786
146,576
423,090
82,107
5,184,559
280,097
4,904,462
Construction and
real
estate
54,061
1,313,278
82,422
236,716
27,516
1,659,932
159,746
1,500,186
Wholesale and
retail
trade
1,869,450
135,359
664,985
63,964
2,733,758
376,955
2,356,803
Transportation
639,142
1,797
54,724
6,228
701,891
34,156
667,735
Shipping
20,781
67,595
18,456
3,431
22,966
112,448
571
111,877
Hotels-Tourism
1,970,069
136,623
83,204
7,563
2,197,459
18,789
2,178,670
Services and other sectors
998,547
60,201
168,585
92,951
1,320,284
113,615
1,206,669
Public sector
-
33,372
385
1,107
-
34,864
554
34,310
Total
91,254
16,989,675
3,764,065
3,785,648
1,628,036
26,167,424
1,964,293
24,203,131
31.12.2021
Other
Countries
Loans
measured
at
fair
value
through
profit or loss
(FVPL)
Loans measured at amortised cost
Net amount
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Carrying amount
(before allowance
for expected
credit losses)
Allowance for
expected credit
losses
Net carrying
amount
Retail
lending
-
1,840,401
342,281
144,762
47,061
2,374,505
68,734
2,305,771
Mortgage
1,609,661
273,314
91,816
34,994
2,009,785
27,590
1,982,195
Consumer
191,519
60,482
47,720
10,441
310,162
37,878
272,284
Credit cards
24,187
3,773
2,119
30,079
2,315
27,764
Small Businesses
15,034
4,712
3,107
1,626
24,479
951
23,528
Corporate
lending
68,442
9,069,918
776,260
138,494
59,772
10,044,444
130,255
9,914,189
Financial institutions and
other financial services
2,561
5,695,201
35,270
5,730,471
1,827
5,728,644
Manufacturing
173,646
45,292
2,842
3
221,783
4,366
217,417
Construction and
real
estate
3,966
598,356
382,036
34,058
19,717
1,034,167
34,420
999,747
Wholesale and
retail
trade
210,006
51,401
34,824
296,231
8,916
287,315
Transportation
104,817
49,639
5,323
159,779
3,783
155,996
Shipping
61,915
2,141,170
111,984
56,385
2,017
2,311,556
26,419
2,285,137
Hotels-Tourism
35,109
64,365
129
23,428
123,031
15,577
107,454
Services and other sectors
111,613
36,273
4,933
14,607
167,426
34,947
132,479
Public sector
-
2,170
226
-
-
2,396
24
2,372
Total
68,442
10,912,489
1,118,767
283,256
106,833
12,421,345
199,013
12,222,332
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
309
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Greece
Loans
measured
at
fair
value
through
profit or loss
(FVPL)
Loans measured at amortised cost
Net amount
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Carrying amount
(before allowance
for expected
credit losses)
Allowance for
expected credit
losses
Net carrying
amount
Retail
lending
-
5,704,489
3,998,989
9,107,678
4,805,983
23,617,139
5,537,504
18,079,635
Mortgage
3,831,344
2,574,174
4,637,625
2,736,186
13,779,329
2,068,240
11,711,089
Consumer
494,909
428,935
1,628,399
1,152,762
3,705,005
1,592,970
2,112,035
Credit cards
731,278
149,663
221,068
43,633
1,145,642
209,827
935,815
Small Businesses
646,958
846,217
2,620,586
873,402
4,987,163
1,666,467
3,320,696
Corporate
lending
126,298
10,020,564
1,032,828
4,148,690
764,436
15,966,518
2,496,304
13,470,214
Financial institutions and
other financial services
77,073
1,826
4,360
4,920
88,179
7,862
80,317
Manufacturing
16,520
3,784,496
250,232
1,178,988
232,450
5,446,166
757,326
4,688,840
Construction and
real
estate
53,934
1,152,093
202,992
612,179
95,612
2,062,876
362,681
1,700,195
Wholesale and
retail
trade
4,826
1,997,244
131,854
1,545,271
209,182
3,883,551
924,636
2,958,915
Transportation
583,675
68,420
73,000
8,742
733,837
48,343
685,494
Shipping
50,485
54,087
21,789
13,561
24,751
114,188
4,039
110,149
Hotels-Tourism
1,422,030
256,049
335,837
35,264
2,049,180
120,155
1,929,025
Services and other sectors
533
949,866
99,666
385,494
153,515
1,588,541
271,262
1,317,279
Public sector
-
43,044
146
1,804
59
45,053
1,053
44,000
Total
126,298
15,768,097
5,031,963
13,258,172
5,570,478
39,628,710
8,034,861
31,593,849
31.12.2020
Other
Countries
Loans
measured
at
fair
value
through
profit or loss
(FVPL)
Loans measured at amortised cost
Net amount
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Carrying amount
(before allowance
for expected
credit losses)
Allowance for
expected credit
losses
Net carrying
amount
Retail
lending
-
1,719,427
430,908
1,402,767
259,597
3,812,699
919,285
2,893,414
Mortgage
1,474,946
355,423
1,191,777
206,320
3,228,466
760,016
2,468,450
Consumer
207,728
63,795
165,911
44,106
481,540
127,400
354,140
Credit cards
23,162
4,926
9,056
20
37,164
8,748
28,416
Small Businesses
13,591
6,764
36,023
9,151
65,529
23,121
42,408
Corporate
lending
154,584
2,972,497
757,719
903,306
292,631
4,926,153
657,259
4,268,894
Financial institutions and
other financial services
70,613
5,657
13,202
2,094
91,566
3,877
87,689
Manufacturing
154,392
33,675
30,604
1,656
220,327
17,420
202,907
Construction and
real
estate
19,111
662,921
362,713
603,359
211,881
1,840,874
430,913
1,409,961
Wholesale and
retail
trade
232,183
54,501
96,157
16,594
399,435
58,623
340,812
Transportation
29,250
138,110
47,089
25,132
149
210,480
21,617
188,863
Shipping
106,223
1,577,979
136,500
68,644
8,594
1,791,717
42,226
1,749,491
Hotels-Tourism
26,035
69,923
21,911
28,831
146,700
23,207
123,493
Services and other sectors
110,264
47,661
44,297
22,832
225,054
59,376
165,678
Public sector
-
35,830
339
-
-
36,169
230
35,939
Total
154,584
4,727,754
1,188,966
2,306,073
552,228
8,775,021
1,576,774
7,198,247
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
310
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Interest income
from loans
by loan
category and
IFRS 9
stage
The following tables present the interest income from loans for
the year 2021 and 2020 by
IFRS 9 Stage.
For loans classified in Stages
1 and 2,
interest income is calculated by
applying the effective interest rate to
the gross carrying
amount of the
loan.
For loans classified in Stage 3,
interest income is calculated by applying the effective interest rate
on the amortised cost of the
loan (i.e.
gross carrying
amount after
allowance
for expected
credit losses),
while for
Purchased
or Originated
Credit Impaired
loans (POCI) interest income is calculated by applying the
adjusted effective interest rate to the
amortised cost of the loan.
31.12.2021
Loans measured
at amortised
cost
Loans
measured
at
fair
value
through
profit or loss (FVPL)
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired
(POCI)
Total interest
income
Retail lending
285,036
139,470
179,235
94,820
698,562
27
Corporate lending
474,024
57,639
70,552
31,593
633,808
8,376
Public sector
780
18
38
4
841
-
Total interest income
759,841
197,128
249,825
126,417
1,333,211
8,403
31.12.2020
Loans measured
at amortised
cost
Loans
measured
at
fair
value
through
profit or loss (FVPL)
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired
(POCI)
Total interest
income
Retail lending
296,704
152,969
296,165
131,227
877,065
26
Corporate lending
491,887
52,627
118,789
31,948
695,251
12,994
Public sector
1,258
15
61
78
1,412
-
Total interest income
789,849
205,611
415,015
163,253
1,573,728
13,020
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
311
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
FORBORNE
LOANS
The restructuring of loans is
performed through renegotiation of the original
contractual terms and include changes such
as:
•
Extension of the credit duration
•
Write-off of a portion of borrower’s amounts due
•
Grace period
for the
principal
and/or interest
•
Decrease
in interest
rates
As a rule
forbearance measures which are extended include a
combination of the above amendments to
the contractual terms.
In addition, in the context of renegotiations of the terms of loans granted, the Group has participated in agreements for the
exchange of debt with borrowers’ equity shares. As at 31.12.2021, the Group included in the portfolio measured at fair value
through other comprehensive income shares with a fair value of € 4,650 (31.12.2020: € 6,233) which were acquired from
respective transactions.
Analysis of forborne
loans by type
of forbearance measure
31.12.2021
Loans measured at fair
value through profit
or loss
(FVPL)
Loans measured at
amortised cost
Total
Interest only payment
99,501
99,501
Reduced payments
scheme
1,027
662,201
663,228
Grace period
34,385
347,400
381,785
Loan term extension
1,333,557
1,333,557
Arrears
capitalization
20,781
1,866,493
1,887,274
Partial write-off in borrower’s
obligations
358,405
358,405
Debt for equity transactions
16
16
Other
53,100
53,100
Total net carrying amount
56,193
4,720,673
4,776,866
31.12.2020
Loans measured at fair
value through profit
or loss
(FVPL)
Loans measured at
amortised cost
Total
Interest only payment
158,199
158,199
Reduced payments
scheme
5,224
2,733,491
2,738,715
Grace period
483
431,482
431,965
Loan term extension
57,676
4,272,984
4,330,660
Arrears
capitalization
48,696
1,917,748
1,966,444
Partial write-off in borrower’s
obligations
1,789
1,221,315
1,223,104
Debt for equity transactions
15,285
15,285
Other
4,836
708,916
713,752
Total net carrying amount
118,704
11,459,420
11,578,124
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
312
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Forborne loans
by product
line
31.12.2021
Loans measured at fair
value through profit
or loss
(FVPL)
Loans measured at
amortised cost
Total
Retail lending
-
3,460,915
3,460,915
Mortgage
2,316,042
2,316,042
Consumer
472,143
472,143
Credit cards
13,154
13,154
Small Businesses
659,576
659,576
Corporate lending
56,193
1,258,969
1,315,162
Large corporate
56,193
790,321
846,514
SME's
468,648
468,648
Public sector
-
789
789
Greece
789
789
Total net carrying amount
56,193
4,720,673
4,776,866
31.12.2020
Loans measured at fair
value through profit
or loss
(FVPL)
Loans measured at
amortised cost
Total
Retail lending
-
9,059,672
9,059,672
Mortgage
6,103,677
6,103,677
Consumer
1,326,308
1,326,308
Credit cards
81,351
81,351
Small Businesses
1,548,336
1,548,336
Corporate lending
118,704
2,399,019
2,517,723
Large corporate
113,639
1,469,330
1,582,969
SME's
5,065
929,689
934,754
Public sector
-
729
729
Greece
729
729
Total net carrying amount
118,704
11,459,420
11,578,124
Forborne loans
by geographical
region
31.12.2021
Loans measured at fair
value through profit
or loss
(FVPL)
Loans measured at
amortised cost
Total
Greece
20,781
4,121,539
4,142,320
Other Countries
35,412
599,134
634,546
Total net carrying amount
56,193
4,720,673
4,776,866
31.12.2020
Loans measured at fair
value through profit
or loss
(FVPL)
Loans measured at
amortised cost
Total
Greece
55,550
10,255,774
10,311,324
Other Countries
63,154
1,203,646
1,266,800
Total net carrying amount
118,704
11,459,420
11,578,124
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
313
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Forborne
loans
according
to
their
credit
quality
31.12.2021
Total amount
of
Loans
Total amount
of
Forborne Loans
Percentage of
Forborne Loans (%)
Loans measured
at fair value
through profit or
loss (FVPL)
Past due
45,311
45,312
100
Not past due
114,385
10,881
10
Total net carrying amount
159,696
56,193
35
Value of collaterals
151,995
56,192
37
Loans measured
at amortised cost
Stage 1
27,902,164
Stage 2
4,882,832
2,146,551
44
Stage 3
4,068,904
2,713,770
67
Purchased or originated
credit impaired (POCI)
1,734,869
1,092,582
63
Carrying amount
(before allowance
for expected
credit losses)
38,588,769
5,952,903
15
Stage 1 - Allowance for expected credit losses
48,003
Stage 2 - Allowance for expected credit losses
184,329
111,758
61
Stage 3 - Allowance for expected credit losses
1,536,914
862,579
56
Allowance for
expected credit
losses for
purchased or
originated credit
impaired loans (POCI)
394,060
257,893
65
Total net carrying amount
36,425,463
4,720,673
13
Value of collaterals
28.518.852
4.163.726
15
31.12.2020
Total amount
of
Loans
Total amount
of
Forborne Loans
Percentage of
Forborne Loans (%)
Loans measured
at fair value
through profit or
loss (FVPL)
Past due
80,480
70,994
88
Not past due
200,402
47,710
24
Total net carrying amount
280,882
118,704
42
Value of collaterals
252,848
111,137
44
Loans measured
at amortised cost
Stage 1
20,495,851
Stage 2
6,220,929
3,322,367
53
Stage 3
15,564,245
9,412,903
60
Purchased or originated
credit impaired (POCI)
6,122,706
3,827,887
63
Carrying amount
(before allowance
for expected
credit losses)
48,403,731
16,563,157
34
Stage 1 - Allowance for expected credit losses
95,561
Stage 2 - Allowance for expected credit losses
341,767
225,871
66
Stage 3 - Allowance for expected credit losses
6,970,307
3,695,975
53
Allowance for
expected credit
losses for
purchased or
originated credit
impaired loans (POCI)
2,204,000
1,181,891
54
Total net carrying amount
38,792,096
11,459,420
30
Value of collaterals
31,179,054
10,305,395
33
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
314
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Reconciliation of the net value of
forborne loans
31.12.2021
Loans
measured
at
fair
value
through
profit or loss (FVPL)
Loans measured at
amortised cost
Total
Balance 1.1.2021
118,704
11,459,420
11,578,123
Changes for the
year 1.1-31.12.2021
Forbearance measures
during the
year
982,404
982,404
Interest income
4,247
310,423
314,670
Repayment of loans
(partial or total)
(3,772)
(417,634)
(421,406)
Loans that exited forbearance
status during the year
(1,444,731)
(1,444,731)
Impairment losses
(746,677)
(746,677)
Disposal of forborne loans
(341)
(3,298,874)
(3,299,215)
Remeasurment
of fair value
(53,886)
(53,886)
Reclassification of
loans to "Assets
held for sale"
(437)
(2,064,019)
(2,064,456)
Other movements
(8,321)
(59,640)
(67,960)
Balance
31.12.2021
56,193
4,720,673
4,776,866
31.12.2020
Loans
measured
at
fair
value
through
profit or loss (FVPL)
Loans measured at
amortised cost
Total
Balance 1.1.2020
123,355
12,465,640
12,588,995
Changes for the
year 1.1-31.12.2020
Forbearance measures
during the
year
11,052
771,090
782,142
Interest income
5,955
421,924
427,879
Repayment of loans
(partial or total)
(13,569)
(545,447)
(559,016)
Loans that exited forbearance
status during the year
(923,362)
(923,362)
Impairment losses
(726,922)
(726,922)
Disposal of forborne loans
-
Remeasurment
of fair value
(9,106)
(9,106)
Reclassification of
loans to "Assets
held for sale"
-
Other movements
1,017
(3,503)
(2,486)
Balance
31.12.2020
118,704
11,459,420
11,578,124
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
315
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
ANALYSIS
PER
RATING
Other financial instruments subject to credit risk
The following table presents the other financial instruments measured at amortised cost and at fair value through other
comprehensive income as at 31.12.2021 and 31.12.2020 by IFRS 9 Stage
and credit rating:
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Balances with central Banks
AAA
-
AA+ to AA-
-
A+ to
A-
-
BBB+ to BBB-
1,367,642
1,367,642
Lower than BBB-
10,036,066
10,036,066
Unrated
Carrying amount (before allowance
for expected credit losses)
11,403,708
-
-
-
11,403,708
Allowance for expected credit losses
Net carrying
amount
11,403,708
-
-
-
11,403,708
Value of
collaterals
-
Due from Banks
AAA
-
AA+ to AA-
859,338
859,338
A+ to
A-
767,920
767,920
BBB+ to BBB-
848,650
848,650
Lower than BBB-
388,367
388,367
Unrated
99,987
69,961
169,948
Carrying amount (before allowance
for expected credit losses)
2,964,262
-
69,961
-
3,034,223
Allowance for expected credit losses
(206)
(69,961)
(70,167)
Net carrying
amount
2,964,056
-
-
-
2,964,056
Value of
collaterals
-
Securities measured
at fair value through
other comprehensive
income
AAA
77,299
77,299
AA+ to AA-
465,441
465,441
A+ to
A-
490,387
490,387
BBB+ to BBB-
1,717,875
1,717,875
Lower than BBB-
3,620,924
2,141
3,623,065
Unrated
210,423
13,302
223,725
Carrying amount (before allowance
for expected credit losses)
6,582,349
15,443
-
-
6,597,792
Allowance for expected credit losses
(20,406)
(2,099)
(22,505)
Net carrying
amount
6,561,943
13,344
-
-
6,575,287
Value of
collaterals
-
Securities measured at amortized
cost
AAA
17,680
17,680
AA+ to AA-
30,618
30,618
A+ to
A-
51,740
51,740
BBB+ to BBB-
386,597
386,597
Lower than BBB-
3,277,954
3,277,954
Unrated
3,530
3,530
Carrying amount (before allowance
for expected credit losses)
3,768,119
-
-
-
3,768,119
Allowance for expected credit losses
(15,371)
(15,371)
Net carrying
amount
3,752,748
-
-
-
3,752,748
Value of
collaterals
-
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
316
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Balances with central Banks
AAA
-
AA+ to AA-
-
A+ to
A-
-
BBB+ to BBB-
602,348
602,348
Lower than BBB-
6,474,752
6,474,752
Unrated
-
Carrying amount (before allowanc
e
for expected credit losses)
7,077,100
-
-
-
7,077,100
Allowance for expected credit losses
-
Net carrying
amount
7,077,100
-
-
-
7,077,100
Value of
collaterals
-
Due from Banks
AAA
-
AA+ to AA-
788,005
788,005
A+ to
A-
757,481
757,481
BBB+ to BBB-
1,075,296
1,075,296
Lower than BBB-
17,049
17,049
Unrated
103,843
69,961
173,804
Carrying amount (before allowance
for expected credit losses)
2,741,674
-
69,961
-
2,811,635
Allowance for expected credit losses
(127)
(69,961)
(70,088)
Net carrying
amount
2,741,547
-
-
-
2,741,547
Value of
collaterals
-
Securities measured
at fair value through
other comprehensive
income
AAA
188,255
188,255
AA+ to AA-
619,567
619,567
A+ to
A-
477,941
477,941
BBB+ to BBB-
1,741,263
1,741,263
Lower than BBB-
3,333,644
2,104
3,335,748
Unrated
152,408
31,540
183,948
Carrying amount (before allowance
for expected credit losses)
6,513,078
33,644
-
-
6,546,722
Allowance for expected credit losses
(15,042)
(869)
(15,911)
Net carrying
amount
6,498,036
32,775
-
-
6,530,811
Value of
collaterals
-
Securities measured at amortized
cost
AAA
-
AA+ to AA-
30,700
30,700
A+ to
A-
5,622
5,622
BBB+ to BBB-
373,577
373,577
Lower than BBB-
2,930,752
2,930,752
Unrated
4,050
1,363
5,413
Carrying amount (before allowance
for expected credit losses)
3,344,701
1,363
-
-
3,346,064
Allowance for expected credit losses
(10,324)
(7)
(10,331)
Net carrying
amount
3,334,377
1,356
-
-
3,335,733
Value of
collaterals
-
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
317
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Trading portfolio - Derivative financial assets - Securities measured at fair value through profit or
loss
The following table presents the other financial
instruments measured through profit or loss per
credit rating.
2021
2020
Trading securities
AAA
AA+ to AA-
A+ to A-
BBB+ to BBB-
Lower than BBB-
3,819
29,154
Unrated
Net carrying
amount
3,819
29,154
Value of collaterals
Derivative financial
assets
AAA
AA+ to AA-
52,736
106,467
A+ to A-
109,695
107,482
BBB+ to BBB-
6,827
16,862
Lower than BBB-
770,939
1,033,609
Unrated
1,412
2,662
Net carrying
amount
941,609
1,267,082.00
Value of collaterals
Securities measured
at fair
value through
profit or
loss
AAA
AA+ to AA-
A+ to A-
BBB+ to BBB-
2,171
835
Lower than BBB-
Unrated
37,170
12,408
Net carrying
amount
39,341
13,243
Value of collaterals
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
318
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
ANALYSIS
OF
FINANCIAL
ASSETS
PER
IFRS
9
STAGE
Due from Banks
The following table presents the classification of Due from Banks per
IFRS 9 Stage as of 31.12.2021 and
31.12.2020.
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Balance 31.12.2021
Carrying amount (before allowance for expected credit losses)
2,964,262
69,961
3,034,223
Allowance for expected credit losses
(206)
(69,961)
(70,167)
Net carrying
amount
2,964,056
-
-
-
2,964,056
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Balance 31.12.2020
Carrying amount (before allowance for expected credit losses)
2,741,674
69,961
2,811,635
Allowance for expected credit losses
(127)
(69,961)
(70,088)
Net carrying
amount
2,741,547
-
-
-
2,741,547
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
319
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Investment securities
i.
Investment securities measured at
fair value through
other comprehensive income
The following table presents the
classification of securities per IFRS
9 Stage and issuer’s
category as of 31.12.2020
and
31.12.2019:
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Greek Government
Bonds
Allowance for expected credit losses
(6,871)
(6,871)
Fair value
2,848,461
2,848,461
Other Government Bonds
Allowance for expected credit losses
(457)
(457)
Fair value
1,753,396
1,753,396
Other securities
Allowance for expected credit losses
(13,078)
(2,099)
(15,177)
Fair value
1,960,086
13,344
1,973,430
Total
securities
measured at
fair value
through other
comprehensive income
Allowance for expected credit losses
(20,406)
(2,099)
-
-
(22,505)
Fair value
6,561,943
13,344
-
-
6,575,287
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Greek Government
Bonds
Allowance for expected credit losses
(6,312)
(6,312)
Fair value
2,771,014
2,771,014
Other Government Bonds
Allowance for expected credit losses
(856)
(856)
Fair value
1,848,207
1,848,207
Other securities
Allowance for expected credit losses
(7,874)
(869)
(8,743)
Fair value
1,878,814
32,776
1,911,590
Total
securities
measured at
fair value
through other
comprehensive income
Allowance for expected credit losses
(15,042)
(869)
-
-
(15,911)
Fair value
6,498,035
32,776
-
-
6,530,811
Except from the above securities, in the portfolio of investment securities measured at fair value through other comprehensiv
e
income, shares measured at fair value of €
58,833 (31.12.2020: € €
46,887) are also included.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
320
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
ii.
Investment securities measured at
amortized cost
The following table presents the
classification of securities per IFRS
9 Stage and issuer’s
category as of 31.12.2020
and
31.12.2019:
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Greek Government
bonds
Carrying amount (before allowance for expected credit losses)
3,098,703
3,098,703
Allowance for expected credit losses
(9,809)
(9,809)
Net value
3,088,894
-
-
-
3,088,894
Other Government bonds
Carrying amount (before allowance for expected credit losses)
429,060
429,060
Allowance for expected credit losses
(103)
(103)
Net value
428,957
428,957
Other securities
Carrying amount (before allowance for expected credit losses)
240,357
240,357
Allowance for expected credit losses
(5,460)
(5,460)
Net value
234,897
-
-
-
234,897
Total securities measured
at amortized cost
Carrying amount (before allowance
for expected credit losses)
3,768,120
-
-
-
3,768,120
Allowance for expected credit losses
(15,372)
-
-
-
(15,372)
Net value
3,752,748
-
-
-
3,752,748
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Greek Government
bonds
Carrying amount (before allowance for expected credit losses)
2,788,311
2,788,311
Allowance for expected credit losses
(9,132)
(9,132)
Net value
2,779,179
-
-
-
2,779,179
Other Government bonds
Carrying amount (before allowance for expected credit losses)
494,974
494,974
Allowance for expected credit losses
(146)
(146)
Net value
494,828
-
-
-
494,828
Other securities
Carrying amount (before allowance for expected credit losses)
61,417
1,363
62,780
Allowance for expected credit losses
(1,047)
(7)
(1,054)
Net value
60,370
1,356
-
-
61,726
Total securities measured
at amortized cost
Carrying amount (before allowance
for expected credit losses)
3,344,702
1,363
-
-
3,346,065
Allowance for expected credit losses
(10,325)
(7)
-
-
(10,332)
Net value
3,334,377
1,356
-
-
3,335,733
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
321
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation
of other
financial assets
(except loans)
before allowance
for expected
credit losses
per IFRS
9 Stage
The table below presents the movement of
the carrying amount before allowance for expected credit losses of
due from banks,
the movement of the fair value of investment securities at fair value through other comprehensive income and securities
measured
at amortized cost including the
allowance for expected credit losses by
IFRS 9 Stage.
31.12.2021
Due from banks
Investment securities measured at fair value through other
comprehensive income
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit impaired
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Balance 1.1.2021
2,741,674
-
69,961
-
2,811,635
6,498,035
32,776
-
-
6,530,811
Changes for the
year 1.1-31.12.2021
Transfers to Stage
1
from Stage 2
or 3
-
-
Transfers to Stage
2
from Stage 1
or 3
-
(9,168)
9,168
-
Transfers to Stage
3
from Stage 1
or 2
-
-
New financial
assets
originated
18,154,819
18,154,819
4,346,842
4,346,842
Derecognition of
financial assets
(1,794,149)
(4,228)
(1,798,377)
Interest
on carrying
amount before
impairment
37
37
64,969
830
65,799
Changes due to
modifications that
did not result in
derecognition
-
-
Write-off
-
Held for Sale
(17,896,387)
(17,896,387)
Repayments,
foreign
exchange
differences
and other movements
(35,881)
(35,881)
(2,406,773)
(25,202)
(2,431,975)
Reclassification in
“Assets for Sale”
-
(137,813)
(137,813)
Balance
31.12.2021
2,964,262
-
69,961
-
3,034,223
6,561,943
13,344
-
-
6,575,287
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
322
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Due from banks
Investment securities measured at fair value through other
comprehensive income
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit impaired
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Balance 1.1.2020
3,332,821
-
69,961
-
3,402,782
7,465,926
1,238
-
-
7,467,164
Changes for the
year 1.1-31.12.2020
Transfers to Stage
1
from Stage 2
or 3
1,226
(1,226)
Transfers to Stage
2
from Stage 1
or 3
(32,598)
32,598
-
Transfers to Stage
3
from Stage 1
or 2
-
New financial
assets
originated
6,021,763
6,021,763
3,766,573
3,766,573
Derecognition of
financial assets
(3,445,384)
(742)
(3,446,126)
Interest on carrying
amount before
impairment
79
79
108,586
281
108,867
Changes due to
modifications that
did not result in
derecognition
-
Write-off
-
Repayments,
foreign
exchange
differences
and other movements
(6,612,989)
(6,612,989)
(1,366,294)
627
(1,365,667)
Balance
31.12.2020
2,741,674
-
69,961
-
2,811,635
6,498,035
32,776
-
-
6,530,811
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
323
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2021
Investment securities
measured at
amortized cost
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired
(POCI)
Total
Balance 1.1.2021
3,344,702
1,363
-
-
3,346,065
Changes for the
year 1.1-31.12.2021
Transfers to Stage
1 from Stage 2
or 3
Transfers to Stage
2 from Stage 1
or 3
Transfers to Stage
3 from Stage 1
or 2
New financial assets originated
918,971
918,971
Derecognition of financial assets
(147,431)
(147,431)
Interest on
carrying amount before
impairment
40,689
73
40,762
Changes due to modifications that did
not result in derecognition
Write-off
Repayments and other movements
(374,716)
(1,436)
(376,152)
Reclassification in “Assets for
Sale”
(14,095)
(14,095)
Balance
31.12.2021
3,768,120
-
-
-
3,768,120
31.12.2020
Investment securities
measured at
amortized cost
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired
(POCI)
Total
Balance 1.1.2020
1,078,143
-
-
-
1,078,143
Changes for the
year 1.1-31.12.2020
Transfers to Stage
1 from Stage 2
or 3
Transfers to Stage
2 from Stage 1
or 3
(1,349)
1,349
Transfers to Stage
3 from Stage 1
or 2
New financial assets originated
4,197,398
4,197,398
Derecognition of financial assets
(1,924,002)
(1,924,002)
Interest on
carrying amount before
impairment
39,453
14
39,467
Changes due to modifications that did
not result in derecognition
Write-off
Repayments and other movements
(44,941)
(44,941)
Balance
31.12.2020
3,344,702
1,363
-
-
3,346,065
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
324
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation
of the
allowance
for expected
credit
losses
The tables below present the movement of the allowance for expected credit losses of Due from banks, Investment securities
measured at fair value
through other comprehensive income and
Investment securities measured at amortized cost
per IFRS 9
stage.
31.12.2021
Due from banks
Investment securities measured at fair
value through other
comprehensive income
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Balance
1.1.2021
127
-
69,961
-
70,088
15,042
869
-
-
15,911
Changes
for the year
1.1-31.12.2020
Transfers to Stage
1
from Stage 2 or
3
-
-
Transfers to Stage
2
from Stage 1 or
3
-
(354)
354
-
Transfers to Stage
3
from Stage 1 or
2
-
-
Net measurement
of expected credit
losses (a)
-
1,430
1,430
Impaiment losses
on new receivables/
securities (b)
165
165
13,591
13,591
Change in credit risk
parameters (c)
(56)
(56)
1,362
(523)
839
Impairment losses
on receivables/
securities
(a)+(b)+(c)
109
-
-
-
109
14,953
907
-
-
15,860
Derecognition of
financial assets
(8,500)
(31)
(8,531)
Foreign exchange
and other
movements
(30)
(30)
25
25
Transfer of
allowance for
expected credit
losses to Assets Held
For Sale
(760)
(760)
Balance
31.12.2021
206
-
69,961
-
70,167
20,406
2,099
-
-
22,505
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
325
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Due from banks
Investment securities measured at fair
value through other
comprehensive income
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Balance
1.1.2020
131
-
69,961
-
70,092
25,774
64
-
-
25,838
Changes
for the year
1.1-31.12.2020
Transfers to Stage
1
from Stage 2 or
3
-
58
(58)
-
Transfers to Stage
2
from Stage 1 or
3
-
(53)
53
-
Transfers to Stage
3
from Stage 1 or
2
-
-
Net measurement
of expected credit
losses (a)
-
(46)
598
552
Impaiment losses
on new receivables/
securities (b)
14
14
8,106
22
8,128
Change in credit risk
parameters (c)
(17)
(17)
(4,488)
197
(4,291)
Impairment losses
on receivables/
securities
(a)+(b)+(c)
(3)
-
-
-
(3)
3,572
817
-
-
4,389
Derecognition of
financial assets
(14,213)
(7)
(14,220)
Foreign exchange
and other
movements
(1)
(1)
(96)
(96)
Balance
31.12.2020
127
69,961
-
70,088
15,042
869
-
-
15,911
An additional income amounted at € 91 (31.12.2020: € 92) has been recognized in the allowance for expected credit losses of
2021 in Stage 1,
which corresponds to the
change of allowance for expected
credit losses between the opening and
the closing
date resulting from the disposal of securities of FVOCI portfolio which has been agreed but not settled between these two
dates. The
aforementioned
allowance
for expected
credit losses,
depending
on the
securities
valuation,
is recognized
in “Other
assets” or “Other
liabilities”.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
326
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2021
Investment
securities
measured at
amortized cost
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Balance 1.1.2021
10,325
7
-
-
10,332
Changes for the
year 1.1-31.12.2021
Transfers to Stage
1 from Stage 2
or 3
Transfers to Stage
2 from Stage 1
or 3
Transfers to Stage
3 from Stage 1
or 2
Net measurement
of expected
credit losses (a)
Impairment losses
on new
securities (b)
5,854
5,854
Change in credit
risk parameters
(c)
(445)
(7)
(452)
Impairment losses
on securities
(a)+(b)+(c)
5,409
(7)
-
-
5,402
Derecognition of
financial assets
(332)
(332)
Foreign exchange
and other
movements
1
1
Transfer of
expected credit
risk losses
to assets
for sale
(31)
(31)
Balance
31.12.2021
15,372
-
-
-
15,372
31.12.2020
Investment
securities
measured at
amortized cost
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired (POCI)
Total
Balance 1.1.2020
7,413
-
-
-
7,413
Changes for the year
1.1 - 31.12.2020
Transfers to Stage
1 from Stage 2
or 3
Transfers to Stage
2 from Stage 1
or 3
(2)
2
Transfers to Stage
3 from Stage 1
or 2
Net measurement
of expected
credit losses (a)
8
8
Impairment
losses on
new securities
(b)
9,343
9,343
Change in credit
risk parameters
(c)
(408)
(3)
(411)
Impairment losses
on securities
(a)+(b)+(c)
8,935
5
-
-
8,940
Derecognition of
financial assets
(6,021)
(6,021)
Foreign exchange
and other
movements
-
Balance
31.12.2020
10,325
7
-
-
10,332
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
327
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
The following tables present the financial instruments exposed to
credit risk by
sectors of the counterparties
FINANCIAL
ASSETS
EXPOSED
TO
CREDIT
RISK
-
ANALYSIS
BY
INDUSTRY
SECTOR
31.12.2021
Financial
Institutions
and other
financial
services
Manufacturing
Construction
and Real
estate
Wholesale
and retail
trade
Public
sector/
Goverment
Securities/
Derivatives
Transportation
Shipping
Hotels-
Tourism
Services
and other
sectors
Retail
lending
Total
Credit risk
of exposures
relating to balance
sheet items:
Balances with
Central
Banks
11,403,708
11,403,708
Due from banks
3,034,223
3,034,223
Loans and advances
to
customers
5,777,779
5,422,754
2,752,126
3,029,989
37,260
861,670
2,506,700
2,320,490
1,747,989
14,616,950
39,073,707
Derivative financial
assets
290,685
24,449
68,308
1,308
501,852
52,527
1,077
403
1,000
941,609
Trading securities
3,819
3,819
Securities
measured
at
fair value through
other
comprehensive
income
1,191,356
455,107
25,832
120,866
4,609,184
195,447
6,597,792
Securities measured
at
amortized cost
180,729
27,665
7,633
3,527,762
24,331
3,768,120
Securities
measured
at
fair value
through profit
or loss
38,617
725
39,342
Assets held for
sale -
Loans Portfolio
61,429
10,883
50,528
23,169
1,997
3,707
11,279
37,714
3,510,556
3,711,262
Assets held for
sale -
Other Receivables
14,802
38,094
52,896
Total amount of
balance sheet items
exposed to credit
risk (a)
21,931,899
5,991,404
2,857,149
3,211,049
8,703,046
916,194
2,511,484
2,332,172
2,006,481
18,165,600
68,626,478
Other balance sheet
items not exposed to
credit risk
950,539
3,366
58,135
3
11,000
9,188,889
10,211,932
Total assets
22,882,438
5,994,770
2,915,284
3,211,052
8,703,046
916,194
2,511,484
2,343,172
11,195,370
18,165,600
78,838,410
Credit risk
of exposures
relating to off-balance
sheet items:
Letters of guarantee,
letters of credit and other
guarantees
613,344
812,551
859,791
499,471
190,768
66,216
10,996
57,352
313,674
73,849
3,498,012
Undrawn loan
commitments
23,294
844,383
210,903
823,486
874
49,748
5,318
86,905
245,944
1,801,856
4,092,711
Total amount of off-
balance
sheet
items
exposed to credit
risk (b)
636,638
1,656,934
1,070,694
1,322,957
191,642
115,964
16,314
144,257
559,618
1,875,705
7,590,723
Total credit risk
exposures (a+b)
22,568,537
7,648,338
3,927,843
4,534,006
8,894,688
1,032,158
2,527,798
2,476,429
2,566,099
20,041,305
76,217,201
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
328
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Financial
Institutions
and other
financial
services
Manufacturing
Construction
and Real
estate
Wholesale
and retail
trade
Public
sector/
Goverment
Securities/
Derivatives
Transportation
Shipping
Hotels-
Tourism
Services
and other
sectors
Retail
lending
Total
Credit risk
of exposures
relating to balance
sheet items:
Balances with
Central
Banks
7,077,100
7,077,100
Due from banks
2,811,635
2,811,635
Loans and advances
to
customers
179,745
5,683,013
3,976,795
4,287,812
81,222
973,567
2,062,613
2,195,880
2,094,066
27,504,151
49,038,864
Derivative financial
assets
225,770
29,302
86,839
2,125
860,878
58,028
1,771
1,558
812
1,267,083
Trading securities
29,154
29,154
Securities
measured
at
fair value through
other
comprehensive
income
1,270,479
331,985
23,069
89,407
4,626,389
205,395
6,546,724
Securities measured
at
amortized cost
19,505
23,215
3,283,284
20,061
3,346,065
Securities
measured
at
fair value
through profit
or loss
12,545
698
13,243
Assets held for
sale -
Loans Portfolio
142
211,783
58,190
267,840
16,310
3,510
9,702
25,438
9,550
602,465
Total amount of
balance sheet items
exposed to credit
risk (a)
11,596,921
6,279,298
4,144,893
4,647,882
8,880,927
1,047,905
2,067,894
2,207,140
2,345,772
27,513,701
70,732,333
Other balance sheet
items not exposed to
credit risk
9,866,767
2,695
5,932
3
11,000
18,714
9,902,811
Total assets
21,463,688
6,281,993
4,150,825
4,647,885
8,880,927
1,047,905
2,067,894
2,218,140
2,364,486
27,513,701
80,635,144
Credit risk
of exposures
relating to off-balance
sheet items:
Letters of guarantee,
letters of credit and other
guarantees
612,957
572,577
1,040,434
580,641
191,972
65,432
11,272
63,436
283,109
75,375
3,497,205
Undrawn loan
commitments
12,979
1,023,930
239,641
947,258
2,117
57,313
4,958
91,508
200,772
1,892,421
4,472,897
Total amount of off-
balance
sheet
items
exposed to credit
risk (b)
625,936
1,596,508
1,280,076
1,527,898
194,089
122,745
16,230
154,944
483,880
1,967,796
7,970,102
Total credit risk
exposures (a+b)
12,222,857
7,875,806
5,424,969
6,175,780
9,075,016
1,170,650
2,084,124
2,362,084
2,829,652
29,481,497
78,702,435
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
329
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
EXPOSURE
IN
CREDIT
RISK
FROM
DEBT
ISSUED
BY
THE
GREEK
STATE
The table
below presents
the Bank’s
total exposure
in Greek
State debt:
31.12.2021
31.12.2020
Portfolio
Nominal value
Carrying amount
Nominal value
Carrying amount
Securities measured at fair value through other comprehensive
income
2,681,049
2,848,461
2,421,736
2,771,014
Securities measured at amortized cost
2,588,930
3,088,894
2,118,842
2,779,179
Trading
3,578
3,819
21,762
29,154
Total
5,273,557
5,941,174
4,562,340
5,579,347
All Greek Government securities are classified in level 1
based on the quality of
inputs used for the estimation of their
fair
value.
The Bank’s
exposure
to Greek
State from
other, apart
from securities,
financial
instruments
is presented
in the
table below:
On balance sheet exposure
31.12.2021
31.12.2020
Carrying amount
Derivative financial instruments
-assets
501.852
860,878
Derivative financial
instruments
-liabilities
(2.387)
(11,965)
The Group’s
exposure
in
loans
to public
sector
entities
/ organizations
on
31.12.2021
amounted
to €
34,865
(31.12.2020:
€ 45,052). The
Group has
recognized
allowance
for expected
credit losses
for the
above mentioned
loans that
amounts
to
€ 554 as
at 31.12.2021
(31.12.2020:
€ 1,054).
In addition,
the balance
of the
Group’s loans
guaranteed
by the
Greek State
on
31.12.2021 amounted to € 7,791,890 (31.12.2020: € 1,479,206). The increase
is due to the recognition of high repayment
bonds (senior
notes) of the Galaxy
and Cosmos
securitization (as
mentioned in note
1 “Corporate
transformation -
Division
by branch” and note
19 “Loans and receivables
against customers”).
Apart from these
bonds, the rest also
includes loans
guaranteed by
the Greek
State either
directly or
through Joint
Ministerial Decisions,
loans guaranteed
by Hellenic
Development
Bank SA. For these loans
the Group has recognized
allowance for expected
credit losses amounting
to € 70,265 as at
31.12.2021 (31.12.2020: € 75,517). It is noted that the carrying amount of loans with guarantee by the Covid-19 Guarantee
Fund of the Hellenic Development Bank amounted to €
1,259,451 as at 31.12.2021 (31.12.2020: €
997,257).
Off balance
sheet exposure
31.12.2020
31.12.2019
Portfolio
Nominal
value
Carrying
amount
Nominal
value
Carrying
amount
Greek Government Treasury
Bills received as collateral
for
derivatives transactions
750,000
750,150
900,000
900,000
Greek Government
Bonds received
as collateral
for funding
purposes
165,638
174,837
335,407
402,695
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
330
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
43.2
Market risk
Market risk is the risk of losses arising from unfavorable changes in the value or volatility of interest rates, foreign exchange
rates, stock exchange indices,
equity prices and
commodities. Losses may also occur
either from the
trading portfolio or from
the Assets-Liabilities management.
More specifically:
•
Interest rate risk is the risk that results from adverse changes in the
value or volatility of interest rates.
•
Foreign exchange
risk is
the risk
arising from
adverse changes
in the
value or
volatility
of foreign
exchange
rates.
•
Equity risk is
the risk
arising from adverse changes in
the value or
volatility of equities
or equity indices.
The Group does
not
holds any material
portfolio in such
instruments.
•
Commodity risk is the
risk arising from
adverse changes in the
value or volatility
of commodities. The Group
does not holds
any material portfolio
in such instruments.
i.
Trading
book
The Bank’s
Market Risk
Management
Policy elaborates
on how
market risk
is managed
within the
Bank, i.e.
the identification,
measurement, monitoring and control of market
risk inherent in
Treasury assets and liabilities transacted by
the Bank and
the
country local Treasury Management Units, as well as the determination that adequate capital is held against this type of risk.
The ultimate objective of the Policy is to provide the framework and principles for the effective management of market risk, in
order to:
•
maintain market risk within the limits, in line with the Bank’s risk
appetite;
•
reduce
the
risk
of fraud
or regulatory
non-compliance
by
prescribing
sound
methodologies;
•
ensure adequate controls to
prevent significant losses;
•
facilitate efficient decision
-making by quantifying where possible
the probabilities of failing to achieve
earnings or other
targets.
All competent
Bank units
and country
local Units
apply the
Policy
by developing
and applying
corresponding
processes.
Market risk of trading portfolio is
measured by Value at Risk -
VAR, that is the maximum amount of
loss with a
given probability
(confidence level). The method applied for calculating Value at Risk is historical simulation with full revaluation with 99%
confidence level. The historical observation period is one year at minimum. Risk factor returns are calculated accor
ding to the
absolute or relative
approach.
The Bank
calculates VAR
on a daily
basis and
the data
sets are updated
daily. A
holding period
of one and
ten days
is applied
for regulatory purposes. Additional holding periods may
be applied for internal
purposes, according to the time
required for the
liquidation of the
portfolio.
According to regulatory expectations a prospective and retrospective
test is performed on a daily bases for the regulatory
trading book of the
Bank using hypothetical and actual results. The
Bank monitors the numbers of
days that the results
exceed
the respective risk
limit.
1 day value at risk, 99% confidence interval (2
years historical data)
(Amounts
in Euro)
2021
Foreign
currency risk
Interest rate
risk
Price risk
Comodity risk
Covariance
Total
31 December
1,611,800
3,408,959
44,742
24
(1,108,784)
3,956,741
Average daily
value (annual)
2,090,985
4,212,795
39,290
49
(1,975,827)
4,367,292
Maximum* daily value (annual)
1,621,287
5,405,227
6
(1,636,901)
5,389,619
Minimum* daily value (annual)
2,734,122
3,976,011
72,839
(3,115,837)
3,667,135
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
331
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
*
Relates to the total Value
at Risk within the year.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
332
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
(Amounts
in Euro)
2020
Foreign currency
risk
Interest rate risk
Price risk
Covariance
Total
31 December
2,669,548
4,212,418
13,943
(2,243,487)
4,652,422
Average daily
value (annual)
2,334,525
4,294,868
21,693
(1,987,989)
4,663,097
Maximum* daily value (annual)
2,782,449
4,985,643
(2,130,660)
5,637,432
Minimum* daily value (annual)
1,786,471
3,317,572
38,585
(2,011,525)
3,131,103
The Value
at Risk
methodology
is based
on
certain
theoretical
assumptions,
which
under
extreme
market
conditions
might
not
capture the maximum loss the Bank may suffer. The
limitations of the methodology may be summarized as follows:
•
VAR refers to the
potential loss at a
99% confidence level, without considering any losses beyond
that level
•
Risk factor returns are assumed to follow the empirical distribution that was experienced during the historical observation
period.
On a daily
basis, a perspective and
retrospective test of Value at
Risk model is
carried out, taking into
account hypothetical and
actual changes in the trading book’s profit and loss. According to best practices, the model is validated by an independent unit
at the Bank
on an annual
basis.
The Value at Risk methodology is complemented with scenario analysis and stress testing, in order to estimate the potential
size of losses that
could arise from
the trading portfolio
for hypothetical as
well as historical extreme
movements of market
parameters (stress-testing).
Within the scope of market risk
control, open position, maximum loss (stop loss) and value at
risk limits have been set across
trading positions.
In particular, limits have been
set for the
following risks:
•
Foreign currency
risk regarding
spot and
forward positions
and FX
options
•
Interest rate
risk regarding
positions
in bonds,
Interest
Rate Swaps,
Interest
Futures,
Interest
Options
•
Price risk
regarding positions
in shares,
index Futures
and options,
Commodity
Futures and
Swaps
•
Credit risk
regarding
interbank
transactions
and bonds
Positions
held in
these
products
are monitored
on a
daily basis
and are
examined
for the
corresponding
limit percentage
cover
and for any
limit excess.
ii.
The financial
risks of
the bank
ing portfolio
The Market risk may derive,
apart from the trading portfolio,
from the structure of assets
and liabilities and from
the portfolio
of loans and deposits of
the Bank. This risk
is a foreign exchange and
interest rate risk.
a.
Foreign currency
risk
The Bank
takes on
the risk
arising
from the
fluctuations
in foreign
exchange
rates.
The management of foreign currency position is centralized.
The policy of the Bank is the positions to be closed immediately using spot transactions or currency derivatives. In case that
positions remain open, they are daily monitored in the context of the financial risk management policy and they are subject to
limits.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
333
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
*
Relates to the total Value
at Risk within the year.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
334
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
The total open position arises from the net balance sheet position from the balance sheet assets and the derivatives forward
position as presented
in the following
tables:
31.12.2021
USD
GBP
CHF
JPY
RON
RSD
Other FC
Euro
Total
ASSETS
Cash and balances
with Central
Banks
8,992
3,988
822
63
149,028
23,075
11,617,376
11,803,344
Due from banks
400,959
108,176
13,928
3,851
49,631
105
29,314
2,358,092
2,964,056
Trading securities
4,826
4,826
Derivative financial
assets
941,609
941,609
Loans and
advances to
customers
2,567,289
471,672
291,938
4,820
1,200,574
96,904
32,227,217
36,860,414
Investment
securities:
- Measured at amortized cost
3,752,748
3,752,748
- Measured at fair value
through
other comprehensive
income
92,521
18,050
135,831
98,623
6,289,095
6,634,120
- Measured at fair value
through
profit or loss
4,734
248,612
253,346
Investments
in associates
and
joint ventures
68,267
68,267
Investment property
103,202
34,599
287,631
425,432
Property, plant
and equipment
5,699
72,523
2,472
657,119
737,813
Goodwill and
other intangible
assets
137
3,593
1,327
473,126
478,183
Deferred tax
assets
2,419
1
5,425,096
5,427,516
Other assets
6,906
27,781
102,052
1,689
17,856
221
1,416,292
1,572,797
Assets held for
sale
576,556
854,929
1,431,485
Total Assets
3,081,401
635,503
408,740
10,423
1,734,657
105
863,092
66,622,035
73,355,956
LIABILITIES
Due to banks
and customers
2,859,254
269,876
125,127
1,043
1,391,053
26
418,337
55,888,566
60,953,282
Derivative financial liabilities
1,288,405
1,288,405
Debt securities
in issue and
other
borrowed funds
4,300
21,005
16,097
12,880
2,538,721
2,593,003
Liabilities for current
income tax
and other taxes
59,584
59,584
Deferred tax liabilities
77
6,903
16,031
23,011
Employee
defined benefit
obligations
8
29,440
29,448
Other liabilities and Liabilities
related to assets
classified as
held for sale
5,516
9,502
330
64
13,945
577,322
889,008
1,495,687
Provisions
1,725
15
1
(8,375)
(471)
841,134
834,029
Total liabilities
2,870,795
279,470
146,463
1,107
1,419,623
26
1,008,076
61,550,889
67,276,449
Net balance sheet
position
210,606
356,033
262,277
9,316
315,034
79
(144,984)
5,071,146
6,079,507
Derivatives forward
foreign
exchange position
(175,363)
(311,194)
(185,848)
(10,738)
(272,309)
180,735
793,205
18,488
Total Foreign exchange
position
35,243
44,839
76,429
(1,422)
42,725
79
35,751
5,864,351
6,097,995
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
335
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
*Restated
USD
GBP
CHF
JPY
RON
RSD
Other FC
Euro
Total
ASSETS
Cash and balances
with Central
Banks
9,890
7,309
1,140
44
151,171
17,131
7,280,631
7,467,316
Due from banks
281,548
67,315
11,835
4,327
113,623
112
24,675
2,238,112
2,741,547
Trading securities
30,014
30,014
Derivative financial
assets
1,267,083
1,267,083
Loans and
advances to
customers
2,028,344
484,610
964,809
14,049
1,226,384
84,529
34,577,277
39,380,002
Investment
securities:
- Measured at amortized cost
3,335,733
3,335,733
- Measured at fair value
through
other comprehensive
income
77,540
16,719
178,483
95,850
6,209,106
6,577,698
- Measured at fair value
through
profit or loss
32,581
105,094
137,675
Investments
in associates
and
joint ventures
30,716
30,716
Investment property
111,389
24,152
433,983
569,524
Property, plant
and equipment
6,388
77,505
22,133
690,305
796,331
Goodwill and
other intangible
assets
6,759
730
591,756
599,245
Deferred tax
assets
663
312
5,277,929
5,278,904
Other assets
1,758
1,343
17
21,566
22,636
1,540,623
1,587,943
Assets held for
sale
1,538
238,805
240,343
Total Assets
2,431,662
583,684
977,784
18,437
1,889,081
112
292,148
63,847,167
70,040,074
LIABILITIES
Due to banks
and customers
2,273,359
268,616
415,760
3,828
1,152,667
21
407,521
52,415,849
56,937,621
Derivative financial liabilities
1,768,357
1,768,357
Debt securities
in issue and
other
borrowed funds
66,390
1,156,479
1,222,869
Liabilities for current
income tax
and other taxes
7
70,134
70,141
Deferred tax liabilities
66
9,493
1,389
21,431
32,379
Employee
defined benefit
obligations
43,737
43,737
Other liabilities and Liabilities
related to assets
classified as
held for sale
7,813
11,665
374
579
76,399
16,591
778,410
891,831
Provisions
1,607
25
4
5,961
2,380
693,653
703,630
Total liabilities
2,282,779
280,372
416,138
4,407
1,310,917
21
427,881
56,948,050
61,670,565
Net balance sheet
position
148,883
303,312
561,646
14,030
578,164
91
(135,733)
6,899,117
8,369,510
Derivatives forward
foreign
exchange position
(106,505)
(279,501)
(256,319)
(13,969)
(474,966)
182,475
933,636
(15,149)
Total liabilities
42,377
23,811
305,327
61
103,198
91
46,742
7,832,753
8,354,361
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
336
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Certain figures of the previous
year have been restated
as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
337
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Τhe open foreign exchange position as at
31.12.2021 presents the following sensitivity analysis:
Currency
Exchange rate
variation
scenario against Euro (%)
Impact in net
profit/(loss)
before Income
tax
Impacr on
equity
USD
5% Depreciation EUR against USD
1,855
5% Appreciation EUR against USD
(1,678)
GBP
5% Depreciation EUR against GBP
2,360
5% Appreciation EUR against GBP
(2,135)
CHF
5% Depreciation EUR against CHF
4,023
5% Appreciation EUR against CHF
(3,639)
RON
5% Depreciation EUR against RON
2,249
5% Appreciation EUR against RON
(2,034)
RSD
5% Depreciation EUR against RSD
4
5% Appreciation EUR against RSD
(4)
ALL
5% Depreciation EUR against
ALL
(997)
5% Appreciation EUR against
ALL
902
b.
Interest rate risk
Interest rate risk in the banking book relates to the volatility on Equity and interest income of the Bank due to the mismatch
between the non-negotiable Assets-Liabilities
and the measured at fair value through other comprehensive income portfolio.
The interest rate risk management framework is determined in accordance with the Asset Liability Risk Management
Policy.
Based on this
framework, the risk analysis of
the Banking Portfolio is
analyzed through the Interest Rate
Gap Analysis.
Particularly, assets and liabilities are classified in
Gaps depending on their reprising
date for floating-rate items, or
maturity
date for fixed
rate items.
For those assets and liabilities with no maturity date, the distribution of flows is based on models of their behavior analysis.
These models have been validated by the competent independent Division of the Bank. Interest rate risk management is
carried
out by
ALCO,
following
proposals
by the
Asset
-Liability
Management
Committee,
treasury
division
and
market
division.
Stress interest rate scenarios are carried out on a monthly basis and their impact on the interest income change through EAR
(Earnings at
Risk) and
Equity Value
through EVE
(Economic Value
of Equity)
is calculated.
Corresponding
limits have
been set
for both measures (EaR & EVE) which are monitored and presented
to ALCO and RMC on a regular basis.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
338
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
The following
table presents
the Interest
Rate Repricing
Analysis
of both
Assets
and Liabilit
ies, financial
and non
financial.
31.12.2021
Less than 1
month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 5 years
> 5 years
Non-interest
bearing
Total
ASSETS
Cash and balances
with Central
Banks
11,485,488
317,856
11,803,344
Due from Banks
2,707,072
40,413
1,697
110
320
214,444
2,964,056
Trading securities
762
934
3,130
4,826
Derivative financial
assets
941,609
941,609
Loans and
advances
to customers
11,761,128
10,178,239
3,380,134
835,612
6,550,752
4,154,549
36,860,414
Investment securities
- Measured at amortized cost
5,246
97,784
2,144
165,030
1,132,386
2,350,159
3,752,748
- Measured at fair value
through
other comprehensive
income
80,775
390,380
529,358
694,217
3,093,237
1,846,153
6,634,120
- Measured at fair value
through
profit or loss
207,551
45,795
253,346
Investments in
associates and joint
ventures
68,267
68,267
Investment property
425,432
425,432
Property, plant
and equipment
737,813
737,813
Goodwill and other
intangible assets
478,183
478,183
Deferred tax
assets
5,427,516
5,427,516
Other assets
1,572,797
1,572,797
Assets held for
sale
1,431,485
1,431,485
Total Assets
26,981,318
10,914,367
3,913,333
1,695,731
10,777,629
8,614,230
10,459,349
73,355,956
LIABILITIES
Due to banks
508,103
289,611
3,555
13,182,387
13,983,656
Derivative financial liabilities
1,288,405
1,288,405
Due to customers
11,058,635
4,282,984
2,816,708
3,622,661
16,840,059
8,348,579
46,969,626
Debt securities
in issue held
by
institutional investors and other
borrowed funds
651
200,183
1,906,482
485,687
2,593,003
Liabilities for current
income tax
and
other taxes
59,584
59,584
Deferred tax liabilities
23,011
23,011
Employee
defined
benefit
obligations
29,448
29,448
Other liabilities
888,030
888,030
Provisions
834,029
834,029
Liabilities related to assets held
for sale
607,657
607,657
Total Liabilities
12,855,794
4,572,595
3,020,446
3,622,661
31,928,928
8,834,266
2,441,759
67,276,449
EQUITY
Share capital
703,794
703,794
Share premium
11,362,512
11,362,512
Reserves
320,671
320,671
Amounts recognized directly in
Equity related to
assets held for
sale
15,127
15,127
Retained earnings
(6,366,258)
(6,366,258)
Non-controlling interests
29,432
29,432
Hybrid securities
14,229
14,229
Total
Equity
-
-
-
-
-
-
6,079,507
6,079,507
Total
Liabilities and
Equity
12,855,794
4,572,595
3,020,446
3,622,661
31,928,928
8,834,266
8,521,266
73,355,956
OPEN EXPOSURE
14,125,524
6,341,772
892,887
(1,926,930)
(21,151,300)
(220,037)
1,938,083
-
CUMULATIVE EXPOSURE
14,125,524
20,467,296
21,360,183
19,433,253
(1,718,047)
(1,938,083)
-
-
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
339
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020 as restated
Less than 1
month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 5 years
> 5 years
Non-interest
bearing
Total
ASSETS
Cash and balances
with Central
Banks
7,185,547
281,769
7,467,316
Due from Banks
2,312,230
2,272
220,787
107
282
205,869
2,741,547
Trading securities
2,044
27,970
30,014
Derivative financial
assets
1,267,083
1,267,083
Loans and
advances
to customers
13,890,463
7,935,173
3,007,158
1,400,584
8,797,863
4,348,761
39,380,002
Investment securities
- Measured at amortized cost
99,791
73,108
497,148
2,665,686
3,335,733
- Measured at fair value
through
other comprehensive
income
180,562
623,106
782,325
407,998
2,452,720
2,130,987
6,577,698
- Measured at fair value
through
profit or loss
121,198
16,477
137,675
Investments in
associates and joint
ventures
30,716
30,716
Investment property
569,524
569,524
Property, plant
and equipment
796,331
796,331
Goodwill and other
intangible assets
599,245
599,245
Deferred tax
assets
5,278,904
5,278,904
Other assets
1,587,943
1,587,943
Assets held for
sale
240,343
240,343
Total Assets
24,835,885
8,681,749
4,110,061
1,881,797
11,750,057
9,395,750
9,384,775
70,040,074
LIABILITIES
Due to banks
622,068
354,647
376,913
107,645
11,645,408
13,106,681
Derivative financial liabilities
1,768,357
1,768,357
Due to customers
10,442,027
6,251,906
3,877,172
4,403,220
12,432,274
6,424,341
43,830,940
Debt securities
in issue held
by
institutional investors and other
borrowed funds
651
1,552
1,220,666
1,222,869
Liabilities for current
income tax
and
other taxes
70,141
70,141
Deferred tax liabilities
32,379
32,379
Employee
defined
benefit
obligations
43,737
43,737
Other liabilities
891,580
891,580
Provisions
703,630
703,630
Liabilities related to
assets held
for sale
251
251
Total Liabilities
12,833,103
6,606,553
4,255,637
4,510,865
25,298,348
6,424,341
1,741,718
61,670,565
EQUITY
Share capital
463,110
463,110
Share premium
10,801,029
10,801,029
Reserves
492,791
492,791
Amounts recognized directly in
Equity related to
assets held for
sale
Retained earnings
(3,431,502)
(3,431,502)
Non-controlling interests
29,382
29,382
Hybrid securities
14,699
14,699
Total
Equity
-
-
-
-
-
-
8,369,509
8,369,509
Total
Liabilities and
Equity
12,833,103
6,606,553
4,255,637
4,510,865
25,298,348
6,424,341
10,111,227
70,040,074
OPEN EXPOSURE
12,002,782
2,075,196
(145,576)
(2,629,068)
(13,548,291)
2,971,409
(726,452)
-
CUMULATIVE EXPOSURE
12,002,782
14,077,978
13,932,402
11,303,334
(2,244,957)
726,452
-
-
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
340
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Certain figures of the previous
year have been restated
as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
341
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
From the Interest Rate Gap Analysis and from the application of alternative scenarios regarding the changes in the market
interest rates or the changes in the base interest rates of the Bank and Group companies, the immediate change in the net
interest income and equity relating to securities measured at fair value through other comprehensive
income is directly
calculated and the respective
hedging instruments. In the Interest
Rate Gap Analysis, the
variance, up to
the point it’s
feasible
(interest rate equals to zero), is
studied, according to the interest rate curves
by currency in force.
Interest rate variation scenario (parallel fall or
rise in yield
curves)
Sensitivity for net interest income
(annual)
Sensitivity of Equity
-200
-50,389
+492,176
+200
+130,354
-416,379
43.3
Liquidity Risk
Liquidity risk
relates to
Group’s
ability to
maintain
sufficient funds
to cover
its planned
or extraordinary
obligations.
Liquidity
Risk comprises both funding
liquidity risk and the risk arising
from the Group’s failure
to recognize or address changes
in market
conditions that
affect the
ability to
liquidate assets
quickly and
with minimal
loss in
value (asset
liquidity risk).
For those assets
and liabilities
with no maturity
date, the distribution
of flows is based
on models of
their behavior
analysis. These
models have
been validated
by the
competent independent
Division of
the Bank.
According to Group’s Liquidity
Risk Management Policy,
the Board Risk Management
Committee assigns the overall
responsibility
for overseeing asset and
liability management
to Asset - Liability Committee
(ALCo). ALCo is responsible
on one hand to monitor
the quantitative
and qualitative
aspects of
liquidity risk
and on
the other
hand to
ensure that
appropriate
policies and
procedures
are in place to control and limit liquidity risk. In addition to that, ALCo is responsible for appr
oving the guidelines, principles,
risk
measurement techniques and limits
that have been proposed by the Group Market and Operational Risk
Division, Financial
Markets Division
and Asset
Liability Management
Division.
Group’s executive and senior
management is informed
on current liquidity risk exposures
on a daily basis, ensuring that the
Group’s liquidity risk
profile stays within
approved limits.
Moreover, management
receives on a daily
basis a liquidity
report, which
presents a detailed analysis
of Bank’s funding sources
and counterbalancing
capacity. Among others,
for the purpose of proper
management of liquidity
risk and in line with supervisor
y
requirements, the
Bank monitors and manages
on a monthly basis,
the amount,
quality and
concentration
of counterbalancing
capacity, the
cash flows
arising from
assets and
liabilities (inflows,
outflows -
maturity ladder)
over time,
the concentration
and cost
of funding,
the rollover
of funding.
The Group calculates the Liquidity
Coverage Ratio* and Net Stable
Funding Ratio on a monthly
and quarterly basis respectively
as
defined by
Regulation (EU) 575/2013.
On 31.12.2021 both ratios (LCR and NSFR)
exceeded the minimum acceptable
supervisory threshold
(100%) with Liquidity
Coverage Ratio reaching
151%. This is attributed
to the increase in customer
deposits, improved
access to interbank markets,
the
issuance of Tier 2 bonds in February 2020 as well as
the increase in long-term lending through the Eurosystem (TLTRO-III).
The ratios
with reference
date 31.12.2021
and 31.12.2020
are presented
below:
31.12.2021
31.12.2020
Net Stable Funding Ratio (NSFR)
114%
109%
Liquidity Coverage Ratio (LCR)
183%
150%
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
342
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
*
Liquidity Coverage
Ratio will
be published
under Pillar
III.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
343
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
The main
reports
which
are
produced
on
a periodic
basis
in
order
to
inform
the Group’s
executive
and
senior
management
and the
ALCo comprise
the Static
Liquidity Gap
analysis,
regulatory
liquidity
ratios of
the Group
and the
subsidiaries,
deposit
concentration
report per
subsidiary
per currency,
Group’s Loans
to Deposit
ratio, liquidity
risk indicators
and triggers
as defined
in Recovery Plan of each subsidiary and the Group, liquidity stress testing according to scenarios that evaluate the impact of
systemic and idiosyncratic stress
events on each
subsidiary’s liquidity position.
Stress tests are carried out on a monthly basis and/ or more frequently, for liquidity purposes, in order to assess potential
outflows (contractual or contingent) to determine the level of immediate liquidity available to cover the Bank’s needs. These
tests are
carried out
according
to the
approved, Liquidity
Buffer
and Liquidity
Stress Scenario
Policy of
the Group
and evaluate
the
risk
in
idiosyncratic
extraordinary
events
(idiosyncratic
stress
test)
in
the
Bank’s
liquidity,
in
systemic
(systemic
stress
test)
as well as combined events
(combined stress test), while it has
to be noted that
stress tests are also used
in order to determine
the Liquidity
buffer for
recovery purposes.
According to
the policy
and within
the context
of ILAAP,
the Bank
also applies
a
reverse stress test
in order
to examine
its impact on
its liquidity.
Taking into account that liquidity risk management seeks to ensure that the respective risk of the Group is measured properly
and is maintained
within acceptable levels, even
under adverse conditions, then
the Group must
have access to
funds in order
to cover customer needs, maturing liabilities and other capital needs, while maintaining at the same time the appropriate
counterbalancing capacity to
ensure the above.
More analytically, the total funding can be divided into two main categories:
A. Customer
Deposits
1.
Customer deposits
on demand for
cash flow needs
Deposits that are intended to meet
short term needs of customers are the
savings accounts and the sight deposits. Although
these deposits may be withdrawn on demand, the number of accounts and type of depositors ensure that unexpected
significant fluctuations are limited. Therefore, these deposits constitute
a significant factor of stability of the deposit base.
2.
Customer
term deposits
and bonds
for investment
purposes
The customer
term deposits
and bonds
for investment
purposes
issued by
the Group
companies
usually consist
of customer
deposits
for a
certain period
and customer
repurchase
agreements
(repos),
whereas
the bonds
issued by
the Group
companies
are disposed through outright sale. Customers have the ability of early withdrawal of deposits or early liquidation of bonds
which may result
in potential need
of finding alternative
liquidity in case
of extensive outflows.
For this purpose and for the general safety of customer deposits, the Bank takes care for the existence of adequate liquidity
surpluses which are calculated based on
stress testing exercises due to
loss of liquidity
or the existence of
sufficient credit lines
of financial instruments
as shown below.
Β.
Wholesale
funding
1.
Medium-term borrowing from
international capital
markets
The Bank’s constant aspiration is to cooperate with international investors who may offer medium term financing
through
purchase of
securities
issued by
the Group
companies.
For this
purpose, the
Bank retains
special financing
programs
appealing
to international investors and provides adequate coverage of credi
t
needs through international capital markets by planning
asset level needs
on an annual
basis. However, the Bank
acknowledges that the demand
of these bonds
may not be
enough to
fully meet the needs in specific time intervals as a result of factors which concern the credit assessment in the domestic and
international economic environment.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
344
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
2.
Funding by Central Banks
An alternative way of Bank funding is the liquidity from financial instruments of the Central Banks-
Euro system and especially
from the
European
Central
Bank
(ECB).
This funding
regards
loan granted
with
pledge
of assets
according
to instructions
and
the eligible
assets determined
by the
ECB. During
the last
years this
additional
source
funding
has become
a major
financial
instrument
by hedging
the inadequate
or loss
of basic
forms of
Bank funding.
Furthermore,
under the
period on
which Greece
is
under the restructuring program of economy and
fiscal improvement of financial figures and
simultaneously servicing financing
needs of the network of institutions that have the supervision of the program, the Bank can use available assets in order to
increase liquidity from the Euro system to cover any financing gap. The Bank recognizes the short-term nature of this liquidity
source and
pursues
gradually
to release,
if circumstances
allow.
However, for
as long
as the
country is
experiencing
financial
and economic crisis, the
Bank ensures the
smooth financing from these
financial instruments which may be
either conventional
marginal lending from the
ECB (MRO), or Emergent Liquidity
Assistance from Bank of Greece
(ELA) has ceased since
February 2019. The Bank
ensures the adequacy of
collateral required in order
to serve the
financing from the above
financial
instruments, while recognizing both the type and the amount of
financing that
is under the discretion of
the Euro system.
The announcements of the European Central Bank, on the dates 7.4.2020, 22.4.2020 and 10.12.2020,
regarding a broad
set of policy measures, in
order to mitigate the
economic impact of the coronavirus pandemic, are still
in force. Among these
measures
was the
waiver to
accept Greek
sovereign
debt instruments
as collateral
in Eurosystem
credit operations.
Greek
Treasury Bills
and Greek Government
Bonds, are eligible
to be used
as collateral for
ECB financing,
even though
they do not
meet minimum
ECB rating
requirements.
According to
ECB, these
measures recognize
the recent
progress achieved
by the
Greek Economy from the economic fallout of
the pandemic, and helps funding access
across the euro area.
Already from 24.6.2020, the Bank
participated in the TLTRO
III program which provides long-term
financing with a conventional
negative interest
rate -0.5%. It is
noted that the financing
rate of this program
can be set at -1%
for the period from
June
2020 to June 2022, provided that specific goals have achieved, regarding the amount of the Bank’s loans granted for
individual periods. In
particular:
•
If the amount of loans granted under the program, for the period March 2020 - March 2021, remains at the levels of March
2020, the interest rate will be -1% for the period June 2020 - June 2021
and -0.5% for the remaining duration of the
financing.
•
In addition, if the loans granted for the period October 2020 - December 2021 remain
at the levels of October 2020, the
borrowing rate can be
set at -1%
for the period
June 2021 -
June 2022.
Moreover, following the announcement of 10.12.2020, three additional
dates for participation in this program were added
(June, September
and December
2021) and
the borrowing
allowance
under TLTRO
III was
increased from
50% to
55% of
eligible loans.
European System funding amounted to € 12.9 billion on 31.12.2021, derived exclusively from the Targeted longer
-term
refinancing
operations
(TLTRO-III).
Through the
financing
of this
program,
the Bank
managed
to extend
the time
horizon
of its
financing into long-term loans as well as to improve the pricing conditions in relation to the repurchase agreements, which in
2021 decreased by
0.25 billion
According to the Liquidity Gap
Analysis, the cash flows
arising from balance sheet
items are calculated and
classified into time
periods in accordance with the contractual maturity date or an estimated date based on a statistical analysis (convention). An
exception to the above, are
the securities portfolios, which can contribute directly to
raise liquidity, and they are
allocated in the
first period
under the
condition
they have
not been
used to
raise liquidity
either by
the Central
Bank or
through interbank
repos.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
345
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2021
< 1 month
1 to 3
months
3 to 6
months
6 to 12
months
> 1 year
Total
Assets
Cash and balances
with central
banks
11,803,344
11,803,344
Due from banks
2,707,072
40,413
1,697
110
214,764
2,964,056
Trading securities
4,826
4,826
Derivative financial assets
941,609
941,609
Loans and
advances to
customers
809,946
1,208,801
1,188,076
2,740,908
30,912,683
36,860,414
Investment securities
- Measured at amortized
cost
127,708
3,625,040
3,752,748
- Measured at fair value through other comprehensive
income
6,634,120
6,634,120
- Measured at fair value through
profit or loss
253,346
253,346
Investment in associates
and joint ventures
68,267
68,267
Investment property
425,432
425,432
Property, plant and equipment
737,813
737,813
Goodwill and other intangible assets
478,183
478,183
Deferred tax assets
363,954
48,359
5,015,203
5,427,516
Other Assets
1,572,797
1,572,797
Assets held for
sale
57,231
56,028
1,318,226
1,431,485
Total Assets
23,154,263
1,670,399
1,245,801
4,235,311
43,050,182
73,355,956
Liabilities
Due to banks
316,564
5,315
11,635
77,742
13,572,400
13,983,656
Derivative financial
liabilities
1,288,405
1,288,405
Due to customers
7,603,862
4,451,540
3,069,541
4,128,327
27,716,356
46,969,626
Debt securities in issue held by
institutional investors
and other borrowed
funds
1,665
2,591,338
2,593,003
Liabilities for current income
tax and other taxes
31,839
27,745
59,584
Deferred tax liabilities
23,011
23,011
Employee
defined
benefit
obligations
29,448
29,448
Other Liabilities
888,030
888,030
Provisions
834,029
834,029
Liabilities related to
assets held for sale
607,657
607,657
Total Liabilities
9,208,831
4,488,694
3,082,841
4,256,825
46,239,258
67,276,449
Equity
Share capital
703,794
703,794
Share premium
11,362,512
11,362,512
Reserves
320,671
320,671
Amounts recognized
directly in
Equity related
to
assets held for sale
15,127
15,127
Retained earnings
(6,366,258)
(6,366,258)
Non-controlling interests
29,432
29,432
Hybrid securities
14,229
14,229
Total equity
-
-
-
-
6,079,507
6,079,507
Total
liability and
equity
9,208,831
4,488,694
3,082,841
4,256,825
52,318,765
73,355,956
OPEN LIQUIDITY
GAP
13,945,432
(2,818,295)
(1,837,040)
(21,514)
(9,268,583)
-
CUMULATIVE
LIQUIDITY
GAP
13,945,432
11,127,137
9,290,097
9,268,583
-
-
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
346
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
as
restated
< 1 month
1 to 3
months
3 to 6
months
6 to 12
months
> 1 year
Total
Assets
Cash and balances
with central
banks
7,467,316
7,467,316
Due from banks
2,257,983
8,656
230,432
19,398
225,078
2,741,547
Trading securities
30,014
30,014
Derivative financial assets
1,267,083
1,267,083
Loans and
advances to
customers
949,067
1,073,796
1,456,163
3,267,236
32,633,740
39,380,002
Investment securities
- Measured at amortized
cost
99,791
73,108
3,335,733
3,335,733
- Measured at fair value through other comprehensive
income
6,577,698
6,577,698
- Measured at fair value through
profit or loss
137,675
137,675
Investment in associates
and joint ventures
30,716
30,716
Investment properties
569,524
569,524
Property, plant and equipment
796,331
796,331
Goodwill and other intangible assets
599,245
599,245
Deferred tax assets
468,044
3,334,872
1,475,988
5,278,904
Other Assets
1,587,943
1,587,943
Assets held for
sale
26,076
161,601
51,222
1,444
240,343
Total Assets
18,686,836
1,576,572
1,947,987
6,745,836
41,255,742
70,040,074
Liabilities
Due to banks
426,235
29,518
371,674
108,959
12,170,295
13,106,681
Derivative financial
liabilities
1,768,357
1,768,357
Due to customers
7,933,662
6,353,900
4,066,626
4,773,813
20,702,939
43,830,940
Debt securities in issue held by
institutional investors
and other borrowed
funds
1,222,869
1,222,869
Liabilities for current income
tax and other taxes
9,535
54,706
5,900
70,141
Deferred tax liabilities
32,379
32,379
Employee
defined
benefit
obligations
43,737
43,737
Other Liabilities
2,798
7,033
9,565
18,658
853,526
891,580
Provisions
703,630
703,630
Liabilities related to
assets held for sale
251
251
Total Liabilities
10,131,052
6,399,986
4,502,571
4,907,330
35,729,626
61,670,565
Equity
Share capital
463,110
463,110
Share premium
10,801,029
10,801,029
Reserves
492,791
492,791
Retained earnings
(3,431,502)
(3,431,502)
Non-controlling interests
29,382
29,382
Hybrid securities
14,699
14,699
Total Equity
-
-
-
-
8,369,509
8,369,509
Total Liabilities and
Equity
10,131,052
6,399,986
4,502,571
4,907,330
44,099,135
70,040,074
OPEN LIQUIDITY
GAP
8,555,784
(4,823,414)
(2,554,584)
1,838,506
(2,843,393)
-
CUMULATIVE
LIQUIDITY
GAP
8,555,784
3,732,370
1,177,786
3,016,292
-
-
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
347
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Certain figures of the previous
year have been restated
as described in note 50.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
348
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Trading and Investment portfolios measured at fair
value through profit or loss
and through other comprehensive income are
listed based on
their liquidity potential
and not according to
their maturity.
Cash flows arising from financial liabilities including derivative financial liabilities,
are allocated into time bands according to
their maturity date. Estimated interest payments are also included. Liabilities in foreign currency have been converted
into
Euro. Outflows and inflows relating to derivatives are estimated according to
their contractual terms.
31.12.2021
Total Balance
Sheet
Nominal inflows
/ (outflows)
Total
to 1 month
1 to 3 months
3 to 6 months
6 to 12
months
More than
1
year
Liabilities- non-derivative
Due to banks
13,983,656
(310,986)
5,482
4,253
(45,899)
(13,445,687)
(13,792,838)
Due to customers
46,969,626
(7,605,006)
(4,453,961)
(3,073,809)
(4,138,778)
(27,798,791)
(47,070,345)
Debt securities in
issue and
other borrowed funds
2,593,003
(7,285)
(13,859)
(23,030)
(43,183)
(2,752,294)
(2,839,651)
Other liabilities
888,030
(888,030)
(888,030)
Derivative held
for assets
fair value hedge
926
- Outflows
(19,256)
(138)
(135)
(19,529)
- Inflows
18,721
597
19,318
Derivatives held for
liabilities fair value hedge
11,351
- Outflows
(2,452)
(13,889)
(16,341)
- Inflows
2,162
1,999
3,444
9,962
17,567
Derivatives held for trading
1,276,128
- Outflows
(279,507)
(641,803)
(144,403)
(178,858)
(1,429,995)
(2,674,566)
- Inflows
275,776
574,506
89,148
170,084
991,950
2,101,464
Total
65,722,722
(7,927,008)
(4,530,460)
(3,145,980)
(4,232,727)
(45,326,775)
(65,162,951)
Off Balance sheet
items
Undrawn loan commitments
which can’t be recalled
(committed)
(206,863)
(206,863)
Financial guarantees
81,715
55,456
99,466
304,816
1,716,907
2,258,360
Total
off Balance
sheet
items
-
(125,148)
55,456
99,466
304,816
1,716,907
2,051,497
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
349
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Total Balance
Sheet
Nominal inflows
/ (outflows)
Total
to 1 month
1 to 3 months
3 to 6 months
6 to 12
months
More than
1
year
Liabilities- non-derivative
Due to banks
13,106,681
(421,230)
(19,701)
(357,216)
(80,350)
(12,118,447)
(12,996,944)
Due to customers
43,830,940
(7,936,288)
(6,358,507)
(4,073,109)
(4,785,929)
(20,751,610)
(43,905,443)
Debt securities in
issue and
other borrowed funds
1,222,869
(2,834)
(5,559)
(8,413)
(16,870)
(1,290,153)
(1,323,829)
Other liabilities
891,580
(3,039)
(7,893)
(10,337)
(20,094)
(872,207)
(913,570)
Derivative held
for assets
fair value hedge
13,791
- Outflows
(47,185)
(323)
(3,112)
(3,557)
(85,446)
(139,623)
- Inflows
44,731
1,820
89,257
135,808
Derivatives held for
liabilities fair value hedge
- Outflows
- Inflows
Derivatives held for trading
1,754,566
- Outflows
(208,000)
(399,110)
(249,908)
(130,980)
(1,723,655)
(2,711,653)
- Inflows
197,904
340,412
190,436
121,819
1,246,302
2,096,873
Total
60,820,427
(8,375,941)
(6,450,681)
(4,511,659)
(4,914,141)
(35,505,959)
(59,758,381)
Off Balance sheet
items
Undrawn loan commitments
which can’t be recalled
(committed)
(130,088)
(130,088)
Financial guarantees
53,612
54,696
99,594
224,632
1,905,348
2,337,882
Total
off Balance
sheet
items
-
(76,476)
54,696
99,594
224,632
1,905,348
2,207,794
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
350
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
43.4
Fair value of
financial assets and liabilities
Hierarchy
of financial
instruments
that
are
not
measured
at
fair
value
31.12.2021
Level 1
Level 2
Level 3
Total fair value
Total Carrying
amount
Financial Assets
Loans and
advances to
customers
36,035,493
36,035,493
36,660,718
Investment securities
- Measured at amortized
cost
2,268,741
1,447,110
3,715,851
3,752,748
Financial liabilities
Due to customers
46,950,397
46,950,397
46,969,626
Debt securities
in issue and
other borrowed
funds
2,391,192
203,220
2,594,412
2,593,003
31.12.2020
Level 1
Level 2
Level 3
Total fair value
Total Carrying
amount
Financial Assets
Loans and
advances to
customers
38,730,111
38,730,111
39,059,560
Investment securities
- Measured at amortized
cost
1,648,852
1,777,341
3,426,193
3,335,733
Financial liabilities
Due to customers
43,824,360
43,824,360
43,830,940
Debt securities
in issue and
other borrowed
funds
531,105
680,485
1,211,590
1,222,869
The above tables set out the fair values and carrying amounts of those financial assets that are not measured at fair value
classified by fair
value hierarchy.
The fair value of loans measured at amortised cost is estimated using the discounting cash flow models for the discounting of
the contractual cash flows to maturity. The components of the discount rate are the interbank market yield curve, the liquidity
premium and the expected loss rate. For the loans that for credit risk purposes are classified as impaired and are individually
assessed
for impairment,
the model
uses
the expected
future
cash flows
excluding
expected
credit
losses.
For
the fair
valuation
of the impaired loans which are collectively assessed for impairment, estimates are made for principal repayment after taking
into account the
allowance for expected
credit losses.
The interbank market yield curve and
the liquidity premium serve as the
discount rate for the impaired loans.
The fair value of deposits is estimated based on the interbank market yield curve and the liquidity premium until their maturity.
Level 1
includes securities and
debt securities in
issue that
are traded in
active markets.
Level 2 includes securities and debt securities in issue, the fair value of which, is determined based on non-binding market
prices provided
by dealers
-brokers
or through
the use
of discount
ed cash
flow methodologies
such (income
approach)
using
interest rates
and credit
spreads which
are observable
in the
market.
Level 3
includes the
Group’s
liabilities
to the
Special
Purpose
Entities,
related to
securitized
loans. The
fair value
of these
liabilities was calculated by discounting future cash flows taking into account non-observable market data.
The fair value of the remaining financial assets and liabilities which are measured at amortised cost and include mainly due
from banks and central banks as well
as due to banks,
does not differ materially from their
respective carrying amount.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
351
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Fair Value
hierarchy
- financial assets
and liabilities measured
at fair value
31.12.2021
Level 1
Level 2
Level 3
Total fair value
Derivative financial assets
321
941,288
941,609
Trading securities
- Bonds and Treasury bills
3,819
3,819
- Shares
1,007
1,007
Securities measured at fair value through
other comprehensive income
- Bonds and Treasury bills
6,490,169
84,232
886
6,575,287
- Shares
20,915
37,918
58,833
Securities measured at fair value through
profit or loss
- Bonds and Treasury bills
3,437
35,904
39,341
- Other variable yield securities
149,534
25,434
174,968
- Shares
6,598
22,248
10,191
39,037
Loans measured
at fair value through profit
or loss
159,696
159,696
Other Receivables
measured at
fair value
through profit or loss
40,000
40,000
Derivative financial
liabilities
1
1,288,404
1,288,405
31.12.2020
Level 1
Level 2
Level 3
Total fair value
Derivative financial assets
2,420
1,264,663
1,267,083
Trading securities
- Bonds and Treasury bills
29,154
29,154
- Shares
860
860
Securities measured at fair value through
other comprehensive income
- Bonds and Treasury bills
6,335,594
194,199
1,018
6,530,811
- Shares
14,592
32,295
46,887
Securities measured at fair value through
profit or loss
- Bonds and Treasury bills
835
12,408
13,243
- Other variable yield securities
65,317
20,215
85,532
- Shares
6,064
22,690
10,146
38,900
Loans measured
at fair value through profit
or loss
280,882
280,882
Other Reeceivables
measured at
fair value
through profit or loss
40,000
40,000
Derivative financial
liabilities
40
1,768,317
1,768,357
The above tables present the
fair value hierarchy of
financial instruments measured at fair value
by the level
of the fair
value
hierarchy into
which the
fair value
measurement is
categorized.
Level 1
includes securities
which are
traded in
an active
market
and exchange
-traded derivatives.
Level 2
includes securities
whose fair
value is
calculated based
on non-binding
market prices
provided by
dealers-brokers
or
securities whose fair value is estimated based the income approach methodology with the use of interest rates and credit
spreads which are
observable in
the market.
Level 3
includes securities
whose fair
value is
estimated
using
significant
unobservable
inputs.
Relating to
impact of
Covid-19,
it is noted
that the
Group, following
the relevant
measures taken
by the
Central Banks
and the
member states as well as the consequent normalization of the financial markets and capital markets, did not consider that it
was appropriate to change in
the methodology for calculating fair values
of securities and derivatives as
at 31.12.2021.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
352
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
The valuation methodology
of securities is
subject to approval
by the Treasury
and Balance Sheet
Management /
Assets
Liabilities
Management
Committees.
It is
noted that
specifically
for securities
whose
fair value
is calculated
based
on market
prices, bid prices are considered and daily checks are performed
with regards to their change in fair value.
The fair value
of loans measured at
fair value through
profit or loss,
is estimated based on
the valuation methodology as
described above regarding
the disclosure of fair value estimation
for loans measured at amortized
cost.
Shares whose fair value is estimated are classified to Level 2 or Level 3, depending on the extent of the contribution of
unobservable data to the
calculation of the
final fair value.
The fair value
of non-listed shares,
as well as
shares not traded in
an
active
market is
determined
either based
on the
Group’s share
on the issuer’s
equity
or by the
multiples valuat
ion method
or the
estimations made by the Group
regarding the future profitability of
the issuer taking into
account the expected growth rate
of its
operations, as well as
the weighted average rate of
capital return which is
used as discount rate.
For the
valuation
of over
the counter
derivatives income
approach
methodologies
are used:
discounted
cash flow
models,
option-pricing models or other widely accepted financial
valuation models.
The valuation methodology
of the over the
counter derivatives
is subject to approval
by the Treasury
and Balance Sheet
Management
/ Assets
Liabilities
Management
Committees.
Mid prices
are considered
as both
long and
short positions
may be
open. Valuations
are checked
on a daily
basis with the
respective prices
of the counterparty
banks in the
context of
the daily
process of provision of collaterals and settlement of derivatives. If the non-observable inputs are significant, the fair value
that arises
is classified
as Level
3 or otherwise
as Level
2. We note
that the reference
rate in the
discount rate
of interest
rate
derivatives in
euro (interest
rate swaps)
that are cleared
centrally, changed
from Euro overnight
index average
(EONIA) to
Euro
short term rate
(€ STR). Due
to the
change in valuation
methodology the fair
value of the
derivatives was changed and
at the
same time
a compensation
amounting
to € 2,933
(31.12.2021
€ 745) was
collected
and recognized
in gains
less losses
on
financial transactions,
so that there
is no transfer
of value betwee
n
the two parties.
The change
in the discount
curve has
no
effect on
the Group’s results.
In addition,
the Group
calculates
the credit
valuation
adjustment
(CVA) in
order to
take into
account
the counterparty
credit
risk for the OTC
derivatives. In
particular, taking
into consideration
its own credit
risk, the Group
calculates the bilateral
credit
valuation adjustment
(Bilateral CVA/BCVA)
for the OTC derivatives
held on a counterparty
level according to
netting and
collateral
agreements
in force.
BCVA is
calculated
across all
counterparties
with a
material effect
on the
respective
derivative
fair values taking into consideration the default probability of both the counterparty
and Group, the impact of the first to default,
the expected
OTC derivative
exposure,
the loss
given default
of the
counterparty
and of
Group
and the
specific
characteristics
of
netting and
collateral agreements in
force.
Collaterals are simulated along with the derivative portfolio exposure over the life of the
related
instruments.
Calculations
performed depend
largely on
observable market
data. Market
quoted counterparty
and Bank’s
CDS spreads
are used
in order
to
derive the
respective
probability
of default,
a market
standard recovery
rate is
assumed
for developed
market
counterparties,
correlations between market data are
taken into account and
subsequently a series of
simulations is performed to
model
the portfolio
exposure over
the life
of the
related instruments.
In the
absence of
observable
market
data, the
counterparty
probability
of default
and loss
given
default
are determined
using
the Group’s
internal
models
for credit
rating
and collateral
valuation. BCVA model is validated from an independent
division of the Group according to best practices.
A breakdown
of BCVA per
counterparty
sector and
credit quality,
as defined
for the presentation
purposes of
the table “Loans
by
credit quality and
IFRS 9
Stage” is
given below:
31.12.2021
31.12.2020
Category of counterparty
Corporates
(904)
(3,809)
Governments
(11,144)
(20,745)
31.12.2021
31.12.2020
Hierarchy of counterparty by credit quality
Strong
(246)
(2,849)
Satisfactory
(11,802)
(21,705)
At default
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
353
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The table below presents the valuation methods used for the measurement of Level 3 fair value:
31.12.2021
Total Fair
Value
Fair Value
Valuation Method
Significant
Non-observable
Inputs
Bonds measured at fair
value through other
comprehensive
income
886
886
Based on issuer price / Cash flow
discount with
an estimate
of the
bond yield
Issuer price
Shares measured
at
fair value through other
comprehensive
income
37,918
37,918
Discounted cash
flows /
Multiples
valuation)/WACC
Future profitability of the issuer, expected
growth
/ Valuation ratios / Average weighted cost of
capital
Bonds measured
at fair
value through profit or loss
35,904
35,904
Based on issuer price / Discounted
cash flows with estimation
of credit
risk
Issuer price / Credit spread
-Future Cashflows
Shares measured
at fair
value through profit or loss
10,191
10,191
Discounted cash
flows /
Multiples
valuation method
/ Expected
transaction price
Future profitability of the issuer, expected growth/
Valuation ratios
Loans measured
at fair
value through profit or loss
199,696
199,696
Discounted cash
flows with
interest being the underlying
instruments, taking into account the
counterparty’s credit risk
Expected loss
and cash
flows from
counterparty’
credit risk
Other receivables
measured at fair value
through profit or loss
40,000
40,000
Discounted cash
flows of the
underlying
receivables
portfolio
Cash Flows from the management
of the
underlying receivables
portfolio
31.12.2020
Total Fair
Value
Fair Value
Valuation Method
Significant
Non-observable
Inputs
Bonds measured at fair
value through other
comprehensive
income
1,018
1,018
Based on issuer price / Cash flow
discount with
an estimate
of the
bond yield
Issuer price
Shares measured
at
fair value through other
comprehensive
income
32,295
32,295
Discounted cash
flows /
Multiples
valuation
Future profitability of the issuer, expected
growth
/ Valuation ratios / Average weighted cost of
capital
Bonds measured
at fair
value through profit or loss
12,408
12,408
Based on issuer price / Discounte
d
cash flows with estimation
of credit
risk
Issuer price / Credit spread
Shares measured
at fair
value through profit or loss
10,146
10,146
Discounted cash
flows /
Multiples
valuation method
/ Expected
transaction price
Future profitability of the issuer, expected growth/
Valuation ratios
Loans measured
at fair
value through profit or loss
280,882
280,882
Discounted cash
flows with
interest being the underlying
instruments, taking into account the
counterparty’s credit risk
Expected loss
and cash
flows from
counterparty’
credit risk
Other receivables
measured at fair value
through profit or loss
40,000
40,000
Discounted cash
flows of the
underlying
receivables
portfolio
Cash Flows from the management
of the
underlying receivables
portfolio
The Group
recognizes
the transfer
between
fair value
hierarchy
Levels at
the end
of each
reporting
period.
During the year, corporate bonds of Greek issuers were transferred from Level 2
to Level 1 in
the total amount of €
51,864 due
to the formation of the liquidity margin (bid-ask spread) outside the limit set for the classification of the market as active.
Within the previous year, corporate bonds of
Greek issuers were transferred from Level 1
to Level 2
in the total amount of
€ 49,166 due to the formation of the liquidity
margin (bid-ask spread) outside
the limit set for the classification
of the market
as active.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
354
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
A reconciliation for the movement of financial assets measured at fair value
in Level 3 is
depicted below:
31.12.2021
Assets
Securities
measured
at
fair value through other
comprehensive income
Securities measured
at
fair value through profit
or loss
Loans measured
at fair
value through profit or
loss
Other receivables
measured at fair
value
Balance 1.1.2021
33,312
22,554
280,882
40,000
Total gain or loss recognized
in
Income Statement
(37)
4,502
(44,130)
(321)
- Interest
944
8,319
- Gains less losses on financial
transactions
(37)
3,558
(52,449)
(321)
- Impairment losses
Total gain/ (loss) recognized
in
Equity-Reserves
13
Total gain or loss recognized
in
Equity-Retained Earnings
7,590
Purchases / Disbursements/
Initial Recognition
552
22,687
6,032
8,920
Repayments
(2,626)
(3,648)
(82,397)
(8,599)
Sales
(253)
Settlements
Transfer in Level 3 from Level 2
Transfer to assets held for sale
(437)
Balance
31.12.2021
38,804
46,095
159,696
40,000
Gain/(loss) included
in the
income statement
and relate to
financial instruments
included
in the balance sheet at the end
of the reporting period 1.1 -
31.12.2021
(37)
4,502
(53,760)
(321)
- Interest
944
6,395
- Gains less losses on financial
transactions
(37)
3,558
(60,155)
(321)
- Impairment losses
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
355
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Assets
Securities
measured at fair
value through
other
comprehensive
income
Securities
measured at fair
value through
profit or loss
Loans measured
at
fair value through
profit or loss
Derivative financial
assets
Other receivables
measured at fair
value
Balance 1.1.2020
52,445
12,990
307,136
980
-
Total gain or loss recognized
in
Income Statement
910
830
(20,194)
27
- Interest
270
579
11,584
- Gains less losses on financial
transactions
55
251
(31,778)
27
- Impairment losses
585
Total gain/ (loss) recognized in
Equity-Reserves
109
Total gain or loss recognized
in
Equity-Retained Earnings
(892)
Purchases / Disbursements
6,501
9.802
22,086
40,000
Sales
(9,221)
Repayments
(11,182)
(1,068)
(18,925)
Settlements
(1,007)
Transfer to assets out of level 3
due to control
acquisition
(14,100)
Transfer to assets held for sale
(478)
Balance
31.12.2020
33,313
22,554
280,882
-
40,000
Gain/(loss) included
in the
income statement
and relate to
financial instruments
included
in the balance sheet at the end
of the reporting period 1.1 -
31.12.2020
3
656
(19,272)
- Interest
572
10,920
- Gains less losses on financial
transactions
2
84
(30,192)
- Impairment losses
1
Other receivables measured at fair value through profit or loss relate to a receivable from a variable consideration of € 40,000
recognized in 2020.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
350
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
A sensitivity anlaysis of financial instruments classified at Level 3 whose valuation was based on significant unobservable
data
as at 31.12.2021
is presented below:
Significant
Non-observable
inputs
Quantitative
informationon
non-observable
inputs
Non-observable
inputs change
Total effect in
income
statement
Total effect
in Equity
Favourable
variation
Unfavourable
variation
Favourable
variation
Unfavourable
variation
Bonds measured
at fair value
through other
comprehensive
income
Issuer price
Issuer price equal
to 98.25%
Variation +/-10% in
issuer price
89
(89)
Shares measured
at fair value
through other
comprehensive
income
Valuation indexes
Valuation indexes
P/BV 0,43x,P/BV,
WACC
Variation
+/-10%
in P/B and
EV/Sales
multiples
valuation
method. Wacc
+/-1%
269
(269)
Bonds measured
at
fair value through
profit or
loss
Issuer price/ credit
spread - Discount
cashflows
Average issuer
price equal to 92%
Variation +/-
10%
in issuer Price, -/+
10% in adjustment
of estimated /
Credit Risk
5,694
(12,566)
Average credit
spread equal to
901 bps
Cashflow
recoverability
Change in the
recoverability ratio
of cash flows /
discount rate of
cost of capital
Shares measured at
fair value through
profit or
loss
Valuation indexes
Adjustment
of cash flows
discount based
on the Buyer’s
business plan
(expected average
percentage of
completion 90%)
Business plan
percentage of
completion:
application
of
scenarios of
change of the
expected cash
flows of BP by
+/-35%
1,870
(2,731)
Loans measured at
fair value through
profit or
loss
Expected credit
loss and cash flows
from credit risk
of
the counterparty
Average credit
spread and
liquidity premium
equal to 30.24%
Variation of the
expected cashflows
by +/-10% on
loans individually
assessed
3,016
(3,016)
Other receivables
measured at fair
value through profit
or loss
Cash flows from
management of
subject receivables
portfolio
Value
of property
collateral
€
607.6
million / And third-
party receivables
€ 42.4 million
Variation +/-4% to
property collateral
valuation /
Variation +/-
33%
to third party
receivables
9,000
(7,000)
Total
19,580
25,313
358
(358)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
351
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
A sensitivity anlaysis of financial instruments classified at Level 3 whose valuation was based on significant unobservable data
as at 31.12.2020
is presented below:
Significant
Non-observable
inputs
Quantitative
informationon
non-observable
inputs
Non-observable
inputs change
Total effect in
income
statement
Total effect
in Equity
Favourable
variation
Unfavourable
variation
Favourable
variation
Unfavourable
variation
Bonds measured
at fair value
through other
comprehensive
income
Issuer price
Issuer price equal
to 97,11%
Variation +/-10% in
issuer price
102
(102)
Shares measured
at fair value
through other
comprehensive
income
Future profitability
of issuer, expected
growth / Valuation
indexes/ Weighted
average cost of
capital
Valuation indexes
P/BV 0,28x,
Valuation indexes
P/BV 0,903x
WACC
+-1%
Variation
+/-10%
in P/B and
EV/Sales
multiples
valuation
method. Wacc
+/-1%
590
(589)
Bonds measured
at
fair value through
profit or
loss
Issuer price/ credit
spread
Issuer price equal
to 88.61% /
Average credit
spread equal to
948 bps.
Variation +/-
10%
in issuer Price, -/+
10% in adjustment
of estimated /
Credit Risk
1,074
(1,069)
Loans measured at
fair value through
profit or
loss
Expected credit
loss and cash flows
from credit risk
of
the counterparty
Average credit
spread and liquidity
premium equal
to
36.66%
Decrease of the
expected cash
flows by 10% on
loans individually
assessed
(12,986)
Shares measured at
fair value through
profit or
loss
Valuation indexes
Adjustment of
cash flows discount
based on the
Buyer’s business
plan (expected
average percentage
of completion 90%)
Business plan
percentage of
completion:
application of
scenarios of change
of the expected
cash flows of BP by
+/-35%
1,900
(2,500)
Other receivables
measured at fair
value through profit
or loss
Cash flows from
management of
subject receivables
portfolio
Value of property
collateral
€ 607.6
million / And third
party receivables
€ 42.4 million
Variation
+/-4%
to
property
collateral
valuation. Variation
+/- 33% to third
party
receivables
9,000
(7,000)
Total
11,974
(23,555)
692
(691)
There are
no interrelations
between
non observable
data that
could significantly
affect the
fair value.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
352
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
43.5
Transfers of
financial assets
The Group in its ordinary course of business, transfers financial assets. In
cases that, despite the fact that the contractual
right to
receive
cash flows
has
been transferred,
the risks
and rewards
remain
with the
Group,
these assets
continue
to be
recognized on the
balance sheet.
On 31.12.2021 the financial assets that have not been derecognized,
despite the contractual transfer of their cash flows,
derive from the
following categories:
a)
Securitisation of financial assets
The Bank has
securitized corporate,
shipping and retail
loans and credit
card loans and
Alpha Leasing S.A.
has securitized
leasing loans in order to draw liquidity. In the context of these transactions, these assets have been transferred to special
purpose entities
fully consolidated
by the Group
which have
issued bonds.
The securitized
financial assets
continue to
be
recognized
in loans
and advances
to customers
as the
Group retains
all risks
and reward
associated
with them.
This is
justified
by several factors, which include the full consolidation of the special purpose entities, retention of the notes issued and the
right to receive the deferred consideration from the transfer. As a result of the holding of the notes by the Group, there is
substantially no liability associated with the transfer.
The book value of the securitized receivables at 31.12.2021 amount to
€ 1,398,364
(31.12.2020
€ 1,525,876).
In addition in 2021, two of the securitisations of Alpha Bank S.A. before the hive down, was revoked and the notes were
repaid, i.e. the securitization of a bond loan through the special purpose entity Alpha Quantum DAC (revoked on 19/3/2021)
and the securitization of retail loans through the special purpose entity Katanalotika Plc (revoked on 17/6/2021). For the
time that the above mentioned securisations were in place the special purpose entities were fully consolidated in the Group
and the
securitization
loans were
recognized
in loans
and advances
to customers
as the
Group retained
all risks
and rewards
associated with them through the holding of the issued notes and/or the right to the deferred consideration. On 31.12.2020 the
book value of the loans securitized through Katanalotika Plc amounted to € 493,145 and the loans securitized through Alpha
Quantum Dac to € 275,096, while there was substantially no liability
associated with these transfers as the
total of the notes
issued were retained
by the Group.
In addition, Alpha Bank S.A. before the hive down proceeded on 30.4.2020 with a securitization of non-performing retail and
business loans
which were
transferred
to the
fully consolidated
special purpose
entities Orion
X Securitisation
DAC, Galaxy
II
Funding DAC, Galaxy
III Funding DAC and Galaxy
IV Funding DAC, established
in Ireland. Initially, due
to the ownership of the
notes issued by the entities the Group retained the risks and reward of the securitized loans and continued to recognize them
on its
balance sheet.
On 18.6.2021
the Group
sold 51%
of the
senior and
mezzanine
notes issued
by Orion
Securitisation
DAC,
Galaxy II Funding
DAC and Galaxy
IV Funding DAC,
which led to
the derecognition
of the respective
loan portfolios
from the
financial statements of the Group since the control was lost. The carrying amount of the securitized loan portfolio of Galaxy III
Funding
DAC
which
continues
to be
recognized
by
the
Group
at
31.12.20201
amounts
to
€ 52,959
and
due
to the
ownership
of the notes there is no associated liability. Ον 31.12.2 2020 the book value of the loans securitized through the four special
purpose entities amounted to
€ 6,148,287
and there was
no associated liability.
Finally, on 28.6.2021 the
Bank securitized non performing loans
which were transferred to
the special purpose entity
“Gemini
Core Securitisation
DAC” based
in Ireland
and established
for this
purpose, which
in turn
issued notes.
The loans
continue to
be recognized on financial statements of
the Group since the
Group retains all risks
and rewards due to
the ownership of the
notes issued by the special purpose entity. The book value of these loans at 31.12.2021 amounts to € 4,526,627, and there is
practically no liability from
the transfer.
b)
Sale and
repurchase
agreements
of debt
securities
The Group
as at
31.12.2021,
has transferred
certain Greek
Government
Bonds and
Treasury
Bills, bonds
of other
issuers and
other sovereign bonds
under agreements to
repurchase.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
353
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2021
Securities
measured
at fair
value through
other comprehensive
income
Securities Measured
at
Amortised Cost
Greek Government
Bonds and Treasury Bills
Other Sovereign Bonds
Other Issuers’ Bonds
Greek Government
Bonds and Treasury Bills
Carrying amount of transferred
securities
74,674
18,869
221,164
Carrying amount of related
liability
(72,079)
(15,178)
(211,017)
Fair value of transferred
securities
74,674
18,869
222,209
Fair value of related
liability
(72,079)
(15,178)
(211,017)
Net position
2,595
-
3,691
11,192
The Group
as at
31.12.2020,
has transferred
certain Greek
Government
Bonds and
Treasury
Bills, bonds
of other
issuers and
other sovereign
bonds under
agreements
to repurchase.
These securities
continue
to be
recognized
in the
investment
and
trading portfolios of
the Group
and related
amounts are listed
below.
31.12.2020
Securities measured at
fair value through
other
comprehensive income
Securities
Measured at
Amortised Cost
Trading Portfolio
Greek Government
Bonds and
Treasury Bills
Other Sovereign
Bonds
Other Issuers’
Bonds
Greek Government
Bonds and
Treasury Bills
Greek Government
Bonds and
Treasury Bills
Carrying amount of transferred
securities
154,720
1,942
47,937
201,836
5,138
Carrying amount of related
liability
(150,659)
(1,716)
(36,233)
(199,982)
(4,523)
Fair value of transferred
securities
154,720
1,942
47,937
214,249
5,138
Fair value of related
liability
(150,659)
(1,716)
(36,233)
(199,982)
(4,523)
Net position
4,061
226
11,704
14,267
615
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
354
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
43.6
Offsetting financial assets - liabilities
The following tables present derivative transactions
under International Swaps
and
Derivatives
Association
(ISDA)
contracts,
which are signed with credit institutions as counterparties, as well as repurchase agreements for which a global master
repurchase agreement is in force. In
accordance with these contracts, the Bank
is able to
offset its assets and
liabilities relating
to a
counterparty in case of
a credit default.
Financial assets subject to offsetting
31.12.2021
Gross amount of
recognized financial
assets
Gross amount of
recognized financial
liabilities offset
Net
amount
of
financial
assets
presented
in the
balance sheet
Related amounts not
offset
Net
Amount
Financial
instruments
Cash collateral
received
Derivatives
792,535
792,535
(230,320)
(8,907)
553,308
Reverse repos
783,276
783,238
(292,907)
(3,309)
487,022
31.12.2020
Gross amount of
recognized financial
assets
Gross amount of
recognized financial
liabilities offset
Net
amount
of
financial
assets
presented
in the
balance sheet
Related amounts not
offset
Net
Amount
Financial
instruments
Cash collateral
received
Derivatives
1,086,363
1,086,363
(236,577)
(873)
848,914
Reverse repos
240,025
240,025
(240,025)
Financial liabilities subject
to offsetting
31.12.2021
Gross amount of
recognized financial
liabilities
Gross amount of
recognized financial
assets offset
Net amount of
financial liabilities
presented in the
balance sheet
Gross amount
of recognized
financial
liabilities
Net
Amount
Financial
instruments
Cash collateral
received
Derivatives
1,259,079
1,259,079
(230,320)
(1,026,197)
2,562
Repos
308,049
308,049
(292,907)
(40)
15,102
31.12.2020
Gross amount of
recognized financial
liabilities
Gross amount of
recognized financial
assets offset
Net amount of
financial liabilities
presented in the
balance sheet
Gross amount
of recognized
financial
liabilities
Net
Amount
Financial
instruments
Cash collateral
received
Derivatives
1,754,271
1,754,271
(236,577)
(1,509,258)
8,436
Repos
239,973
239,973
(239,973)
629
629
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
355
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation of the
net amount of
financial assets and liabilities
presented in the
balance sheet
31.12.2021
Note
Net amount
presented in the
balance sheet
Carrying amount of
financial assets
in the
balance sheet
Financial assets not
in scope of
offsetting
disclosures
Type of financial
asset
Derivative financial instruments
18
792,535
960,216
167,681
Reverse repos
16
783,238
783,238
31.12.2021
Note
Net amount
presented in the
balance sheet
Carrying amount of
financial liabilities in
the balance
sheet
Financial liabilities
not in scope of
offsetting disclosures
Type of financial liability
Derivative financial instruments
18
1,259,079
1,288,405
29,326
Repos
27
308,049
308,049
31.12.2020
Note
Net amount
presented in the
balance sheet
Carrying amount of
financial assets
in the
balance sheet
Financial assets not
in scope of
offsetting
disclosures
Type of financial
asset
Derivative financial instruments
18
1,086,363
1,267,083
180,719
Reverse repos
16
240,025
240,025
31.12.2020
Note
Net amount
presented in the
balance sheet
Carrying amount of
financial liabilities in
the balance
sheet
Financial liabilities
not in scope of
offsetting disclosures
Type of financial liability
Derivative financial instruments
18
1,754,271
1,768,317
14,047
Repos
27
239,973
526,431
286,458
In addition, it is disclosed that within the framework of the abovementioned contracts, apart from the cash collateral received,
securities of nominal amount of € 750,000 (31.12.2020: €
900,000) have been used as collateral.
43.7
Disclosures on interest
rate reform
As of January
2022, the London Interbank Interest
Rate (LIBOR), one of
the main and
most important interest rate
benchmarks
used in global
financial markets,
has been abolished
or ceased
to be representative.
Specific LIBORs
indexes in
English pounds
(GBP) and Japanese
Yen (JPY)
benchmarks, following
instructions from
the UK Financial
Conduct Authority,
will continue
to be
published using a different calculation methodology known as “Synthetic”, for a limited period of time, in order to facilitate
the transition.
In addition,
the continuation
of some
specific durations
of LIBORs
benchmarks
in US
Dollar (USD)
until June
30,
2023 has the sole purpose of
supporting the transition of existing products (legacy products).
The Group took all the necessary measures for the timely preparation of the transition to the new alternative reference rates.
More specifically, it
proceeded with the
following actions:
•
Creation of a detailed road map with all the necessary actions that the Group had to implement to
prepare for the transition.
•
Establishment of an Internal Working Group
with the participation of
several Divisions which covered all
the involved work
areas under the
coordination of a
PMO.
•
Establishment
of
a
Steering
Committee
including
members
the
Directors
of
core
Divisions
whose
work
was
considered
crucial for the completion
of the project, which closely
monitored the transition
to the new alternative
reference rates,
informing the Assets Management Committee of the Bank about the progress and the
challenges of the transition.
•
Continuous monitoring of developments resulting from the National Working
Groups to address structural and legal
challenges.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
356
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
•
Cooperation with supervisory authorities and bodies of
the sector, aiming to
ensure a smooth transition for
the Group and its
customers.
Indicatively, the main actions that took place are mentioned:
1.
The Group’s
exposure
to financial
products
inside
and outside
the Balance
Sheet
that are
related
to these
reference
interest
rates and had
maturities after 1/1/2022
was quantified.
2.
A transition
strategy
was created
for contracts
brought
by LIBORs
which expired
or ceased
to be
representative
on 1.1.2022,
based on guidelines from the National Working Groups and
the supervisory authorities
3.
The Legal Services made the
necessary amendments to the relevant contracts to
be compatible with the new
reference
rates and
local law by
forming fallback clauses.
4.
The Group proceeded to
a new
configuration of all
IT systems, depending on
the needs, in
collaboration with the vendors
and in accordance with the operational requirements of the units involved to
support the new reference interest rate.
5.
The Group informed in advance its clientele about the transition from LIBOR by uploading on its website all the relevant
information updating their content on an
ongoing basis. In addition, personalized information was provided to
customers
with contracts that were directly affected by the transition to the new alternative interest rates.
On August
27, 2020,
the International
Accounting
Standards
Board
amended
IFRS 9,
IAS 39
and IFRS
7 in
the context
of the
2nd phase of the project to address the accounting issues that arise due to the interest rate reform. These amendments are
effective from 1.1.2021 and
the basic powers
they provide are
as follows:
-
Changes in contractual cash flows: When changing the basis for calculating the cash flows of financial receivables and
liabilities, the changes required by the interest rate
reform do not lead to
a recognition of a gain
or loss on the
balance sheet
but to an
income statement.
-
Hedge accounting: changes
in the hedging documentation resulting from interest
rate reform do not result in termination of
the hedging relationship or the commencement
of a new relationship provided that
they relate to changes permitted
by the
2nd amendment.
The adoption of the above amendments did not have an impact on the Group’s financial statements as on the one hand
the Bank makes
use of the
option provided regarding changes in
contractual cash flows, and
on the other
hand the hedging
instruments used in hedging relationships have
Euribor as the
reference interest rate that remains
in force and
is not replaced
by any alternative
interest rate.
The adoption of the above amendments did not have an impact on the Group’s financial statements as on the one hand
the Bank makes
use of the
option provided regarding changes in
contractual cash flows, and
on the other
hand the hedging
instruments
used in
hedging
relationships
have Euribor
as the
reference
interest
rate which
remains in
force
and is
not replaced
by any alternative
interest rate.
The table below
depicts the Group’s exposure
per interest rate
benchmark in derivatives and
non-
derivative financial asset
and
liabilities that has
gone yet
to alternative interest
rates as of
31.12.21
Financial assets
Derivatives
Loans
Securities
USD Libor
2,659,511
15,464
529,556
CHF Libor
1,275,211
GBP Libor
344,720
JPN Libor
21,995
Total
4,301,437
15,464
529,556
The amounts of the financial assets
of the Assets that
are disclosed are the customer balances, while
the derivatives are
disclosed in nominal
values.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
357
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
43.8
Assessment of the
impact of
the conflict
between Russia and
Ukraine and the
ensuing sanctions
Alpha Bank Group closely monitors the
effects of the conflict and
the ensuing sanctions to assess the
medium-term effects
on the country,
its customers and
its financial system. At
household level, disposable income is
expected to be
affected by
inflationary pressures due to the
overall increase in energy
prices which will
consequently lead to an
increase in the
cost of
producing consumer goods.
Regarding the readiness and ability
of Alpha Bank
Group to apply
sanctions, the terms of
the restrictive measures vary
in terms
of their
classification
depending
on the
type of
transaction
/ range,
currency, country,
Banks, customers,
and
Organization that imposes them. The responsible Divisions of the Group are
to proceed with the adjustment of
the operating
procedures in a short period of time, for the Group to fully comply with the relevant obligations and instructions. In addition,
after examining the list of suppliers and the active contracts of the Bank, there is no dependence on the part of the supplier
with any
company from
the countries directly
involved in
the conflict.
Alpha
Bank
Group
implements
a strong
Cyber
Risk
mitigation
program
based
on International
Standards.
Additional
measures are in place to effectively monitor and
respond to potential cyber-risk incidents.
As the Russia / Ukraine conflict continues
to evolve, any impact assessment
is premature. However, the Group
has an
established and
robust “Unlikeness
to Pay (UTP)”
process for
assessing borrowers’
viability and
long-term ability
to repay. The
UTP process takes
place during
the periodic review
of the existing limits,
upon request for
new lending, upon
extraordinary
requests, upon
notification of the
Wholesale Banking
Credit Board
or when considering
a request for
modification and
the
corresponding
implementation
for Retail Banking.
The UTP process
in combination
with the mechanism
of the Early
Warning
System that
exists, ensure
the timely
detection of
events by
the Bank
/ Group,
at the level
of the borrower
(legal entities
and
individuals) and the portfolio, as
well as the
relevant actions to be
taken to manage of
these borrowers.
Romania
Alpha Bank
Romania has
a very
limited exposure
in the
respective
region.
From a
transactional
point of
view, Alpha
Bank
Romania has
no correspondent
banking relationship
with entities
in Russia
or Ukraine.
Payment flows
(incoming and
outgoing) are not substantial,
representing 0.37% of the total number
of payments and 0.96% of the total volume
of
payments. The total deposits amount to €1.83 million, representing approximately
0.10% of the bank’s deposit base. In
terms of credit risk exposure, the total amount is about €13.14 million, which represents 0.48% of Bank’s loan portfolio.
Cyprus
The Cypriot economy will be
affected to a moderate
to marginally significant degree, as:
•
the financial (the majority of local banks) and the corporate sector maintain strong ties with customers related to Russia,
while
•
there is also
significant dependence on its
markets on Russia
and Ukraine regarding tourism
in 2022.
The level of impact of
the Russia / Ukraine conflict depends on
the level of escalation and duration of
the conflict as well as
the degree
of the
international response to
resolving it.
Alpha Bank Cyprus’s
exposure to Russian
/ Ukrainian borrowers
is not considered significant
(€6.7 million after Project
Sky).
London
Alpha Bank London is
not active in
the area, so
the Russia /
Ukraine conflict is
not expected to
have a
direct impact.
Albania
Alpha Bank
Albania has
very limited
exposure in
the area,
which is “held
for sale”,
so the Russia
/ Ukraine
conflict has
no
direct impact.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
358
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
44.
Capital Adequacy
The policy of the
Group is to maintain
strong capital ratios and ample buffers
over requirements in order to ensure
the
delivery of Alpha Bank’s strategy and the development and trust of depositors, shareholders, markets
and business
partners.
Share
capital
increases
are
conducted
following
resolutions
of
the General
Meeting
of Shareholders
of Board
of Directors,
in accordance with
articles of
incorporation or relevant
laws.
For the
period that
the Hellenic
Financial Stability
Fund (HFSF)
participates
in the
Share Capital
of the
Bank, the
purchase
of own
shares is
not allowed
without
its approval,
according
to the
Relationship
Framework
Agreement
(RFA) which
has
been signed
between the Bank
and the HFSF.
The Capital
Adequacy
ratio compares
the Group’s
regulatory
capital with
the risks
that it
undertakes
(Risk Weighted
Assets
-
RWAs). Regulatory
capital includes
Common Equity
Tier 1 (CET1) capital
(share capital,
reserves, minority
interests),
additional Tier 1 capital (hybrid securities) and Tier 2 capital (subordinated debt). RWAs include the credit risk of the
investment portfolio (including counterparty
risk and credit valuation adjustment), the market risk of the trading book and
the operational risk.
Alpha Bank, as
a systemic
bank, and consequently
it’s parent company
Alpha Services
and Holdings
S.A., is supervised
by
the Single
Supervisory Mechanism
(SSM) of
the European
Central Bank
(ECB),to which
reports are
submitted every
quarter.
The supervision
is conducted in
accordance with
the European
Regulation 575/2013
(CRR) as amended,
inter alia, by
Regulation (EU)
2019/876 of
the European
Parliament
and of
the Council
(“CRR 2”),
and the
relevant European
Directive
2013/36 (CRD IV), which was incorporated into the Greek Law through the Law 4261/2014 and was amended, inter alia,
by Directive 2019/878 (CRD
V) and incorporated into national law by Law 4799/2021.
For the calculation of capital adequacy ratio the above regulatory framework is followed. In addition:
•
Besides the 8% capital adequacy limit, there are
applicable limits of 4.5% for CET
1 ratio and 6% for
Tier 1 ratio
respectively
•
The maintenance of capital buffers additional to
the CET1 capital are
required. In particular:
•
Capital conservation buffer stands at 2.5%.
•
Bank of Greece
through Executive Committee Acts set
the following capital buffers:
-
Countercyclical capital buffer equal to “zero percent” (0%) for 2021
-
Other systemically important institutions (O-SII)
buffer, which will gradually rise to “one percent” (1%) from
1.1.2019 to 1.1.2023. For
2021, the O-SII
buffer stands at
0.5%.
These limits should be
met both on
a standalone and on
consolidated basis.
The following table presents the capital adequacy ratios of
the Group:
31.12.2021
31.12.2020
Common Equity Tier I Ratio
13.2%
17.3%
Tier I Ratio
13.2%
17.3%
Capital Adequacy Ratio*
16.1%
18.4%
On 28
December
2020, the
ECB informed
Alpha Bank
(before
hive down)
that since
31st January
2021 the
minimum limit
for the Overall
Capital Requirement
(OCR) remains
unchanged from
2020 at 14%.
On February 2,
2022, the ECB
informed
Alpha Services
and Holdings
SA. that
from March
2022 the
minimum
limit of
the consolidated
Overall Capital
Requirements
(OCR) is
increased to
14.25%. The
OCR consists
of the minimum
threshold of
the Total
Equity Ratio
(8%), in accordance
with Article 92
(1) of the
CRR, the
additional supervisory
requirements for
Pillar II (P2R)
in accordance
with Article
16 (2) (a)
of Regulation
1024/2013 /
EU, which amo
unt to 3.0%,
as well as
the combined
security requirements
(CBR), in accordance
with Article 128 (6) of
Directive 2013/36 / EU, which amount
to 3, 25% in
2022 due to the
increase of the security stock
of systemically
important
institutions
(O-SII buffer)
by 0.25%.
The minimum
rate should
be observed
on an
ongoing basis,
considering the
CRR /
CRD IV
Transitional Provisions.
*
Supervisory disclosures
regarding capital
adequacy and risk
management
in accordance
with Regulation
575/2013 (Pillar
III) will be published
on
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
359
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
the Bank’s website.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
360
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
As part
of management
strategy
during 2021,
Alpha Services
and Holdings
Societe
Anonyme
has successfully
completed:
•
On March 4, 2021, the issuance of Tier 2 bonds, amounting to Euro 500 million to institutional investors in order to
maintain its high capital
adequacy and strengthen capital surpluses above regulatory
requirements. The subordinated
bond has a duration of 10.25 years and
can be revoked between 5 and 5.25 years, with
an interest rate of 5.5%
until 11.6.2026, which is adjusted to a new interest
rate valid from the date of revocation until expiration
and which
is determined based on the five-year swap rate and a margin of 5.823% for the remaining period from the date of
withdrawal until expiration. The bond is
listed on the Luxembourg Stock Exchange.
•
On July 2, 2021, the offer of € 800 million of new common Shares further strengthening its regulatory capital and
capital ratios.
Measures
taken for
the banks
in order
to tackle
Covid-19 pandemic
As per the
announced regulatory
measures by
European Banking
Authority (EBA)
and ECB,
in view of
the Covid-19
outbreak, decided that European banking institutions can temporarily
deviate from the minimum capital regulatory
thresholds.
Both ECB
and SSM
took measures,
to tackle
the Covid-19
pandemic,
in order
for them
to continue
finance the
economy
and fulfil their
role.
Specifically,
on 12
March
2020,
the ECB
and the
EBA announced
the following
relaxation
measures
for the
minimum
capital requirements for
Banks in the
Eurozone:
•
Banks are temporarily allowed to operate below the
level of capital defined by the
Capital Conservation Buffer and
the Countercyclical
Buffer. In
addition, on
28 July
2020, the
ECB announced
through a
press release
that
financial
institutions are allowed to operate below the aforementioned thresholds
at least up to the end of 2022.
•
Furthermore,
the upcoming
change under
CRD V
regarding the
P2R buffer
was brought
forward allowing
the Pillar
2
requirement
(P2R) to
be covered
by Additional
Tier 1
(AT1) capital
by 18.75%
and Tier
2 (T2)
capital by
25% and
not
only by CET
1.
•
At the same time, the ECB issued a recommendation to the banks regarding the restriction of the distribution of
shares or the repurchase of shares. According to the press release issued on 23 July 2021, the recommendation is
valid until 30 September
2021. In addition, based on
the same announcement, the ECB expects
the banks to
adopt a
conservative approach considering the estimations regarding variable remuneration).
The European Commission decided to revise the existing regulatory framework
by bringing forward regulations that
would normally come with the CRR2/CRDV framework as well as provide a greater flexibility to the phase-in of the
impact of the
IFRS 9 on
capital. The revised framework was
published in the
Official Journal of
the European Union as
of
June 22, 2020.
On June 26, 2020, the Bank of Greece, in an Act of the Executive Committee (RIP), set the security reserve of
systemically significant
institutions (O-SII) at 0.50%,
maintaining the stable
for 2021 and extending
the existing period
of gradual adjustment. The third and fourth phases are transferred by 12 Months respectively, with effect from 1 January
2022 and 1 January 2023.
This decision is part of
the Covid-19 Pandemic Tree Response.
Commission Delegated Regulation (EU) 2020/2176
of 12 November 2020 amending Delegated Regulation (EU) no.
241/2014 regarding the deduction
of assets in the software category from the capital elements
of the common Shares
of category 1.
Stress Test
Following the postponement of the
2020 Extreme Simulation Exercise due to
the outbreak of
Covid-19 (Coronavirus) and
its worldwide
spread, the
European Banking
Authority (EBA)
has launched
the 2021
Extreme St
imulation Exercise
(EU-
wide Stress Test)
on January 29,
2021.
The Extreme
Statement
Simulation
Exercise
was carried
out based
on the
hypothesis
for static
balance
sheets,
under the
basic and adverse macroeconomic assumptions scenario,
over a period of three years (2020-2023). The result of the
Exercise feeds the overall Supervisory Evaluation Process of the
Bank.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
361
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
The results
were published
on July
30, 2021
and according
to them
Alpha Services
and Participations
SA (Group)
successfully
completed the
EU-wide Stress Test
2021. More
specifically:
•
Under the baseline scenario, capital creation, in the three-year period (2020-2023), was 2.8%, Following the gradual
incorporation of 2.4% of the International Financial Reporting Standard 9 (IFRS 9 phase-in), the Transitional Index of
Common Shares of Category 1 (CET1
transitional ratio) of the Bank to
be formed in 2023
at 17.4%. In 2023,
the Common
Equity Index of Category 1
with full application of
the Transitional Provisions (CET1 fully loaded ratio)
amounted to 17.3%,
while the Leverage Rat with
full application of the Transitional Provisions (Leverage ratio (fully
loaded)) 13.0%. Under
the unfavorable scenario, the Transitional Index of Common Shares of Category 1 ratio amounted to 8.4% for the year
2023, mainly due to the negative impact of credit risk, with the lowest level of the Common
Capital Category 1 with full
application of the Transitional Provisions (CET1 fully loaded ratio) at 8.1%, in 2022. In 2023 the Leverage ratio with full
application of
the Transitional
Provisions
(Leverage
ratio fully
loaded) reached
6.1%. EAT
Extreme
Simulation Exercise.
•
The Extraordinary
Exercise
Simulation
Exercise
Methodology
does not
consider
the capital
increase
(issuance
of category
II funds, Share
Capital Increase) and the
consolidation of the balance
sheet, events that took
place on December 31st.
In
the basic
scenario,
in 2023,
the Class
1 Common
Equity Index
with full
application
of the
Transitional
Provisions
(CET1 fully
loaded ratio) will be 19.1% and the Leverage Index with full application of the Transitional Provisions in full Leverage ratio
14.4%. Under the unfavorable scenario, in 2023, the Class 1 Common Equity Index with full application of the Transitional
Provisions (CET1 fully loaded ratio) was 10.2% and the Leverage Index with full application of the Transitional Provisions
(Leverage ratio fully) at
7.6%
45.
Related-party transactions
The Bank and the other
companies of the Group enter a
number of transactions with related parties in the
normal course of
business. These transactions are performed at arm’s
length and are approved
by the respective bodies.
a.
The outstanding balances of the Group’s transactions with active at the reference date key management personnel
consisting of members of the
Bank’s Board of Directors and
the Executive Committee, their close
family members and the
entities controlled by them, as well as, the
results related to these transactions are as follows:
31.12.2021
31.12.2020
Assets
Loans and
advances to
customers
1,858
1,792
Liabilities
Due to customers
4,352
4,302
Employee
defined
benefit
obligations
207
219
Provisions
650
Total
4,559
5,171
Letters of guarantee and approved limits
306
2,159
From 1 January
to
31.12.2021
31.12.2020
Income
Interest and similar income
35
38
Fee and commission
income
10
8
Other income
1
1
Total
46
47
Expenses
Interest expense
and similar
charges
5
7
Commission expenses
1
1
General administrative
expenses
1
Other expenses
51,797
5,667
Total
52,684
5,675
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
362
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Remuneration of key executives and
their closest relatives is
analyzed as follows:
From 1 January
to
31.12.2021
31.12.2020
Remuneration
of Board
members, salaries
and wages
4,770
4,381
Benefits fees
16
11
Exit of
senior compensation
program
697
Bonus Incentive
program expenses
1,217
Employer
contributions
377
335
Other
153
243
Total
6,533
5,667
In additions, according to the decision of the General Meeting of Shareholders held at 29.6.2018, a compensation scheme is
operating
for the
Bank’s Se
nior Management,
the terms
of which
were specified
through
a Regulation
issued subsequently.
The
program is voluntary, does not constitute business practice and the program may be terminated in the future by a decision of
the General Meeting of the
Shareholders. It provides incentives for the
eligible personnel to comply with the
terms of departure,
proposed by
the Bank,
thus ensuring
the smooth
(only during
the period
and under
the terms
and conditions
approved by
the
Bank) departure and
succession of Senior
Management.
b.
The outstanding balances with the
Group’s, associates and joint ventures as
well as the
results related to these
transactions
are as follows:
31.12.2021
31.12.2020
Assets
Loans and
advances to
customers
106,043
54,835
Other Assets
2,611
1,294
Total
108,654
56,129
Liabilities
Due to customers
62,709
840
Other Liabilities
23,655
Total
83,364
840
From 1 January
to
31.12.2021
31.12.2020
Income
Interest and similar income
2,656
913
Fee and commission
income
4
2
Gains less losses
on financial
transactions
127
1,809
Other income
1,960
41
Total
4,747
2,765
Expenses
General administrative
expense
887
5,844
Other expenses
51,797
Total
52,684
5,844
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
363
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
c.
The outstanding balances of the transaction of Group’s jont
ventures and the results related to
these transactions are as
follows:
31.12.2021
31.12.2020
Assets
Loans and
advances to
customers
3,966
9,624
Other Assets
219
196
Total
4,185
9,820
Liabilities
Due to customers
13,772
13,721
Total
13,772
13,721
From 1 January
to
31.12.2021
31.12.2020
Income
Interest and similar income
418
410
Gains less losses
on financial
transactions
1,173
Other income
197
147
Total
615
1,730
Expenses
Interest expense
and similar
charges
2
Gains less losses
on financial
transactions
5,658
Total
5,658
2
d.
The Hellenic Financial
Stability Fund
(HFSF) exerts
significant influence
on the Bank.
In particular, in
the context of
Law
3864/2010 and based
to
Relationship
Framework
Agreement
(“RFA”)
signed
on
23.11.2015,
which
replaced
the
previous
one signed
in 2013,
HFSF has
participation
in the
Board of
Directors
and 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
31.12.2021
31.12.2020
Income
Fee and commission
income
7
4
46.
Auditors’ fees
The total fees of “Deloitte Certified Public Accountants S.A.”, statutory auditor of the Bank, member of Deloitte Touche
Tohmatsu Limited
(«DTTL»), as
well as fees
of other DTTL
companies and
their partners
,are analyzed
below, in
accordance
with the
provisions of paragraph
2 and
32, article 29
of Law
4308/2014.
From 1 January
to
31.12.2021
31.12.2020
Statutory audit
of the annual accounts*
3,715
3,284
Issuance of tax certificate
595
466
Other non-audit
services
784
599
Total
5,094
4,349
Audit fees for statutory
audit of the annual financial
statements include
amount € 21 that are related
with additional fees of
the year 2020.
*
Statutory audit
of the annual
accounts
include expenses
amounting
up to 2% of the
approved fees.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
364
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
47.
Disclosures of Law 4151/2013
The purpose of the provisions of chapter
B of Law 4151/2013 is the funds from dormant deposit
accounts to be used by
the Greek State to cover government needs, after the write off of
rights of depositors or their legal heirs. According to the
aforementioned the provisions
of Law 4151/2013:
i.
Dormant deposit account to credit Institution, according to the provisions of Law 4261/2014, is an account on which no
transaction by depositors has been recorded for a period of 20 years from the day following the last transaction (the
crediting or capitalizing of interest to an account will not constitute a transaction and not interrupt the prescription),
ii.
Following the expiry of the 20-year period, the credit institutions in Greece are obliged to transfer to the Greek State the
aggregate balance of dormant deposit accounts, including any interest, by the end of April of each year by making a
deposit of the relevant amount in a special account held in Bank of Greece, notify the General Accounting Office (GAO)
and the General Directorate of Public Property to fulfill the obligations
arising from the Law 4151/2013 and to provide
information to beneficiaries and heirs after the lapse of 20 years for the transfer
of the respective amounts, if requested
(the abovementioned amounts, in total, will be recorded as
income in the Annual State Budget),
For the fiscal year 2020 the Bank proceeded
to the transfer of the balances of the dormant deposit
accounts to the State of
a total amount of € 3,782 along with balances
of cheques/orders and the cancellation
of debt securities of a total amount
of
€ 346.
For the fiscal year 2021, the amount of inactive deposit accounts that will be given from the Bank to the Greek State,
according to article 8 par. 2 of Law 4151/2013, until 31.12.2021, is estimated
in the amount of € 4,050.
48.
Assets held
for sale
31.12.2021
31.12.2020
APE Investment Property A.E.
42,300
42,300
Non performing loans and assets portfolio in Cyprus - Sky project
668,698
Alpha Bank Albania
544,532
Alpha Investment Property
Attikis II A.E.
23,853
AGI-Cypre Property 10
Ltd
864
AGI-Cypre Property 12
Ltd
917
ABC RE P1 Ltd
1,335
ABC RE P2 Ltd
2,063
ABC RE P4 Ltd
698
735
Fierton Ltd
10,114
6,442
Portfolio of non performing
loans
95,093
143,318
Assets of Alpha Bank S.A.
3,478
435
Investment Property of
Alpha Leasing A.E.
7,158
4,354
Investment property
of Alpha
Investment Property
Spaton A.E
11,678
Investment Property
AGI-Cypre P&F
Limassol Ltd
95
Investment Property
AGI-Cypre Property
24 Ltd
185
Investment Property
AGI-Cypre P&F
Larnaca Ltd
111
Investment
Property
AGI-BRE
PART2EO
6,518
Fixed Assets of Alpha Bank Cyprus Ltd and AGI-Cypre
Ermis Ltd
123
Other receivables
related to
the Bank’s
merchant acquiring
business unit
52,896
Other assets held for sale
1,535
Total
1,431,485
240,343
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
365
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2021
31.12.2020
Liabilities related to assets held for sale
Alpha bank
Albania
575,392
Alpha Investment Property
Attikis II A.E.
142
AGI-Cypre Property 10
Ltd
3
AGI-Cypre Property 12
Ltd
16
ABC RE P1 Ltd
15
ABC RE P2 Ltd
16
ABC RE P4 Ltd
11
13
Fierton Ltd
12
46
Other liabilities related to the Bank’s merchant acquiring business
unit
31,024
Other liabilities
1,218
Total
607,657
251
The Group has inititiated the process for the sale of specific subsidiaries and joint-ventures, loan portfolios and real estate
and other fixed assets of the Bank and of certain subsidiaries. In addition, the Group has entered into a memorandum of
understanding
for the
spin-off
of Alpha
Bank’s
merchant
acquiring
business
unit in
Greece.
The assets
and the
liabilities
of the
business unit,
for which the
criteria to
be classifies
under IFRS
5 as “Non-current
Assets Held
for Sale” as
presented in
tables
above and analysed
below.
In accordance
with IFRS
5 non-current
assets held
for sale
or disposal
groups held
for sale
are valued
at the
lower between
their carrying amount and fair value less costs to sell and are presented in the balance sheet separately from the other assets
and liabilities.
The fair values of the
assets held for sale at
each reporting period are determined according to the
methods described in not
1.2.7 of the consolidated financial statements and are classified as level 3 in the Fair value hierarchy since they make use
of data from market research, estimates and data which derive from financial assets of similar characteristics and therefore
make use of
significant non-observable input.
Non performing
loans and
assets
portfolio
in Cyprus
- Sky
project
The Group commenced in September 2021 the process for the sale of a Cypriot portfolio consisting of non performing loans,
investment properties and assets from auctions. On 24.12.2021 binding offers
were received and on 27.12.2021 the Executive
Committee of the Bank
approved the commencement
of bilateral discussions
with the preferred bidder for the
finalization of
an agreement. The transaction is expected to be finalized with 2022. As a result the aforementioned portfolio was classified at
31.12.2021 as held
for sale.
The carrying amount of the investment properties and the properties obtained from auctions of the Sky project amounted
at 31.12.2021 to € 113,201 after its valuation at the lower between
book value and fair value less cost to sell and an
impairment loss of
€ 65,693 was recognized
in “Other expenses”
of the Consolidated
Income Statement.
In relation to the loans that are included in the transaction, the Group transferred at 31.12.2021 in “Assets held for sale”
retail
and wholesale loans of with a carrying
amount of € 555,496. The fair value of the loan
portfolio does not differ
from
its carrying amount, as for the
calculation of the expected credit losses the sale
scenario has been used with a
probability of
100%.
The loan and
assets portfolio of Sky
project is included in
operating segment “Southeastern Europe” of Note
42 “Operating
segments”.
Non performing
loans portfolio
Loan portfolio - Orbit project
Within 2021 the Bank
commenced the process for the
sale, through a single
phased process of a
retail
unsecured portfolio,
which comprised:
a)
Loan exposures
securitized into
Galaxy III Funding
Designated Activity
Company DAC
of Alpha Services
and Holdings
S.A.
b)
Loan exposures
not securitized
of the
Bank.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
366
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
In December 2021 the Bank received
binding offers from interested investors
which were evaluated. With the reso
lution of the
Executive Committee of 20.12.2021
a preferred investor was selected and the Board
of Directors on 22.12.2021 approved
the
signing of
the sale
agreement between the
Bank and
the investor.
On 28.12.2021 the Bank entered into a binding agreement with the investor for the sale of the portfolio. Considering the
above and as the Board estimates that the transaction
will be finalized within 2022, the Group classified the total
portfolio of
€ 87,862 as “Assets held for sale”. It is noted that the fair value of the loan portfolio does not differ from its carrying amount,
as for the calculation of the
expected credit losses the sale scenario has been used with
a probability of 100%.
The aforementioned portfolio is included in
“Retail” segment in note
42 “Operating Segments”.
Loan portfolio -
Cosmos project
The Group on 30.9.2021 classified as
“Assets held for sale” a
portfolio of retail and wholesale securitized loans
of a book
value
at 30.9.2021 of € 1,650,671. The sale transaction was concluded on 17.12.2021 and the loan portfolio was derecognized
as
further explained
in note
19. The
Group
with the
finalization
of the
transaction
realized
losses
of € 22,076
in “Gain
less
losses
on derecognition of financial assets measured at amortised cost” in
the Consolidated Income Statement.
Other Loan portfolios
Other loan portfolios of non-performing
loans had been classified as held for sale at 31.12.2020 of € 143,318. Out of these
loans an amount of € 115 million was included in the Galaxy perimeter in the first quarter of 2021 and loans amounting
to
€ 2,402 were
transferred
to the
Cosmos perimeter.
The remaining
loans in
the portfolio
were
reclassified
in the
year in
“Loans
and advances to customers” as they do
not longer meet the criteria
to be classified as “Assets
held for sale”
In addition the Group has classified as “Assets held
for sale” at 31.12.2021 individual loan exposures of €
7,231 for which the
Bank is in an advanced stage for their sale, which is expected to be completed withing 2022, and therefore the criteria to be
classified as
“Assets held
for sale”,
in accordance
with IFRS
5, were
met.
The aforementioned
loans
are included
in “Corporate
Banking”
segment
in note
42 “Operating
Segments”.
Taking into consideration the above, the
balance included in the Non-performing loans
portfolio classified as held for
sale at
31.12.2021 amount to
€ 95,093
(2020: €
143,318).
Merchant
acquiring business
On 10.11.2021 the Bank and
Nexi S.p.A. entered a binding
agreement for the establishment of a
strategic partnership in
respect of the Bank’s merchant acquiring business unit
in Greece, through:
•
The curve-out of
Alpha Bank’s merchant acquiring business unit,
pursuant to a
Greek statutory spin-off process, into
the
newly formed entity “Alpha Payment Services S.A.”, established
on 15.11.2021
•
The sale of a 51% stake of this entity
to Nexi S.p.A subject to the fulfilment of certain conditions precedent and
•
entering into
a long-term
distribution agreement,
providing Alpha
Payment Services
S.A. with
access to
Alpha Bank’s
Network
in order
to distribute
payment
acceptance
products
and services
to business
Customers
of Alpha
Bank in
Greece.
The Board of Directors with its resolution on 24.11.2021
set the transformation balance sheet date
at 30.9.2021.
On 29.11.2021 the Board of Directors approved the relevant demerger deed. The completion of the aforementioned
transaction, which is subject to the fulfilment of certain conditions precedent, is expected to take place within 2022.
The assets and liabilities
of the merchant acquiring
business in Greece of
the Bank meet
the criteria to
be classified as “Assets
held for
sale” in accordance
with
IFRS 5.
The assets and liabilities classified as held
for sale are, as
at 31.12.2021, as follows:
Assets Held for Sale
31.12.2021
Receivables from payment systems
33,374
Receivables
from merchants
4,720
Receivables from credit institutions
14,801
Total
52,895
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
367
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Liabilities Held for
Sale
31.12.2021
Due to merchants from use of credit cards
16,914
Receivables
from merchants
14,801
Defined benefit obligations
49
Liabilities from current
tax and other taxes
(740)
Total
31,024
The table
above
does
not include
receivables
and payables
of the
business
unit
to the
Bank,
amounting
to € 154,015
and
€ 169,888 respectively, which although relate to the merchant acquiring business, are eliminated
with the respective assets
and liabilities of the Bank as the curve-out
has not been completed on 31.12.2021. More specifically, liabilities do not include
a. the liability to merchants from installments
and prepaid installments of credit cards issued
by the Bank, although this
liability will be assumed by
Alpha Payment Services, as the
company following the completion of the hive-down,
will recognize
an equal receivable from the Bank and b. the funding gap of the business unit which will be funded by the Bank when the
curve-out is completed.
It is noted that from the fair valuation of the above there was no loss since the carrying amounts are lower than the fair value
less cost to
sell.
The above
assets of
the merchant
acquiring
business
unit are
included in
Retail segment.
Alpha Bank
Albania
In accordance with the strategic plan of the Bank, within 2021 the process was initiated for the selection of an international
buyer for
the sale
of the
100% stake
of the
Group’s entity
Alpha Bank
Albania S.A.,
which is
a wholy
owned subsidi
ary of
Alpha
International
Holdings
Single Member
Firm S.A.
The binding
offers were
received
by interested
investors on
18.10.2021
and
following an evaluation process, the Executive Committee and the Board of Directors approved
the preferred bidder and a
binding agreement was
signed on 6.12.2021.
Based on the above the assets and relates liabilities of Alpha Bank Albania met the criteria to be classified
as held-for-sale at
31.12.2021, while its operations which
represent a separate geographic reason
in the Southeastern segment, were classified
as ‘discontinued operations’.
Therefore for financial reporting purposes at 31.12.2021 the Group classified certain
assets of Apha Bank Albania and
the total
of its liabilities as “Held for sale”. It is noted that total assets held for sale of
Alpha Bank Albania do not include certain loans
and bonds of a total carrying amount of € 52,514 on 31.12.2021 which the Group intends to keep. From the valuation of the
assets and liabilities at the lower between
their carrying amount and fair value lest call to sell an amount of loss of € 25,506
was recognized as a
loss in “Net
gains/(losses) after income tax from
discontinued operations” in the Income Statement.
Following the above
fair valuation the
total assets of
Alpha Bank Albania
amounted to
544,532. the liabilities
to € 575,392
while the amounts directly
recognized in equity at
€ 15,127. It is further noted
that the amount recognized
directly in equity
will be
reclassified in the
Income Statement during
the sale of
the subsidiary.
The assets and liabilities of the subsidiary are presented in
the following table
31.12.2021
Cash and cash
equivalents
81,699
Due from banks
36,147
Loans and
advances to
customers
278,099
Investment securities
151,877
Property, plant and equipment
12,796
Goodwill and other intangible assets
1,327
Deferred tax assets
301
Other assets
7,792
Result of valuation
(25,506)
Total Assets
544,532
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
368
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2021
Due to banks
13,226
Due to customers
547,328
Other liabilities
9,874
Deferred tax liabilities
1,285
Liabilities for current income
tax and other taxes
582
Provisions
3,097
Total Liabilities
575,392
The results and cash flows of Alpha Bank Albania are presented as “discontinued operations” in the Income Statement, the
Statement of Comprehensive Income and in the
Cash Flow Statement with a
corresponding restatement of the previous year
1.1.2020 until 31.12.2020. In
addition the results from discontinued
operations of 2021 also include impairment
loss of
€ 10.734 which relate to the impairment of software of the Group which support the operations of Alpha Bank Albania. The
related analysis is
presented in note
51.
APE
Investment
property
S.A.
The Group is in advanced stage of the process of selling its participation in the joint venture APE Investment Property S.A.
with a carrying amount of
€ 42,300 at 31.12.2021 (2020: 42,300). On
2.2.2021 the Bank signed
a binding agreement for the
transfer of he share. The parties are
committed to the completion of the transfer and
significant progress has been made in
fulfilling conditions precedent
for the sale. There was not impact
from the fair valuation of the investment
for 2021 and 2020.
The company is classified
in “Other/Elimination Center” segment for operating segment disclosure purposes.
Subsidiaries
Alpha Investment
Properties Attikis
II S.A.
The sale
transaction
of Alpha
Investment
Properties Attikis
II S.A.
which had
been classified
as held
for sale
in the
prior year
was completed on 12.2.2021 for a total consideration of €
25,892. From the sale a gain was
recognized in “Gains less
loss
from
financial
transactions”.
The
Company
was
included
in
“Other/elimination
center”
segment
for
operating
segment
disclosure purposes.
ABC RE P4
Ltd, ABC RE
P2 Ltd, Fierton
Ltd, ABC RE
P1 Ltd, AGI
Cypre Property 10
Ltd & AGI-Cypre
Property 12 Ltd
For the above entities which were classified as held for sale
at 31.12.2020 the following are noted:
•
On 31.1.2021 the sale of the shares of
AGI Cypre Property 10 Ltd was
concluded for a total consideration of €
930 and a
gain of €
12 was recognized in “Gains less losses from
financial transactions” of 31.12.2021.
•
On 26.2.2021
the sale
of the
shares of
ABC RE
P1 Ltd
was concluded
for a
total consideration
of € 1,400
and a
loss of
€ 110 was recognized in “Gains less
losses from financial transactions” of 31.12.2021.
•
Relating to
ABC RE
P2 Ltd,
based on
the developments
at the
negotiation
process,
the investment
interest was
only for
the
properties of the company and not the shareholding. As a result, on 31.3.2021 the properties of the entity were classified
as “Assets held for sale”, while the entity ceased meeting the criteria to be classified as held for sale. The properties of the
entity were sold on 12.5.2021 for a total consideration of € 1,900 and a loss of € 167 was recognized in Other expenses of
the Consolidated Income
Statement.
•
The fair valuation
of AGI-Cypre
Property 12
Ltd resulted
in a gain
of € 3 which was
recognized
in “Gains less
losses from
financial
transactions”
at 31.12.2021.
As at
31.12.2020
a loss
was recognized
for ABC
RE P4
Ltd and
AGI-Cypre
Property
12
Ltd of
€ 12 and
€ 31 respectively.
No gains
or losses
derived
from Fierton
Ltd’s valuation
in the
current or
comparative
year.
The major classes of assets of the above mentioned entities that are classified in “Assets held for sale” relate to investment
properties.
As the entities do
not present for the Group
a separate business segment they do not
meet the criteria to be
classified as
discontinued operations
and are included
in “S.E. Europe”
segment for operating
segment disclosure
purposes.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
369
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Investment
properties
Investment
properties
of Alpha
Investment
Property Spaton
S.A.
In 2020
the Group
classified
the investment
properties
of Alpha
Investment
Property
Spaton
S.A. as
assets held
for sale.
In
2021 the sale of
the properties was
completed for a total
consideration of € 12,500 and
a gain of € 728 was recognized
in Other Income in the Consolidated Income Statement. The investment properties of the entity were included in “Other/
Elimination Center” segment for operating segment disclosure purposes.
Investment properties
of AGI-Cypre Property
24 Ltd, AGI-Cypre
P&F Limassol Ltd,
AGI-Cypre P&F Larnaca
Ltd
In 2020 the Group classified the investment properties of the above entities as assets held for sale. In 2021 the sale of the
properties of AGI-Cypre Property 24 Ltd was completed for a total consideration of € 565 and a loss of € 46 was recognized
in Other
Expenses
in the
Consolidated
Income Statement.
The investment
properties
of AGI-Cypre
P&F Limassol
Ltd and
AGI-
Cypre P&F Larnaca Ltd
were reclassified to be
presented in the
Investment Properties of Sky
as at 31.12.2021. The
investment
properties of the entities
were included in “S.E.
Europe” segment for operating segment disclosure purposes.
Investment
properties
AGI-BRE
PART2
EO
Within
2021,
AGI-BRE
Participations
2 EO
classified
its investment
properties
in
“Assets
held
for sale”
following
agreement
with
an investor dated 23.12.2021 as the relevant criteria required by IFRS
5 were met. Their carrying amount at
31.12.2021 was
€ 6,518.
The Group
recognized
the properties
at the
lower
between
their carrying
amount
and fair
value less
cost
to sell
and
the resulting loss of
€ 400 was recognized in “Other
expenses” in the Consolidated
Statement of Income.
The investment properties of the
entities are included in
“Other/Elimination Center” segment for operating segment disclosure
purposes.
Investment properties
Alpha Leasing
S.A.
Within 2018, Alpha Leasing S.A. commenced the process for the sale of a portfolio of Investment properties. Within 2021 the
sale of 9 of these properties was concluded for a total consideration of € 7,448 and a gain of €
346 was recognized in “Other
income” of the Consolidated Income Statement,
while another 6 investment properties of a total amount of € 5,129 were
classified as “Assets
held for sale”.
The investment
properties of
Alpha Leasing
S.A. are included
in “Corporate
Banking” segment
of Note 42
“Operating segments”.
49.
Corporate
events
‣
On 25.1.2021, in the context of the restructuring of the Bank’s subsidiaries and pursuant the approval of the Central Bank of
Albania No. 3/13.1.2021
and of the Competition
Committee of Albania
dated 30.7.2020, the
transfer of the shares
of Alpha
Bank Albania SH.A, owned wholly by the Bank, to Alpha International
Holding S.M.S.A. was completed.
‣
On 31.1.2021,
the sale
of the
Group’s
subsidiary
AGI-Cypre
Property 10
Ltd was
completed.
‣
On 12.2.2021,
the sale
of the
Bank’s subsidiary
AIP Attica
II S.A.
was completed.
‣
On 15.2.2021
the Bank’s
subsidiary,
AGI-Cypre
Ermis Ltd
established
the companies
AGI-Cypre
Property
52 Ltd
and AGI
-
Cypre Property 53
Ltd, for the
amount of €
1 each.
‣
On 15.2.2021, the sale
of the total
shares of the
Group’s subsidiary AGI-Cypre Property 36
Ltd was completed.
‣
On 23.2.2021
the Group’s
subsidiary,
Alpha Bank
S.A. Cyprus
Ltd established
the company
AGI-Cypre Property
51 Ltd, for
the amount of
€ 1
per share.
‣
On 25.2.2021
the Bank’s
subsidiary,
AGI-Cypre Ermis
Ltd proceded
to a share
capital increase
in cash in
its subsidiaries
AGI-Cypre Property 6 Ltd, AGI
-Cypre Property 15 Ltd, AGI
-Cypre Property 16 Ltd, AGI
-Cypre Property 20 Ltd, AGI
-Cypre
Property 22 Ltd,
AGI-Cypre Property
25 Ltd, AGI-Cypre
Property 26 Ltd,
AGI-Cypre Property
27 Ltd, AGI-Cypre
Property 28
Ltd, AGI-Cypre Property
29 Ltd, AGI-Cypre
Property 30 Ltd, AGI
-Cypre Property 31 Ltd,
AGI-Cypre Property
32 Ltd, AGI-Cypre
Property 33 Ltd,
AGI-Cypre Property
34 Ltd, AGI-Cypre
Property 37 Ltd,
AGI-Cypre Property
38 Ltd, AGI-Cypre
Property 40
Ltd, AGI-Cypre Property
42 Ltd, AGI-Cypre
Property 43 Ltd, AGI
-Cypre Property 44 Ltd,
AGI-Cypre Property
45 Ltd, AGI-Cypre
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
370
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Property 46 Ltd, AGI-Cypre
Property 47 Ltd, AGI-Cypre
Property 48 Ltd, AGI-Cypre
Res Pafos Ltd, AGI-Cypre
P&F Nicosia Ltd,
AGI-Cypre Res Nicosia ltd, AGI-Cypre P&F Limassol Ltd, AGI-Cypre P&F Pafos Ltd, AGI-Cypre COM Pafos Ltd, AGI-Cypre Res
Larnaca Ltd and AGI-Cypre Res Ammochostos Ltd for the amounts of €
7, €
2,263, € 167, €
1,910, € 27, €
29, € 23,
€ 265,
€ 33, € 42, €
29, € 4,186, € 537, € 39, € 44, €
11, € 14, € 754, € 85, €
38, € 48, € 456, € 28, €
26, € 489, € 2,357, € 1,056,
€ 999, € 308, €
1,196, € 6, € 787 and € 337 respectively.
‣
On 26.2.2021,
the sale of
the Group’s
subsidiary ABC
RE P1 Ltd
was completed.
‣
On 1.3.2021,
the Group’s
subsidiary,
Alpha Credit
Acquisition
Company Ltd,
proceeded
to a share
capital increase
in cash,
in
its subsidiary Alpha
Credit Property
1 Ltd,
for an
amount of €
696.
‣
On 5.3.2021, the sale of the
remaining shares of the company Forthnet held by
the Bank was completed, following the
partial disposal as of 13.11.2020, with the acceptance of a
Public Offering to the company’s shareholders.
‣
On 12.3.2021,
the Bank
proceeded
to a
share capital
increase in
cash in
its subsidiary
Alpha Group
Investments
Ltd, for
an
amount of € 265,000 and on the same date the latter proceeded to a share capital increase in its subsidiary, Umera Ltd, for
an amount of
€ 265,000.
‣
On 12.3.2021,
the Bank’s
subsidiary,
Alpha International
Holding S.M.S.A.
proceeded to
a share
capital increase
in cash
in its
subsidiary Alpha
Credit Acquisition Ltd,
for an
amount of €
520,000.
‣
On 17.3.2021,
the sale
the Group’s
subsidiary AGI
RRE Cleopatra
Srl was
completed.
As a
result of
the aforementio
ned sale,
the Group’s
no longer includes
TH Top
Hotels.
‣
On 18.3.2021
the Financial
Supervisory
Authority
of Romania,
following a
request by
Alpha Finance
Romania
S.A. approved
the revocation of
its license.
‣
On 12.4.2021
the Bank
proceeded
to a
share capital
increase in
cash in
its subsidiary,
Alpha Group
Investments
Ltd, for
an
amount of
€ 100,960
and on
the same
date
the latter,
proceeded
to a
share capital
increase
in its
subsidiary,
AIP Kalitheas,
for an amount
of €
19,960.
‣
On 20.4.2021
the Bank
subsidiary,
AGI-Cypre Ermis
Ltd, proceeded
to the share
capital increase
in kind
of its
subsidiary AGI-
Cypre Property 46
Ltd, for
an amount of
€ 51.
‣
Within April,
the Group
investment,
South Eastern
European
Fund made
capital
return of
€ 295 to
the Group
subsidiary
Ionian Equity Participation Ltd.
‣
On 11.5.2021 the subsidiary of
the Bank, Alpha Group
Investments Ltd, proceeded to the
share capital increase in
cash of
its subsidiary,
AGI-BRE Participations 2
Ltd, for
an amount
of €
330.
‣
On 19.5.2021 the subsidiary of
the Bank, Alpha Group
Investments Ltd, proceeded to the
share capital increase in
cash of
its subsidiary Alpha
Group Real
Estate Ltd
for an
amount
of €
69,000.
‣
On 31.5.2021, the
Group subsidiary Sapava Ltd
proceeded to the
share capital increase of
its subsidiary Acarta Srl
through
the capitalization of
a loan amounting
to €
68,589.
‣
On 7.6.2021
the Group
subsidiary
AGI-BRE
Participations
2 Ltd
proceeded
to the
increase
of the
share capital
in cash
of its
subsidiary AGI-BRE
Participations 2
EOOD for
an amount
of €
330.
‣
On 9.6.2021
the Group
subsidiary
Alpha
Credit
Acquisition
Company
established
the company
Alpha Credit
Properties
Ltd
for an amount
of €
1.
‣
On 14.6.2021 the Group
subsidiary Alpha Group Real Estate
Ltd π proceeded
to the increase
of the share
capital in cash
of
its subsidiary AEP Residential Properties Attikis I MAE
for an amount of
€ 5,000.
‣
On 22.6.2021
the Bank
sold the
80% of
its loan
servicing subsidiary
Cepal Holdings
Single Member
S.A.
‣
On 24.6.2021
the Group
subsidiary
Alpha Group
Real Estate
Ltd proceeded
to the
share capital
increase
in cash
of its
subsidiary Office Park
I Srl for
an amount of
€ 10,012.
‣
On 28.6.2021 the Bank subsidiary Alpha Group Investments proceeded
to the share capital increase in cash of its
subsidiaries Alpha Trustees
Ltd, AGI-BRE Participations 1 Ltd, Zerelda
Ltd, AGI-RRE Hera Ltd, AGI-BRE Participations
2 Ltd,
AGI-BRE Participations 4 Ltd, AGI-RRE Ares Ltd, AGI-RRE Hermes Ltd, AGI-RRE Arsinoe
Ltd, AGI-SRE Ariadni Ltd, AGI-SRE
Participations 1 Ltd and Krigeo Holdings Ltd of amounts of € 7,€ 15,€ 14, €
17.5, € 43, €
40, € 15, €
9, € 20, €
13, € 13 and
€ 50 respectively.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
370
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
‣
Within June, the Group subsidiary Ionian Equity
Participations proceeded to the payment of
the 2nd part of
the share capital
increase amounting to € 16 of private equity fund, SME
Remedium Cap SCA SICAV-RAIF
based in Luxembourg.
‣
Within June,
the participation
of the
Group
Bluehouse
Accession
Property IIΙ
made a
return of
share capital
of € 605
to the
Group subsidiary Ionian
Equity Participation Ltd.
‣
On 14.7.2021
the Group
subsidiary
Alpha Bank
Cyprus
Ltd established
AGI-Cypre
Property 55
Ltd, for
an amount
of € 1.
‣
On 19.7.2021 the Group subsidiary Alpha Bank Cyprus Ltd, proceeded to the share capital increase in cash of its
subsidiaries ABC RE L5
Ltd, ABC RE L3 Ltd, ABC RE L2 Ltd,
ABC RE L4 Ltd, ABC RE RES Nicosia
Ltd, ABC RE P7 Ltd, ABC RE
P&F Larnaca Ltd, ABC
RE RES Ammochostos
Ltd and ABC RE RES
Pafos Ltd for the amounts
of € 43, € 59, €
153, € 62, € 47,
€ 110, € 46, €
43 and € 226 respectively.
‣
On 29.7.2021
the Group
subsidiary
Alpha Bank
Cyprus Ltd
established
AGI-Cypre
Property
54 Ltd
for an
amount of
€ 1.
‣
On 30.7.2021, in the context of its updated business plan, which includes
the development of business initiatives through
joint ventures with
international partners, the
Bank announced the
initiation of the process
for the selection of a
strategic
partner to
pursue a
joint venture in
the Greek
real estate
market.
‣
On 6.8.2021
the liquidation
and the
removal of
the Cyprus
Company
Register for
the Group’s
subsidiaries
AGI-RRE Venus
Ltd
and AGI-RRE Athena
Ltd was completed
‣
On 2.9.2021
the liquidation
process of
the subsidiary
of Alpha
Services and
Holdings S.A.,
Alpha Credit
Group Plc
was
completed.
‣
On 20.9.2021,
Alpha Services
and Holdings
SA proceeded
with the
increase in
cash of
the share
capital cash
of its
subsidiary Alpha Group
Jersey Ltd, of
€ 650.
‣
On 29.9.2021,
Alpha Services
and Holdings
SA, in the
context of
Cosmos transaction,
proceeded
with the
establishment
of its
subsidiary REOCO
Cosmos Single
Member Firm
SA, whereas
on 1.10.2021
its initial share
capital amounted
to € 75 was paid.
‣
On 30.9.2021,
the liquidation
and removal
of the
Bank’s associate
company
Famar
SA, located
in Luxemburg,
was
completed.
‣
On 15.10.2021 the sale
of the total
shares of the
Group’s subsidiary AGI-Cypre Property 11 Ltd,
was completed.
‣
On 27.10.2021
AGI-Cypre
Property
51 Ltd
a subsidiary
of Alpha
Bank Cyprus
Ltd was
transferred
to the
Bank’s subsidiary,
AGI-Cypre Ermis Ltd.
‣
On 27.10.2021, the share capital decrease in kind amounting to € 10,825 was completed by cancelling 108,252,500
common, registered,
voting shares,
with a nominal
value of
€ 0.10 each, held
by Alpha
Services and
Holdings S.A.,
with the
parallel distribution to her of the
95% of mezzanine and junior notes
held by the Bank and
issued by the Irish
entity “Cosmos
Securitization Designated Activity Company”,
whose total fair value was equal to the amount of the above share capital
decrease of the
Bank.
‣
On 4.11.2021
the liquidation
and the
removal
of the
Romanian
Company
Register
for the
Bank’s
subsidiary
Alpha
Finance
Romania Srl was
completed
‣
On 11.11.2021, after
the Memorandum of
Understanding of 3.8.2021,
the binding agreement
between Alpha Bank
and Nexi
SpA
(“Nexi”) was
announced
for the
establishment
of a
strategic
partnership
in respect
of the
Bank’s merchant
acquiring business
unit in
Greece through,
inter alia:
i) the curve
-out of
Alpha Bank’s
merchant
acquiring business
unit,
pursuant
to a
Greek
statutory
spin-off
process, into
the newly
formed
entity
“Alpha
Payment
Services
S.A.”, established
on 15.11.2021 with the
corporate name “Alpha Payment
Services MAE”. («NewCo») with a
share capital amounting to
€ 1,000, ii) The sale
of a 51% stake of this entity to Nexi S.p.A subject to the fulfilment of
certain conditions precedent and
i)
entering into
a long-term
distribution agreement,
providing Alpha
Payment Services
S.A. with
access to
Alpha Bank’s
Network
in order
to distribute
payment
acceptance
products
and services
to business
Customers
of Alpha
Bank in
Greece.
On 24.11.2021 Alpha Bank and NewCo
started the spin off process
of merchant acquiring business unit from
Alpha Bank to
NewCo,
while
on 29.11.2021
the
respective
demerger
deed
was
approved
by the
both
companies’
Board
of Directors,
which
was signed and published the same day according to the law. Based on the valuation of the merchant acquiring business
unit which was performed for the purpose of the spin-off, its fair value amounts
to € 306.8 million which is significantly
higher than
carrying amounts.
Within March
2022 NewCo
is expected
to be granted
by the Bank
of Greece
an operation
license as a payment institution, in accordance with Greek Law 4537/2018 and relevant applicable legislation.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
371
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
‣
On 15.11.2021
the Group’s
subsidiary, Alpha
Bank Cyprus
Ltd transferred
its subsidiary,
AGI-Cypre Property
54, to the
Bank’s
subsidiary AGI-Cypre Ermis Ltd.
‣
On 23.11.2021
the Group’s
subsidiary,
Alpha International
Holdings,
established
the company
Sky CAC
Limited,
for an
amount on €
1.
‣
On 3.12.2021
the Group’s
subsidiary,
Alpha
Ventures
transferred
its investment
in Theta
Microelectronics
in its
subsidiary
Ionian Equity Participations
in Cyprus.
‣
On 6.12.2021
the Group’s
subsidiary,
Alpha International
Holdings
Single Member
S.A.,
entered
into a
binding
agreement
with OTP Bank Plc
regarding the acquisition of Alpha
Bank Albania SHA by the
latter.
‣
On 8.12.2021 the Group’s subsidiary, Alpha Group Investments proceeded to
the sale of the
total amount of shares of
Umera Ltd to Alpha Credit Acquisition Company for the
amount of €
4,216.
‣
On 10.12.2021 Alpha Bank S.A. successfully completed the bond issuance of senior preferred notes, with total nominal
amount of € 400,000. The senior preferred notes have
a 2-year duration (maturity in February
2024) and a 3% yield,
while they provide the possibility of
the prepayment in the first
(February 2023). The notes are listed in
EuroMTF Market of
Luxembourg Stock Exchange.
‣
On 17.12.2021 Alpha Bank S.A. completed the synthetic
securitization amounting to € 1.9 bil. of performing medium and
large corporate
loans (Project
Aurora),
with Christofferson,
Robb &
Company
(CRC) as
the main
investor,
AnaCap Financial
and European
Bank for
Reconstruction and
Development (EBRD).
‣
On 17.12.2021
Alpha
Services
and Holdings
S.A. completed
the grant
of Stock
Options
in the
context
of Performance
Incentive Program
-PIP-
for the
year 2020
in Material
Risk Takers
-MRTs-
of the Company
or its related
parties or
its
Afiliates.
‣
On 23.12.2021 the sale of
the Group’s subsidiary Alpha Investment Property Kefalariou S.A was
completed amounting to
€ 15,231.
‣
On 28.12.2021 Alpha Bank S.A., entered into
a biding offer with
`Hoist Finance AB (publ) regarding the
sale of a
portfolio
of non-performing
retail unsecured
loans with
a total
book value
amounting
to € 1.2
bil. («Project
Orbit»). The
sale was
completed on 24.3.2021.
‣
On 29.12.2021 the increase of the share capital of the Alpha Bank S.A. by the amount of € 16,000 in cash was completed
by its
sole shareholder
Alpha Services
and Holdings
S.A. with
the issuance
of 160,000
new shares
with a
nominal
value of
€ 0.10 each and an offer price of € 1.00 each. The total difference between the nominal value and the offer price of
the new
shares, ie. the amount of € 144,000 was credited to the “ Share premium” account of the Bank. After the abovementioned
increase, the
Alpha Bank
S.A. share
capital amounts
to €
5,188,999.246.
‣
On 30.12.2021
Alpha
Credit
Acquisition
Company
Ltd.
Completed
the merger
by acquisition
of
Umera
Ltd.
‣
On 1.3.2022,
the Bank
proceeded
to the
share capital
increase
in cash
of its
subsidiary AGI
-Cypre Ermis
Ltd for
an amount
of €
60,000.
‣
On 8.3.2022,
the sale
of Bank’s
and Group’s
investment in
Kefalonia Fisheries
S.A. to
Grupo Profand
S.L was
completed.
50.
Restatement of financial statements
Within the financial year, the Group has changed the method of calculating the defined benefit obligation arising from the
pension
compensation
under
the Greek
labour
legislation,
taking
into account
the IFRIC
Committee’s
decision.
Based
on
this decision, the distribution of the obligation into periods of service no longer starts from the first day of employment but
subsequently, as prescribed
in article 8
of Law
3198/1955.
In addition, the Group acquired the control of
Acarta Construct Srl and acquired the 100% of
its share capital on 15.12.2020 for
a consideration of € 0.2 and with an
additional consideration
of € 1 for the assignment of the right
to collect a loan obligation
of the
company
to a
subsidiary
of the
same group
to which
Acarta
Construct
Srl belonged,
amounting
to € 68,260.
In December
2021, the temporary values of the assets and liabilities acquired by the Group were finalized and a change in the amount of
goodwill occurred due to changes in the fair values of certain assets and liabilities of the of the company and therefore the
comparative period has
been restated.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
372
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Furthermore, in the context of the transaction Alpha Bank Albania disposal the activities which are expected to be sold
represent
for the
Group
discontinued
operations,
in accordance
with IFRS
5. As
a result,
the captions
that are
expected
to
be sold are presented cumulatively as results from discontinued operations in
a separate line in
the Income Statement and
Statement of Comprehensive Income and respectively the comparative period has been restated.
As a result
of the above
changes, certain figures of
the Income Statement, Statement of
Other Comprehensive Income and
Balance sheet of the previous period
have been restated, as included in the
tables follow:
From 1 January
to 31.12.2020
Published
amounts
Restatement
of Alpha
Bank Albania to
assets
held for sale
IAS 19
Restated
amounts
Interest and similar income
2,073,382
(16,429)
2,056,953
Interest expense
and similar
charges
(531,745)
2,139
(529,606)
Net interest income
1,541,637
(14,290)
-
1,527,347
Fee and commission
income
388,688
(3,819)
384,869
Commission expense
(53,361)
350
(53,011)
Net fee and commission income
335,327
(3,469)
-
331,858
Dividend income
2,958
2,958
Gain less losses
on derecognition
of financial
assets
measured at
amortized cost
173,202
173,202
Gains less losses
on financial
transactions
516,771
(979)
515,792
Other income
22,496
(555)
21,941
Staff costs
(459,519)
5,659
96
(453,764)
Expenses for separation
schemes
(26,214)
(26,214)
General administrative
expenses
(471,729)
7,463
(464,266)
Depreciation and amortization
(161,397)
2,415
(158,982)
Other expenses
(38,939)
438
(38,501)
Total expenses
before impairment
losses and
provisions
to cover credit risk
1,434,593
(3,318)
96
1,431,371
Impairment losses
and provisions
to cover credit
risk
(1,319,511)
527
(1,318,984)
Share of profit/(loss) of associates
and joint ventures
(1,014)
(1,014)
Profit/(loss) before
income tax
114,068
(2,791)
96
111,373
Income tax
(10,123)
25
(33)
(10,131)
Net profit/(loss) before
income tax from
continued
operations
103,945
(2,766)
63
101,242
Net profit/(loss) before
income tax from
discontinued
operations
2,766
2,766
Net profit/(loss) after income tax
103,945
-
63
104,008
Profit/(loss) attributable to:
Equity holders
of the
Company
From continued
operations
103,737
(2,766)
63
101,034
From discontinued
operations
-
2,766
-
2,766
Non-controlling
interests
continued
operations
208
208
Earnings/(losses) per
share
Basic (€ per share)
0,0672
0,0672
Basic (€ per
share) from
continued operations
0,0672
0,0654
Basic (€ per
share) from
discontinued
operations
0,0018
Diluted (€ per share)
0,0672
0,0672
Diluted (€ per
share) from
continued
operations
0,0672
0,0654
Diluted (€ per
share) from
discontinued
operations
0,0018
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
373
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
The restated Statement of Comprehensive Income from 1 January to
31.12.2020, is presented below:
From 1 January
to 31 December
2020
Published
amounts
Restatement
of Alpha
Bank Albania to
assets
held for sale
IAS 19
Restated amounts
Profit/(loss)
for the
year recognized
in the Income
Statement
103,945
63
104,008
Other comprehensive
income
Items that may be reclassified to
the Income Statement
Net change in investment securities’ reserve measured
at fair
value through other comprehensive income
(363,946)
2,006
(361,940)
Net change in
cash flow hedge
reserve
20,841
20,841
Foreign currency translation net of investment hedges
of
foreign operations
(2,951)
1,062
(1,889)
Net change in share of profit/(loss) of associates and joint
ventures
-
Income tax
95,551
(301)
95,250
Items that may be reclassified to
the Income Statement
(250,505)
2,767
-
(247,738)
Items that may be
reclassified to the Income
Statement
from discontinued operation
(2,767)
(2,767)
Items that will not be reclassified to the Income
Statement
Net change in actuarial gains/(losses) of defined benefit
obligations
(2,814)
(2,534)
(5,348)
Gains/(losses) from equity securities measured at fair value
through other comprehensive income
3,619
3,619
Income tax
686
766
1,452
Items that will not be reclassified to the Income
Statement
1,491
(1,768)
(277)
Other comprehensive
income for
the year,
after income
tax
(249,014)
(1,768)
(250,782)
Total comprehensive
income for
the year
(145,069)
-
(1,705)
(146,774)
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
374
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
The restated balance sheet as of
31.12.2020, is presented below:
31 December
2020
Published
amounts
Finalization of
temporary values
of
first consolidation of
Acarta
IAS 19
Restated
amounts
ASSETS
Cash and balances
with central
banks
7,467,316
7,467,316
Due from banks
2,741,547
2,741,547
Trading securities
30,014
30,014
Derivative financial assets
1,267,083
1,267,083
Loans and
advances to
customers
39,380,002
39,380,002
Investment securities
- Measured at fair value through other comprehensive
income
6,577,698
6,577,698
- Measured at fair value through
profit or loss
3,335,733
3,335,733
- Measured at amortized
cost
137,675
137,675
Investments in associates
and joint ventures
30,716
30,716
Investment property
569,876
(352)
569,524
Property, plant and equipment
796,331
796,331
Goodwill and other intangible assets
601,818
(2,573)
599,245
Deferred tax assets
5,292,612
625
(14,333)
5,278,904
Other assets
1,587,943
1,587,943
69,816,364
(2,300)
(14,333)
69,799,731
Assets classified
as held for
sale
240,343
240,343
Total Assets
70,056,707
(2,300)
(14,333)
70,040,074
LIABILITIES
13,106,681
13,106,681
Due to banks
13,106,681
13,106,681
Derivative financial
liabilities
1,768,357
1,768,357
Due to customers
43,830,940
43,830,940
Debt securities in issue and other borrowed funds
1,222,869
1,222,869
Liabilities for current income
tax and other
taxes
70,141
70,141
Deferred tax liabilities
34,679
(2,300)
32,379
Employee
defined
benefit
obligations
94,386
(50,649)
43,737
Other liabilities
891,580
891,580
Provisions
703,630
703,630
61,723,263
(2,300)
(50,649)
61,670,314
Liabilities related to assets
classified as held for sale
251
251
Total Liabilities
61,723,514
(2,300)
(50,649)
61,670,565
EQUITY
Equity attributable
to holders of the Company
Share capital
463,110
463,110
Share premium
10,801,029
10,801,029
Reserves
492,791
492,791
Amounts directly recognized in equity and associated with assets
classified as held
for sale
Retained earnings
(3,467,818)
36,316
(3,431,502)
8,289,112
-
36,316
8,325,428
Non-controlling interests
29,382
29,382
Hybrid securities
14,699
14,699
Total Equity
8,333,193
-
36,316
8,369,509
Total Liabilities and
Equity
70,056,707
(2,300)
(14,333)
70,040,074
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
375
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
51.
Discontinued
Operations
In the context of the sale transaction of Alpha Bank Albania, all the activities whose sale is expected to be completed
constitute
for the
Group,
in accordance
with IFRS.
5, discontinued
operations.
Therefore,
the presentation
of the
items that
are expected to be
sold are presented cumulatively as results
from discontinued operations in a separate line
in the Income
Statement and the Income Statement and respectively the comparative period has been restated.
From 1 January to
31.12.2021
31.12.2020
Interest and similar income
17,685
16,429
Interest and
similar expense
(2,833)
(2,139)
Net interest income
14,852
14,290
Fee and commission
income
4,817
3,820
Commission expenses
(414)
(350)
Net income from fees and commissions
4,403
3,470
Gains less losses
on financial
transactions
(1,215)
979
Other income
147
555
Payroll and personnel
costs
(6,172)
(5,660)
General Administrative
Expenses
(7,413)
(7,462)
Depreciation
(2,768)
(2,415)
Other expenses
(11,405)
(439)
Total impairment
losses and
credit risk
provisions
(9,571)
3,318
Impairment losses,
credit risk
provisions and
related expenses
(434)
(527)
Profit/(loss) before
income tax
(10,006)
2,791
Income tax
2,367
(25)
Net earnings/(losses)
after income
tax
(7,638)
2,766
Result of
(25,506)
Net earnings/(losses)
after income
tax from
discontinued operations
(33,144)
2,766
Net change in the reserve of bonds valued at fair value through the other
comprehensive
income
445
(2,006)
Income tax
(67)
301
Amounts reclassified
to the
Income Statement
from discontinued operations
378
(1,705)
Net earnings/(losses)
after income
tax
(32,766)
1,061
52.
Strategic plan
In May 2021 the Strategic Plan of the Group was presented, which includes a number of strategic initiatives which are
expected to affect the future financial results of the Group until 2024 and which include specific financial targets. These
initiatives aim to the participation in the expected credit expansion of the Greek banking sector which is expected to be
achieved through the
financing of
the Recovery and
Resilience Facility as
well.
These initiatives are as
follows:
•
Targeted reduction of non-performing exposures through
a series of transactions of mainly non-performing exposures of a
total book value up to € 8.1 billion for the Group with the intention to decrease the exposure of the Group in
non-performing
exposures by € 19.8 billion until 2024 (compared to the year end of 2020, including the effect of Galaxy securitization) and
to allow the Group to achieve a single digit NPE ratio in the first semester of 2022 and target to
an NPE ratio of 2% until the
end of 2024.
For the majority of
the above transactions the sale
process has either completed or
relevant binding agreements are signed.
More specifically the
transactions completed (or
with binding
agreements signed) are:
a)
Sale of a securitized loan portfolio of
up to €
3.4 billion. This relates to project Cosmos for which
an application for the
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
376
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
inclusion of the securitization in the state guarantees scheme “Haps ΙΙ” had been submitted and the relevant Ministerial
Decision has
been issued
for the
inclusion in
the program
(note 48).
b)
Sale of a portfolio of non-performing exposures in Cyprus of a total book value of € 2.2 billion before allowance for
expected
credit
losses
(project
Sky).
The transaction
also
includes
real
estate
properties
of a
book value
of € 113.20
million
(Note 48).
c)
Sale of
a non
performing
unsecured
loan portfolio
in Greece
of a
total book
value of
€ 1.2 billion.
It concerns
the project
Orbit (note 48).
Impact on the provisions for impairment of loans of the above transactions for the Group amounted to € 1.016 million and
comprises € 284 million for
project Cosmos, € 457 million for
project SKY project and €
275 million for project Orbit.
For transactions with a total value of € 0.7 billion before allowance for expected credit losses relating to transactions for the
sale of non-performing wholesale and leasing exposures for which the Group has initiated the sale procedures, additional
provisions
of €
22 million
were
recognized
through
the incorporation
of a
sales scenario
in the
calculation
of expected
credit
losses (note 11).
For the remaining sale transactions included in the Strategic Plan with a total value before impairment of approximately
€ 0.7 billion,
the Group
did not
use the
probability
of a
sale scenario
in the
calculation
of the
expected
credit
losses as
the
Management does not have reasonable and sound assumptions to base their
realization.
For the loan portfolios
that on 31.12.2021
a sale scenario has
been taken into account
with a probability of
less than
100% as well as for
those portfolios for which a
sale scenario has not been incorporated as the
Management does not have
reasonable and valid assumptions to base this assessment, the total impact from the calculation of the expected credit risk
losses based on the estimated selling prices is estimated at approximately €
250 million.
It is noted that on 31.12.2021
these portfolios were not classified
as held for sale as the relevant
sale transactions are still
at an early stage
and therefore at this
stage cannot be reliably
estimated the possibility
of their completion
within the next
12 months.
•
A series
of capital
measures
to support
the Group’s
NPE initiatives
by providing
additional
capital buffers.
These measures
include the following transactions, out of which for the first two, a binding agreement with the investors exists so have been
categorized as held
for sale.
a)
the curve-out of the merchant acquiring business unit of the Bank into a newly formed entity and sale of the 51% stake of
this entity to
the strategic partner, Nexi
(a binding agreement exists which
is subject to
certain conditions precedent. Subject
to regulatory approvals the finalization of the sale is expected in the
next 12 months) (notes 48 and 49),
b)
The sale
of Alpha
Bank Albania
S.A. (for
which a
binding agreement
exists and
the sale
is expected
to be
finalized in
the next
12 months) (note
48) and,
c)
The synthetic securitization transaction which was completed
on 17.12.2021 through which the Bank received credit
protection for a specific wholesale loan portfolio
that it holds through a credit protection financial guarantee
agreement
with an SPV
(note 11).
In addition to the above the
Strategic plan also includes the following projects:
d)
The sale
of Alpha
Bank
London,
for which
the Executive
Committee
has approved
the initiation
of the
bidding
process
from
selected investors which will be then subject to evaluation for their
business rational and prospects. As no binding offers
have been received yet and a preferred investor has not been selected, the carrying value of the assets and the related
liabilities of the subsidiary has not been classified as held
for sale on 31.12.2021.
e)
the establishment of a joint venture
with an international partner in
the real estate market and the transformation
of the
Group’s subsidiaries in order
to better manage
the properties. The transaction is
subject to internal and
regulatory approvals
which are out of the control of the Group and therefore an impact cannot be estimated. As binding offers have not yet been
received for this transaction and a preferred investor has not been selected, these properties have not been classified as
held for sale
on 31.12.2021.
The successful completion of the above capital initiatives
will contribute to the increase of the capital adequacy of the
Group.
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
377
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
•
Measures for the decrease of the operating expenses and the improvement of the efficiency of the operations, focusing
on the
basic
banking
operations,
decreasing
operating
cross
across
the organization,
improving
and enhancing
the
digital
platform and by
applying policies for sustainable
banking with the
integration of environment, social and
governance (ESG)
criteria.
•
Initiatives for the increase of income
from commissions, mainly through wealth management and bancassurance products.
•
Initiatives for the increase of the international footprint, especially in Romania.
During 2021 the
following have been completed:
-
The share capital increase in the Group which was completed in July 2021 for a total amount of €
800 million.
-
The decrease
of the
group non
performing
exposures
by € 15.8
billion
-
The annual increase of
the net commission income
of the Group
by approximately 20.6%,
-
The transformation program of the Bank’s operating
model that started within 2020 continues, targeting
the enhancement
of the organization’s efficiency, the optimization of the business model and the further enhancement
of the performance
measurement and
reward systems in
all the
operations of
the Bank.
53.
Events after the
reporting period
•
On 14.1.2022, the Company, 100% parent entity of Alpha Group Jersey Limited announced that Alpha Group Jersey
resolved the repayment of the outstanding amount of its Series B Preferred Securities. Specifically, Alpha Group
Jersey resolved the repayment in full of the outstanding amount of the initial € 600.000 Series B CMS-Linked, without
accumulated
dividend,
non voting
preferred
securities
(ISIN:
DE000A0DX3M2),
which are
under subordinated
guarantee
by
the Company, at the preferred divident payment date of 18 February 2022, at the repayment price. Before the repayment,
as it is required by its articles of
incorporation, Alpha Group
Jersey
has
requested
and
received,
the
consent
of
Alpha
Services and
Holdings S.A.,
of the Single
Supervisory
Mechanism and,
to the degree
that it is
required, of
the Bank of
Greece.
As a result of the above Alpha Group Jersey repayed on 18.2.2022 the outstanding nominal amount of € 15.5 million. The
above transaction did
not affect the
results of the
Group.
•
On 21.1.2022,
the bank’s
subsidiary,
Alpha Grou
p
Investments
Ltd, participated
in the
share
capital
increase
of the
Group’s
subsidiaries, Alpha
Investment Property
Neas Kifissias
S.A. and Alpha
Investment Property
Kallirois S.A.,
by paying the
amounts of €
13,600 and €
6,800 respectively.
•
In the context of the implementation of the stock option plan with the issuing of new shares to executives of the Company
and its related entities, as detailed in note 36, 1,430,168 stock options were exercised during January 2022 by the holders
who exercised the share stock options, in accordance with the program and in the context of the Performance Incentive
Program for the years 2018, 2019 and 2020. As a result of the above, 1,430,168 common, registered, with a right of vote
shares were
issued, the
face value
of each
equal to
€ 0.30 and
the share
capital increased
by € 429,
as per
the decision
of
the Annual General Assembly
of shareholders of 31.7.2020 and
the relevant decisions of
the Company’s Board of
Directors
of 31.12.2020, and 16.12.2021. The trading of the 1,430,168 new, common, registered shares
of the Company in the
Athens Stock Exchange
commenced on 10.2.2022.
•
On 8.2.2022,
the Group
subsidiary
AGI-Cypre Ermis
Ltd sold
59 SPVs
of a
total carrying
amount € 85,000
to the
Group
subsidiary Alpha
Credit Acquisition Company
S.A.
•
On 12.2.2022 Alpha Services and Holdings S.A. reached an agreement with an affiliated entity of Cerberus Capital
Management
L.P. (“Cerberus”)
for the
sale of
a portfolio
of non
performing
loans and
real estate
properties in
Cyprus
(Project
Sky) (Note
48) of
a total
book value
of € 2.4
billion (the
“Portfolio”).
The Portfolio
will be
sold through
group wholy
owned
subsidiary Alpha International
Holdings M.A.E.
•
On 25.2.2022,
Alpha Services
and Holdings
S.A. transferred
to Alphalife
A.A.E.Z. ten
(10) common,
registered with
voting
rights shares, not listed, with a nominal value of € 0.10 for a total consideration of € 12.5 million of its shareholding in the
Bank which represent
approximately 0,00000002 % of
the share capital
of the later.
•
Russia’s invasion in Ukraine on 24 February 2022 has created uncertainties in the markets and in the evolution of
macroeconomic
conditions,
while
in addition
the subsequent
sanctions
imposed
by Unite
d
States,
the European
Union,
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
378
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
the United Kingdom and others affected the transactions with the parties involved in the sanctions. It is noted that the
Group has
direct exposure
to Russia
and Ukraine
from loans
to customers
of circa
€ 43 million.
The Group
is monitoring
the
unfolding crisis and assesses the impact on its business, financial position and profitability. Since high uncertainty exists
as to how the situation will
develop, it isn’t possible currently to assess the
broader implications of the crisis. Additional
information for the evaluation of the impact are included in note 43.8 “Assessment of the impact of the crisis in Russia and
Ukrain and related
sanctions”.
•
Based on the announcements of 30.7.2021 and 15.3.2022, the Bank initiated the process for the selection of strategic
investor in order
to form a
Joint Venture in
the Greek real
estate market
(Skyline Transaction),
which is expected
to be
completed in the second half of 2022 and in turn the transaction to be completed by the end of 2022. In the context
of
Skyline transaction,
the subsidiary
of the Group
“Alpha Astika
Akinita S.A.”
is expected
to be
transformed
into a
company
with the sole purpose of providing services and for this purpose to acquire the corresponding service activity from the
Group’s subsidiary,
“Alpha Real
Estate and Investment
S.A.”. Respectively,
“Alpha Astika
Akinita S.A.”
is expected to
transfer
all its real estate to a Group company and which will be the body of the
Joint Venture that will be formed. Based on the
available data, there are insufficient data to calculate any impact on
the Group’s results.
•
On 11.3.2022 non-performing loans portfolio was
transferred from the Bank’s subsidiary, Alpha
Bank Cyprus Ltd to
the
Group’s subsidiary,
Alpha Credit
Acquisition Company
Limited.
•
On 24.3.2022 the
disposal of the
Retail Unsecured
Non Performing
Loan Portfolio (Orbit
Transaction) was
completed (Note
48).
Athens, 31 March, 2022
THE CHAIRMAN
OF THE BOARD OF DIRECTORS
THE CHIEF EXECUTIVE
OFFICER
THE GENERAL MANAGER
AND CHIEF FINANCIAL OFFICER
THE ACCOUNTING
AND TAX MANAGER
VASILEIOS T.
RAPANOS
ID No ΑΙ 666242
VASSILIOS E. PSALTIS
ID No ΑΙ 666591
LAZAROS A. PAPAGARYFALLOU
ID No ΑK 093634
MARIANA D. ANTONIOU
ID No Χ 694507
………CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31.12.2021
379
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Financial Statements
as at 31.12.2021
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 386-506) form an integral part of these financial statements
381
ANNUAL FINANCIAL REPORT
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 386-506) form an integral part of these financial statements
382
ANNUAL FINANCIAL REPORT
Income
Statement
(Amounts
in
thousands
of Euro)
From 1
January to
Note
31.12.2021
31.12.2020
as restated
Interest and similar income
183,575
298,586
Interest expense
and similar
charges
(51,933)
(27,383)
Net interest income
2
131,642
271,203
Fee and commission
income
31,422
19,747
Commission expense
(4)
(19)
Net fee and commission income
3
31,418
19,728
Dividend income
4
600
Gains less
losses on
derecognition of
financial assets
measured at
amortised cost
6
(2,238,990)
739
Gains less losses
on financial
transactions
5
5,262
(19,935)
Other income
7
495
416
Staff costs
8
(833)
(499)
General administrative
expenses
9
(17,828)
(816)
Depreciation and amortization
18, 19
(33)
(2)
Other expenses
(1)
Profit /(loss) before
impairment losses, provisions
to cover
credit risk and
related
expenses
(2,088,868)
271,434
Impairment losses,
provisions to
cover credit
risk and
related expenses
10, 11
(256,345)
(353,859)
Profit/(loss) before
income tax
(2,345,213)
(82,425)
Income tax
12
44,717
(31,638)
Profit/(loss) from continuing
operations
(2,300,496)
(114,063)
Profit/(loss)
from
discontinued
operations
39
(338,386)
252,568
Profit/(loss) for the year
(2,638,882)
138,505
Earnings/(losses) per
share
Basic (€ per share)
13
(1.37)
0.09
Basic from continued operations (€ per share)
13
(1.19)
(0.07)
Basic from
discontinued operations
(€ per
share)
13
(0.18)
0.16
Diluted (€ per share)
13
(1.37)
0.09
Diluted from continuing operations
(€ per share)
13
(1.19)
(0.07)
Diluted from discontinued operations
(€ per share)
13
(0.18)
0.16
Certain figures of the previous year have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 386-506) form an integral part of these financial statements
383
ANNUAL FINANCIAL REPORT
Statement
of Comprehensive
Income
(Amounts
in
thousands
of Euro)
From 1
January to
Note
31.12.2021
31.12.2020
as restated
Profit/(loss) for
the year,
recognized in the
Income Statement
(2,638,882)
138,505
Other comprehensive
income
Items that may
be reclassified subsequently
to the Income
Statement
Net change in reserve of investment securities'
measured at fair value through other
comprehensive income
(87,964)
(363,393)
Net change in
cash flow hedge
reserve
6,036
20,841
Income tax
12
23,759
99,340
Items that may be reclassified to
the Income Statement
(58,169)
(243,212)
Items that will not be reclassified to the Income Statement
Remeasurement
of actuarial gains/(losses) of defined benefit obligations
(17)
(5,883)
Gains/(losses) from investments
in equity securities measured at fair value through other
comprehensive income
117
4,064
Income tax
12
(34)
528
Items that will not be reclassified to the Income Statement
12
66
(1,291)
Other comprehensive
income for
the year
(58,103)
(244,503)
Total comprehensive
income for
the year
(2,696,985)
(105,998)
From continuing
operations
(2,300,514)
(114,063)
From discontinued
operations
39
(396,471)
8,065
Certain figures of the previous year have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 386-506) form an integral part of these financial statements
384
ANNUAL FINANCIAL REPORT
Balance Sheet
(Amounts
in
thousands
of Euro)
Note
31.12.2021
31.12.2020
as restated
ASSETS
Cash and balances
with central
banks
6,682,232
Due from banks
14
25,705
2,630,190
Trading securities
29,418
Derivative financial assets
1,272,924
Loans and
advances to
customers
15
18,446
35,280,807
Investment securities
- Measured at fair value through other comprehensive
income
16
133
5,170,579
- Measured at fair value through
profit or loss
16
22,537
218,317
- Measured at amortized
cost
16
993,060
3,160,121
Investments
in subsidiaries,
associates
and joint
ventures
17
6,160,102
2,488,619
Investment property
46,659
Property, plant and equipment
18
7
642,381
Goodwill and other intangible assets
19
370
473,458
Deferred tax assets
20
5,263,104
Other assets
21
75,928
1,373,114
7,296,288
64,731,923
Assets classified
as held for
sale
35
52,959
274,773
Total Assets
7,349,247
65,006,696
LIABILITIES
Due to banks
13,333,799
Derivative financial
liabilities
1,769,222
Due to customers
39,535,086
Debt securities in issue and other borrowed funds
22
1,044,403
1,048,536
Liabilities for current income
tax and other taxes
23
31,839
64,296
Employee
defined
benefit
obligations
24
30
36,435
Deferred tax liabilities
20
24
Other liabilities
25
12,292
990,529
Provisions
26
189,499
Total Liabilities
1,088,588
56,967,40
EQUITY
Share capital
27
703,794
463,110
Share premium
28
11,362,512
10,801,029
Reserves
29
423,244
326,893
Retained earnings
(6,228,891)
(3,551,737)
Total Equity
6,260,659
8,039,295
Total Liabilities and
Equity
7,349,247
65,006,696
Certain figures of the previous year have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 386-506) form an integral part of these financial statements
385
ANNUAL FINANCIAL REPORT
Statement
of Changes
in Equity
(Amounts
in
thousands
of
Euro)
Note
Share capital
Share premium
Reserves
Retained
earnings
as restated
Total
Balance 1.1.2019
463,110
10,801,029
568,438
(3,725,202)
8,107,375
Impact from the amendment of the
accounting policy
for the calculation of
defined benefit obligations
36,177
36,177
Balance 1.1.2020
463,110
10,801,029
568,438
(3,689,025)
8,143,552
Changes for the year
1.1 - 31.12.2020
Profit/(loss) for
the year, after
income tax
138,505
138,505
Other comprehensive
income for the
year,
after income tax
(243,212)
(1,291)
(244,503)
Total comprehensive
income for
the
year after income tax
-
-
(243,212)
137,214
(105,998)
Valuation reserve of employee stock option
program
1,667
1,667
Expenses for share
capital increase
74
74
Balance
31.12.2020
463,110
10,801,029
326,893
(3,551,737)
8,039,295
(Amounts
in
thousands
of
Euro)
Note
Share capital
Share premium
Reserves
Retained
earnings
Total
Balance 1.1.2021
463,110
10,801,029
326,893
(3,551,737)
8,039,295
Changes for the year
1.1 - 31.12.2021
Profit/(loss) for
the year, after
income tax
(2,638,882)
(2,638,882)
Other comprehensive
income for
the year,
after income tax
(58,169)
66
(58,103)
Total comprehensive
income for
the
year after income tax
-
-
(58,169)
(2,638,816)
(2,696,985)
Valuation reserve of employee stock option
program
3,083
3,083
Transfer of reserves related to the
demerger of banking operations
153,103
1,814
154,917
Share Capital Increase
through cash
240,000
560,000
800,000
Share Capital
Increase through
options
exercise
684
1,483
(1,666)
183
684
Share Capital Increase expences
(40,335)
(40,335)
Balance
31.12.2021
703,794
11,362,512
423,244
(6,228,891)
6,260,659
Certain figures of the previous year have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
The attached notes (pages 386-506) form an integral part of these financial statements
386
ANNUAL FINANCIAL REPORT
Statement
of Cash
Flows
(Amounts
in
thousands
of Euro)
From 1
January to
Note
31.12.2021
31.12.2020
as restated
Cash flows from
continuing operating activities
Profit/(loss)
before income
tax from
continuing
operations
(2,345,213)
(82,425)
Adjustments of profit/(loss) before
income tax for:
Depreciation, impairment,
write-offs of property,
plant and equipment
1
2
Amortization,
impairment,
write-offs of intangible
assets
32
Impairment losses on financial assets and other provisions
246,048
352,803
Gains less
losses on
derecognition of
financial assets
measured at
amortised cost
2,238,990
(739)
Fair value
(gains)/losses on
financial
assets measured
at fair
value through
profit or
loss
(2,893)
4,093
Impairment
of investments
760
91
(Gains)/losses
from
investing
activities
(38,205)
(Gains)/losses
from financing
activities
46,014
23,228
145,534
297,053
Net (increase)/decrease
in assets
relating to
continuing operating
activities:
Loans and
advances to
customers
163,333
(419,982)
Other assets
(61,131)
(16,258)
Net increase/(decrease) in
liabilities relating to
continuing operating activities:
Other liabilities
(10,050)
20,737
Net cash flows from
continuing operating activities before
income tax
237,686
(118,450)
Income tax paid
(54,209)
Net cash flows from continuing
operating activities
183,477
(118,450)
Net cash flows from
discontinued operating
activities
3,183,008
5,978,719
Cash flows from
continuing investing activities
Investments
in subsidiaries,
associates
and joint
ventures
(1,160,725)
(150)
Interest received from investment
securities
7,421
Purchases of investment
securities (excluding
Greek Government
Treasury Bills)
(1,000,000)
Disposals/maturities
of investment
securities (excluding
Greek Government
Treasury Bills)
5,811
Net cash flows from continuing
investing activities
(2,147,493)
(150)
Net cash flows from
discontinued investing activities
(164,344)
(1,426,605)
Cash flows from
continuing financing activities
Share Capital Increase
800,684
Share Capital Increase expences
(40,327)
Issuance of debt securities in issue and other borrowed funds
495,660
495,363
Interest paid on debt securities in issue and other borrowed funds
(28,188)
(8)
Net cash flows from
continuing financing activities
1,227,829
495,355
Net cash flows
from discontinued
financing activities
(60,749)
(402,043)
Effect of
foreign exchange
changes on
cash and
cash equivalents
215
119
Cash and
cash equivalents
of demergered
sector
(9,263,381)
Net increase/(decrease)
in cash flows
(7,041,438)
4,526,945
Cash and cash
equivalents at the
beginning of the
year
7,067,143
2,540,198
Cash and cash
equivalents at the
end of the
year
14
25,705
7,067,143
Certain figures of the previous year
have been restated as described in note 38
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
387
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Notes to
the Financial
Statements
GENERAL
INFORMATION
On 16
April 2021,
the demerger
by way
of hive-down
of the
banking business
sector of
Alpha Bank
S.A. (the
“Demerged”)
was
completed and its core banking operations
were contributed into a new company – credit
institution which was registered
under G.E.M.I. on
the same date under
the name “Alpha
Bank S.A.” (the “Beneficiary”).
Specifically, Alpha
Bank S.A. substituted
the Demerged as universal successor, in all of its assets and liabilities within the banking business sector transferred to it, as
these are included in the Transformation balance
sheet of 30.6.2020 and were formed until 16.4.2021,
the completion date of
the demerger.
The “Demerged”
by assuming
the 100%
of the
issued shares
of Alpha
Bank S.A.,
becomes the
parent entity
of the
bank and
its
subsidiaries (Alpha Bank
Group).
On 19.4.2021 the amendment of the Articles of Incorporation of the “Demerged” was approved, by virtue
of the decision of the
Ministry of Development and Investments number 45898/19.4.2021,
and the banking license of the Demerged was revoked,
while its
corporate name
changed to
“Alpha Services and
Holdings S.A.”
As a result of the above it is noted that in
the notes to the Financial Statements “Alpha Bank” (the “Demerged”) and “Alpha
Services and
Holdings S.A.”
will be
mentioned
as “the
Company”, while
“Alpha Bank
S.A.” after
the demerger
will lbe
mentioned
as “the Bank”.
The Company’s business scope
is:
a.
the direct and indirect participation in domestic and/or foreign companies and undertakings
that already exist or will be
established, of any
form and objective
whatsoever,
b.
the design, promotion and distribution of insurance
products in the name and
on behalf of one
or more insurance
undertakings in the capacity of insurance agent in
accordance with the applicable legislation,
c.
the provision of supporting accounting and tax services to affiliated companies and third parties as well as the elaboration
of studies
on strategic and
financial management and
d.
the issuance of securities for raising regulatory capital, which are expected to have the form of debit/credit titles.
100% of rights of the Financial Stability Fund was retained after
the completion of the Demerger.
The corporate
name and
distinctive title
of the Company
were established
as “Alpha Services
and Holdings
S.A.” and “ALPHA
SEVICES AND HOLDINGS”
respectively. The Comp
any has its registered office
at 40 Stadiou Street,
Athens and is listed in the
General Commercial Register with registration
number 223701000 (ex societe anonym registration
number 6066/06/B/86/05).
Its duration has been set until
2100 and can be extended following a
decision of the General Assembly.
On 18.1.2022
the Company
was granted
a licence
to operate
as a
Financial
Holdings
Company
by the
European
Central
Bank.
The Company
is managed
by the
Board of
Directors, which
represents
the Company
and is
qualified to
resolve on
every action
concerning its management, the administration of its property and the promotion of its scope of business in general. The
tenure of the
Board of Directors which
was elected by the
Ordinary General Meeting of Shareholders on
29.6.2018 expires with
the Ordinary
General Meeting
of Shareholders
that will
take place
in 2022.
According to
the decision
of the
Board of
Directors
of 16.4.2021,
as Alpha
Services and
Holdings
S.A. ceased
to operate
as a
credit institution, a new composition of the Board of
Directors was considered appropriate.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
388
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The composition of the Board of
Directors as at December 31, 2021 is
as follows:
CHAIRMAN (Non-Executive
Member)
Carolyn Adele G. Dittmeier
*/****
Vasileios T. Rapanos
Richard R. Gildea **/***
Elanor
R.Hardwick
*/****
EXECUTIVE MEMBERS
Shahzad A. Shahbaz ****
Vassilios E. Psaltis, Chief Executive Officer (CEO)
Jan Oscar A. Vanhevel */**
Spyros N. Filaretos, General
Manager - Growth and
NON-EXECUTIVE MEMBER
Innovation
(pursuant
to the
provisions
of Law
3864/2010)
NON-EXECUTIVE MEMBER
Johannes Herman Frederik G. Umbgrove */**/***/****
Efthimios O. Vidalis */****
SECRETARY
NON-EXECUTIVE INDEPENDENT MEMBERS
George
P.
Triantafyllides
(up
to
16.12.2021)
Dimitris K. Tsitsiragkos **/***
Irene E. Tzanakaki (as of
16.12.2021)
Jean L. Cheval
**/***
It is noted that the Board of Directors of 16.12.2021 elected Mrs. E.M. Andriopoulou as a Non Executive Member of the Board
of Directors, effective as of
1.1.2022.
The Board of Directors can set up the Executive Committee to which it delegates certain powers and responsibilities. The
Executive Committee acts as the collective corporate body of the Company. The powers and authorities
of the Committee are
determined by way of a Chief Executive Officer Act, delegating powers and authorities to the Committee.
Indicatively, main responsibilities
of the Committee include, but
are not limited to, the preparation
of the strategy, business
plan and annual budget of the Company and the Group for submission to and approval by the Board of Directors, as well as
the
annual
and
quarterly
financial
statements;
the
preparation
of
the
Internal
Capital
Adequacy
Assessment
Process
(ICAAP)
Report and the Internal Liquidity Adequacy Assessment Process
(ILAAP)
Report;
review
and
approval
of
the
Company’s
policies;
processes
and
systems
related
to
Recovery
Plan.
Furthermore,
the
Committee
is
responsible
for
the
implementation
of the overall
risk strategy – including
risk the institution’s
risk appetite and
its risk management
framework-, an adequate
and effective internal governance and internal
control framework, the selection and suitability assessment
process for Key
Function Holders, the amounts,
types and distribution of both
internal capital and regulatory
capital, and the targets for
the
liquidity management of the
Company.
*
Member of
the Audit
Committee
**
Member of the Risk
Management
Committee
***
Member of the Remuneration
Committee
****
Member
of
the Corporate
Governance,
Sustainability
and
Nomination
Committee
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
389
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The composition of the Executive Committee as of 31.12.2021 is as follows:
CHAIRMAN
Vassilios E. Psaltis,
Chief Executive
Officer
EXECUTIVE
MEMBERS
Spyros N. Filaretos,
General Manager
- Growth and Innovation
Officer
Spyridon Α. Andronikakis, General
Manager - Chief Risk Officer (CRO)
Lazaros A.
Papagaryfallou,
General
Manager -
Chief Financial
Officer (CFO)
Sergiu-Bogdan A.
Oprescu,
General
Manager
International
Network
Nikolaos V.
Salakas, General
Manager -
Chief Legal
and Governance
Officer
Ioannis Μ. Emiris, General Manager
Wholesale Banking
Isidoros S. Passas, General Manager
Retail Banking
Anastasia
X. Sakellariou,
General
Manager
- Chief
Transformation
Officer
Stefanos Ν. Mytilinaios, General Manager -
Chief Operating Officer
The share of
Alpha Bank
Services and
Holding S.A.
is listed in
the Athens Stock
Exchange since
1925 and is
included among
the
companies with
the higher
market capitalization.
The Company’s
share is
included in
international
indices, such
as the MSCI
Emerging Markets, MSCI Greece, FTSE All World and FTSE4Good Emerging Index.
Apart from the
Greek listing,
the share
of the Company
is traded over
the counter in
New York
(ADRs).
Total ordinary shares in issue as at 31 December 2021 were 2,345,981,097, out of which 2,134,842,798 are ordinary
registered
shares with
voting rights
with nominal
value Euro
0.30 each
held by
Private Investors,
while the
Hellenic
Financial
Stability Fund
(“HFSF”) holds
the remaining
211,138,299
shares
(i.e. 9%
of share
capital).
Of the
shares held
by the
Hellenic
Financial Stability Fund, 169,174,167 shares are under
limited voting rights in accordance with article 7a of Law 3864/2010.
During the year 2021, the average daily volume of
the share per session was €
9,933.
The present
annual financial
statements
have been
approved by
the Board
of Directors
on 31st
March 2022.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
390
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
ACCOUNTING
POLICIES
APPLIED
1.1
Basis of presentation
The financial statements for the current period
ending at 31.12.2021 have been prepared in accordance
with International
Financial
Reporting
Standards
(IFRS),
as
adopted
by
the
European
Union,
in
accordance
with
Regulation
1606/2002
of
the
European Parliament and
the Council of
the European Union
on 19
July 2002.
The accounting policies applied by the Company in preparing the financial statements are the same as those stated in the
published financial statements for the year ended on 31.12.2020, after taking into account:
a.
The amendments
to standards
which were
issued
by the
International
Accounting
Standards
Board
(IASB),
adopted
by
the European Union and applied on
1.1.2021, regarding which further analysis is provided in
note 1.1.2.
b.
The decision
of the
IFRS
Interpretations
Committee
(IFRIC
Committee)
“IAS 19:
Employee
Benefits
- Attributing
benefit
to periods of service.” More specifically, the decision stipulates that the attribution of benefits in periods of service
must comply with the condition of receiving the benefit, which is the completion of the years required in order to
receive the full amount of pension, and it
is applied provided there is no legal or
constructive payment obligation
in cases of voluntary retirement or early retirement. The Company within the year adopted the above decision and
retrospectively amended the
method of attribution of benefits in periods
of service on the defined benefit plan resulting
from retirement compensation based on Greek labor law. As
a result, the attribution of benefits
in periods of service
no longer starts from the first day of employment and until
the completion of 16 years of work, but the last 16 years
before leaving the employment. Especially for the employees who had completed 17 and more years of service in the
Company at the time of
application of Law 4093/2012,
the retirement benefits
are attributed per year
of service in the
last so many years for which they had established
the right to the retirement benefit at the time of application
of the
applicable legislation. The application of this accounting policy did not have any significant impact on the Company’s
financial position as
at 1.1.2020 (note
38).
c.
The fact that, within the second quarter, the hive-down of
the banking business sector, through which all the assets and
liabilities identified
as relating to the
banking business sector
were transferred
to a new credit institution
incorporated
for this purpose, was
completed and the Company was
transformed into a Holding
company. As described in
detail
in note “Corporate Tranformation-Demerger”,
the aforementioned transaction was accounted for as an intragroup
reorganization under which, in accordance with the accounting policy of the Company, assets and liabilities
were
transferred at book values while the Company recognized an investment in the new credit institution equal to the book
value of net assets transferred. Being a holding
company, the Company has limited activity
compared to the activity
of a credit institution. However, note 1.2 incudes the
accounting policies applied to the balance sheet items relating to
banking activity since those items are
included in the comparative period and
have produced results until the hive
down
date. In addition, due to the limited activity compared to the Group, which is conducted only in Greece, the Company
decided to make use of the exception provided in IFRS 8 and not to disclose segment information since its financial
statements are included in the same financial report with the consolidated financial statements.
The financial
statements
have
been prepared
on the
historical
cost basis.
However,
some
assets
and liabilities
are
measured at
fair value. Those
assets are
the following:
-
Securities held for trading
-
Derivative financial instruments
-
Loans and advances to customers measured at fair value
through profit or loss
-
Investment securities measured at fair value through other comprehensive income
-
Investment securities measured at fair value through profit or loss
-
The contingent
consideration
recognized
either
as a
result
of a
business
combination
in which
the Company
is the
acquirer or in the
context of asset disposal transactions in which
the Company is the seller.
The financial
statements
are presented
in Euro,
rounded
to the
nearest
thousand,
unless
otherwise
indicated.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
391
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1.1.1
Going concern
The financial statements as at 31.12.2021 have been prepared based on the going concern principle. It is noted that since
the activity of the Company is directly related to the activity of the new credit institution that is its subsidiary,
the assessment
of the going concern principle of the Company is directly related to the going concern of the Bank and the Group. For the
application of this principle, the Board
of Directors considered current economic developments and made estimates for the
formation, in the near
future, of the
economic environment in which it operates. In
this context, the Board
of Directors assessed
the following
areas which
are considered
important during
its assessment:
Developments
in
the
macroeconomic
environment
In early 2020, the emergence and rapid spread of the Covid-19 pandemic overturned the growth prospects of the global
and the Greek economy. Many governments, in an effort to boost the resilience of their national economies, have taken
to an unprecedented extent emergency fiscal measure to support national
health systems and ensure employment and
entrepreneurship. The fiscal support policy that the government has followed
mitigated, in part, the adverse effects of the
recession that reached 9% on an annual basis in 2020. The swift and strong recovery of economic activity in the first nine
months of 2021 recouped a
significant part of the
losses registered because of the
recession of the
previous year, as GDP
at
constant prices increased by 8.3% on
an annual basis based on
the adjusted criteria.
The steep rebound of GDP in 2021 can be attributed, firstly, to the private consumption, which increased by 7.8%, on an
annual basis,
contributing by
5.5 points
on GDP growth
and which
was driven
by the sharp
increase in
savings and
the rise in
employment. Investments have marked the second greater
positive contribution to the GDP
increase in 2021 (2.3
percentage
points), as they increased by 19.6%, which amongst individual categories was mainly attributed to the rise of
investment
in machinery and technological equipment (+34.5% on an annual basis). The good performance of exports of services, and
especially the remarkable recovery of tourism in 2021, have resulted in the positive contribution of net exports to the GDP
increase, by 0.9 percentage points. Finally, public consumption has increased by 3.7% in 2021, in comparison to 2020,
contributing to GDP increase by 0.8 percentage points, as a result of fiscal interventions addressing the negative impacts of
the pandemic,
as well
as other
fiscal support
measures for
the strengthening
of households
and businesses,
which include,
amongst
others,
the
provision
of subsidies
for
heating,
electricity
and
petroleum.
On the
contrary,
inventories
have
significantly
decreased, during the previous year, deducting 1.1
percentage points from the GDP rise.
Some particularly favorable indications that the recovery of the
Greek economy will be strong
are the following: first, conditions
for the change of the composition of the economic growth are put in place, which is expected to derive mainly from investment
expenditure. The increase of investment in the short-term will be determined by the evolution of the country’s sovereign credit
rating towards the so-called “investment grade”, the disbursement
of funds in the context of the Recovery and Resilience
Facility
(RRF),
as well
as the
implementation
of structural
reforms
that will
establish
a business
-friendly
environment.
The RRF
funding can be demonstrated a stable basis for a strong continued growth of the Greek economy and is expected to mobilize
new investments
and sustainable
growth rates.
The funds,
according to
the National
Recovery
and Resilience
Plan (NRRP),
are
expected to mobilize new investments of around EUR 57.5 billion in 2021-2026, covering to a large extent the investment gap
that was
created in
Greece
in the
previous
decade.
Secondly,
in the
estimation
for new
increase
of tourist
arrivals and
proceeds
from tourism, the significant recovery of turnover of
businesses and finally, the gradual stabilisation of the
Economic Sentiment
Indicator (ESI).
Despite the positive expectations, the challenges and uncertainties are retained
with regards to the evolution of the disease
Covid-19 and its mutations, as well as the potential impacts of permanent nature in productivity, employment, behavior
of households, resilience of businesses and risks of financing the economically weak economies. In addition, inflation,
as
measured by the harmonized index of consumer prices, has increased the second half of 2021 primarily due to the rising
energy prices globally, the supply chains disruptions and shortages of raw materials. In December
2021 the harmonized index
of consumer prices increased by 4.4%, compared to -2.4% in the respective month of 2020, while the average ratio increased
in 2021 by 0.6% compared to
the previous year. In 2022, the
harmonized index is expected to amount to 3.1% according to
the
Organisation
for Economic
Co-operation
and Development
(World Economic
Outlook,
December
2021) and
to 3%
according
to
the European
Central Bank
(Eurosystem
staff macroeconomic
projections for
the euro area
countries, December
2021).
Finally, the
economic implications
of the
full-scale invasion
from Russia
to Ukraine
at the beginning
of the year,
as well
as the
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
392
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
sanctions against
Russia, are
basically related
with a longer
period of inflation
tensions in
Eurozone. These
tensions are
fueled by
gas, oil and
food
prices which
are expected
to remain
high over
the medium
term, as
well as
from increased
uncertainty
from the
disruption in financial
markets. As
a result, the
impact of high
energy prices
on households’
real incomes
as well as
on industries
supply lines is expected
to weaken the
increase in private
consumption. Consequently,
the three basic
channels through
which
it is
expected that
the geopolitical
developments
will affect
the Greek
economy
are the
energy
prices, tourism
and a
potential
disruption of
financial markets.
The potential
economic
or non-economic
impact of
these conditions
on the
Group depends
on
the manner
that the crisis
is going to
unfold. This crisis
and its impact
on the domestic
and global
economic conditions
could
affect the
capacity of
the Group
to generate
income or
satisfy financial
targets, increase
expenses,
or result
in higher
expected
credit losses. Given the
uncertainty that exists it
is not possible
to estimate with reliance
the future economic impact.
Liquidity
Regarding the liquidity levels of the Group, it is noted that there was no adverse change due to Covid-19 in terms of the ability
to draw liquidity from the Eurosystem
Mechanisms and from repos interbank
transactions (with or without collateral).
The
Bank made
use of
the TLTRO
III program
of the
European Central
Bank and
ensured long
-term liquidity
with very
low interest
rates. In this context, the total financing from the European Central Bank on 31.12.2021 amounts to € 12.9 billion. In addition,
in order to reinforce its liquidity, the Bank issued on 16.9.2021 a senior preferred bond, amounting to € 500 mil., with a 6.5-
year maturity, callable in year 5.5 with a coupon of 2.5% and a yield of 2.625%, while, additionally on 10.12.2021 the Bank
issued a senior preferred bond, amounting to € 400 mil, with a 2-year maturity, with a coupon of 3% and callable the first year.
In addition, it is important that the European Central Bank, in its decisions in March, April and December 2020, accepted the
securities of the Hellenic Republic as collateral for liquidity operations. It is noted that the available eligible collaterals through
which the drawing of liquidity from the Eurosystem Mechanisms and / or from third sources is ensured, to the extent required,
amounts to € 13 billion as of 31.12.2021. In addition, during the year there was an increase in private sector deposits of € 3.6
billion. As a result of
the above, the liquidity ratios (liquidity
coverage ratio and net stable funding ratio)
exceed the supervisory
limits that have been set. In addition, considering the conditions that form the current economic environment, stress test
exercises
are
carried
out
regularly
for
liquidity
purposes,
in
order
to
assess
possible
outflows
(contractual
or
potential).
Based
on these
exercises, the
Group successfully
overcomes the
liquidity short
term stress
scenarios (idiosyncratic,
systemic and
combined),
retaining a
high liquidity
buffer. As
a result,
based on
the Group’s
plan as
well on
internal stress
tests the
Group has
sufficient liquidity reserves
to meet
its needs.
Capital
Adequacy
On 31.12.2021, the Common Equity Tier I of the Group stands at 13.2%, while the Total Capital Adequacy Ratio at 16.1%.
These levels are significantly higher than the levels set by the European Central Bank. It is also important that due to the
spread of Covid-19, the European Central Bank decided to temporarily deviate from the minimum limits of regulatory capital
for European Banks at least until the end of 2022. The Bank in order to strengthen its capital proceeded on 4.3.2021 to the
issuance of new Tier 2 bond amounting to € 500 mil, with a 10.25-year maturity callable anytime between year 5 and year
5.25 with initial
fixed coupon of
5.5% until 11.6.2026,
which resets
to a new rate
effective from the
call date until
maturity
and which is set based on the 5-year swap rate plus a margin 5.823%
for the residual maturity. It is also noted that within
2021 the Group recognized significant losses due to the finalization of Galaxy (sale of 80% of Cepal Holding S.A. and of 51%
of Mezzanine and Junior securitization notes of Galaxy securitization) and Cosmos
(sale of 51% of Mezzanine and Junior
securitization notes of Cosmos securitization) transactions,
as well as due to the increased impairment losses, which are
related to the imminent sales of portfolios of overdue loans. However, given the relief of risk weighted assets from the Galaxy
and Cosmos transactions, the Group capital adequacy stood at a level higher that the capital requirement thresholds.
In
addition, within the third quarter
of 2021 the share capital increase
of the Company was completed
resulting in raising funds
of € 800
million. Finally,
the Group
successfully
concluded
the 2021
EU-wide
Stress Test.
The Stress
Test was
conducted
based
on a static balance sheet approach under a baseline and an adverse macro scenario with a 3-year forecasting horizon (2020-
2023). Taking into consideration the results of the capital Stress Test and the internal capital adequacy assessment process
(ICAAP), the actions
performed within
2021 (share capital
increase, Tier 2
issuance, NPE
reduction) as well
as the actions
that aim in the creation of internal
capital through profitability,
it is estimated that for the next
12 months the Total Capital
Adequacy Ratio and the MREL ratio
will remain higher than the
required minimum levels.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
393
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Updated Strategic
Plan 2021-2024
In May 2021 the
Bank announced the Updated Strategic Plan which is
intended to drive the
sustainable development and
profitability of the Group. The updated Strategic Plan is
based on the following key initiatives:
•
The asset growth initiative, with specific focus
on corporate loans, in the
context of the anticipated recovery of
the Greek
economy and
the prospects
being developed
by the Recovery
and Resilience
Fund (RRF),
enhancing Net
Interest Income
and Fee
and Commission Income
for the
Bank.
•
The initiatives for the reduction of non-performing exposures (NPEs), which
include the Galaxy transaction, which was
completed on 18th June 2021, as well as a series of other transactions, that refer to a total gross book value of €
8.1
billion of NPEs,
part of which
relate to securitizations
under the
extension of
the HAPS
scheme («HAPS
2»), but
also to the
ongoing organic NPE
reduction.
•
The initiatives for efficiency enhancements, with the
aim to achieve operational
excellence and reducing operating costs
throughout the organization.
•
The initiatives for the growth of
fees and commissions income, through low-intensity capital operations, such as Wealth
Management products and
services and the
supply of
Bancassurance products.
•
The initiatives for the development of the Groups’ international presence, including utilization
of additional funds in
Romania where the
banking sector has a
strong growth outlook.
In addition, in the context of the updated strategic plan, capital measures are taken through the implementation of specific
transactions that provide additional
capital buffers. For the support of the implementation
of the updated strategic plan
with regards to the asset growth initiative, the Company has successfully completed a share capital increase, raising new
capital of € 800 mil. The Group estimates that the share capital increase ensures from the start the growth capital that is
expected to
be utilised for
this purpose until
the end
of 2024.
The updated strategic plan aims in aggregate at the reform of the Group’s balance sheet and in the mid-term at the
increase of return on equity, preserving at the same time the capital position, over the required minimum thresholds that
apply.
Based on the
above and taking
into account:
•
the Group’s capital adequacy ratio that is
significantly higher than the required minimum levels, the
MREL ratio that is
higher than the mid-level, as well the specific
actions the Bank has planned to further strengthen the ratios,
•
the satisfactory liquidity of the Group,
•
the measures taken by the Group to protect its employees from coronavirus, the implementation of actions under the
Business Continuity Plan and the activation of the ability for teleworking at a large scale whilst ensuring that critical
operations are performed,
•
the actions taken to enhance efficiency and profitability,
•
the decisions of the eurozone countries to adopt a series of fiscal and other measures to stimulate the economy,
according to
which Greece
is expected
to receive
€ 30.5 billion
from the
recovery package
for Europe
“Next Generation
EU”,
•
that even though the prolonged duration as well as the form that the Russia and Ukraine war will possibly take may
adversely
affect
the macroeconomic
environment,
the Group
has
limited
exposure
to Rus
sian
and Ukrainian
economy
as
well as significant
buffers of capital
adequacy and
liquidity,
the Board of Directors estimates
that, at least for the next 12 months
from the date of approval of the financial
statements,
the conditions for the application of the going concern principle for the preparation of its financial statements are met.
1.1.2
Adoption of
new standards
and of amendments
to standards
The following are the amendments to standards applied from 1.1.2021:
‣
Amendment to International Financial Reporting
Standard 4 “Insurance Contracts”: Extension of the temporary
exception from applying IFRS
9 (Regulation 2020/2097/15.12.2020)
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
394
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
On 25.6.2020 the International Accounting Standards Board issued an amendment
to IFRS 4 with which extended the
temporary
exception
from
applying
IFRS
9 by
two years.
In this
context,
companies
that have
used the
temporary
exception
from applying IFRS
9 shall apply
the standard
by 1.1.2023.
The adoption of the above amendment had no impact on the
financial statements of the Company.
‣
Amendment to
International Financial
Reporting Standard
9 “Financial
Instruments”, to International
Accounting
Standard
39 “Financial
Instruments:
Recognition
and measurement”,
to International
Financial
Reporting
Standard
7 “Financial Instruments: Disclosures”, to International
Financial Reporting Standard 4 “Insurance Contracts” and
International
Financial
Reporting
Standard
16 “Leases”:
Interest rate
benchmark
reform –
phase 2
(Regulation
2021/25/13.1.2021)
On 27.8.2020 the
International
Accounting Standard
Board issued
amendments
to IFRS 9,
IAS 39, IFRS
7, IFRS 4
and IFRS 16
in the context of Phase 2
of the IBOR project that address issues that
arise following the reform of an interest
rate benchmark
rate, including the replacement of one benchmark rate with an alternative one. The key reliefs provided by the Phase 2
amendments are as
follows:
-
Changes to contractual cash flows: When changing the basis for determining contractual cash
flows for financial assets
and liabilities (including lease liabilities), the reliefs have the effect that the changes that are required by an interest rate
benchmark reform will not result in an immediate gain or loss in the income statement but in the recalculation of the
interest rate. The same
practical expedient applies for insurers that
are applying the temporary exemption from
IFRS 9.
-
Hedge accounting: The hedge accounting reliefs ensure that changes to the hedge documentation
do not result in the
discontinuation of hedge accounting nor the
designation of a new
hedge relationship, as long as
the only changes are
those
permitted by the Phase 2 Amendments. Permitted changes include redefining the hedged risk to reference a risk-free rate
and redefining the description of the hedging instruments and/or the hedged items to reflect the risk-free rate. However,
additional ineffectiveness might need
to be recorded
in profit
or loss statement.
The adoption of the above amendments had no impact on the
financial statements of the Company.
‣
Amendment to International Accounting
Standard 16 “Leases”: Covid-19 Related rent concessions beyond 30 June
2021 (Regulation 2021/1421/30.8.2021)
On 31.3.2021 the International Accounting Standards Board issued an amendment
to IFRS16 with which it extended by one
year the possibility of the
lessee to elect (practical expedient) not
to assess whether a
rent concession is a
lease modification.
The practical expedient had been provided with the amendment of the
standard issued on 28.5.2020.
The adoption of the above amendment had no impact on the
financial statements of the Company.
Except
for the
standards
mentioned
above, the
European
Union has
adopted
IFRS 17
as well
as the
following
amendments
to
standards which are effective for
annual periods beginning after 1.1.2021 and
have not been early
adopted by the Company.
‣
Amendment to the International Financial Reporting
Standard 3 “Business Combinations”: Reference
to the Conceptual
Framework (Regulation 2021/1080/28.6.2021)
Effective for annual periods beginning on or
after 1.1.2022
On 14.5.2020
the International
Accounting
Standards
Board
amended
IFRS
3 in
order
to update
references
to the
Conceptual
Framework. More specifically:
-
amended IFRS
3 in
order to
refer to
the latest
version of
the Conceptual
Framework,
-
added a
requirement
that for
transactions within
the scope
of IAS
37 or IFRIC
21 an acquirer
applies IAS
37 or IFRIC
21
instead of the Conceptual Framework to identify liabilities it has
assumed in a business combination,
-
added an explicit statement that
an acquirer does not
recognise contingent assets acquired in
a business combination.
The adoption of the above amendment is not expected to have
any impact on the financial statements of the Company.
‣
International Financial
Reporting Standard
17 “Insurance Contracts”
and Amendment to
International Financial
Reporting Standard 17 “Insurance Contracts” (Regulation 2021/2036/19.11.2021)
Effective for annual periods beginning on or
after 1.1.2023
On 18.5.2017
the International
Accounting
Standards
Board issued
IFRS 17
which replaces
IFRS 4
“Insurance
Contracts”.
In
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
395
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
contrast
to IFRS
4, the
new standard
introduces
a consistent
methodology
for the
measurement
of insurance
contracts.
The key
principles in IFRS
17 are
the following:
An entity:
•
identifies as insurance contracts those contracts under which the
entity accepts significant insurance risk from another party
(the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event adversely
affects the
policyholder;
•
separates specified embedded derivatives,
distinct investment components and distinct performance
obligations from the
insurance contracts;
•
divides the contracts into groups that it
will recognise and measure;
•
recognises
and measures
groups
of insurance
contracts
at:
i.
a risk-adjusted present value
of the future cash flows
(the fulfilment cash flows)
that incorporates all of the available
information about the
fulfilment cash flows in a way
that is consistent with observable
market information; plus
(if this
value is a
liability) or minus
(if this value
is an asset)
ii.
an amount representing the unearned profit in the group
of contracts (the contractual service margin);
•
recognises the profit from
a group of
insurance contracts over the period
the entity provides insurance cover,
and as the
entity is released from risk.
If a group of
contracts is or becomes loss-making, an
entity recognises the loss immediately;
•
presents separately
insurance
revenue, insurance
service
expenses
and insurance
finance income
or expenses;
and
•
discloses information to enable users of financial statements to assess the effect that contracts within the scope of IFRS 17
have on the
financial position, financial performance and
cash flows of
an entity.
On 25.6.2020 the International Accounting Standards Board issued an amendment
to IFRS 17 which aimed to ease
implementation of the standard and make it easier for entities to explain their financial performance.
Additionally, with the
amendment the effective date
of the standard was
postponed to 1.1.2023.
Finally, it is noted that under the Regulation of the European Union that adopted above standard, an entity may choose not to
apply paragraph 22 of the standard, in accordance with which an entity shall not include contracts issued more than one year
apart in the
same group, to:
(a)
groups of insurance contracts with direct participation features and groups of investment
contracts with discretionary
participation features and with cash flows that affect or are affected by
cash flows to policyholders of other contracts;
(b)
groups of insurance contracts that are managed across generations of contracts and that meet the conditions laid down in
Article 77b of Directive 2009/138/EC and have been approved by supervisory authorities for the application of the matching
adjustment.
IFRS 17 does not
apply to the financial statements of
the Company. However, the application IFRS 17 will
have an impact on
the second
largest
subsidiary
of
the Company
which
is an
insurance
company
and as
a result
the Company
is examining
any
impact on the
acquisition cost of
the subsidiary.
‣
Amendment
to
the
International
Accounting
Standard
1
“Presentation
of
Financial
Statements”:
Disclosure
of
accounting policies (Regulation
2022/357/2.3.2022)
Effective
for annual periods beginning on or
after 1.1.2023
On 12.2.2021 the International Accounting Standards Board issued an amendment to IAS
1 with which it
clarified that:
-
The definition
of accounting
policies is
provided
by paragraph
5 of
IAS 8.
-
An entity shall disclose material
accounting policy information. Accounting policy information is material if, when
considered
together with other information included in an entity’s financial statements, it can reasonably be expected to influenc
e
decisions that
the primary users
of financial statements
make.
-
Accounting policy information that relates to immaterial transact
ions is immaterial and need not be disclosed. Accounting
policy information may nevertheless
be material because of the nature of the related transactions even
if the amounts
are immaterial. However, not all accounting policy information relating to material transactions
and other events is itself
material.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
396
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Accounting policy information is material if users of an entity’s financial
statements would need it to understand other
material information in
the financial statements.
-
Accounting policy information that focuses on how an entity has
applied an accounting policy is more useful to
users of
financial statements than standardized information or information that only summarizes the requirements of IFRSs.
-
If an entity discloses immaterial accounting policy information, such information
shall not obscure material accounting
policy information.
The Company is examining the impact form the adoption of the above amendment on its financial statements.
‣
Amendment to the International Accounting Standard
8 “Accounting Policies, Changes in Accounting Estimates and
Errors”: Definition of
accounting estimates (Regulation 2022/357/2.3.2022)
Effective for annual periods beginning on or
after 1.1.2023
On 12.2.2021 the International Accounting Standards Board issued
an amendment to IAS
8 with which:
-
Defined accounting estimates as
monetary amounts in financial statements
that are subject to measurement uncertainty.
-
Clarified that an accounting policy may require items in financial statements to be measured in a way that involves
measurement uncertainty. In such a
case, an entity
develops an accounting estimate. Developing
accounting estimates
involves the
use of judgements
and assumptions.
-
An entity uses measurement techniques and inputs to
develop an accounting estimate.
-
An entity may need to
change an accounting estimate. By its
nature, a change in an
accounting estimate does not relate
to prior periods and is not the correction of an error. A change in an
input or a change in a measurement technique are
changes in accounting estimates unless they result from the
correction of prior period errors.
The Company is examining the impact from the adoption of the above amendment on its financial statements.
‣
Amendment to International Accounting
Standard 16 “Property, plant and equipment”: Proceeds before intended use
(Regulation 2021/1080/28.6.2021)
Effective for annual periods beginning on or
after 1.1.2022
On 14.5.2020 the International Accounting Standards Board issued an amendment to
IAS 16 which prohibits deducting from
the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to
the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, the
proceeds from selling such items and the
cost of producing them must be
recognized in profit
or loss.
The Company is examining the impact form the adoption of the above amendment on its financial statements.
‣
Amendment
to
International
Accounting
Standard
37
“Liabilities,
Contingent
Liabilities
and
Contingent
Assets”:
Onerous Contracts –
Cost of fulfilling
a contract (Regulation
2021/1080/28.6.2021)
Effective for annual periods beginning on or
after 1.1.2022
On 14.5.2020 the International Accounting Standards Board issued an amendment
to IAS 37 in order to clarify that the
cost
of fulfilling a contract comprises the costs that relate directly to the contract. These costs are both the incremental costs of
fulfilling a contract
– for example direct
labour and materials
- and an allocation of
other costs
that relate directly to
fulfilling
a contract – for example the depreciation
charge of an item of property plant and equipment
used in fulfilling that contract.
The Company is examining the impact from the adoption of the above amendment on its financial statements.
‣
Annual Improvements – cycle 2018-2020 (Regulation 2021/1080/28.6.2021)
Effective for annual periods beginning on or after 1.1.2022
As part of the annual improvements project, the International Accounting
Standards Board issued on 14.5.2020 non-urgent
but necessary
amendments to
IFRS 1,
IFRS 9,
IFRS 16
and IAS
41.
The above amendments are not expected to
have any impact on the
financial statements of the Company.
In addition, the International Accounting Standards Board has issued the following standards
and amendments to standards
the effective date of which is for annual periods beginning after 1.1.2021, which have not yet been adopted by the European
Union and
which
have not
been early applied
by the
Company.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
397
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
‣
Amendment to International Financial Reporting Standard 10 “Consolidated
Financial Statements” and to
International
Accounting
Standard
28 “Investments
in Associates
and Joint
Ventures”: Sale
or contribution
of assets
between an
investor and its
associate or joint
venture.
Effective date:
To be
determined.
On 11.9.2014 the International Accounting Standards Board issued
an amendment to IFRS 10 and IAS 28 in order to clarify
the accounting treatment of a transaction of sale or contribution of assets between an investor and its associate or joint
venture. In particular, IFRS 10 was amended in order to be clarified that in case that as a result of a
transaction with an
associate or joint
venture, a parent
(investor) loses control of
a subsidiary, which does
not constitute a
business, as defined
in
IFRS 3, it shall recognise to profit or loss only the part of the
gain or loss which is related to the unrelated investor’s interests
in that associate or joint venture. The remaining part of the gain from the transaction shall be eliminated against the carrying
amount of the investment in that associate or joint venture. In addition, in case the investor retains an investment in the
former subsidiary and the former subsidiary is now an associate or joint venture, it recognises the part of the gain or loss
resulting from the
remeasurement at
fair value of the
investment retained
in that former subsidiary
in its profit or loss
only
to the extent of the unrelated
investor’s interests in the new associate or joint venture. The remaining part of the gain is
eliminated against the carrying amount of the investment retained in the former subsidiary.
In IAS 28, respectively, it
was clarified that the partial recognition of
the gains or losses
shall be applied only when the
involved assets do not constitute a
business. Otherwise, the total of the
gain or loss shall
be recognised.
On 17.12.2015, the International Accounting Standards
Board deferred the effective date for the application of the
amendment that had been initially determined. The new effective date will be determined by the International Accounting
Standards Board at a future date after taking into account the results of its project relating to the equity method.
‣
International Financial Reporting Standard 14 “Regulatory deferral accounts”
Effective for annual periods beginning on or after 1.1.2016
On 30.1.2014 the International Accounting Standards Board issued IFRS 14. The new standard,
which is limited-scope,
addresses the accounting treatment and the disclosures required for regulatory deferral
accounts that are maintained in
accordance with local legislation when an entity provides rate-regulated
goods or services. The scope of this standard is
limited to first-time adopters that recognized
regulatory deferral accounts in their financial
statements in accordance with
their
previous
GAAP.
IFRS
14
permits
these
entities
to
capitalize
expenditure
that
non-rate-regulated
entities
would
recognize
as expense.
It is noted that European Union has decided not to launch the endorsement of this standard and to wait for the final standard.
The above standard
does not apply
to the
financial statements of the
Company.
‣
Amendment
to
International
Financial
reporting
Standard
17: “Insurance
Contracts”:
Initial Application
of IFRS
17 and
IFRS 9
–
Comparative information
Effective for annual periods beginning on or
after 1.1.2023
On 9.12.2021 the International Accounting Standards Board issued an amendment
to IFRS 17 according to which entities
are permitted on initial application of IFRS 17 to classify financial assets in the comparative period in a way that aligns with
how the entity would
classify them on IFRS 9
transition. The amendment specifies how this option
is applied depending
on whether the entity applies IFRS 9
for the first time
at the same time as IFRS
17 or whether it has
already applied it in a
previous period.
The above amendment does not apply to the
financial statements of the Company.
‣
Amendment
to
the
International
Accounting
Standard
1
“Presentation
of Financ
ial
Statements”:
Classification
of
liabilities as current
or non-current
Effective for annual periods beginning on or
after 1.1.2023
On 23.1.2020, the International Accounting Standards Board issued amendments to IAS 1
relating to the classification of
liabilities as current
or non-current.
More specifically:
-
The amendments specify that the conditions which exist at the end of the reporting period are those which will be used to
determine if
the liability must
be classified as
current or
non-current.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
398
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Management expectations about events after the balance sheet date must not be taken into account.
-
The amendments clarify the situations
that are considered settlement of a liability.
On 15.7.2020 the International Accounting Standards Board extended effective date by
one year taking into
account the
impact of Covid-19.
The Company is examining the impact from the adoption of the above amendment on its financial statements.
‣
Amendment
to
International
Accounting
Standard
12 “Income
Taxes”:
Deferred
tax related
to assets
and liabilities
arising from a
single transaction
Effective for annual periods beginning on or
after 1.1.2023
On 7.5.2021 the International Accounting Standards Board issued an
amendment to IAS 12
with which it narrowed the
scope
of the recognition exception according to which, in specific circumstances, entities are exempt from recognising
deferred tax
when they recognise assets or liabilities for the first time. The amendment clarifies that the exception no longer applies to
transactions that, on initial recognition, give rise to
equal taxable and deductible temporary differences.
The Company is examining the impact from the adoption of the above amendment on its financial statements.
1.2
Accounting
policies
1.2.1
Transactions in
foreign currency and
translation of
foreign operations
a.
Transactions
in foreign
currency
The financial
statements
are presented
in Euro,
which is
the functional
currency
and the
currency
of the
Company’s
country
of
incorporation.
Items included in the
financial statements for foreign branches are measured at
the functional currency which is
the currency
of the country of incorporation in which
the branch operates or the currency used
in the majority of the
transactions held.
Transactions in foreign currencies are translated into the
functional currency at the closing exchange rate
at the date of
the
transaction.
Monetary assets and liabilities denominated in foreign currencies are translated
into the functional currency at the closing
exchange rate at the balance sheet date. Foreign exchange differences arising from the translation are recognized
in the
income statement.
Non-monetary assets and liabilities are translated using the rate of exchange at the transaction date, except for non-monetary
items denominated in foreign currencies that are measured at fair value which are translated at the exchange rate of the date
that the fair
value is determined.
The exchange differences relating to these items
are part of
the change in fair
value and they are
recognized in the income
statement or recorded directly in equity depending on the classification of the non-monetary item.
b.
Translation
of foreign
operations
The results and financial position of all foreign branches that have a functional currency that is different from the presentation
currency of
the Bank’s
financial statements are
translated as follows:
i.
Assets and liabilities are translated to
Euro at the closing
rate applicable on the balance sheet
date. The comparative
figures presented are translated to Euro at the closing rates at
the respective date of the comparative balance sheet.
ii.
Income and
expense
items
are
translated
to Euro
at average
exchange
rates
applicable
for each
period
presented.
The resulting exchange differences from the above translation and those arising from other monetary
items designated as a
part
of the net investment in
a foreign entity are recorded
in equity. These translation differences are reclassified to
the income
statement when a
foreign branch is
sold.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
399
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1.2.2
Cash and cash equivalents
For the purposes
of the cash
flow statement, cash and
cash equivalents consists of:
a.
Cash on hand
b.
Non-restricted
balances
with
Central
Banks
and
c.
Short-term
balances
due from
banks
and Reverse
Repo
agreements
Short-term balances are amounts that mature
within three months of the balance sheet date.
Non-restricted
placements
with
Central
Banks,
short-term
balances
due from
banks
and
Reverse
Repo
agreements
are
measured at amortised
cost.
1.2.3
Classification and
measurement of
financial instruments
Initial
recognition
The Company recognises financial assets or financial liabilities in its statement of financial position when it becomes a party to
the terms of
the contract.
At initial recognition the Company measures financial assets and liabilities
at fair values. Financial instruments not measured
at fair value through profit or loss are initially recognised at fair value plus or minus
transaction costs and income or fees
that
are directly attributable to
the acquisition or issue
of the financial
instrument.
Regular way purchases and sales of financial instruments are recognized at the settlement date with the exception of
equity shares and derivatives that are recognized at
the trade date. For bonds
that are measured at fair
value, the change
in fair value during the period between the trade date and the settlement date is recognized in profit or loss or in other
comprehensive income based
on the
bond’s classification
category.
Subsequent
measurement
of financial
assets
The Company
classifies its
financial assets
as:
-
Financial
assets
measured
at amortised
cost,
-
Financial assets measured at fair
value through other comprehensive income, with
gains or losses reclassified in
profit or
loss on derecognition,
-
Equity instruments measured at fair
value through other comprehensive income, with no
reclassification in gains or
losses
to profit or
loss on derecognition,
-
Financial assets measured at fair value through profit
or loss.
For each of the above
categories the following apply:
a)
Financial
assets measured
at amortised
cost
In this category are classified the financial assets that satisfy both of the following criteria:
-
are held within a business
model whose objective is to hold
financial assets in order to
collect contractual cash flows,
-
the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal
and interest
(SPPI) on
the principal amount
outstanding.
The above category is
measured at amortised cost using
the effective interest method and
is periodically assessed for
expected credit losses,
as it
is further described
in notes 1.2.11
and 1.2.12.
b)
Financial assets measured
at fair
value through
other comprehensive income,
with gains or
losses reclassified in
profit or loss on derecognition
In this category are classified the financial assets that satisfy both of the following criteria:
-
are held within a business model
whose objective is both to collect
contractual cash flows and selling financial assets,
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
400
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of
principal and interest
(SPPI) on the
principal amount outstanding.
The above
category is
periodically
assessed
for expected
credit
losses, as
it is
further described
in notes
1.2.11 and
1.2.12.
c)
Equity instruments measured at
fair value through other
comprehensive income, with no
reclassification in
gains or losses to profit or loss on derecognition
In this category are classified equity instruments that are neither held for trading nor contingent consideration recognised
by an acquirer in
a business combination and that
Company decides, at initial recognition, to
measure at fair value
through
other comprehensive
income. This
decision is
irrevocable.
With the
exception of
dividends, which
are directly
recognized
in profit or
loss, all other
gains and losses
arising from those instruments
are directly recognized in
other comprehensive
income and are not
reclassified to profit or
loss. For those equity instruments there
is no impairment assessment.
d)
Financial assets measured at fair value through
profit or loss
Financial assets
included in
this category
are:
i. those acquired principally for the purpose of selling in the near term to obtain short term profit (held for trading).
The Company has included in
this category bonds, treasury bills and
a limited number of
shares.
ii
those that do not meet the criteria to be classified into one of the above categories
iii. those the Company designated, at initial recognition, as at fair value
through profit or loss.
This classification option, which is irrevocable, is used when the designation eliminates an accountin
g
mismatch which
would otherwise arise from measuring financial assets and liabilities on a
different basis (i.e. amortised cost) in relation to
another financial asset or liability (i.e. derivatives which are
measured at fair value through profit or
loss).
As at the reporting date,
the Company had not designated, at initial
recognition, any financial assets as at fair
value through
profit or loss.
Business Model
assessment
The business
model reflects
how the
Company manages
its financial
assets in
order to
generate cash
flows. That
is, the
Company’s business model determines whether
cash flows will result from collecting contractual cash flows, selling
financial assets or both. The Company’s business model is determined at a level that reflects how groups of financial
assets are
managed
together
to achieve
a particular
business
objective.
Accordingly,
business
model does
not depend
on
management’s intentions for an individual instrument but it is determined on a higher level of
aggregation.
The business models
of the Company
are determined
by the Executive
Committee (ExCo)
which decides
on the
determination of the business model both for the loans and advances to customers and the securities portfolio. In this
context:
•
Loans and advances to
customers and due from
banks are included in
the business model whose
objective is to
hold
financial assets in
order to collect
contractual cash flows
(hold to collect)
•
For bonds
and in
general
for fixed
income
investments,
the Company
has identified
the
following
business
models:
-
Business model whose objective is to hold financial instruments in order to collect their contractual cash flows (hold to
collect)
-
Business model that aims both at collecting contractual cash flows and selling (hold to
collect and sell)
-
Trading portfolio.
-
Business model whose objective is achieved
by the sale/distribution of the
financial assets.
The determination
of the
above business
models
has been
based on:
a)
The way the performance of the business model and the financial assets held within that business model are evaluated
and reported
to the
Company key management
personnel.
b)
The risks that affect the performance of the business model (and the financial assets held within that business model)
and, specifically, the
way those risks
are managed.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
401
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
c)
The way the managers are evaluated (e.g.,
whether the evaluation is based on
the fair value of the
assets managed or the
contractual cash flows
collected).
d)
Past and expected frequency and value of sales from
the portfolio.
The Company,
at each reporting
date, reassesses
its business
models in order
to confirm that
there has been
no change
compared to the prior period or application of a new business model. In the context of the reassessment of the hold to collect
business model past sales as
well as expected future
sales are taken into
account. In this assessment, the
following cases of
sales are
considered consistent
with a
hold to
collect business model:
a)
Sales of non performing
loans due to
the credit deterioration of
the debtor, excluding those sales
of loans considered as
credit impaired at
origination of loans
considered as credit
impaired at
origination.
b)
Sales made close to the maturity of the financial assets so that the proceeds from the sales approximate the collection of
the remaining contractual cash flows. In
these cases, for loan
portfolio the Company defines as ‘close’,
what is less than
5%
of the total life of the instrument remaining at the time of sale. For bonds portfolio respectively, the Company defines as
‘close’, the minimum between
10% of the original life of the instrument
and a time period equal to 6 months up to
maturity
while no limitation on the size exists on the sales that take place close to maturity where expected cash flows amount to at
least 97% of
principal plus accrued
interest.
c)
Sales (excluding a and b)
which are infrequent (even if significant in
value) or insignificant in value both
individually and in
aggregate (even if frequent). For loan portfolio the company has defined
the following thresholds:
-
Significance:
Sales
exceeding
5%
the previous
reporting
period
gross
balance
of the
respective
portfolio
-
Frequency:
Significant
sale transactions
occurring
more than
twice a
year.
For bonds portfolio, sales deemed insignificant are those that sum up to 5% of the current total portfolio size or the portfolio of
the last
quarterly reporting period,
whichever is higher.
In addition, for bond portfolio
the following sales are considered consistent with
a hold to
collect business model:
-
Sales of bonds that do not longer meet the requirements stated in the investment policy due to a significant increase in
issuer’s credit risk.
-
Infrequent sales under liquidity
stress conditions.
Solely
Payments
of
Principal
and
Interest
(SPPI)
assessment
of
the
contractual
cash
flows
For the purposes
of applying
the SPPI assessment:
-
Principal is the fair value of the asset at initial recognition, which may change over the life of the financial asset, (for
example if there
are repayments of
principal).
-
Interest is the consideration for the time value of money, for the credit risk associated with the principal amount outstanding
during a particular period of
time and for other
basic lending risks (i.e. liquidity risk)
and costs, as well
as a profit margin.
Contractual terms that introduce
exposure to risks and volatility in the
contractual cash flows that are not
related to a basic
lending
arrangement,
such as
exposure
to changes
in equity
prices
or commodity
prices,
do not
give rise
to contractual
cash
flows that are solely payments of principal and interest on
the principal amount outstanding.
In this
context,
in assessing
whether
contractual
cash
flows
are
SPPI,
the Company
assesses
whether
the instrument
contain
contractual terms that change the
timing or amount of contractual cash
flows. More specifically, the
following are taken into
account:
-
Leveraged
payments
-
Payments linked with the variability in
exchange rates
-
Conversion
to equity
terms
-
Interest rates indexed to non-interest variables
-
Prepayment
or extension
options
-
Terms that limit the
Company’s claim to the cash
flows from specified assets or
based on which the
Company has no
contractual right to
unpaid amounts
-
Interest-free deferred payments
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
402
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Terms based on which the
performance of the instruments is affected by equity
or commodity prices
Especially in the case of financing of a special purpose vehicle, in order for the loan to meet the criterion that its cash flows
are solely payments of principal and interest on the principal amount outstanding, among other, at least one of the following
conditions should apply:
-
At initial recognition,
LTV (Loan
to Value) shall
not exceed
the threshold
of 80% or
LLCR (Loan
Life Coverage
Ratio) shall
be
at least equal
to the threshold
of 1.25.
-
The equity of the special purpose vehicle shall amount to at least 20% of its total assets.
-
There are sufficient collaterals that are not related to the asset being funded.
In addition, in determining whether contractual cash flows are solely payments of principal and interest on the principal amount
outstanding, it is assessed whether time value of money element has been modified. Time value of money is the element of
interest that provides consideration for only the passage of time. That is, the time value of money element does not provide
consideration for other risks or costs associated with holding the financial asset. However, in some cases, the time value of
money element may be modified. That would be the case, for example, if a financial asset’s interest rate is periodically reset
but the frequency of that reset does not match the tenor of the interest rate or if a financial asset’s interest rate is periodically
reset to an average of
particular short-
and long-term interest rates. In
such cases, the Company assesses the
modification
to determine whether the contractual cash flows represent solely payments of principal and interest on the principal amount
outstanding. The objective of the assessment is to determine how different the contractual (undiscounted)
cash flows could be
from the (undiscounted) cash flows that would arise if the time value of money element was not modified (benchmark test).
The effect of the modified time value of money element must be considered in each reporting period and cumulatively over the
life of the instrument. If the Company concludes that the contractual (undiscounted) cash flows could be significantly different
from the (undiscounted) benchmark cash flows, the contractual cash flows
are not solely payments of
principal and interest
on the principal amount outstanding. According to the policy set by the Company, the above assessment test does not result
in significant different contractual cash flows when the cumulative difference over the life of the instrument does not exceed
10% and at the same time the number of individual cash flows with a difference of more than 10%
do not exceed 5% of total
reporting periods of
the asset until
maturity.
Reclassification
of financial assets
Reclassifications
of financial
assets
between
measurement
categories
occur
when,
and
only
when,
the Company
changes
its
business model
for managing
the assets.
In this
case the
reclassification
is applied
prospectively.
Changes in
the business
model of the Company are expected to be rare. They arise from decisions of the Executive Committee (ExCo) as a result of
external or internal changes which must be significant to
the entity’s operations and demonstrable to external parties.
If the Company reclassifies a financial asset out of the amortised cost measurement category and into the fair value through
profit or loss measurement category, its fair value is measured at the reclassification date. Any gain or loss arising from a
difference between the previous amortised cost of the financial asset and fair value is recognized in profit or loss. The same
happens if the Company reclassifies
a financial asset out of the amortised cost measurement
category and into the fair
value through other comprehensive income
measurement category, however in
this case the
difference between the previous
amortised cost of the financial
asset and fair value is
recognized in other comprehensive income. The effective interest rate
and the measurement of expected
credit losses are not
adjusted as a
result of the
reclassification. However, the loss allowance
would be derecognized (and thus would no longer be recognized as an adjustment to the gross carrying amount) but instead
would be recognized as an accumulated impairment amount in other
comprehensive income.
If the Company reclassifies a financial asset out of the fair value through profit or loss measurement category and into the
amortised cost measurement category, its fair value at the
reclassification date becomes its new gross carrying amount. At
this
date, the effective interest rate of the asset is calculated
while the date of the reclassification is treated as the date of initial
recognition for impairment
calculation purposes.
If the Company reclassifies a financial asset out of the fair value through profit or loss measurement category and into the fair
value through other comprehensive income measurement category, the financial asset
continues to be measured at
fair value.
As in the above case, at this date, the effective interest rate of the asset is calculated while the date of the
reclassification is
treated as the
date of initial
recognition for impairment calculation purposes.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
403
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Ιf a financial asset is reclassified out of the fair value through other comprehensive income measurement category and into
the amortised cost measurement category, the asset is reclassified at its fair value at the measurement date. However, the
cumulative gain or loss previously recognized in other comprehensive income
is reversed and adjusted against the fair value
of the financial asset at the reclassification date. As a result, the financial asset is measured at the reclassification date as if it
had always been measured at amortised cost. This reversal affects other comprehensive income but does not affect profit or
loss and therefore is not a reclassification adjustment under IAS 1. The effective interest rate and the calculation of expected
credit losses are not
affected. However, the loss
allowance is recognized as
an adjustment to
the gross carrying amount
of the
financial asset from
the reclassification date.
If the Company reclassifies a financial asset out of the fair value through other comprehensive
income measurement category
and into the fair value through profit or loss measurement category, the financial
asset continues to be measured at fair value.
The cumulative gain or loss previously recognised in other
comprehensive income is reclassified from equity to profit or
loss as
a reclassification adjustment (in
accordance with IAS
1) at
the reclassification date.
Derecognition
of
financial
assets
The Company
derecognizes
financial
assets when:
•
the contractual rights to the assets cash
flows expire,
•
the contractual rights to receive the cash flows of the financial assets are transferred and at the same time all the risks and
rewards of
ownership are substantially
transferred,
•
loans or investments in
securities are no longer
recoverable and consequently are written off,
•
the contractual cash flows of the assets are significantly
modified.
In the case of transactions where despite the transfer of the contractual right to receive the cash flows from financial assets
both
the
risk
and
rewards
remain
with
the
Company,
no derecognition
of
these
financial
assets
occurs.
The
amount
received
by the
transfer is
recognized
as a
financial
liability.
The accounting
practices
followed
by the
Company
in such
transactions
are
discussed in notes
1.2.19 and 1.2.20.
In the case
of transactions, whereby the
Company neither retains nor
transfers risks and rewards
of the financial
assets, but
retains control over them, the financial assets are recognized to the extent of the Company’s continuing involvement. If the
Company does not retain control of the assets then they are derecognised, and in their position the Company recognizes,
distinctively,
the assets
and liabilities
which
are created
or retained
during
the transfer.
No such
transactions
occurred
upon
balance sheet date.
In case of a
change in the contractual terms
of a financial asset, the
change is considered significant and therefore it
results in
the derecognition of the original financial asset and the recognition of a new
one when one of the following criteria is met:
-
Change
of issuer/debtor
-
Change in
denomination
currency
-
Consolidation of different
types of contracts
-
Consolidation of contracts that do not entirely satisfy the criterion that cash flows are solely payments
of principal and
interest on the
principal amount outstanding
-
Addition or deletion of equity conversion terms
-
Separation of a non-SPPI debt instrument into two
or more new instruments so that the
reason that leads to SPPI failure
of
the original
instrument is not
included in
all of
the new
instruments.
-
Split of contract that meets SPPI criteria and addition of
a non-SPPI term to part of it
-
Significant modifications occurring due to the commercial renegotiation
of the contractual terms of performing borrowers.
-
Refinancing
of existing
loans
accompanied
by an
increase
in the
amount
financed.
In case of derecognition due to significant modification, the difference between the carrying amount of the original asset and
the fair value of the new
asset is directly recognized in the Income Statement as specifically mentioned in notes 1.2.24 and
1.2.25. Additionally, in case the
original asset was measured at
fair value through other comprehensive income, the
cumulative
gains or losses recognized in other
comprehensive income are transferred to profit or loss.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
404
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
In contrast, if the change in contractual cash flows is not significant, the gross carrying amount of the asset is recalculated
by discounting new contractual cash flows with the original effective interest rate and the difference compared to the current
gross carrying amount is directly recognized in profit or loss (modification gain or loss) in the line item “Impairment losses,
provisions to cover credit risk
and related expenses”. Fees related to
the modification adjust the
carrying amount of the asset
and are amortised over the remaining term of the modified financial asset through the effective interest method.
Subsequent
measurement
of financial
liabilities
The
Company
classifies
financial
liabilities
in
the
following
categories
for
measurement
purposes:
a)
Financial liabilities measured at fair value through profit or loss
i.
This category includes financial liabilities held for trading, that
is:
•
financial liabilities acquired or incurred principally
with the intention of selling or repurchasing in the near term for short
term profit, or
•
derivatives not used for hedging purposes. Liabilities arising from either derivatives held for trading or derivatives used
for hedging purposes are presented as “derivative financial liabilities” and are measured according to the principles set
out in note
1.2.4.
ii.
this category also includes financial liabilities which
are designated by the Company as at fair value through profit or loss
upon initial recognition,
when:
•
doing so results
in more relevant
information, because either:
-
it eliminates or significantly reduces a measurement or recognition inconsistency
that would otherwise arise from
measuring assets or liabilities or recognising the
gains and losses on them
on different bases; or
-
a group of financial liabilities or financial assets and financial liabilities is managed
and its performance is evaluated
on a fair value basis, in accordance with a documented risk management or investment strategy, and information
about the Company is provided internally on
that basis to the
Company’s key management personnel; or
•
the contract contains one or
more embedded derivatives and the Company measures
the compound financial instrument
as a financial
liability measured at
fair value through
profit or loss
unless:
-
the embedded derivative does not significantly modify the cash flows that otherwise would be required by the
contract or
-
it is clear with little or no analysis when a similar hybrid instrument
is first considered that the separation of the
embedded derivative(s) is
prohibited.
It is noted that in
the above case, the amount of the
change in fair value attributable to the
Company’s credit risk is recognized
in other comprehensive income, unless this treatment would
create or enlarge an
accounting mismatch in profit or loss.
Amounts
recognized
in other
comprehensive
income
are never
transferred
to profit
or loss.
As at the reporting date, the Company had not designated, at initial recognition, any financial liabilities as at fair value through
profit or loss.
b)
Financial liabilities carried at amortised cost
The liabilities classified in this category are
measured at amortised cost using the effective interest method.
Liabilities to credit institutions and customers, debt
securities issued by the Company and
other loan liabilities are
classified in
this category.
In cases when financial liabilities
included in this category
are designated as the
hedged
item in a
hedge relationship, the
accounting principles applied
are those
set out
in note
1.2.4.
c)
Liabilities arising from financial guarantees and commitments to provide loans at a below market interest rate
A financial guarantee contract is a contract that
requires the issuer to make
specified payments to reimburse the holder for
a
loss it incurs because a
specified debtor fails to make payments when
due in accordance with the
agreed terms.
…….…FINANCIAL STATEME
NTS AS AT 31.12.2021
405
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The financial guarantee contracts and the commitments to provide loans at a below market interest rate are initially
recognized at fair
value, and measured subsequently
at the
higher of:
•
the amount of the provision determined during expected credit
loss calculation (note 1.2.11),
•
the amount initially recognised less cumulative amortization which
is calculated based on the term of the instrument.
d)
Financial liabilities that arise when a transfer of a financial
asset does not qualify for derecognition or when
the continuing involvement approach applies
In the first case the
liability should be equal to
the amount received during the transfer while in
the second case it should
measured
in such a way that
the net carrying amount of the transferred asset and the
associated liability is:
•
The amortised cost of the
rights and obligations retained by the
Company, if the transferred asset is
measured at
amortised cost or
•
Equal to the fair value of the rights and obligations retained by the Company when measured on a stand-alone basis, if
the transferred asset
is measured at
fair value.
e)
Contingent consideration
recognized by
an acquirer
in a
business combination
Such contingent
consideration
is subsequently
measured
at fair
value with
changes
recognized
in profit
or loss.
Derecognition
of
financial
liabilities
Financial liabilities (or part thereof) are derecognized when the
contractual obligation is been discharged, cancelled or
expires.
When a financial liability
is exchanged for another
liability with substantially
different terms, the exchange
is accounted
for as an extinguishment of the original financial liability and the recognition of a new one. The same applies in cases of
a substantial modification
of the terms of an existing financial
liability or a part of it (whether
or not attributable to the
financial difficulty of the debtor). The terms are considered substantially different if the discounted present value of the cash
flows under the new terms (including any fees paid net of any fees received), discounted using the original effective interest
rate, is at least 10% different from the present value of the remaining cash flows of
the original financial liability.
In cases of derecognition, the difference between the carrying amount of the financial liability (or part of the financial
liability) extinguished or transferred to another party
and the consideration paid, including any
non-cash assets transferred
or liabilities assumed,
is recognised in
profit or
loss.
Offsetting
financial
assets
and
financial
liabilities
Financial assets and liabilities are offset and the amounts are reported net on the balance sheet, only when the Company
has the legally enforceable right to offset recognized amounts and there is the intention to settle on a net basis, or to realize
the asset and
settle the liability
simultaneously.
1.2.4
Derivative financial
instruments and
hedge
accounting
Derivative
financial
instruments
Derivatives are financial instruments that upon inception have a minimal or zero fair value that subsequently changes in
accordance
with a
particular
underlying
instrument
or indices
defined
in the
contract
(foreign
exchange,
interest
rate,
index
or
other variable).
All derivatives are recognized
as assets when their fair value
is positive and as liabilities when
their fair value is
negative.
Derivatives are entered into for either hedging or
trading purposes and they are measured at
fair value irrespective of the
purpose for which
they have been
transacted.
The change in
the fair value
of the interest
and currency derivatives, excluding options, is
separated into interest, foreign
exchange differences and other
gains or losses
from financial
transactions.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
406
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
In case a derivative
is embedded in a
financial asset, the embedded derivative is
not separated and the
hybrid contract is
accounted for based on the classification requirements mentioned in note 1.2.3.
In case a derivative
is embedded in a
host contract, other than a
financial asset, the embedded derivative is
separated and
measured at fair
value through profit
or loss when
the following conditions are
met:
•
the economic characteristics and risks of
the embedded derivative are not
closely related to the
economic characteristics
and risks of
the host,
•
a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative;
and
•
the hybrid contract is not measured at fair
value with changes in fair value recognised in
profit or loss.
Valuation
differences
arising from
derivatives
are recognized
in Gains
less losses
on financial
transactions
except when
derivatives participate in hedging relationships in
which case the
principles for hedge accounting mentioned below
apply.
When
the
Company
uses
derivatives
for
hedging
purposes
hedge
relationships
are
formally
designated
and
documented
at
inception, and effectiveness is monitored on an ongoing
basis at each balance sheet date.
Hedge accounting
Hedge accounting establishes the valuation rules to offset the gain or loss of the fair value of a hedging instrument and a
hedged item which would not have been possible if the normal measurement principles were applied. It is noted that the
Company has opted to continue to apply
the provisions for hedge accounting of IAS
39.
Documentation of the hedging relationship upon inception and of the effectiveness of the hedge on an on-going basis are
the basic
requirements for
the adoption of
hedge accounting.
The hedge relationship is
documented upon inception and the
hedge
effectiveness test is carried
out upon inception and
is
repeated at each
reporting date.
A hedge is regarded as highly
effective only if both of the
following conditions are met:
-
at the inception of the hedge and in subsequent periods the hedge is expected to be highly effective in achieving
offsetting changes in fair value or cash flows attributable to the hedged risk during the period for which the hedge is
designated,
-
the results of the hedge are within a range
of 80%-125% of the results of the hedged
item.
a.
Fair value hedges
A fair value hedge of a financial instrument offsets the change in the fair value of the hedged item in respect of the risks
being hedged.
Changes in the fair
value of both the
hedging instrument and the hedged item,
in respect of
the specific risk being
hedged,
are recognized in
the income statement.
When the hedging relationship no longer exists, the hedged items continue to be measured based on the classification and
valuation principles set out in note 1.2.3. Specifically any adjustment, due to the fair value change of a hedged item for
which the effective interest method is used, up to the point that the hedging relationship ceases to be effective, is amortised
to interest income or expense based on
a recalculated effective interest rate, over its remaining life.
b.
Cash flow hedge
A cash flow hedge changes the
cash flows of a
financial instrument from a variable rate to
a fixed rate.
The effective portion of the gain or loss on the hedging instrument is recognized directly in other comprehensive income,
in cash
flow hedge
reserve, whereas
the ineffective
portion is
recognized
in Gains
less losses
on financial
transactions.
The
accounting treatment of
the hedged item
does not
change.
When the hedging relationship is
discontinued, the amount recognized in
equity remains there separately until
the cash flows
or the future transaction occur. When the
cash flows or the future
transaction occur the following apply:
-
If the result is the recognition of a financial asset or a financial liability, the amount is reclassified to profit or loss in the
same periods during
which the hedged
forecast cash flows
affect profit or
loss.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
407
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
-
If the result is the recognition of
a non-financial asset or a non-financial
liability or a firm commitment
for which fair value
hedge accounting is applied, the amount recognized in equity either is reclassified to profit or loss in the same periods
during which the asset or the liability affect profit or loss or adjusts the carrying amount of the asset or the liability.
When a forecasted transaction or
the expected cash flows
are no longer
expected to occur, the
cumulative gain or loss
that was
recognized in equity is reclassified to profit or loss. In particular, the amount that has been recognized in equity, as a result of
revoked
cash flow
hedging
relationships
for term
deposits,
is linearly
amortised
as interest
expense
in the
periods
during which
the hedged cash
flows from the
aforementioned term deposits affect
profit or loss.
c.
Hedges of net investment
in a foreign operation
Hedge accounting of net investment in a foreign operation is similar to cash flow hedge accounting. The cumulative gain or
loss recognized in equity is
reversed and recognized in profit or
loss, at the time
that the disposal of
the foreign operation takes
place.
1.2.5
Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between
market participants at the measurement date, in the principal market for the asset or liability or, in the absence of a principal
market, in
the most
advantageous market for
the asset or
liability.
The Company measures the fair value of assets and liabilities traded in active markets based on available quoted market
prices. A market
is regarded
as active
if quoted prices
are readily
and regularly
available from
an exchange,
dealer, broker,
pricing
service or
regulatory
agency,
and those
prices represent
actual and
regularly
occurring
market
transactions
on an
arm’s
length basis.
Especially,
for the
measurement
of securities,
the Company
uses a
particular
range of
prices, within
the bid-ask
spread, in order to characterize the prices as prices of an active market (the difference between bid and ask prices quoted
should not exceed 1.5/100 nominal value). Furthermore, if quoted market prices are not available on the measurement date,
but they are available during the three last working days of the reporting period and there are quoted prices for 15 working
days during the last month of the reporting period and the criteria of the bid-ask spread is met, then the market is considered
to be active.
The fair value of financial instruments that are not traded in an active market is determined by the use of valuation techniques,
appropriate in the circumstances, and for which sufficient data to measure fair value are available, maximizing the use of
relevant observable inputs and minimizing the use of unobservable inputs. If observable inputs are not available, other model
inputs are used which are based on estimations and assumptions such as the determination of expected future cash flows,
discount rates, probability of counterparty default and prepayments.
In all cases, the Company uses the assumptions that
“market participants” would use when pricing the asset or liability, assuming that market participants act in their economic best
interest.
Assets and liabilities which are measured at
fair value or for
which - fair value
is disclosed-, are categorized according to the
inputs used to
measure their fair
value as
follows:
•
Level 1 inputs: quoted
market prices (unadjusted) in active
markets,
•
Level 2 inputs:
directly or indirectly observable inputs,
•
Level 3 inputs: unobservable inputs used
by the Company, to
the extent that relevant observable inputs
are not available.
In particular, the
Company applies the
following:
Financial
instruments
For financial instruments the best evidence
of fair value at initial recognition is the transaction price,
unless the fair value
can be derived by other observable market transactions relating to the same instrument, or by a valuation technique using
mainly observable inputs. In these cases,
if the fair
value differs from the
transaction price, the difference is recognized in
the
statement of comprehensive income. In all other cases, fair value is adjusted to defer the difference with the transaction
price.
After initial recognition, the deferred difference is recognized
as a gain or loss only to the extent that it arises from a change in
a factor that
market participants would take
into account when
pricing the instrument.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
408
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
When
measuring
fair value,
the
Company
takes
into
consideration
the effect
of credit
risk.
Specifically,
for derivative
contracts,
the Company estimates the credit risk of both counterparties (bilateral credit valuation adjustments).
The Company measures fair value for all assets and liabilities separately. Regarding derivative
exposures, however, that the
Company manages as a
group on a
counterparty basis and for
which it provides information to
the key management personnel,
the fair value measurement for credit risk is performed based on the net risk exposure per counterparty. Credit valuation
adjustments arising from the aforementioned process are allocated
to either assets or liabilities, depending on whether the net
exposure to
the counterparty is
long or
short respectively.
Furthermore, the fair value of deposit accounts with a
demand feature (such as saving deposits) is no
less than the amount
payable on demand, discounted from the first date that the
amount could be required to be paid.
The principal
inputs to
the valuation
techniques
used by
the Company
are:
-
Bond prices
- quoted
prices
available
for government
bonds
and certain
corporate
securities.
-
Credit spreads - these are
derived from active market prices, prices
of credit default swaps or
other credit based
instruments, such as debt. Values between and beyond available data points are obtained by interpolation and
extrapolation.
-
Interest rates
- these
are principally
benchmark
interest
rates
such as
the LIBOR,
OIS and
other
quoted interest
rates in
the swap, bond and futures markets. Values
between and beyond available data points are obtained by
interpolation and
extrapolation.
-
Foreign
currency
exchange
rates
- observable
markets
both for
spot
and forward
contracts
and futures.
-
Equity and
equity index
prices -
quoted prices
are generally
readily available
for equity
shares
listed on
stock exchanges
and
for major indices
on such shares.
-
Price volatilities and correlations - Volatility and correlation values are obtained from pricing services or derived from option
prices.
-
Unlisted equities - financial information specific to the company or industry sector comparables.
-
Mutual Funds-
for open-ended investments funds listed on a stock exchange the published daily quotations of their net
asset values (NAVs).
-
Loans and Deposits – market data
and Company/customer specific parameters.
Non
financial
assets
and
liabilities
The most important category of non financial assets for which fair value is estimated is real estate property.
The process, mainly, followed for the determination of the
fair value is summarized below:
-
Assignment to the engineer-
valuer
-
Case study - Setting of additional data
-
Autopsy - Inspection
-
Data processing
- Calculations
-
Preparation of the valuation report
To derive the fair value of
the real estate property, the valuer
chooses among the three following valuation techniques:
-
Market
approach
(or sales
comparison
approach),
which
measures
the fair
value by
comparing
the property
to other
identical ones for
which information on transactions
is available.
-
Income approach, which capitalizes future cash flows arising from
the property using an appropriate discount rate.
-
Cost approach, which reflects the amount that would be required currently to replace the asset with another asset with
similar specifications, after taking into account the required adjustment for impairment.
Examples of inputs used to determine the fair value of properties and which are analysed to the individual valuations, are the
following:
-
Commercial
property:
price
per square
meter,
rent growth
per annum,
long-term
vacancy
rate,
discount
rate, expense
rate of
return, lease
term, rate
of non
leased properties/units for
rent.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
409
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Residential
property:
Net return,
reversionary
yield,
net rental
per square
meter,
rate of
continually
non leased
properties/
units, expected rent value per
square meter, discount rate, expense rate of
return, lease term etc.
-
General assumptions such as the
age of the
building, residual useful life,
square meter per
building etc. are
also included
in the
analysis of the
individual valuation assessments.
It is noted that the fair value measurement of a property takes into account a market’s participant ability to generate
economic benefits by using the asset in it’s
highest and best use or by
selling it to another market participant that would
use
the asset in
it’s highest and
best use.
1.2.6
Investments in
subsidiaries, associates
and joint
ventures
This caption
includes
Company’s
investments
in subsidiaries,
associates
and joint
ventures.
Investments in subsidiaries, associates and joint ventures
are carried at
cost, plus any
expenses directly attributable to their
acquisition less impairment losses.
Dividends received by the Company
from the above investments are
recognised in the income
statement when the dividend
distribution is approved by the appropriate body of the
company that the Company has invested in.
In case of absorption of a
subsidiary or of a sector
that satisfies the definition of a
business, the Company applies the
provisions
of IFRS
3 for
business
combinations,
as described
in more
detail in
note 1.2.1
of the
consolidated
financial
statements as at
31.12.2021.
Corporate reorganizations under the same Group, which are made through the establishment
of a new company that
absorbs assets and liabilities of another company which satisfy the definition of business under IFRS 3, are not business
combinations since the new
company does not satisfy
the definition of
an acquirer. Under the
policy applied by the
Company,
those transactions
are accounted
for by transferring
assets and
liabilities
at the book values
in the books of
the company that
makes the transfer. Additionally, both in the separate and group financial statements of the new company, information is included
from the date of the corporate reorganization. However, in case corporate reorganization is inextricably linked to
the
transfer
of
the new company or of the above assets and liabilities to a third party investor, the transfer of the assets and liabilities is
accounted for at
their fair value
at the date
of the corporate
reorganization.
1.2.7
Property, plant
and equipment
This
caption
includes:
land,
buildings
used
by
the
branches
or
for
administrative
purposes,
additions
and
improvements
of leased property and
equipment. It also includes right
of use assets
in case those
assets are used by
the Company (the
accounting policies applicable to
those assets are
presented in note
1.2.10).
Property, plant and equipment are initially recognised at cost which includes any expenditure directly attributable
to the
acquisition of the
asset.
Subsequently, property, plant and equipment are
measured at cost
less accumulated depreciation and impairment
losses.
Subsequent expenditure is recognized on the carrying amount of
the item when it
increases future economic benefit for the
Company and it
can be measured
reliably.
Expenditure
on repairs
and maintenance
is recognized
in profit
or loss as
an expense
as incurred.
Depreciation is charged on a straight line basis over the estimated useful lives of property, plant and equipment and it is
calculated on
the asset’s cost
minus residual value.
The estimated useful lives are as follows:
-
Buildings: up
to 40 years.
-
Additions to leased fixed assets and
improvements: duration of the lease.
-
Equipment and vehicles: 5
to 33
years.
Land is not depreciated but is tested for impairment.
The residual value of property and equipment and
their useful lives are periodically reviewed and adjusted if
necessary at
each reporting date.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
410
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Property,
plant and
equipment
are reviewed
on an
annual basis
to determine
whether
there is
an indication
of impairment
and if
they are impaired
the carrying amount
is adjusted to its
recoverable amount
with the difference
recorded in profit
or loss.
In case of
sale of property, plant
and equipment as well
as when no
economic benefits are expected for
the Company, the fixed
asset is derecognised. When selling the asset, the difference between the sale price and its carrying amount is recognized in
profit or loss.
1.2.8
Investment property
The Company includes in this category buildings or portions of buildings together with their respective portion of land that are
held for the purpose of
long-term lease or for capital
appreciation. The Company has also included in
this category right of
use
assets when the Company is an intermediate lessor in an operating lease (the accounting policies applicable to those assets
are presented in
note 1.2.10).
Investment property is initially recognised at cost which includes any expenditure directly
attributable to the acquisition of the
asset.
Subsequently, investment property is measured at
cost less accumulated depreciation and
impairment losses.
Subsequent expenditure is recognized on the
carrying amount of the
item when it
increases future economic benefit and can
be measured reliably.
All costs
for repairs
and maintenance
are recognized
in profit
or loss
as incurred.
The estimated useful lives over which depreciation is calculated using the straight line method are the same as those applied
to property, plant
and equipment.
Transfers to and from the category of investment property are made when the property meets (or ceases to meet) the
definition of investment property and there is evidence of change in its use. In particular, the property is reclassified in
“Property, plant and equipment” if the Company decides to
use it while
it is reclassified in the
category of property held for sale
if a decision is taken to sell it and if
the criteria referred to in paragraph 1.2.15 are met. Conversely, for property not classified
within “Investment Property”, its lease constitutes a proof of change of use and leads to the reclassification to investment
property.
In case of sale of an intangible asset the intangible asset is derecognised, while when no economic benefits are expected for
the Company, its value is
fully impaired. When selling the
asset, the difference between the
sale price and its
carrying amount
is recognized in
profit or loss.
1.2.9
Goodwill and
other intangible
assets
The Company
has included
in this caption:
a)
Intangible assets which are recognized from business combinations
or which are individually acquired. These intangible
assets include the value attributed to the acquired customer relationships and to deposit bases. Intangible assets arising from
business combinations are initially measured at fair value while those individually acquired
are initially measured at cost.
Subsequently, they are depreciated, using the straight line method, during their useful life, which has been determined from 6
to 9 years, and are
assessed for impairment when there are triggers for impairment.
It is noted that during the year the Company fully impaired intangible assets relating to customer relationships acquired during
the acquisition of Citi retail business and subsequent absorption of Citi Wealth Management and credit cards clientele of Citi/
Diners (note 19).
b)
Software, which is measured at cost less accumulated amortization and impair
ment losses. Expenditure incurred to
maintain software programs is recognized in the
income statement as incurred. Software that is
considered to be an
integral
part of hardware (hardware cannot operate without the use of the specific software) is classified in property, plant and
equipment.
More specifically, separately acquired software is
initially measured at
cost which comprises its
purchase price and
any directly
attributable cost of preparing the software for its
intended use, including employee benefits or professional fees. Software
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
410
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
acquired as part of a business combination is initially measured at fair value. Both software separately acquired
and acquired
as part of a business combination is depreciated, using the straight line method, during its useful life which has been set from
2 to 15
years.
Regarding internally generated software, the Company recognizes an intangible asset
when it can
demonstrate all of the
following at the
development phase:
-
the technical feasibility of completing the intangible
asset so that it will be available for use or sale;
-
its intention to complete the intangible asset and use or sell it;
-
its ability to use or sell the intangible asset;
-
how the intangible asset will generate probable future economic benefits;
-
the availability of adequate technical, financial and other resources to complete the development
and to use or sell the
intangible asset;
-
its ability to measure reliably the expenditure attributable
to the intangible asset during is development.
Expenditure incurred during the research phase is
directly recognized in profit or
loss.
Consequently, the cost of an internally generated intangible asset is the
sum of expenditure incurred from the date when
the
intangible asset first meets the above criteria, including employee benefits arising from the generation of the software.
Internally generated software is depreciated during its useful life which has been set from 2 to 15 years.
All intangible assets are assessed for impairment when there are triggers for impairment (note 1.2.13).
No residual value is
estimated for intangible assets.
In case of sale of an intangible asset the intangible asset is derecognized, while when no economic benefits are expected for
the Company, its value is
fully impaired. When selling the
asset, the difference between the
sale price and its
carrying amount
is recognized in
profit or loss.
1.2.10
Leases
The Company
enters into leases
either as a
lessee or as
a lessor. At
inception, the
Company assesses
whether a contract
is or
contains a lease. If the contract conveys the right to control the use of an identified asset for a period of time for
consideration,
then the contract
is accounted as
a lease.
The lease term is determined as the non-cancellable period of a lease, together with both periods covered by an option to
extend the lease if the lessee is reasonably certain to exercise that option and periods covered by an option to terminate the
lease if the
lessee is reasonably certain not
to exercise that
option. After lease commencement, upon the
occurrence of either
a significant event or a significant change in circumstances that is within the control of the lessee, the Company, as a lessee,
reassesses the lease
term. The Com
pany, either
as a lessee
or lessor,
revises the lease
term if there
is a change
in the non-
cancellable period of
a lease.
a)
When
the
Company
is
the
lessor
When the risks
and rewards incident to
ownership of an
asset are transferred to
the lessee they
are classified as
finance leases.
All other
lease agreements are
classified as operating
leases.
The accounting treatment followed depends on the
classification of the lease, which is
as follows:
i.
Finance
leases:
For finance leases where
the Company is
the lessor the
aggregate amount of lease
payments is recognized as
loans and
advances.
The difference between the present value (net investment) of lease payments and the aggregate amount of lease payments is
recognized as unearned
finance income and
is deducted from
loans and advances.
The lease
rentals
received
decrease
the aggregate
amount
of lease
payments
and finance
income
is recognized
on an
accrual
basis.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
411
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The finance lease receivables are subject to
the same impairment testing as
applied to customer loans and
advances as
described in note
1.2.11.
ii.
Operating leases:
When the
Company is
a lessor
of assets
under operating
leases,
the leased
asset is
recognized
and depreciation
is charged
over its estimated useful life.
Income arising from the leased
asset is recognized as
other income on an
accrual basis.
b)
When
the
Company
is
the
lessee
The Company, as a
lessee, for all
leases recognizes a right
of use asset
and a lease
liability at the
commencement of the lease.
The right of use asset is initially measured at cost, comprising the initial lease liability amount, any initial direct costs and an
estimate of the obligation for costs to refurbish
the asset, less any lease incentives received.
Right-of use assets are subsequently measured at
cost less any accumulated depreciation, any accumulated impairment
losses and
adjusted for
any remeasurement of
the lease liability.
Depreciation is charged on a straight line basis from the commencement date
to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term. Right-of-use assets are reviewed at each reporting date to determine whether
there is an indication of impairment and if they are impaired the carrying amount is adjusted to its recoverable amount with
the difference recorded
in profit or
loss (note
1.2.13).
For short-term leases (lease term of 12 months or less at the commencement date) and leases for which the underlying asset
is of low value (less than 5.000 EUR when new) the Company does not recognize a right-of-use asset and a lease liability but
instead recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease
term.
The lease liability is initially measured at the present value of lease payments that are not paid at that date, net of cash lease
incentives. Lease payments include fixed
payments and variable payments that
depend on an
index (such as
an inflation index)
or a
rate and
are
discounted
using
the lessee’s
incremental
borrowing
rate.
Incremental
borrowing
rate is
determined
by using
as reference
rate Alpha
Bank’s
secured funding
rate, as
well as
its difference
from Hellenic
Republic
government
yield curves.
After the commencement date, the Company measures the lease liability by increasing the carrying amount
to reflect
interest, reducing the carrying amount to reflect
lease payments made and remeasuring the carrying amount to
reflect any
reassessment or lease
modifications.
Right of use assets are included within Property, plant and equipment and the lease liability is included in Other liabilities. In
cases where
the Company
is an
intermediate
lessor in
an operating
lease, right
of use
assets recognized
for the
head lease
are
included within Investment property while in case the Company is an intermediate lessor in a finance lease right of use asset,
or the part of
it which is subleased, is
derecognized and a finance lease receivable is
recognized.
1.2.11
Credit impairment
losses on
loans and
advances to
customers, undrawn
loan commitments,
letters of credit and letters
of guarantee
The Company,
at each reporting
date, recognizes
a loss allowance
for expected
credit losses
on loans and
advances to
customers not measured at fair value through profit or loss as well as for off-balance sheet exposures (letters of guarantee,
letters of credit,
undrawn loan commitments).
The
loss
allowance
for
loans
and
off-balance
sheet
exposures
is based
on
expected
credit
losses
related
to
the
probability
of default within
the next twelve months,
unless there has been
a significant increase
in credit risk from the
date of initial
recognition in which case expected
credit losses are recognized over
the life of
the instrument. In addition, if
the financial
asset falls under the definition of
purchased or originated credit impaired (POCI) financial assets, a loss allowance equal to
the
lifetime expected credit
losses is recognized.
a)
Default
definition
The Company, with the
application of new
EBA Guidelines (EBA/GL/2016/07), amended from 1.1.2021 default
definition and
adopted a new
default definition.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
412
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
b)
Classification
of
exposures
into
stages
based
on
credit
risk
(Staging)
For the
purposes
of calculating
expected
credit
losses, the
exposures
are classified
into stages
as follows:
•
Stage 1: Stage 1 includes performing exposures that do not have significant increase in credit risk since initial recognition.
Stage 1
also includes
exposures
for which
credit risk
has been
improved
and the
exposure
has been
reclassified
from stages
2 or 3. In
this stage, expected credit losses are recognized based on
the probability of default within the next
twelve months.
•
Stage 2: Stage
2 includes
performing
exposures for
which there
has been
a significant
increase in
credit risk
since initial
recognition.
Stage 2
also includes
exposures
for which
credit risk
has been
improved
and the
exposure
has been
reclassified
from stage 3.
In this stage,
lifetime expected credit losses
are recognized.
•
Stage 3:
Stage 3
includes
non
performing/impaired
exposures.
In this
stage, lifetime
expected
credit
losses
are recognized.
As an
exception
to the
above, for
purchased
or originated
credit impaired
(POCI) exposures,
lifetime
expected cre
dit losses
are
always recognized. Purchased
or originated credit
impaired exposures include:
-
Exposures that at the time of acquisition meet the
criteria to be classified as non-performing exposures.
-
Exposures for which there has
been a change in
repayment terms, either due to
financial difficulty or not, which
resulted
in derecognition and recognition of
a new impaired
asset (POCI) when derecognition is
due to the
change of debtor
of a
corporate loan in
which case the
creditworthiness of the
new debtor
is reassessed.
c)
Significant
increase
in
credit
risk
In determining significant increase in credit risk
of an exposure since
initial recognition and the recognition of
lifetime expected
credit losses instead of 12 months expected credit losses, the Company assesses, at each reporting date, the risk of default
compared to the risk of default at
initial recognition for all its performing exposures including those with no delinquencies.
The assessment of the
significant increase in credit
risk is
based on the
following:
•
Quantitative Indicators: refers
to the quantitative information used and more specifically
to the comparison of the
probability of default
(PD) between the
reporting date and
the date
of initial recognition.
•
Qualitative Indicators: refers to the qualitative information used which is not necessarily reflected
in the probability of
default,
such as
the classification
of an
exposure
as forborne
performing
(FPL, according
to EBA
ITS). Additional
qualitative
indicators, both for corporate and
retail portfolios are also
reflected through the Early
Warning indicators where depending
on the
underlying assessment,
an exposure
can be
considered
to have a
significant
increase in
credit risk
or not.
Especially
for special lending portfolio, additional qualitative indicators are captured through slotting category.
•
Backstop Indicators: in addition to the above, and in order to capture cases for which there are no triggers reflecting the
increase in credit risk,
based on qualitative and quantitative indicators, the
30 days past due
indicator is used as
a backstop.
d)
Calculation
of
expected
credit
loss
The measurement of expected
credit losses is
made as follows:
-
For financial assets, a credit loss
is the present value
of the difference between:
a.
the contractual cash flows and
b.
the cash flows that the
Company expects to receive
-
For undrawn loan commitments, a credit loss is
the present value of the
difference between:
a.
the contractual cash flows that are due if the holder of the loan commitment draws down the loan; and
b.
the cash flows that the
Company expects to receive if the
loan is drawn down.
-
For letters of guarantee and letters of credit, the loss is equal to the expected payments to reimburse the holder for a credit
loss that it
incurs less any
amounts that the
Company expects to
receive from
the holder.
For present
value calculation,
original effective
interest
rate is
used as
a discount
rate. Especially
for POCI
assets credit
-
adjusted effective interest
rate is used.
The Company calculates impairment losses either on a collective (collective
assessment) or on an individual basis (individual
assessment), taking into account the significance
of an exposure or the borrower’s limit. In addition, exposures that do not have
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
413
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
common credit risk characteristics
or for which there are no sufficient historical behavioral data are assessed
on an individual
basis.
The Company
calculates
expected
credit
losses
based
on
the
weighted
probability
of three
scenarios.
More
specifically,
the
Economic
Research
Division
produces
forecasts
for
the
possible
evolution
of macroeconomic
variables
that
affect
the
level of expected credit
losses of loan portfolios
under a baseline and
under alternative macroeconomic scenarios and also
generates the cumulative probabilities
associated with these scenarios.
The mechanism
for calculating
expected
credit
loss is
based
on the
following
credit
risk parameters:
•
Probability
of Default
(PD): It
is an estimate
of the probability
of a debtor
to default over
a specific time
horizon.
•
Exposure
at default
(EAD):
Exposure at
Default is
an estimate
of the
amount of
the exposure
at the
time of
the
default taking into account: (a) expected changes in
the exposure after the reporting date,
including principal and interest
payments; (b) the expected use of credit limits and (c) accrued interest. The approved credit limits that have not been
fully disbursed represent a potential credit exposure and are converted into a credit exposure equal to the approved
undrawn loan
commitments
multiplied by
a Credit Conversion
Factor (CCF).
The Credit
Conversion factor
of credit
exposure is calculated
based on statistical
models.
•
Loss given
default (LGD): Loss
given default is an estimate
of the loss that will occur
if the default occurs at a
given
time. It is based
on the difference between the
contractual cash flows due and those
expected to be received, including
the liquidation of
collaterals and cure
rate.
e)
Measurement
of expected
credit losses
on receivables
from customers
Receivables
from
customers
are
derived
from
the Company’s
commercial,
other
than
loan,
activity.
The loss
allowance
for receivables from customers is measured at an amount equal to the lifetime expected credit losses (there is no stage
allocation) based on
the simplified approach
provided by IFRS
9.
f)
Presentation
of expected
credit
losses
in
financial
statements
Loss allowances
for expected
credit losses
are presented
in the
Balance Sheet
as follows:
-
Financial assets measured at
amortised cost: loss allowance is
presented as a
deduction from the gross
carrying amount
of the assets.
-
Financial
assets
measured
at fair
value through
other
comprehensive
income:
for those
assets
no loss
allowance
is
recognized in the Balance Sheet, however, its
amount is disclosed in
the notes to the
financial statements.
-
Letters of credit/letters of
guarantee: loss allowance is
recognized in line “Provisions” of
liabilities in Balance Sheet.
-
Undrawn loan commitments:
When there is
not also a
loan, loss allowance
is recognized in
line “Provisions” of liabilities
in Balance Sheet. If a
financial asset includes both a loan
and an undrawn loan
commitment, the accumulated expected
credit losses of the loan commitment are presented together with the accumulated
expected credit losses of the loan,
as a
deduction
from its
gross carrying
amount.
To the
extent that
the combined
expected
credit
losses exceed
the gross
carrying amount
of the
loan, the
expected
credit losses
are recognized
in line
“Provisions”
of liabilities
in Balance
Sheet.
The amount of expected credit losses for the period is presented in the caption “Impairment losses, provisions to cover
credit risk and related expenses”. In the same caption the following are also recognized: recoveries from written-off loans
measured at amortised cost, modification
gains or losses of loans measured at amortised cost, the favourable
changes
in expected
credit losses
of POCI
assets in
case expected
credit losses
are less
than the
amount of
expected
credit losses
included in
the estimated
cash flows
on initial
recognition and
loans servicing fees
arising from a contract
signed in the
context of the
transfer of the
unit that services
overdue loans.
For servicing
fees, this
presentation
reflects more
accurately
the nature of these fees taking into account the new model for the servicing of overdue loans as well as the fact that
impairment losses on these loans and the impact from the modification of their contractual terms is also presented in the
same line item.
g)
Write-offs
The Company proceeds with the write-off
of loans and advances to
customers when it has no
reasonable expectations for
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
414
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
their recovery. In this
case, the loss allowance is
used against the carrying
amount of the
financial asset. Write-off is
an event
of derecognition.
1.2.12
Credit impairment losses
on due from
banks and bonds
The Company,
at each
reporting
date, recognizes
a loss
allowance for
expected
credit losses
on due
from banks
and bonds
not
measured at fair
value through profit
or loss.
The loss allowance is based on expected credit losses related to the probability of default within the next twelve months,
unless there has been a significant increase in credit risk from the date of initial recognition in which case expected credit
losses are recognized over the life of
the instrument. In addition, if the financial asset
falls under the definition of purchased or
originated
credit impaired
(POCI) financial
assets, a
loss allowance
equal to
the lifetime
expected
credit losses
is recognized.
a)
Default
definition
Due from banks and bonds are considered impaired when the external rating of the issuer/counterparty is equivalent to default
(D). In case
there is no
external rating, then the
instrument is characterized as impaired
based on internal
rating. If there
is also
an exposure to the corporate issuer/counterparty to the loan portfolio which has been classified as impaired, the instrument is
also characterized as
impaired.
b)
Classification
of due
from
banks
and
bonds
into
stages
based
on credit
risk
(Staging)
For the
purposes
of calculating
expected
credit
losses, the
exposures
are classified
into stages
as follows:
•
Stage 1: Stage 1 includes non impaired instruments that do not have significant increase in credit risk since initial
recognition. Stage 1 also includes instruments for which credit risk has been improved and the instrument has been
reclassified from stages 2 or 3.
In this stage, expected credit losses are
recognized based on the probability of default
within the next
twelve months.
•
Stage 2: Stage 2 includes non impaired instruments for which there has been a significant increase in credit risk since
initial recognition. Stage 2
also includes instruments for which
credit risk has
been improved and the
instrument has been
reclassified from stage 3. In this
stage, lifetime expected credit losses are recognized.
•
Stage 3:
Stage
3 includes
impaired
instruments.
In this
stage,
lifetime
expected
credit losses
are recognized.
As an
exception
to the
above,
for purchased
or originated
credit
impaired
(POCI)
instruments,
lifetime
expected credit
losses
are
always recognized. An instrument is characterized as purchased or
originated credit impaired when:
•
The instrument (or the issuer) has an external rating that corresponds to default at the time of acquisition
•
Corporate bonds resulting from
debt restructuring are classified as
purchased or originated credit
impaired, based on the
guidelines applicable to
the loan portfolio.
When a debt security has
been purchased at a large
discount and does not fall
into any of the
categories mentioned above,
the Company examines the transaction in detail (transaction price, recovery rate, issuer’s
financial condition at the time of
purchase, etc.)
in order to
determine whether
it should be
recognised as
purchased or
originated credit
-impaired (POCI).
Classification in this category requires documentation
and approval by the
relevant committees of the
Company.
c)
Significant
increase
in
credit
risk
The classification into stages for the purpose of expected credit loss measurement is based on the credit rating of rating
agencies or,
for corporate
securities issued
by Greek
issuers for
which there
is also an
exposure in
loan portfolio,
on the issuer’s
internal rating.
The Company
defines as
low credit
risk all
investment
grade securities,
which are
classified
in Stage
1.
The determination of significant increase in credit risk
for non-investment grade securities is based on the
following two
conditions:
-
Downgrade in the issuer / counterparty’s credit rating on the reporting dates compared to the credit rating on the date of the
initial recognition.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
415
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Increase in the probability of default of the issuer / counterparty for the 12-month period compared to the corresponding
probability of default
at initial recognition.
Additionally, the Company monitors the change in the credit spread since initial recognition. A change in credit spread at the
reporting date that exceeds a specific threshold compared to the credit margin prevailing at the date of initial recognition is a
trigger for
reviewing the securities
classification stage.
d)
Calculation
of
expected
credit
loss
The expected credit loss
is the
present value of the
difference between:
a.
the contractual cash flows and
b.
the cash flows that the
Company expects to receive
For present
value calculation,
original effective
interest
rate is
used as
a discount
rate. Especially
for POCI
assets credit
-
adjusted effective interest
rate is used.
For the calculation of
the expected credit loss,
the following parameters are used:
•
Probability of
default (PD):
the probability
of default
over the
next 12
months is
used to
calculate the
expected
credit loss
for
12 months,
and the
probability of
default over
the life
of the
instrument is
used to
calculate the lifetime expected
credit losses.
•
Exposure at default (EAD): In the case of securities, the Company estimates the future unamortised cost in order to
calculate the
EAD. In
particular,
for each
period, EAD
is the
maximum
loss that
would result
from issuer
/ counterparty
potential default.
•
Loss given default (LGD) is the percentage of the total exposure that the Company estimates as unlikely to recover at the
time of the default. The Company distinguishes sovereigns from non-sovereign issuers
/ counterparties as regards to the
LGD estimation.
In case
the Company
has also
granted a
loan to
the issuer
/ counterparty
of the
security,
the estimated
LGD
is aligned to corresponding estimate for the loan portfolio (taking into account any potential collaterals
the loan portfolio is
likely to have
against the unsecured
debt securities).
e)
Presentation
of expected
credit
losses
in
financial
statements
Loss allowances
for expected
credit losses
are presented
in the
Balance Sheet
as follows:
-
Financial assets measured at amortised cost:
loss allowance is presented as
a deduction from the
gross carrying amount of
the assets.
-
Financial
assets
measured
at fair
value through
other
comprehensive
income:
for those
assets
no loss
allowance
is
recognized in the Balance Sheet, however, its amount is disclosed in the notes to the financial statements.
The amount of expected credit
losses for the period is presented
in the caption “Impairment
losses, provisions to cover
credit risk
and related expenses”. The caption
includes also the favourable changes in expected
credit losses of POCI assets in case expected
credit losses are less than the amount of expected credit
losses included in the estimated cash flows
on initial recognition.
1.2.13
Impairment losses
on investments
and non-financial
assets
The Company assess as at each balance sheet date its investments in subsidiaries, associates and joint ventures as well as
non-financial assets for impairment, particularly, right of use assets, goodwill and other intangible assets
and at least annually
property, plant and
equipment and investment
property.
In assessing whether there is an indication that
an asset may be impaired both
external and internal sources of information are
considered, of
which the
following are indicatively
mentioned:
-
The asset’s market value has declined significantly, more than
would be expected as a
result of the passage of
time or
normal use.
-
Significant changes with an adverse effect have taken place during the period or will take place in the near future, in the
technological, economic or legal environment in which the
entity operates or in
the market to which the
asset is dedicated.
-
Significant
unfavorable
changes
in
foreign
exchange
rates.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
416
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
Market interest rates or other
rates of return
of investments have increased during the
period, and those increases are
likely
to affect
the discount
rate used
in calculating an
asset’s value
in use.
-
The carrying amount of the net assets of the entity is greater than its market capitalization.
-
The carrying amount of the net
assets of the entity on
a consolidated basis is less than entity’s
acquisition cost in the books
of the Company
-
Evidence
is available
of obsolescence
or physical
damage
of an
asset.
In addition, collection of
dividends from subsidiaries, associates and joint
ventures is considered as
a possible impairment
indicator when investments are
tested for impairment
at each reporting
date.
Specifically for right of
use assets, triggers for
impairment include:
-
The existence
of leased
properties
that are
neither used
nor leased
by the
Company.
-
The fact that the present value of the leases
received in the event of a sublease is lower than the value of the rents paid
under the lease.
An impairment loss is
recognized in profit or
loss when the
recoverable amount of an
asset is less
than its carrying
amount. The
recoverable amount of
an asset is
the higher
of its
fair value
less costs to
sell and
its value
in use.
Fair value less
costs to sell is
the amount received from the sale
of an asset (less the
cost of disposal) in an
orderly transaction
between market participants.
Value
in
use
is
the
present
value
of
the
future
cash
flows
expected
to
be
derived
from
an
asset
or
cash
–generating
unit
through their use
and not from
their disposal.
For the valuation of property, plant and equipment, the calculation of the recoverable amount includes all improvements
which
render the asset perfectly suitable for its
use by the Company. In
this way, the market participant’s ability
to generate economic
benefits by using the asset in it’s highest and best use or by selling it to
another market participant that would use the asset in
its highest and
best use is
taken into account.
1.2.14
Income tax
Income tax consists of
current and deferred tax.
Current tax for a period includes the expected amount of income tax payable in respect of the taxable profit for the current
reporting period, based
on the tax
rates enacted at
the balance sheet
date.
Deferred tax is the tax that will be paid or for which relief will
be obtained in future periods and it is calculated based on the
temporary differences between the tax base of assets and liabilities and their respective carrying amounts
in the financial
statements.
Deferred tax assets and liabilities are calculated using the tax rates that are expected to apply when the temporary difference
reverses, based on
the tax rates
(and laws) enacted
at the balance
sheet date.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the
asset can be
utilized.
In addition, deferred tax assets are not recognized from the initial recognition of an asset or liability in a transaction that is not
a business combination and at the time it
takes place affects neither accounting profit nor taxable profit.
Furthermore,
regarding
investments
in
subsidiaries,
branches,
associates
and
joint
ventures,
deferred
tax
assets
are
recognized
only when it is probable
that the temporary difference
will reverse in the foreseeable
future and taxable profit
will be available
against which the
temporary difference can
be utilized.
Income tax, both current and
deferred, is recognized in profit
or loss except when it
relates to items recognized directly in
equity.
In such
cases, the
respective income tax
is also
recognized in
equity.
1.2.15
Non-current assets
held for
sale
Non-current assets or disposal groups that
are expected to be
recovered principally through a sale
transaction, along with the
related liabilities, are
classified as held-for-sale.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
417
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The above classification is used if the asset is available for immediate sale in its present condition and its sale is highly
probable.
The sale
is considered
highly probable
when it
has been
decided by
the competent
bodies of
the Management,
an
active programme to locate a buyer has been initiated, the asset is actively marketed
for sale at a price which is reasonable
in relation to its current fair value, and the sale is expected to be completed within one year. Non-current assets that are
acquired exclusively with a view to their subsequent disposal are classified as held for sale at the acquisition date when the
one-year requirement is met and it is highly probable that the remaining criteria will be met within a short period following the
acquisition (usually within three
months).
Before their
classification
as held
for sale,
the assets
are remeasured
in accordance
with the
respective
accounting
standard.
Assets held for sale are
initially recognised and subsequently remeasured at each balance sheet date at
the lower of their
carrying amount and
fair value less
cost to
sell.
Any loss arising from the above measurement is recorded in profit or loss and can be reversed in the future. In this case, the
gain from any subsequent increase in fair value less costs to sell cannot exceed the cumulative impairment losses that have
been recognized. When the loss relates
to a disposal group
it is allocated to
assets within the disposal group with
the exception
of specific assets that are not within the scope of IFRS 5. The impairment loss on a disposal group is first allocated to goodwill
and then
to the
remaining assets and
liabilities on a
pro-rata basis.
Assets in
this category
are not
depreciated.
Gains or losses from
the sale of
these assets are recognized in
the income statement.
Non-current assets held for sale, that the Company subsequently decides either to use or to lease, are reclassified to the
categories of property, plant and equipment or investment property respectively.
During their reclassification, they are
measured at the lower of their recoverable amount and their carrying amount before they were classified as held for sale,
adjusted for any depreciation, amortization or revaluation that would have
been recognized had the assets not
been classified
as held for
sale.
Non-current assets that the Company intends to sell but are not available for immediate sale or are not expected to be sold
within a year are
included in Other Assets and
are measured at the
lower of cost (or
carrying amount) and net realizable value
in accordance with IAS 2. Net
realizable value is considered equal to fair
value less cost to
sell.
1.2.16
Defined contribution
and defined
benefit plans
The Company
has both
defined
benefit
and defined
contribution
plans.
A defined contribution plan is where the Company pays fixed contributions into a separate entity and the Company has no
legal or constructive obligation to pay further contributions if the fund does not have sufficient assets to pay all employees the
benefits relating
to employee
service
in current
or prior
years.
The contributions
are recognized
as employee
benefit
expense
on
an accrual basis. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future
payments is available.
A defined benefit plan is a pension plan that defines an amount of pension
benefit that an employee will receive on retirement
which is dependent, among
others, on years of
service and salary on
date of retirement and
it is
guaranteed by the Company.
The defined benefit obligation is
calculated, separately for each plan, based
on an actuarial valuation performed by
independent actuaries using
the projected
unit credit method.
The net liability recognized in the financial statements is the present value of the defined benefit obligation (which is the
expected future payments required to settle the obligation resulting from employee
service in the current and prior periods)
less the fair value
of plan assets. The
amount determined by the above
comparison may be negative, an
asset. The amount
of the asset recognised in the financial statements cannot exceed the total of the present value of any economic benefits
available to the Company in the form of refunds from the plan
or reductions in future contributions to the plan.
The present value of the defined benefit obligation is calculated based on the return of high quality corporate bonds with a
corresponding maturity to that of the obligation, or
based on the return of
government bonds in cases when there is
no deep
market in corporate
bonds.
Interest on the net defined
benefit liability (asset), which is recognised in
profit or loss, is
determined by multiplying the net
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
418
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
defined benefit liability (asset) by the discount rate used to discount post-employment
benefit obligation, as determined at the
start of the annual reporting period, taking into
account any changes in the net defined benefit liability (asset).
Service cost,
which is also
recognised in
profit or loss,
consists of:
-
Current service cost, which is the
increase in the present value
of the defined benefit obligation resulting from employee
service in the
current period;
-
Past service cost, which is the change in the present value of the defined benefit obligation for employee service in prior
periods, resulting from the introduction or withdrawal of, or changes to, a defined benefit plan or a curtailment (a significant
reduction by
the entity
in the
number of
employees covered by
a plan)
and
-
Any gain or
loss on settlement.
Before determining past service cost or
a gain or
loss on settlement, the
Company remeasures the net defined benefit liability
(asset) using the current fair value of plan assets and current actuarial assumptions, reflecting the benefits offered under the
plan before
its amendment, curtailment
or settlement.
Past service cost, in
particular, is directly recognized to
profit or loss at
the earliest of the
following dates:
-
When the plan amendment or
curtailment occurs; and
-
When the
Company
recognizes
related
restructuring
costs
(according
to IAS
37) or
termination
benefits.
Likewise, the Company recognises a gain
or loss on
the settlement when the settlement occurs.
Remeasurements of the net defined benefit
liability
(asset) which comprise:
-
actuarial gains
and losses;
-
return on plan assets, excluding amounts included in net
interest on the net defined benefit
liability (asset); and
-
any change in the effect of the limitation in the asset recognition, excluding amounts included in net interest on the net
defined benefit liability (asset), are
recognized directly in other
comprehensive income and are not reclassified
in profit or
loss in a
subsequent period.
Finally, when the Company decides to terminate the employment before retireme
nt or the employee accepts the Company’s
offer of benefits in exchange for termination of employment, the liability and the relative expense
for termination benefits are
recognized at the
earlier of the
following dates:
-
when the Company can no longer withdraw the offer of
those benefits; and
-
when the Company recognizes restructuring costs which involve the
payment of termination benefits.
1.2.17
Share options granted
to employees
The granting
of share
options to
the employees,
their exact
number, the
price and
the exercise
date are
decided
by the
Board of
Directors in accordance with Shareholders’ Meeting approvals and after
taking into account the
current legal framework.
The fair value calculated at grant date is recognized during the servicing period and recorded in staff costs when employees
offer their services to the Company or increase the acquisition cost of the subsidiary (as a capital contribution) to which the
employees offer their services (or the intermediate subsidiary in case the employees offer their services to a subsidiary in
which the
Company has
an indirect
interest) with
a corresponding
increase of
a reserve
in equity.
When there
are no
vesting
conditions, it
is considered
that services
have been
received. On
the contrary,
when there
are service
vesting conditions
the
expense or
the increase
in subsidiary’s
acquisition cost
are recognized
as the relative
services
are received.
In case there
are
conditions that are not vesting conditions, they are taken into account in share options valuation. The amount paid by the
beneficiaries of share options on
the exercise date increases the
share capital of the
Company and the reserve
in equity from
the previously recognized fair value of the exercised options is transferred to share premium. The reserve in equity from the
previously recognized fair value of the unexercised options is
transferred to retained earnings.
1.2.18
Provisions and
contingent liabilities
A provision
is recognized
if, as
a result
of a
past event,
the Company
has a
present legal
or constructive
obligation
that can
be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
419
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Provisions are, also, recognized in
cases of restructuring plans
with which management attempts either
to change the
subject
of a
corporate activity
or the
manner
in which
it is
conducted
(e.g. close
down business
locations).
The recognition
of provision
is accompanied with the relevant, authorized by the Management, program and with the suitable actions of disclosure. A
restructuring provision includes only the direct expenditures arising
from the restructuring, which are those that are both
necessarily entailed by the restructurings and not associated with the ongoing activity of
the Company.
The amount recognized as
a provision shall be the best estimate
of the expenditure required
to settle the present obligation
at
the end of the reporting period. Where
the effect of the time value of money is material,
the amount of the provision is equal
to
the present
value of
the expenditures expected
to settle the
obligation.
Amounts paid for the settlement of an obligation are set against the original provisions for these obligations. Provisions are
reviewed at the end of each reporting period. If it is no longer probable that an outflow of resources embodying economic
benefits will be required
to settle the
obligation, the provision is
reversed. Additionally, provisions are not recognized for
future
operating losses.
Future events that may affect the amount
required to settle the obligation, for
which a provision has been
recognized, are
taken into account
when sufficient objective
evidence exists that
they will occur.
Reimbursements from third parties relating to a portion of or all of the estimated cash outflow are recognized as assets, only
when it is virtually certain that they will be received. The amount recognized for the reimbursement does exceed the amount
of the provision. The expense recognized in profit or loss relating to the provision is presented net of the amount of the
reimbursement.
The Company does not recognize in the
statement of financial position contingent liabilities which relate to:
•
possible
obligations
resulting
from
past
events
whose
existence
will be
confirmed
only
by the
occurrence
or non-occurrence
of one
or more
uncertain future events not
wholly within the
control of the
Company, or
•
present obligations resulting from past events for which:
-
it is not probable that an outflow of
resources will be required, or
-
the amount of liability cannot be measured reliably.
The
Company
provides
disclosures
for
contingent
liabilities
taking
into
consideration
their
materiality.
1.2.19
Securities sale and
repurchase agreements and
securities lending
The Company enters into purchases of securities under agreements to resell at a certain date in the future at a fixed price
(reverse repos). Securities purchased subject to commitments to resell
them at future dates
are not recognized in
the balance
sheet.
The amounts
paid, including
interest accruals,
are recognized
in loans and
advances to
either banks or
customers. The
difference
between
the purchase
price
and the
resale
price is
recognized
as interest
income
using effective
interest
method.
Similarly,
securities
that are
sold unde
r
agreements
to repurchase
(repos)
are not
derecognized
but they
continue
to be
measured
in accordance with the accounting policy of the
category that they have been classified.
The proceeds from the
sale of the
securities are reported as
liabilities to either banks
or customers. The difference between
the
sales price and the
repurchase price is recognized as interest
expense using effective interest method.
Securities
borrowed
by the
Company
under securities
lending
agreements
are not
recognized
in the
balance
sheet
except
when
they have been sold to third
parties whereby the liability to deliver the security is
recognized and measured at fair value.
1.2.20
Securitization
The Company
securitises
financial
assets,
by transferring
these assets
to special
purpose
entities,
which in
turn issue
bonds.
In each securitization of financial assets the Company considers the contractual terms and the economic substance
of
transactions, in order to
decide whether the
Company should proceed with
the derecognition of the
securitized assets, as
referred in note
1.2.3.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
420
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1.2.21
Equity
Distinction
between
debt
and
equity
Financial
instruments
issued
by
the
Company
to
obtain
funding
are
classified
as
equity
when,
based
on
the
substance
of
the transaction, the Company does not undertake a contractual obligation to deliver cash or another financial asset or to
exchange financial instruments under conditions that are potentially unfavorable to the issuer.
In cases
when
the Company
is
required
to issue
equity
instruments
in
exchange
for
the
funding
obtained,
the number
of equity instruments must be fixed and determined on the initial contract, in order for the obligation to be classified as
equity.
Distributions to the holders of equity instruments are
directly recognized by debiting the equity of
the Company.
Incremental
costs of share capital
increase
Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from
retained earnings.
Share
premium
Share premium includes the difference between the
nominal value of the
shares and the cost
consideration received in the
case of a
share capital increase.
It also includes the difference between the
nominal value of the shares
issued and their market value, in
cases of
exchanges of shares as consideration for the
acquisition of a business by
the Company.
Treasury
shares
The cost
of acquiring
treasury
shares is
recognized
as a
reduction
of equity.
Subsequent
gains or
losses from
the sale
of
treasury shares, after deducting all
direct costs and taxes,
are recognized directly in retained
earnings.
Dividends
Dividends are deducted from retained earnings and
recorded as a liability
in the period that
the dividend is approved by
the Shareholders’ General
Meeting.
Distributions of non
-cash assets
Distributions of non-cash assets take place at the fair value of the asset distributed. Any difference between the carrying
amount and the
fair value of
the asset distributed
is directly
recognised in profit
or loss.
1.2.22
Interest income and expense
Interest income and expense is recognized in
the income statement for all
interest bearing financial assets and liabilities.
Interest income and expense is recognised on an
accrual basis and measured using the effective interest method with
the
exception
of derivatives
as described
in detail
in note
1.2.4.
Especially
for POCI
assets,
interest
income
is calculated
using
credit-adjusted effective interest rate.
Effective interest rate is the rate that
exactly discounts estimated
future cash payments or receipts through
the expected
life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortised cost
of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial instrument but does not consider the expected credit losses. The
calculation includes all fees and points paid or received between parties to the contract that are an integral part of the
effective interest rate.
For financial
assets,
in particular,
the following
apply:
-
For those financial assets classified within Stage
1 or Stage
2 for the
purpose of expected credit losses measurement,
interest income is calculated by applying effective interest rate to the gross carrying amount of the
asset.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
421
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
-
For those financial assets classified within Stage
3 for the
purpose of expected credit losses measurement, interest income
is calculated by
applying the effective interest
rate to the
amortised cost of
the asset.
-
For purchased or originated credit impaired financial assets interest
income is calculated by applying the
credit-adjusted
effective interest rate
to the amortised
cost of the
asset.
In case of negative interest rates, interest is presented within interest income for interest bearing financial liabilities and within
interest expense for
interest bearing financial
assets.
Borrowing costs that are directly attributable
to assets that require a substantial period of time to get ready for their intended
use or sale are capitalized as part of the cost of the asset. Capitalisation ceases when substantially all the activities necessary
to prepare the
asset for
its intended use
are complete.
1.2.23
Fee and commission income
Fees and commission income from contracts with customers are recognized based
on the consideration specified in the
contract when the Company satisfies the performance obligation
by transferring the service to the customer. With the
exception of specific portfolio management fees which are calculated on the basis of the size and performance of the portfolio,
the services
provided
have
a fixed
price.
Variable
portfolio
management
fees are
recognized
when all
related
uncertainties
are
resolved.
For commissions
on services
provided over
time, revenue
is recognized
as the serv
ice is being
provided to
the customer,
such
as commissions to provide account management services, fees for administration
of syndicated loans, fees for portfolio
management and investment
services advice.
For transaction-based fees, the execution
and completion of the transaction executed signals
the point in time, in which
the service
is transferred
to the
customer and
the revenue
is recognized,
such as
currency
transactions,
purchases
/ sales
of
securities as
well as
issue and
disposal of
syndicated loans
and bonds.
Transaction revenues relating to the recognition of a financial instrument not measured at fair value through profit or loss are
capitalized and amortised in the income statement
using the effective interest method over the
life of the financial instrument
and included in
interest income.
1.2.24
Gains less losses
on financial transactions
Gains less
losses on
financial transactions
include:
-
fair value changes of financial assets and liabilities,
-
gains and losses arising from the modification
of the contractual terms of financial assets measured
at fair value through
profit or loss,
-
gains and losses arising from the derecognition of financial assets and liabilities due to early repayment, including
conversion of loans into shares, disposal or significant modification of the contractual terms, except for gains and losses
arising from the derecognition of financial assets measured at amortised cost which are recognized in a separate line item
of the Income
Statement,
-
gains and losses
arising from the
impairment or disposal of
Copany’s investments in subsidiaries, associates and
joint
ventures,
-
exchange differences arising from the translation of financial instruments denominated in foreign currencies.
1.2.25
Gains less losses
on derecognition of
financial assets
measured at
amortised cost
Gains less
losses
on derecognition
of financial
assets measured
at amortised
cost include:
-
Gains and losses from the
derecognition of financial assets measured at amortised cost
-
The difference, at initial recognition,
between the nominal and the fair value of a financial
asset measured at amortised
cost that is the result of the derecognition
of another financial asset due
to significant modification
of its contractual terms.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
422
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1.2.26
Discontinued operations
A discontinued
operation
is a
component
of the
Company
that either
has been
disposed of,
or has
been classified
as held
for
sale and represents:
•
a major line
of the Company’s
business; or
•
a geographical area of operations.
The post tax profit or loss from discontinued operations and any losses recognized on the measurement to fair value less
costs to sell of the disposal group are presented in a separate line in the face of the income statement after net profit from
continuing operations. The comparative financial
statements are restated only for the income statement and the cash flow
statement.
1.2.27
Related parties
definition
According to IAS 24, a related party is a person or entity that is related to the entity that is
preparing its financial statements.
For the
Company, in particular,
related parties are
considered:
a.
An entity that constitutes for the Company:
i)
a subsidiary,
ii)
a joint venture and
iii)
an associate
b.
A person or
an entity that
have control, or
joint control, or
significant influence over the Company.
This category includes Hellenic
Financial Stability Fund and
its subsidiaries, because, in
the context of
the L.3864/2010, the
HFSF
participates in the Board of
Directors and as a
result is considered to
have significant influence over it.
c.
A person and his
close family members, if that
person is a
member of the key
management personnel.
The
Company
considers
as
key
management
personnel
all
the
members
of
the
Company’s
Board
of
Directors
and
of
the
Company’s
Executive
Committee
while
as
their
close
family
members
it
considers
their
children
and
spouses
or
domestic
partners and their dependents and the dependents of their
spouses or domestic partners.
Related parties are also considered the entities controlled or jointly controlled by the above mentioned persons and more
specifically the entities in
which the above
persons participate with
more than 20%.
1.2.28
Comparatives
To the extent considered necessary the comparatives have been adjusted to facilitate changes
in presentation of the current
year amounts. Taking into account the
hive down of the
banking sector in the current
year, the notes to the
financial statements
do not include disclosures of the
balance sheet items of the comparative period in
those cases where these items have
no balances in the current year as, according to IAS 1, this information is not relevant to the understanding of the financial
statements for the current year. It is noted that the relevant disclosures for the items of the comparative period are described
in the
published financial statements
for the
year ended 31.12.2020.
1.3
Significant accounting
judgments and
key sources
of estimation
uncertainty
Significant
accounting
judgments
The
Company,
in
the
context
of
applying
accounting
policies,
makes
judgments
and
assessments
relating
to
the
carrying
amount of assets
and liabilities at the
end of the period
that relate to the
future. Final amounts
in the next year
may be
significantly different from those recognised in the financial statements. Those judgements relate to the following:
Significant judgements relating to
the selection of methodologies
and models for expected
credit losses calculation
Due to the classification of most
of the financial assets for
which expected credit risk losses are calculated in
the assets
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
423
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
held for sale, the expected credit risk losses were calculated by incorporating a 100% probability of sale. Therefore, as at
31.12.2021 there were no significant
judgments related to the selection of
methodologies and models for the calculation
of
the expected credit
risk losses.
Income Tax (notes
12 and 20)
The recognition of assets and liabilities for current and deferred tax is carried out based on the interpretation of the applicable
tax legislation. However,
it may be affected by
factors such as the
practical implementation
of the relevant legislation
and
the settlement of disputes that might exist with tax authorities etc. When assessing
the tax treatment of all significant
transactions, the Company takes into account and
evaluates all available data (Circulars of
the Ministry of Finance,
case
law, administrative practices, etc.) and / or opinions received from internal and external legal advisers. Future tax audits and
changes in tax legislation may result in the adjustment of the amount of assets and liabilities for current and deferred tax and
in tax payments
other than those
recognized in the
financial statements of
the Company.
Classification of non-current assets held for
sale (note 35)
The Company
classifies
non-current
assets or
disposal groups
that are
expected to
be recovered
principally through
a sale
transaction, along with the related liabilities, as held-for-sale when the asset is available for immediate sale in its present
condition and its sale is highly probable to be completed within one year. The assessment of whether the above criteria are
met requires judgment mainly as to whether the sale is likely to be completed within one year from the reporting date. In the
context of this assessment, the Company takes into
account the receipt of the
required approvals (both regulatory and those
given by the General Meeting
and the Committees of the
Company), the receipt of offers
(binding or note) and
the singing of
agreements as well
as of
any conditions included
in them.
Triggers evens for
impairment on the
cost of Company’s
investment to the
Bank (note 17)
Despite the fact that Company’s cost of investment in the Bank exceeds Bank’s net assets on a consolidated level, the
Company made the judgment that there are no triggers for impairment considering that this is a temporary difference taking
into account the
following:
A.
At the end
of 2021 the
Bank has implemented greatest part
of the NPE
business plan having reduced NPEs by
more than
€ 16 billion in 2021.
B.
Under the approved Budget for 2022, the
Bank is expected to generate after tax profit of € 300 million in 2022.
C.
Under the latest submitted and approved Business Plan, the Bank is in a good position to make full use of the potential of
Greece’s
economic
recovery
and to
steadily
improve
its financial
performance
over the
next two
years. In
addition,
the Bank
aims for
an annual profit
of over
€ 0.5
billion in the
medium term.
D.
No significant changes are expected in the financial, legal or regulatory environment of the Bank that would have a material
adverse effect on its performance. The Bank is currently meeting its capital adequacy requirements and is expected to
continue to meet
such requirements in
the future.
E.
Finally, the
positive market
response
regarding
stock price
and Bank’s
prospects.
Key
sources
of estimation
uncertainty
Key sources of estimation uncertainty used
by the Company in
the context of applying its
accounting principles and which have
a significant impact on the amounts recognized in the
financial statements are presented below:
Fair value of assets and liabilities (note 32.4)
For assets and liabilities traded in active
markets, the determination of their fair value is
based on quoted, market prices. In
all
other cases the determination of fair value is based on valuation techniques that use observable market data to the greatest
extent possible. In cases where there is
no observable market data, the fair
value is determined using data that
are based
on internal estimates and assumptions i.e.
determination of expected cash flows, discount rates,
prepayment probabilities or
potential counterparty default.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
424
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Estimates included in
the calculation of
expected credit losses
Due to the classification of most of the financial assets for which expected credit risk losses are calculated in the assets
held for sale,
the expected credit risk
losses were calculated by
incorporating a 100% probability of
sale. Therefore, as at
31.12.2021 there were no significant estimates related to the calculation of expected credit losses.
Impairment losses on
investments in subsidiaries,
associates and
joint ventures and
on non
- financial assets
(notes 17 and 19)
The Company, at each reporting date, assesses for impairment non – financial assets, and in particular, right-of-use assets,
goodwill and other intangible assets, as well as its investments in subsidiaries, associates and joint ventures and at least on
an annual basis property, plant and equipment and
investment property. Internal estimates are used to a
significant degree to
determine the recoverable amount of the assets, i.e.
the higher between the fair
value less costs to sell
and value in use.
The estimates and judgments applied by
the Company in making
decisions and in preparing the
financial statements are based
on historical information and assumptions which at present are considered appropriate.
The estimates and judgments are
reviewed on an ongoing basis in order to take into account current conditions, and the effect of any changes is recognized in
the period
in which the
estimates are revised.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
425
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
CORPORATE
TRANSFORMATION
–
HIVE
DOWN
The demerger by way
of hive-down of the
banking business sector resulted in the
incorporation of a new
company (under
the name “Alpha Bank
S.A.”) which assumed all
the activities of
the Company relating to
the banking sector. It
is therefore
considered
as business
combination
between
entities
under
common
control,
the Bank
is the
subsidiary
of the
Company
which
in turn becomes into a
Holding entity under the name
Alpha Services and Holdings S.A.
The respective
transaction,
as
business
combination
between
entities
under
common
control,
is scoped
out of
the provisions
of IFRS 3
“Business Combinations”.
In addition,
since the Bank
is a newly
established entity,
it cannot be
considered as
the
acquirer in the
transaction and therefore the
demerger cannot be considered as
a business combination but
as a
reorganization
within the Group.
In accordance with the accounting policy of the Group, the transactions between group entities that involve the incorporation
of new entities to which the assets and liabilities of a sector of another group entity are transferred at their book values in the
books of the transferring entity. Furthermore, information from the date of the intragroup reorganization and onwards
will be
included in both
separate and consolidated financial
statements of the
Bank.
In this context the accounting treatment of the Demerger involved the following:
i.
Based on the Demerger Deed, the Company maintained the activities relating to the planning, promotion and distribution
of insurance products in the capacity of the insurance agent, as well as the provision of accounting and tax services to
affiliated companies and third parties, as well as the preparation of studies for strategy and financial management
purposes and the issuance of
securities for raising regulatory capital. It
also maintained certain investments in subsidiaries
relating to
the above
operations
and more
specifically
to: Alpha
Group Jersey
Ltd, Alpha
Insurance
Brokerage
S.A., Alpha
Life
AAEZ, Reoco Orion X S.M S.A., Reoco Galaxy IΙ S.M S.A., Reoco Galaxy ΙV S.M
S.A. Finally, it retained the contractual rights and
obligations relating to subordinated issues and borrowing funds to Alpha Group Jersey Ltd as well as of the bonds issued
under the Galaxy securitization with the exception of the 100% of the senior bonds and the 5% of the mezzanine and junior
tranches which were transferred to Alpha Bank S.A. Due to the holding of the aforementioned notes and in accordance with
IFRS 9, the
Company continued to recognize in its
books the Galaxy related securitized loans.
ii.
The assets and liabilities which were
not maintained by the Company and which
were determined to relate to the
banking
sector were
transferred to the
Bank at
book values.
iii.
Given that until the hive-down date the notes issued under Galaxy securitization were held by the Company, the notes
and the collateralizes borrowing were not recognized in its books. The transfer of part of the notes to the Bank resulted in
the recognition by the Bank of the 100% of the senior bonds and the 5% of the mezzanine and junior notes at fair
values
(see Table
I column
B). Similarly,
the Company
recognized
a liability
equal to
the amount
of the
bonds recognized
by the
Bank, which also included the netting of the assets and liabilities
deriving from the securitization and transactions
with
the special
purpose
entities.
The Bank
recognized
these notes
under Loans
and advances
to customers,
as the
intention
is
to hold the notes until maturity in order to collect principal and interest, the risks associated with these bonds as well as
the management of such risks relate to the risks of the underlying loans which were originated by the Company and were
subsequently
securitized under
Galaxy and
also the Bank
is the successor
of the Company
as far as
the banking
sector
activities ae concerned. In contrast the bonds of the Galaxy securitization, which were not transferred to the Bank, but were
held by the Company, were
classified as Investment securities as the intention
of the Company is
to sell and
distribute them.
iv.
The Bank recognized on its balance sheet the assets, liabilities and equity reserves transferred based on their carrying
amount as at 16.4.2021 and any difference between the carrying amounts
of assets and liabilities transferred between
30.6.2020
and 16.4.2021
was recognized
directly
in retained
earnings.
Accordingly,
the Company,
recognized
as cost
of
investment in the Bank, the difference between the book value of the assets, liabilities and equity accounts transferred to
the Bank taking into consideration the liability recognized from Galaxy securitization due to the transfer to the Bank pf part
of the
bonds issued for
the securitization purposes.
v.
The equity of the Bank, at the date of the demerger, comprises of the share capital as this was determined based on
the Transformation Balance sheet prepared based on Law 2515/1997
and Law 4601/2019 and includes all assets and
liabilities of the Banking sector as
at 30.6.2020, the valuation reserves of
bonds and shares, the cash flow
hedging reserves
and the retained
earnings.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
426
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The activities transferred in the context of the hive-down to the Bank., meet in the second quarter
of 2021 the definition of
discontinued operations in the separate financial statements of the Company
and therefore the relevant results and cash flows
are presented
as deriving
from discontinued
operations
in the
Statements
of Income,
Comprehensive
Income and
Cash Flow,
restating the comparative period. It is noted that the separation of results between continuing and discontinued operations
does not include any deemed revenue or expenses or the result of transactions between the demerged Banking business
sector and
the sectors that
remained in the
Company.
The table below presents the assets, liabilities and equity reserves transferred to the Bank. hive-down date, the required
adjustments in the
context of the application
of the accounting treatment
as well as the statement
of financial position
of the
Bank and the
Company at the
same date.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
427
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
(a)
(b)
(c)= (a)+(b)
(d)
(e)
(f)= (d)+(e)
(g)= (c)-(d)
(h)
(i)
(j)=(g)+(h)+(i)
Company
prior
demerger
Cancellation
of
Galaxy
securitization
off-set
Balances
excluding
Galaxy’s
securitization
off-set
Assets
transferred
to the Bank
Initial
recognition of
assets
transferred to
the Bank and
reclassifications
Bank
Assets not
transferred to
the Bank
Recognition
of
Company’s
participation in
the Bank
Initial
recognition of
assets remained
under Alpha
Services and
Holdings S.A.
and
reclassifications
Company
ASSETS
Cash and
balances with
central
banks
7.265.548
7.265.548
7.265.548
7.265.548
Due from banks
3.877.744
3.877.744
2.384.199
(3)
1.493.545
3.877.744
1.493.545
1.493.545
Trading securities
15.725
15.725
15.725
15.725
-
Derivative financial assets
1.098.977
1.098.977
1.098.977
1.098.977
-
Loans and
advances
to customers
35.058.719
(48.581)
35.010.138
28.987.449
(2)
3.841.587
32.829.037
6.022.689
6.022.689
Investment securities
- Measured at fair value
through
other comprehensive
income
4.846.802
318.628
5.165.430
4.846.802
4.846.802
318.628
(1)
(318.628)
- Measured at amortised
cost
3.267.461
3.795.340
7.062.801
7.062.801
(2)
(3.795.340)
3.267.461
- Measured at fair value
through
profit or loss
217.246
2.144.967
2.362.213
324.495
(2)
(107.248)
217.246
2.037.719
(1)
(2.037.719)
Investments in associates
and joint
ventures
2.497.861
2.497.861
2.465.081
2.465.081
32.780
5.007.471
(61.001)
4.979.250
Investment property
45.379
45.379
45.379
45.379
Property, plant and equipment
630.448
630.448
630.440
630.440
8
8
Goodwill and other intangible
assets
420.780
420.780
420.378
420.378
402
402
Deferred tax assets
5.279.400
5.279.400
5.336.251
4.569
5.340.821
-56.851
56.851
Other assets
1.380.268
1.380.268
1.337.001
1.192
1.338.193
43.267
43.267
65.902.358
6.210.354
72.112.712
62.220.526
1.438.305
63.658.832
9.892.187
5.007.471
(2.360.497)
12.539.161
Assets classified
as held
for sale
79.391
79.391
79.391
79.391
Total Assets
65.981.749
6.210.354
72.192.103
62.299.917
1.438.305
63.738.223
9.892.187
5.007.471
(2.360.497)
12.539.161
LIABILITIES
Due to banks
14.676.759
14.676.759
14.676.759
14.676.759
Derivative financial
liabilities
1.471.483
1.471.483
1.471.483
1.471.483
Due to customers
39.326.704
238.183
39.564.887
39.564.887
(3)
1.493.545
41.058.432
Debt securities in issue and other
borrowed funds
1.521.698
5.975.438
7.497.136
504.879
504.879
(4)
6.992.257
(2.417.348)
4.574.909
Liabilities for current income
tax
and other taxes
86.824
86.824
985
4.569
5.555
85.839
85.839
Deferred tax liabilities
56.851
56.851
Employee
defined benefit
obligations
36.923
36.923
36.912
36.912
11
11
Other liabilities
910.404
(3.267)
907.137
907.093
1.192
908.285
44
44
Provisions
284.393
284.393
284.366
284.366
27
27
Total Liabilities
58.315.188
6.210.354
64.525.542
57.447.364
1.499.306
58.946.671
7.078.178
(2.360.497)
4.717.681
Total Equity
7.666.561
7.666.561
(154.918)
4.946.470
4.791.552
7.821.480
7.821.480
Total Liabilities
and Equity
65.981.749
6.210.354
72.192.103
57.292.446
6.445.776
63.738.223
14.899.658
(2.360.497)
12.539.161
(1)
The amount relates to the
nominal value of 95%
of the Mezzanine
and Junior notes and
the 100% of the issues
from Galaxy III Funding
Designated Activity
Company of
Galaxy securitization
held by
Alpha Services
and Holdings
S.A.
(2)
The amount relates to the nomin
al value of 95% of the securitization
Galaxy bonds, which
were held by Alpha Bank S.A
and relate to the 100% of the
Senior
and 5% of the Mezzanine and Junior securitization
notes of Galaxy securitization.
The amount in Loans and Advances
to customers includes the fair value
adjustments at
initial recognition
of €
61,001.
(3)
The amount concerns the deposits of Alpha Services and
Holdings S.A. with Alpha Bank S.A.
(4)
The amount relates to the nominal value of Tier II bonds
held by Alpha Services and Holdings
S.A. as well as the financial liabilities mainly from
the Senior notes
transferred to Alpha Bank S.A. at the demerger with the
5% of the Mezzanine and Junior notes of the
Galaxy securitization.
Certain balances in the assets and liabilities that were transferred at the demerger date to the Bank have been
restated in relation to
the respective balances presented in the semi-annual financial statements
as of 30.6.2021 due to the change in accounting policy
for the
employee defined
benefit obligations
(note 38).
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
428
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
INCOME
STATEMENT
2.
Net interest income
From 1 January
to
31.12.2021
31.12.2020
as restated
Interest and similar income
Loans and advances to customers measured
at amortized cost
145,133
295,520
Loans and advances to customers
measured at fair value through profit
or loss
237
3,066
Investment securities
measured at amortized
cost (note 16)
37,818
Investment securities
measured at fair value through
profit or loss
387
Total
183,575
298,586
Interest expense
and similar
charges
Debt securities in issue and other borrowed funds
(47,638)
(19,067)
Other
(4,295)
(8,316)
Total
(51,933)
(27,383)
Net interest
income from
continuing operations
131,642
271,203
During 2021, Interest expense and similar charges from continuing operations
includes mainly an amount of € 44,015,
regarding TIER
II junior notes
issued by the
Company, as
described in
note 22. Additionally,
an amount
of € 3,616 is include
d,
regarding interest expenses for the
financial liability from the
Galaxy securitization, which was recognized during the
hive-down
and concerns the
period from 16.4.2021
to 18.6.2021.
Interest income from investment securities measured at amortized
cost from continuing operations includes interest from
junior notes issued by the
Bank and covered by
the Company on April 2021,
after the hive-down (note 16).
Interest income from loans and advances to customers concern the Galaxy securitized loan portfolio through
the special
purpose entities
Orion Securitisation
Designated
Activity Comp
any, Galaxy
II Funding
Designated
Activity Company,
Galaxy IV
Funding Designated Activity Company until their derecognition
on 18.6.2021, with the exception securitized loans through of
the Galaxy
III Funding
DAC, which
remained
to the
Company.
The comparative
period includes
interest income
from the
Galaxy
securitized loan portfolio.
The following table presents the amounts of interest income and interest expense calculated using the effective interest
rate
method, by
financial asset measurement
category:
From 1 January
to
31.12.2021
31.12.2020
as restated
Financial assets measured at amortised cost
178,656
287,204
Financial assets measured
at fair value through profit or loss
624
3,066
Total
179,280
290,270
Financial liabilities measured
at amortised cost
(47,638)
(19,067)
3.
Net fee
and commission
income
From 1 January
to
31.12.2021
31.12.2020
as restated
Loans
1,511
1,760
Credit cards
5
8
Insurance brokerage
29,906
17,975
Other
(4)
(15)
Total from continuing operations
31,418
19,728
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
429
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Net fee and commission income from continuing operations mainly includes commission
income for the promotion and
distribution of insurance products. During 2021 there was an increase compared to 2020, which is primarily attributed to fees
of € 10 mil.,
which the Company
received from
AXA Mediterranean
Holding S.A.,
parent entity
of AXA Insurance
S.A., due to
the
premature termination of a sale agreement for banking and insurance products due to the sale of
the latter to Generalli.
4.
Dividend income
From 1 January
to
31.12.2021
31.12.2020
as restated
Subsidiaries and
associates
600
Total from continuing operations
-
600
Divident
income
for 2020
refers
to € 600
from
Alpha Insurance
Agents
S.A.
5.
Gains
less losses
on financial
transactions
From 1 January
to
31.12.2021
31.12.2020
as restated
Foreign exchange differences
1,024
(11,589)
Financial assets measured
at fair value through profit or loss
- Loans
(40)
(4,093)
- Bonds
2,933
Impairment of Investments
in subsidiaries, associates
and joint ventures
(760)
(91)
Other financial instruments
2,105
(4,162)
Total from continuing operations
5,262
(19,935)
Gains less losses on financial transactions from continuing operations for
2021 have been affected by
gains amounting to
€ 1,624 (31.12.2020: loss € 4,162) which is included in line “Other financial instruments” and concerns the variance in fair
value of hedged junior notes, against interest rate risk, up to 16.4.2021. The interest rate swap used for the aforementioned
hedging was transferred to the Bank during the
hive-down and as a result,
gains less losses from the
valuation of the swap are
disclosed in discontinued
operations.
Additionally, an amount of € 760, included in “Impairment of Investments in subsidiaries, associates and joint ventures” relates
to impairments on
subsidiaries, as described
in note
17.
Finally, gains less losses on financial transactions for 2021 include an amount of € 2,933 of bonds measured at fair value
through profit or loss,
which is incurred mainly
due to the
change in their valuation
during the year and
concerns primarily the
mezzanine notes of
the Galaxy securitization
transaction.
Gains less losses on financial transactions for 2020 include losses €
4,093 of loans measured at fair value through profit
or
loss, incurred
mainly due
to the
change in
their valuation
during the
year.
6.
Gains
less
losses
on
derecognition
of financial
assets
measured
at amortised
cost
Gains less losses on financial assets measured at amortized cost for 2021 amounting
to € 2,238,990 mainly include losses
from derecognition of the Galaxy transaction loans, as described in detail in note 15. The book value of the aforementioned
loans at derecognition
amounted to €
5,810,559.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
430
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
7.
Other income
From 1 January
to
31.12.2021
31.12.2020
as restated
Income from accounting and tax services
494
413
Other
1
3
Total from continuing operations
495
416
8.
Staff costs
and expenses
From 1 January
to
31.12.2021
31.12.2020
as restated
Wages and salaries
706
389
Social security
contributions
91
104
Employee indemnity
provision due to retirement
based on Law 2112/1920
8
6
Other charges
28
Total from continuing operations
833
499
The total number of the Company’s employees as at 31.12.2021 was 12.
9.
General
administrative
expenses
From 1 January
to
31.12.2021
31.12.2020
as restated
Lease expenses
21
Maintenance of
EDP equipment
64
173
EDP expenses
199
Marketing and
advertising
expenses
477
438
Telecommunications
and
postage
4
10
Third party fees
12,912
110
Insurance
182
15
Electricity
2
14
Taxes and Duties (VAT, real estate etc)
3,258
Building and equipment maintenance
3
8
Cleaning expenses
4
8
Other
702
40
Total from continuing operations
17,828
816
Total General Administrative Expenses from continuing operations for
2021 presents an increase
compared to the comparative
period, mainly attributable
to an amount of € 10,876 that relates to the Bank’s fee for insurance
brokerage services provided
to the Company.
The caption
Taxes and
Duties mainly
includes VAT
for non
deductable
expenses classified
either in
profit or
loss or in
equity as
they relate to
share capital increase
expenses.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
431
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
10.
Impairment
losses,
provisions
to
cover
credit
risk
and
related
expenses
“Impairment losses, provisions to cover credit risk and related expenses” for year 2021 amounted to € 256,345 (31.12.2020:
€ 353,859) and includes the total of the captions presented in the table below, along with the impairment losses on other
financial instruments, as
presented in note
11.
The following
table presents
the impairment
losses, provisions
to cover
credit
risk and
related
expenses
on loans
and advances
to customers,
financial
guarantee
contracts,
other assets
as well
as recoveries
and non-performing
loans servicing
fees.
Non-
performing loans servicing fees are presented under this caption to reflect more accurately the nature of these fees. More
specifically, non-performing loans servicing fees arise from the
service agreement with Cepal Hellas.
From 1 January
to
31.12.2021
31.12.2020
as restated
Impairment losses on loans
234,427
352,759
Provisions to cover credit risk on letters
of guarantee, letters of credit and undrawn
loan commitments
(44)
44
(Gains) / Losses from modifications
of contractual terms of loans and advances to customers
2,925
5,066
Recoveries
(1,392)
(4,010)
Loan servicing fees
8,764
Total from continuing operations
244,680
353,859
Impairment losses and provisions to
cover credit risk on
loans and advances to
customers from continuing operations relate
to the Galaxy securitized loan portfolio till its derecognition at 18.6.2021 as well as securitized loans in the SPV Galaxy III
Funding DAC, which have remained in the Company’s loan portfolio and at 31.12.2021 were classified in assets held for
sale. Impairment losses on loans for 2021 mainly relate to the incorporation
of a 100% propability of sales scenario to the
estimation of expected credit losses for said portfolio, the book value of which at 31.12.2021 reflects its recoverable
amount
through sale transaction.
Gains/(Losses)
on modifications
of contractual
terms
of loans
and advances
to customers
The Company, in the context
of renegotiation with borrowers or of
restructurings, proceeds with the modification of the
contractual cash flows of
the loans in
order to ensure
their
repayment.
The following table presents the carrying amount
of those
loans and advances to customers for
which there was gain
or loss
from the modification of the contractual terms and loss
allowance were measured at an amount equal to lifetime expected
credit loss i.e
loans categorised Stages 2,
or stage 3
or loans Purchased or
originated credit-impaired (POCI).
From 1 January
to
31.12.2021
31.12.2020
as restated
Net carrying amount
after impairment
and before the modification
788,823
1,651,816
Net gain or (loss) due to the modification
2,916
5,059
11.
Impairment losses
and provisions
to cover
credit risk
and related
expenses on
other
financial instruments
From 1 January
to
31.12.2021
31.12.2020
as restated
Impairment losses of debt securities
and other securities measured
at amortized cost
11,665
Total from continuing operations
11,665
-
The impairment losses of debt securities from continuing operations
during 2021 relate to the repayment of junior notes
issued by
the Bank and
owned by the
Company.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
432
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
12.
Income tax
The Extraordinary
General Meeting
of the Shareholders
of Alpha
Bank S.A.
held on
2.4.2021, approved
the demerger
of the
société anonyme with the corporate name “Alpha
Bank Societe Anonyme” (“Demerged Entity”), by way of hive-down of the
banking business sector with the incorporation of a new company – financial institution under the legal name “Alpha Bank
Societe Anonyme”.
Alpha Bank
S.A. resulting
from the
demerger
by the
way of
the hive-down
of the
banking business
sector,
started its operations on 16.4.2021, following the approval of the Ministry of Development and Investments.
The first tax year
for Alpha Bank
S.A. is from
1.7.2020 to 31.12.2021.
The Demerged Entity changed its corporate name to “Alpha Services and Holding
Societe
Anonyme”
and
became
a
listed
holding company,
and its
business
scope is
the provision
of the
insurance
agency services
and accounting
supporting
services,
andit has retained the same
General Commercial Register registration and Tax Identification Numbers.
In accordance with article 120 of L.4799 “Incorporation of Directive (EU) 2019/878 of the European Parliament and of
the Council of 20 May 2019 amending Directive 2013/36/EU as regards exempted entities, financial holding com
panies,
mixed
financial
holding
companies,
remuneration,
supervisory
measures
and
powers
and
capital
conservation
measures,
Incorporation of Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019 amending Directive
2014/59/EU as regards the loss-absorbing
and recapitalization capacity of credit institutions
and investment firms and
Directive 98/26/EC, through the amendment of article 2 of L.4335/2015, and other urgent provisions”,
the income tax rate for
legal entities is reduced by 2% (from 24% as in force today to 22%) for the income of
tax year 2021 and afterwards. By explicit
reference of the law, this decrease does not apply to
the financial institutions for which the income tax rate remains at
29%.
In accordance with article 119 of the same law, the percentage of income tax prepayment for legal entities is reduced to
eighty percent (80%) from one hundred per cent (100%) as in force. The above is applicable for income tax prepayment of
income tax declaration for the tax year 2021. Especially for tax year 2020, the tax prepayment percentage of legal entities
for
tax year 2020,
is set up
to seventy per
cent (70%).
The article 20 of Law 4646 / 12.12.2019 “Tax reform with a growth dimension for tomorrow’s Greece”, exempts income tax
on income derived from the goodwill of the transfer of equity
instruments to a legal entity resident in a Member State of the
European Union, which a legal
entity receives which is a
tax resident of Greece if
the legal entity whose
titles are transferred
fulfills the conditions
prescribed by law. This income shall not be taxable on the distribution or capitalization of these profits.
Any impairment losses recognized as at 31.12.2019 are deducted under certain conditions from gross income
at the time of
transfer. The provision
applies to income
derived from 1.1.2020
onwards.
Furthermore, the withholding rate is reduced to 5% from 10% in dividends paid from
1.1.2020 and onwards.
In accordance with
article 65A of Law
4174/2013, from 2011,
the statutory auditors
and audit firms conducting
statutory
audits to a Societe Anonyme
(S.A.), are obliged
to issue an Annual
Tax Certificate on
the compliance
on tax issues. In
accordance with article 56 of Law 4410/3.8.2016 for the fiscal years from 1.1.2016
and onwards, the issuance of tax
certificate is optional. However, the Company intends to continue to
obtain the tax certificate.
For the fiscal years 2011 up to 2020, the tax audit based on article
65A of Law 4174/2013 has been completed and
the
Company has received the relevant tax certificate without any
qualifications on the tax issues covered.
The tax audit for
the fiscal year 2021 is
in progress.
The income tax is
analysed as follows:
From 1 January
to
31.12.2021
31.12.2020
as restated
Current tax
8
40,194
Deferred tax
(44,725)
(8,556)
Total from continuing operations
(44,717)
31,638
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
433
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
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
31.12.2021
31.12.2020
as restated
Write-offs, depreciation,
impairment of plant, property
and equipment and leases
24
Loans portfolio
(27,059)
(8,556)
Other temporary differences
(17,690)
Total from continuing operations
(44,725)
(8,556)
“Other temporary differences” includes the derecognition,
due to the completion of the Galaxy transaction, of the amount of
deferred tax liability recognized as at the date
of the corporate transformation resulting
from the valuation at initial recognition
of the financial liabilities from Galaxy securitization, as described in the note for the Corporate Transformation – Hive down of
the banking business
sector.
A reconciliation between the effective and nominal tax
rate is provided below:
From 1 January
to
31.12.2021
31.12.2020
as restated
%
%
Profit / (Loss)
before income tax
(2,345,213)
(82,425)
Income tax (nominal tax rate)
22
(515,947)
29
(23,903)
Increase / (Decrease) due to:
Non-recognition of deferred
tax on tax losses
(10.16)
238,244
(45.20)
37,252
Non-recognition of deferred
tax for temporary differences in the current
period
(10.87)
255,001
(15.17)
12,502
Adjustment in tax
rates for the estimation
of deferred tax
0.59
(13,723)
Other tax adjustments
0.35
(8,292)
(7.02)
5,787
Income tax
1.91
(44,717)
(38.38)
31,638
As at 31.12.2021, the Company has not recognized deferred tax asset amounting to € 238,244 related to tax losses of
fiscal year 2021 which have resulted mainly from the sale of the 51% of the mezzanine and junior notes of the Galaxy non
performing exposures portfolio,
as well as deferred tax asset amounting to € 267,503 deriving mainly from the valuation
of
the 44% of the junior and mezzanine notes held by Alpha Services and Holdings S.A., due to the fact that it is
not expected
that there will be sufficient taxable profits against which they
can be set off. Tax
losses can be offset by 2026,
while other
temporary differences for which no
deferred tax asset has
been recognized the year of
reversal can not
be reliably estimated.
In accordance with the provisions of No E.2075/9.4.2021 Circular of Independent Authority for Public Revenue,
following the
finalization of transformation plan by way of hive-down of the banking business sector with the incorporation of a new legal
entity named
Alpha Bank
S.A., Alpha
Services and
Holding S.A.
was taxed
for the
results until
the Transformation
Balance Sheet
date 30.6.2020 with a rate
of 29%, whereas for the result
s
from 1.7.2020 to 31.12.2020
with a rate of 24%. In accordance
with the article
120 of Law 4799/2021,
from 1.1.2021 and
afterwards the tax
rate for legal entities
has been further
reduced
to 22%. The effect of the change in the tax rate from 29% used for the taxation of the Bank to 22% used for the taxation of
Alpha Services and Holding S.A. is
included in the line
“Adjustment in tax rates for
the estimation of deferred tax”.
Income tax of other
comprehensive income recognized directly in equity is
presented in the following table.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
434
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Income tax
of other comprehensive
income recognized
directly in
equity
From 1
January to
31.12.2021
31.12.2020
as restated
Before
Income tax
Income tax
After
Income tax
Before
Income tax
Income tax
After
Income tax
Amounts that
may be
reclassified to
the Income
Statement
Net change in the reserve
of debt securities
measured at fair value through other comprehensive
income
(87,964)
25,509
(62,455)
(363,393)
105,384
(258,009)
Net change in
cash flow hedge
reserve
6,036
(1,750)
4,286
20,841
(6,044)
14,797
(81,928)
23,759
(58,169)
(342,552)
99,340
(243,212)
Amounts that will not
be reclassified to the
Income Statement
Net change in actuarial gains/(losses) of defined
benefit obligations
(17)
(17)
(5,883)
1,707
(4,176)
Gains/(Losses)
from equity
securities measured
at
fair value through other comprehensive
income
117
(34)
83
4,064
(1,179)
2,885
100
(34)
66
(1,819)
528
(1,291)
Total
(81,828)
23,725
(58,103)
(344,371)
99,868
(244,503)
During the
year 2021,
a tax
of € 8
was recorded
in the
account
“Retained
Earnings”,
which resulted
from the
stock option
share
capital increase costs.
13.
Earnings/(losses)
per share
a.
Basic
Basic earnings/(losses) per share are calculated by
dividing the net profit/(losses) for
the year attributable to
ordinary equity
owners of
the Company,
by the
weighted average
number
of ordinary
shares outstanding
during the
period, excluding
own
shares held
by the Company,
during the
period.
From 1 January
to
31.12.2021
31.12.2020
as restated
Profit/(Loss) attributable to equity
holders of the Company
(2,638,882)
138,505
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Basic earnings /(losses) per
share (in €)
(1.3663)
0.0897
31.12.2021
31.12.2020
as restated
Profit/(Loss) from continuing operations
attributable to equity holders
of the Company
(2,300,496)
(114,063)
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Basic earnings /(losses) per
share (in €)
(1.1911)
(0.0739)
31.12.2021
31.12.2020
as restated
Profit/(Loss) from discontinued
operations attributable to
equity holders of the
Company
(338,386)
252,568
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Basic earnings /(losses) per
share (in €)
(0.1752)
0.1636
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
435
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
It is noted that in January 2021, 2,281,716 options rights were exercised which resulted in the issuance of 2,281,716 ordinary,
registered,
voting shares
with nominal
value of
Euro 0.30
each.
The share
capital of
the Company
increased
by € 685
and the
share premium increased
by €
1,483.
Additionally,
the share
capital increase
of Alpha
Services and
Holdings
S.A. was
completed
on July,
and the
share capital
of the
Company increased by € 240,000 with the issuance of 800,000,000 common, registered, voting shares with nominal value of
€ 0.30 each while the share premium increased by the amount of € 560,000, which resulted from the difference of the nominal
value €
0.30 per
share and the
issue price of
€ 1.00
per share.
b.
Diluted
Diluted
earnings/(losses)
per
share
are
calculated
by
adjusting
the
weighted
average
number
of
ordinary
shares
outstanding
during the period with the dilutive potential ordinary shares.
The Company holds shares of this category, which arise from a
plan of awarding stock options rights to employees of
the Company and its connected entities (note 36).
For the calculation of the diluted earnings per
share, it is assumed that the
option rights are exercised and that the
related
inflows derive from the issuance of common shares at the average market price of the year during which the options were
outstanding. The difference between the number of options to be granted and the ordinary shares issued at the average
market price for ordinary shares, is
recognized as issuance of ordinary shares
without exchange.
From 1 January
to
31.12.2021
31.12.2020
as restated
Profit/(Loss) attributable to equity
holders of the Company
(2,638,882)
138,505
Weighted
average
number of
outstanding
ordinary
shares
1,931,471,968
1,543,699,381
Adjustment for options
870,098
4,598
Weighted average
number of
outstanding
ordinary shares
for diluted
earnings per
share
1,932,342,066
1,543,703,979
Diluted earnings /(losses)
per share (in
€)
(1.3656)
0.0897
From 1 January
to
31.12.2021
31.12.2020
as restated
Profit/(Loss)
from continuing
operations
attributable
to equity
holders of
the Company
(2,300,496)
(114,063)
Weighted average number of outstanding
ordinary shares
1,931,471,968
1,543,699,381
Adjustment for options
870,098
4,598
Weighted average number of outstanding ordinary
shares for diluted earnings per share
1,932,342,066
1,543,703,979
Diluted earnings /(losses) per share (in
€)
(1.1905)
(0.0739)
From 1 January
to
31.12.2021
31.12.2020
as restated
Profit/(Loss)
from discontinued
operations
attributable
to equity
holders of
the Company
(338,386)
252,568
Weighted average number of outstanding
ordinary shares
1,931,471,968
1,543,699,381
Adjustment for options
870,098
4,598
Weighted average number of outstanding ordinary
shares for diluted earnings per share
1,932,342,066
1,543,703,979
Diluted earnings /(losses) per share (in
€)
(0.1751)
0.1636
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
436
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ASSETS
14.
Due from
banks
31.12.2021
31.12.2020
Placements with
banks
25,705
793,807
Guarantees
for derivative
and repos
collaterals
1,632,348
Securities purchased under
agreements to resell
(Reverse Repos)
240,025
Loans to credit institutions
36,966
Less:
Accumulated impairments
(note 32.1)
(72,956)
Total
25,705
2,630,190
Due from banks include the cash
and cash equivalents of the Company as
at 31.12.2021.
15.
Loans and
advances
to customers
31.12.2021
31.12.2020
Loans measured at amortized cost
42,176,090
Leasing
6,970
Less: Allowance for
expected credit
losses
(7,468,522)
Total
-
34,714,538
Advances to customers measured
at amortized cost
18,446
262,201
Advances to customers measured
at fair value through profit or loss
40,000
Loans to customers measured
at fair value through profit or loss
264,068
Loan and
advances to
customers
18,446
35,280,807
During
the current
year,
the balan
ce
of loans
and
advances
to
customers
decreased
significantly
compared
to the
comparative
period due to:
•
The hive-down of
banking sector
•
The derecognition of securitized loans due to
the completion of the
Galaxy transaction and
•
The classification
of securitized
loans to
the SPV
Galaxy III
Funding Designated
Activity Company
to Assets
held for
sale
Specifically:
Loans
measured
at amortised
cost
On 30.4.2020 the Company before the demerger completed, in accordance with the provisions
of article 10 of Law
3156/2003, the securitization of a portfolio of consumer, mortgage and corporate loans and receivables
to special purpose
entities. In particular, the Company transferred non-performing
loan portfolios to four special purpose entities, Orion
Securitization
Designated
Activity
Company, Galaxy
II Funding
Designated
Activity Company,
Galaxy IV
Funding Designated
Activity Company
and Galaxy
III Funding
Designated
Activity Company,
set up for
this purpose,
which in turn
issued notes.
The three
securitizations
follow a
three-tranche
structure
and have
issued senior,
mezzanine
and junior
notes. The
Company
acquired the total of the notes and maintained in all cases the risks and rewards deriving from the securitized portfolios, which
resulted to not derecognizing the loans as
it retained in all
cases the risks and
rewards of securitized portfolios.
In February
2021,
a binding
agreement
was concluded
with Davidson
Kempner
Capital
Management
LP, which
provided
for
the sale of 51%
of the mezzanine and junior
notes of the Non-performing Exposure portfolio issued by
Orion Securitization
Designated Activity
Company,
Galaxy II
Funding Designated
Activity Company
and Galaxy
IV Funding
Designated
Activity
Company.
The
sale
was
concluded
on
18.6.2021
for
a consideration
of
€ 5,778.
Following
the
sale
of
the
mezzanine
and
junior
notes,
the Company ceased to have
the control over the
securitized loans, given that the
special purpose entities have practically the
right to transfer them
to third party. As
a result the
Company derecognized the loans and recognised a
loss from derecognition
of financial assets
measured at
amortized cost amounting
to €
2,238,989.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
437
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
The calculation of the
loss included besides the
consideration the following:
-
The carrying amount of the securitized loans from derecognition amounting to € 5,810,559.
-
The carrying amount of the financial
liabilities amounting to € 3,796,056 recognized
at the demerger for the 100% of the
senior notes and
5% of the
mezzanine and junior
notes contributed to
the Bank
-
The carrying amount of € 228,721 of the financial receivables from the special purpose entities that had been recognized in
the context of
the securitization transaction
of the
loans.
-
The fair value
of €
17,524 recognized for 44% of the mezzanine and junior notes
held by the Company.
-
The transaction costs amounting to € 19,067.
The derecognition of the aforementioned loan portfolio was preceded by the transfer of loans of carrying amount
€ 28,497,491 to the new credit institution in relation to the hive
-down of banking sector.
The balance
of securitized
loans
in the
special
purpose
entity
Galaxy III
Funding Designated
Activity Company
was classified
at
31.12.2021 to Assets held for sale (note 35). As at 31.12.2020
the total of securitized loans in special purpose entities
of the
Galaxy securitization amounted
to €
6,043,792.
The movement of the allowance for
expected credit losses of loans
measured at amortized cost is
presented below:
Allowance
for expected
credit
losses
Balance 1.1.2020
7,069,690
Changes for the
period 1.1. -
31.12.2020
Impairment losses for the period
1,085,080
Transfer of allowance for expected credit losses to Assets held for sale
Derecognition due to substantial
modifications in loans contractual
terms
(6,749)
Change in present value of the impairment losses
68,666
Foreign exchange differences
(4,835)
Disposal of impaired loans
(573)
Loans written-off
during the period
(685,144)
Other movements
(57,613)
Balance
31.12.2020
7,468,522
Changes for the
period 1.1. -
31.12.2021
Impairment losses for the period
249,441
Transfer of allowance for expected credit losse from/(to) Assets held for sale
(469,135)
Derecognition due to substantial
modifications in loans contractual
terms
(1,011)
Change in present value of the impairment losses
113,299
Foreign exchange differences
848
Disposal of impaired loans
(4,124,035)
Loans written-off
during the period
(139,349)
Hive-down of banking sector
(3,087,586)
Other movements
(10,994)
Balance
31.12.2021
-
The movement of allowance for expected credit losses for the current year includes an amount of € 48,636 (31.12.2020:
€ 823,820) which relates to discontinued operations.
“Impairment losses for the
period” as of 31.12.2021, do not
include impairment losses of
€ 292 (31.12.2020: € 22,209) which
relate to impairment losses for loans classified as held for sale and the fair value adjustment for the contractual balance of
loans which were impaired at
their initial recognition (POCI) which is
included in the carrying amount of
the loans.
“Transfer of allowance for expected credit losses from/(to) Assets held for sale” includes amount of € 794,240 which relates
to the carrying amount of
accumulated impairments of securitized loans to the
special purpose enterprise Galaxy III Funding
Designated Activity Company which was classified in
Assets held for sale
at 31.12.2021. “Transfer of
allowance for expected
credit losses from/(to) Assets held for sale” includes an amount of € 327,731, which relates to a part of the loan portfolio of
non-performing loans with collaterals, which was classified in the category “Assets held for sale” which are included in the
securitization of
non-performing retail and
wholesale loans (Galaxy).
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
438
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Advances
to customers
The carrying amount of advances to customers at amortized cost as at 31.12.2021 concerns receivables from the special purpose
enterprize Galaxy III Funding Designated
Activity Company in relation
to the
securitization transaction as well as
trade receivables
related to
supporting
accounting
and tax
services
rendered
to Group
companies.
The previous
fiscal
year advances
to customers
derived mainly from the Company’s commercial activity other than lending, including
mainly receivables from letters of guarantee,
receivables from credit cards and other receivables from banking activities. The calculation
of allowance for expected credit
losses
for the
receivables
that are
exposed to
credit risk,
is being
performed
using the
simplified
approach, taking
into account
their lifetime
expected credit losses (without being allocated into stages), as
per IFRS 9.
The expected
credit loss
rate applied
by the
Company
was determined
based
on the
assessment
of expected
credit losses
taking
into account the time that the aforementioned receivables, which are mainly short-term, remain due.
Advances to customers
as at 31.12.2021 amounted
to € 18,446 (31.12.2020: € 299,196), while for
the receivables that
are exposed to
credit risk, an allowance for expected credit losses amounting to €
36,995 was formed as at 31.12.2020.
The following tables present the reconciliation of advances to customers for the years 2021 and 2020:
Balance 1.1.2021
299,196
Repayments,
foreign exchange
Differences
and other
movements
(34,538)
Hive down of banking sector
(246,212)
Balance
31.12.2021
18,446
Balance 1.1.2020
254,321
Repayments,
foreign exchange
Differences
and other
movements
44,875
Balance
31.12.2020
299,196
The reconciliation of the allowance for expected credit losses for the years 2021 and 2020 presented in the following tables
below:
Balance 1.1.2021
36,995
Impairment losses on advances to customers
7,224
Foreign exchange
Differences,
write-offs
and other
movements
(2,003)
Hive down of banking sector
(42,216)
Balance
31.12.2021
-
Balance 1.1.2020
32,349
Impairment losses on advances to customers
3,173
Foreign exchange
Differences,
write-offs
and other
movements
1,473
Balance
31.12.2020
36,995
For credit
risk reporting
purposes,
the allowance
for expected
credit losses
of loans
measured
at amortised
cost includes
also the fair
value adjustment for the contractual balance of loans which were impaired at their acquisition or origination (POCI) since the Bank,
from credit risk perspective, monitors the respective adjustment as part of the provisions. These loans were recognized either
in the
context
of acquisition
of specific
loans or
companies
(i.e. Emporiki
Bank and
Citibank’s
retail operations
in Greece),
or as a result
of
significant modification of the terms of the previous loan that led to derecognition. Relevant adjustment have been performed to the
carrying amount of the loans before allowance for expected credit losses.
It is noted that
the credit risk tables
do not include the
carrying amounts and expected credit losses of
loans classified in Assets
held for
sale.
Loans
and advances
to customers
measured
at fair
value
through
profit
or loss
In the context of the
hive-down of the banking sector, loans and
advances to customers measured at fair value, of
a carrying amount of
€ 285,962, were transferred to the new crediti institution while in the context of the completion
of the Galaxy transaction
(as mentrioned
above),
loans
and
advances
to
customers
measured
at
fair
value,
of carrying
amount
€ 253
were
derecognized.
……… FINANCIAL STATEMENTS
AS AT 31.12.2021
439
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation of loans by IFRS 9 Stage
The following
tables present the movement in the loans
measured at amortised cost by IFRS 9
Stage for the years 2021
and 2020:
31.12.2021
Retail
lending
Corporate
lending
and publ
ic sector
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired
loans (POCI)
Total
Balance 1.1.2021
5,759,410
4,016,276
9,141,701
4,831,228
23,748,615
12,989,935
1,155,065
3,945,714
822,021
18,912,735
18,749,345
5,171,341
13,087,415
5,653,249
42,661,350
Transfers to Stage
1
from Stage
2 or
3
216,789
(214,809)
(1,980)
-
105,109
(102,948)
(2,161)
-
321,898
(317,757)
(4,141)
-
Transfers to Stage
2
from Stage
1 or
3
(212,573)
435,975
(223,402)
-
(160,332)
173,097
(12,765)
-
(372,905)
609,072
(236,167)
-
Transfers to Stage
3
from Stage
1 or
2
(16,583)
(195,014)
211,597
-
(2,326)
(20,812)
23,138
-
(18,909)
(215,826)
234,735
-
New loans originated or purchased
141,530
141,530
1,671,780
1,028
1,672,808
1,813,310
1,028
1,814,338
Derecognition of
loans
(11,561)
(192,274)
(4,624,923)
(2,427,225)
(7,255,983)
(99,247)
(293)
(2,450,436)
(566,430)
(3,116,406)
(110,808)
(192,567)
(7,075,359)
(2,993,655)
(10,372,389)
Changes due to modifications
that
did not result in
derecognition
(809)
(501)
(2,212)
(24)
(3,546)
(1,461)
467
(1,449)
(225)
(2,668)
(2,270)
(34)
(3,661)
(249)
(6,214)
Write-offs
(112)
(1,031)
(104,457)
(31,837)
(137,437)
(2,794)
(7,292)
(10,086)
(112)
(1,031)
(107,251)
(39,129)
(147,523)
Repayments, foreign exchange and
other
movements
(268,514)
(13,849)
150,486
41,435
(90,442)
(1,709,122)
(58,115)
3,873
6,496
(1,756,868)
(1,977,636)
(71,964)
154,359
47,931
(1,847,310)
Hive-down of banking sector
(5,606,711)
(3,814,371)
(3,904,814)
(2,226,015)
(15,551,911)
(12,794,336)
(1,146,461)
(1,865,752)
(375,567)
(16,182,116)
(18,401,047)
(4,960,832)
(5,770,566)
(2,601,582)
(31,734,027)
Reclassification of
loans to “Assets
held
for sale”
(866)
(20,402)
(641,996)
(187,562)
(850,826)
362,632
119,969
482,601
(866)
(20,402)
(279,364)
(67,593)
(368,225)
Balance 31.12.2021
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Allowance for expected credit
losses
-
-
-
Balance of loans
31.12.2021
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
……… FINANCIAL STATEMENTS
AS AT 31.12.2021
440
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Retail
lending
Corporate
lending
and public
sector
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Balance 1.1.2020
5,919,645
3,761,104
9,557,759
4,936,237
24,174,745
12,305,195
796,219
3,860,976
824,255
17,786,645
18,224,840
4,557,323
13,418,735
5,760,492
41,961,390
Changes for the year
1.1 - 31.12.2020
Transfers to Stage
1
from Stage
2 or 3
1,315,969
(1,298,453)
(17,516)
-
789,787
(697,358)
(92,429)
-
2,105,756
(1,995,811)
(109,945)
-
Transfers to Stage
2
from Stage
1 or 3
(1,447,134)
2,138,777
(691,643)
-
(1,294,084)
1,343,269
(49,185)
-
(2,741,218)
3,482,046
(740,828)
-
Transfers to Stage
3
from Stage
1 or 2
(41,224)
(479,402)
520,626
-
(117,425)
(263,248)
380,673
-
(158,649)
(742,650)
901,299
-
New loans
originated
or purchased
506,728
2,051
508,779
4,750,582
7,285
4,757,867
5,257,310
9,336
5,266,646
Derecognition of
loans
(578)
(2,412)
(4,144)
(7,134)
(389,835)
(4,252)
(34,226)
(699)
(429,012)
(390,413)
(6,664)
(38,370)
(699)
(436,146)
Changes due to modifications
that did
not result in
derecognition
(4,085)
(16,486)
(18,041)
(7,014)
(45,626)
(4,698)
(687)
(3,341)
79
(8,647)
(8,783)
(17,173)
(21,382)
(6,935)
(54,273)
Write-offs
(1,250)
(12,673)
(335,891)
(166,908)
(516,722)
(1,033)
(178,767)
(14,047)
(193,847)
(1,250)
(13,706)
(514,658)
(180,955)
(710,569)
Repayments, foreign exchange and other
movements
(488,661)
(74,179)
130,551
66,862
(365,427)
(3,049,587)
(17,845)
62,013
5,148
(3,000,271)
(3,538,248)
(92,024)
192,564
72,010
(3,365,698)
Reclassification of
loans to “Assets held
for sale”
-
-
-
Balance 31.12.2020
5,759,410
4,016,276
9,141,701
4,831,228
23,748,615
12,989,935
1,155,065
3,945,714
822,021
18,912,735
18,749,345
5,171,341
13,087,415
5,653,249
42,661,350
Allowance for expected credit
losses
(23,631)
(278,123)
(3,698,293)
(1,555,050)
(5,555,097)
(36,651)
(31,426)
(1,873,236)
(450,402)
(2,391,715)
(60,282)
(309,549)
(5,571,529)
(2,005,452)
(7,946,812)
Balance of loans
31.12.2020
5,735,779
3,738,153
5,443,408
3,276,178
18,193,518
12,953,284
1,123,639
2,072,478
371,619
16,521,020
18,689,063
4,861,792
7,515,886
3,647,797
34,714,538
……… FINANCIAL STATEMENTS
AS AT 31.12.2021
441
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation of
allowance for
expected credit
losses of
loans by
IFRS 9 stage
The following tables include the movement for the years 2021 and 2020 in the allowance for expected credit losses of loans measured at amortized cost:
31.12.2021
Allowance
for expected
credit losses
Retail
lending
Corporate
lending
and public
sector
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans (POCI)
Total
Balance 1.1.2021
23,631
278,123
3,698,293
1,555,050
5,555,097
36,651
31,426
1,873,236
450,402
2,391,715
60,282
309,549
5,571,529
2,005,452
7,946,812
Changes for the year
1.1 - 31.12.2021
Transfers to stage
1
from
stage
2 or 3
14,228
(13,722)
(506)
-
2,897
(2,887)
(10)
-
17,125
(16,609)
(516)
-
Transfers to stage
2
from
stage
1 or 3
(1,763)
38,795
(37,032)
-
(1,010)
1,807
(797)
-
(2,773)
40,602
(37,829)
-
Transfers to stage
3
from
stage
1 or 2
(152)
(20,635)
20,787
-
(18)
(1,361)
1,379
-
(170)
(21,996)
22,166
-
Net remeasurement of expected
credit
losses (a)
(10,096)
(3,083)
15,215
428
2,464
(1,839)
3,566
2,185
37
3,949
(11,935)
483
17,400
465
6,413
Impairment losses on new loans (b)
215
(474)
(259)
951
279
1,230
1,166
(195)
971
Change in risk parameters
(c)
(4,633)
(14,163)
204,301
52,858
238,363
(10,479)
(4,008)
13,798
(1,582)
(2,271)
(15,112)
(18,171)
218,099
51,276
236,092
Impairment
losses on loans
(a)+(b)+(c)
(14,514)
(17,246)
219,516
52,812
240,568
(11,367)
(442)
15,983
(1,266)
2,908
(25,881)
(17,688)
235,499
51,546
243,476
Derecognition of
loans
(4,143)
(40,694)
(1,789,691)
(849,347)
(2,683,875)
(497)
(1,409,204)
(386,216)
(1,795,917)
(4,640)
(40,694)
(3,198,895)
(1,235,563)
(4,479,792)
Write offs
(112)
(1,031)
(104,457)
(31,837)
(137,437)
(2,794)
(7,292)
(10,086)
(112)
(1,031)
(107,251)
(39,129)
(147,523)
Foreign exchange and other
movements
852
74
(1,577)
895
244
(40)
(122)
(9,480)
(1,016)
(10,658)
812
(48)
(11,057)
(121)
(10,414)
Change in the present value
of the
impairment losses
46,804
15,205
62,009
40,891
9,507
50,398
87,695
24,712
112,407
Hive-down of banking sector
(17,866)
(219,317)
(1,435,600)
(564,116)
(2,236,899)
(26,616)
(28,421)
(787,505)
(157,101)
(999,643)
(44,482)
(247,738)
(2,223,105)
(721,217)
(3,236,542)
Reclassification
of allowance for
expected credit losses to "Assets held for
sale"
(161)
(4,347)
(616,537)
(178,662)
(799,707)
278,301
92,982
371,283
(161)
(4,347)
(338,236)
(85,680)
(428,424)
Balance 31.12.2021
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
……… FINANCIAL STATEMENTS
AS AT 31.12.2021
442
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Allowance
for expected
credit losses
Retail
lending
Corporate
lending
and public
sector
Total
Stage 1
Stage 2
Stage 3
Purchased or originated credit
impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated credit
impaired
loans (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired
loans (POCI)
Total
Balance 1.1.2020
26,593
285,963
3,419,901
1,514,862
5,247,319
128,660
29,824
1,804,286
434,403
2,397,173
155,253
315,787
5,224,187
1,949,265
7,644,492
Changes for the year
1.1 - 31.12.2020
Transfers to stage
1
from
stage
2 or 3
77,946
(74,480)
(3,466)
-
18,315
(12,931)
(5,384)
-
96,261
(87,411)
(8,850)
-
Transfers to stage
2
from
stage
1 or 3
(14,664)
99,368
(84,704)
-
(19,767)
23,492
(3,725)
-
(34,431)
122,860
(88,429)
-
Transfers to stage
3
from
stage
1 or 2
(346)
(56,677)
57,023
-
(2,524)
(32,199)
34,723
-
(2,870)
(88,876)
91,746
-
Net remeasurement of expected
credit
losses (a)
(64,143)
56,154
28,101
3,159
23,271
(8,738)
3,357
46,118
(49)
40,688
(72,881)
59,511
74,219
3,110
63,959
Impairment
losses on new loans
(b)
7,624
(399)
7,225
19,899
(682)
19,217
27,523
(1,081)
26,442
Change in risk parameters
(c)
(7,990)
(19,434)
637,296
213,914
823,786
(40,206)
21,296
129,331
16,203
126,624
(48,196)
1,862
766,627
230,117
950,410
Impairment losses
on loans (a)+(b)+(c)
(64,509)
36,720
665,397
216,674
854,282
(29,045)
24,653
175,449
15,472
186,529
(93,554)
61,373
840,846
232,146
1,040,811
Derecognition of
loans
(15)
(262)
(277)
(622)
(6,101)
(375)
(7,098)
(622)
(15)
(6,363)
(375)
(7,375)
Write offs
(1,250)
(12,673)
(335,891)
(166,908)
(516,722)
(1,033)
(178,767)
(14,047)
(193,847)
(1,250)
(13,706)
(514,658)
(180,955)
(710,569)
Foreign exchange and other movements
(139)
(83)
1,343
737
1,858
(58,366)
(380)
(3,164)
3,385
(58,525)
(58,505)
(463)
(1,821)
4,122
(56,667)
Change in the present value
of the
impairment losses
(21,048)
(10,315)
(31,363)
55,919
11,564
67,483
34,871
1,249
36,120
Reclassification
of
allowance
for
expected credit
losses to "Assets held for sale"
-
-
-
Balance 31.12.2020
23,631
278,123
3,698,293
1,555,050
5,555,097
36,651
31,426
1,873,236
450,402
2,391,715
60,282
309,549
5,571,529
2,005,452
7,946,812
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
443
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
It is noted that during 2021,
“Impairment losses on loans”
have been affected by the incorporation
of a 100% probability of
sale of
the portfolio
which was
classified in Assets
held for
sale.
In the above table which presents the movement
of the allowance for expected credit losses for the year 2020,
“Impairment
losses on loans” does not include an amount of € 22,187 which
is related to impairment losses of loans classified
as assets
held for sale
in the previous
periods.
During 2020, the allowance for expected credit
losses has been affected by
the following movements:
•
Transfer to Stage 1 from
Stage 2 and Stage 3 of loans amount
to € 2,105,756 due to the improvement
of their
creditworthiness compared to
their initial recognition
•
The impairment losses of loans classified in Stage
3 were affected by:
-
Incorporation in the calculation of
the allowance for expected credit
losses of non-performing portfolios
for which the
Company is considering recovery strategies through sales affected by a
number of variables.
-
The further deterioration of the portfolio remaining in Stage 3.
Finally, loans written off in 2021 amounted
to € 147,523, led to an equal reduction of allowance for expected
credit losses. It is
noted that loans that have been written off in 2021 but can still be legally claimed amounted to € 19,340.
16.
Investment securities
31.12.2021
31.12.2020
Securities measured at fair value through other comprehensive
income
133
5,170,579
Securities measured
at fair value through profit or loss
22,537
218,317
Securities measured at amortized cost
993,060
3,160,121
Total
1,015,730
8,549,017
An analysis of investment securities is
provided in the following
tables per classification category, per type
of security.
a.
Securities measured
at fair
value through
other comprehensive
income
31.12.2021
31.12.2020
Greek Government:
- Bonds
1,554,211
- Treasury bills
732,778
Other Governments:
- Bonds
1,258,925
Other issuers:
- Listed
1,600,658
- Non listed
3,546
Equity securities:
- Listed
13,031
- Non listed
133
7,430
Total
133
5,170,579
Investment portfolio equity securities measured at fair
value through other comprehensive income
The Company has made the
irrevocable election on initial recognition to
measure at fair value
through other comprehensive
income equity
instruments that have
the following characteristics:
a)
Shares in companies of the
financial sector (credit institutions and interbank companies)
b)
Investments in private equity (shares of venture capital or private equity) and
c)
Shares held in
long term investment horizon
…….…FINANCIAL STATEMENTS AS AT
31.12.2021
444
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
The following table presents the shares of investment portfolio measured at fair value through other comprehensive income
as
of 31.12.2021 and
as of 31.12.2020.
Fair value
31.12.2021
Dividend
income
from
continuing
operations
from 1.1 to 31.12.2021
Fair value
31.12.2020
Dividend income from
continuing operations 1.1
to 31.12.2020 As
restated
Investments in financial
industry entities
417
Long term equity holdings
133
20,044
Total
133
-
20,461
-
Within 2021 there was no disinvestment of shares in said category, other than the partial transfer of the portfolio to the Bank
during the Corporate transformation where the Company transferred
the entire portfolio of shares measured at fair value
through other comprehensive
income to the Bank. After
the hive-down the participation
in Reoco Galaxy II S.M.
S.A, Reoco Galaxy
IV S.M. S.A., Reoco
Orion X ΜΟΝ. A
S.M. S.A and
Reoco Cosmos S.M. S.A were
transferred in said
portfolio from “Investments
in subsidiaries,
associates and
joint ventures”,
as the Comp
any ceased
to have
control over
them, after
the sale of
51% of
mezzanine and junior notes
of the Galaxy
and Cosmos transactions to a
third party investor.
Within the
year 2020,
for liquidity
reasons, the
Bank proceeded
with the
disinvestment
of shares
held in
V Telecom
Investments
SCA and V Telecom
Investment GEN
Partner S.A., with
a total fair value
of € 478 at the date of
sale. From the
aforementioned
sales, no
result was recognized.
In addition,
in 2020
the Company
proceeded
with the
disinvestment
of shares
held to
Mastercard,
following
the participation
in
the Open Conversion
and Sale Program
announced by the
company, according
to which the right
to convert Class B
shares of the
Company with issued traded Class
A shares
was exercised. The issued Class
A shares, which were classified in the category
of
shares valued at fair
value through profit or
loss, were sold
within the year
and the result
from the initial
recognition and the sale
of shares was
recognized in gains less
losses on financial
transactions from discontinued operations.
b.
Securities
measured
at fair
value
through
profit
or loss
31.12.2021
31.12.2020
Other issuers
- Listed
22,537
167,209
- Non listed
1,674
Equity securities
- Non listed
27,337
Other variable
yield securities
22,097
Total
22,537
218,317
The rest of Securities measured at fair value through profit or loss of 31.12.2021 consists of:
1)
44% of issues of
junior and mezzanine notes of the
Galaxy securitization transaction which was recognized in the
Company’s investment portfolio following
the sale of
51% at 18.6.2021
(note 15).
2)
44% of notes
held by the
Company in the
context of the
Cosmos transaction, in particular, as
described in note 17,
the Bank
distributed to the Company 95% of the
mezzanine and junior notes issued in
the context of the Cosmos securitization.
On 17.12.2021, the Company proceeded to the sale of 51% of notes to a third party investor from which no profit or loss
occurred. 44%
of notes held
amounting to
€ 5,014 is expected
to be distributed
to the Company’s
shareholders.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
445
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
c.
Securities
measured
at
amortized
cost
31.12.2021
31.12.2020
Greek Government
- Bonds
2,779,179
Other Governments
- Bonds
349,973
Other issuers
- Listed
30,969
- Non listed
993,060
Total
993,060
3,160,121
For the above securities measured at amortized cost allowance of expected credit losses of € 11,665 (31.12.2020: € 10,172)
have been recognized. The gross carrying amount before impairments is €
1,004,725 (31.12.2020: € 3,170,293).
The amount of 31.12.2021 includes the issuings of subordinated notes of the Bank, issued on 19.4.2021 and were covered in
total by the
Company.
17.
Investments
in
subsidiaries,
associates
and
joint
ventures
31.12.2021
31.12.2020
SUBSIDIARIES
Opening balance
2,480,967
910,944
Additions
6,504,943
1,919,633
Reductions
(370,225)
(366,136)
Transfer from
associates
5,515
Transfer from equity securities measured
at fair value through other comprehensive income
(58)
14,100
Hive-down of banking sector
(2,457,429)
Valuation of investments
due to fair value hedge
1,904
(3,089)
Closing balance
6,160,102
2,480,967
ASSOCIATES
Opening balance
236
5,873
Reductions
(122)
Transfer to subsidiaries
(5,515)
Hive-down of banking sector
(236)
Closing balance
-
236
JOINT VENTURES
Opening balance
7,416
2,940
Additions
559
Transfer due to reclassification from assets held for sale
3,917
Hive-down of banking sector
(7,416)
Closing balance
-
7,416
Total
6,160,102
2,488,619
Additions represent: Amounts paid for the
establishment of new entities, share
purchases, participation in share capital
increases and acquisitions of shares due to
mergers and other capital contributions related to
stock option rights.
Decreases represent: sales of
shares, return of
capital, proceeds arising from the
liquidation of companies, impairments
The additions in
subsidiaries amounting to
€ 6,504,943
relate to:
a.
share capital
increases:
-
share capital increase of the subsidiary Alpha Group Investments Ltd amounting to €
365,960.
-
share capital
increase
of the
subsidiary
Alpha
Bank S.A.
amounting
to € 1,160,000
as analyzed
in note
37.
-
share capital
increase
of the
subsidiary
Alpha
Group
Jersey
Limited
amounting
to € 650.
b.
Establishment of new entities:
With the Decision of the Ministry of Development and Investments
under protocol no 45089/16.4.2021 on 16.4.2021,
the
demerger by way of hive-down
of the banking business sector with
the incorporation of a new
company was approved, which
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
446
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
was registered
under General
Commercial
Registry (G.E.MI)
on the
same day.
The approval
of the Demerger
resulted to
the
following:
I.
The new
banking entity
is incorporated
under the
name “Alpha
Bank S.A.”,
which substitutes
the Demerged
Entity, by
way of
universal
succession,
for all
the transferred
Banking
Business
Sector (assets
and liabilities),
as set
out in
the transformation
balance sheet of the hived-down banking sector dated June 30, 2020 and formed up 16.4.2021, the day of the deemerger’s
completion.
II.
The Demerged Entity becomes
the sole shareholder of
the Beneficiary and
assumes the 100% of
the issued shares,
and in
particular 50,838,244,961 common, nominal shares
with a right of vote and nominal value of €
0.10 each.
The initial cost of the investment in the Bank was recognized at € 4,946,470, as it is analyzed in detail in the note
fot the
Corporate Transformation – Demerger by Hive-down of banking sector.
In addition, on 19.4.2021, the Bank proceeded to two new issuin
gs of junior notes of a total nominal value of € 1,000,000
which were covered by the Company. The notes were issued at nominal value, however the fair value at the date of
transaction was less, therefore the difference between fair value and nominal values increased the Company’s
cost of
participation to the Bank by €
28,995 as it is considered an indirect
capital contribution.
c.
Granting of stock options
In the context of the implementation of the stock option plan of the Bank for employees of the Bank and its related entities,
as detailed in note 36, the cost of the Company’s participation in the subsidiaries Alpha Holdings MAE, Alpha Supporting
Services S.A., Alpha
Real Estate and Investment
Management, Alpha
Group Investments
LTD and Alphalife AEAZ,
was
increased by a total amount of € 17 which corresponds to the fair value of the rights granted to employees of the above
companies
or their
subsidiaries
considering
that the
reward
provided
by the
Company
through
options rights
represents
an
indirect capital contribution.
After the Demerger by Hive-down of banking sector of 16.4.2021 the Company increased its cost of participation to its
subsidiaries Alphalife AEAZ and Alpha Bank S.A.
by €
3 and €
2,888 respectively.
d.
Decreases of subsidiaries amounting to € 370,225 relate to:
-
impairment of the subsidiary Alpha Bank London amounting to € 10,000.
-
impairment
of the
subsidiary
Alpha
Group
Jersey
Limited
amounting
to €
700.
The
recoverable
amount
of Alpha
Group
Jersey Limited amounted
to €
319
-
impairment of the subsidiary Alpha Group Limited amounting to € 2.
-
impairment
of
the
subsidiary
Alpha
International
Holdings
S.M.S.A.
amounting
to
€ 348,638.
-
impairment of the
subsidiaries Reoco
Galaxy II S.M.S.A.
amounting to € 18, Reoco
Galaxy IV S.M.S.A.
amounting to € 21,
Reoco Orion
X S.M.S.A.
amounting to
€ 21. The
above companies
were calssified
in investment
securities
measured
at fair
value through
other comprehensive income
(note 16)
It is noted that of the aforementioned impairments, profit
and loss from continuing operations includes
the impairment
of Alpha Group Jersey Limited as well as Reoco Galaxy II S.M.S.A., Reoco Galaxy IV S.M.S.A. and Reoco Orion X
S.M.S.A.
(note 5). The impairments of
the rest investments are included in
profit and loss from
discontinued operations, as these
participations were contributed
to the Bank.
-
Decrease
of share
capital
of the
subsidiary
Alpha
Bank
S.A. with
distribution
in kind
for the
amount
of € 10,825.
In particular,
in the context of
the Cosmos transaction and under the
General Assembly decision of 25.10.2021, the bank
proceeded to
a decrease of
its share capital
in kind for the
amount of € 10,825,
with the cancellation
of 108,252,500
shares of nominal
value € 0.10 each, with
a simultaneous distribution
to its 100% parent entity of
95% of mezzanine and junior
notes issued
by the special
purpose entity
Cosmos Securitisation
DAC. The
amount of
capital decrease
equals the
fair value
of Class
B Notes (in particular 100% Class B1 and 94.74% Class Β2) and Class C Notes of 95% that were contributed. The share
capital decrease was completed on 10.12.2021.
On 17.12.2021, the Company proceeded to the sale of 51% of notes to
a third party investor from which no profit or loss occurred. The 44% of notes held amounting to € 5,014 is expected to be
distributed to the
Company’s shareholders.
The impairments of the above subsidiaries occurred by an estimation of fair value. The valuations were classified in Level
3 of the
fair value hierarchy, as
non observable prices were used for
their estimation. The transition to
shares measured at
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
447
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
fair value
through other
comprehensive
income includes
the transfer
of companies
Reoco Galaxy
II S.M.S.A,
Reoco Galaxy
IV S.M.S.A. and Reoco
Orion X S.M.S.A, as a consequence
of the Galaxy transaction, the
Company ceased to have
control of
those companies.
Hive-down
of Banking
Sector
In the context of the Corporate transformation of 16.4.2021 the Company contributed to the Bank the following Subsidiaries,
Associates and Joint
Ventures of total
book value
€ 2,465,081.
-
Alpha Bank
London Ltd
-
AGI Cypre Ermis Ltd
-
Alpha Credit Group Plc
-
Alpha Group
investments
Ltd
-
Alpha Group Ltd
-
Alpha International
Holding Company
S.A.
-
Alpha Leasing Romania IFN S.A
-
Alpha Real
Estate
Management
and Investments
S.A.
-
Alpha International
Holdings Μ.A.Ε.
-
Alpha
Holdings
S.M.S.A.
-
Alpha Supporting Services S.A.
-
APE Fixed Assets S.A.
-
Cepal Hellas Holdings S.A.
-
SSIF Alpha
Finance
Romania
S.A.
-
Emporiki Management
S.A.
-
Kafe Alpha S.A.
-
AEDEP Thessalias and Stereas Ellados
-
Bank Information
Systems S.A.
-
Alpha ΤAΝΕΟ A.K.E.S.
-
APE
Commercial
Property
S.A.
-
Olganos S.A.
-
Famar S.A.
-
Ares - Diomedes Emporiki S.A.
-
Smelter Medical
Systems
S.A.
Key
financial
information
of investments
Subsidiaries
Balance
31.12.2021
1.1 - 31.12.2021
Name
Country
Assets
Equity
Liabilities
Turnover
Profit/(Loss)
before
taxes
Company’s
ownership
interest
%
31.12.2020
Banks
1. Alpha Bank S.A
Greece
67,398,022
5,786,264
61,611,758
1,532,985
159,397
100
Insurance
1. Alpha Insurance Agents S.A.
Greece
2,327
2,163
164
676
539
100,00
2. Alphalife
A.A.E.Z.
Greece
776,840
94,244
682,595
13,913
2,245
99,92
Special purpose
and holding
entities
1. Alpha Group Jersey Ltd
Jersey
9,611
287
9,324
1
(732)
100,00
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
448
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
18.
Property,
plant
and
equipment
Land and
Buildings
Equipment
Rights-of-
use on fixed
assets
Total
Balance 1.1.2020
Cost
903,008
413,297
110,755
1,427,060
Accumulated
depreciation
and
impairment
losses
(368,078)
(335,335)
(26,188)
(729,601)
1.1.2020 - 31.12.2020
Net book value
1.1.2020
534,930
77,962
84,567
697,459
Additions
7,012
18,804
2,946
28,762
(Impairments)/
Reversals
of
impairments
(10,415)
3,683
(6,732)
Disposals / Write-offs / Terminations
(751)
(103)
(1,598)
(2,452)
Reclassification
to "Investment
Property"
(12,116)
(12,116)
Reclassification to "Other
Assets"
(837)
(837)
Reclassification to
"Assets held for
sale"
(324)
(324)
Depreciation charge
for the
year
(14,223)
(24,997)
(22,159)
(61,379)
Net book value
31.12.2020
503,600
71,342
67,439
642,381
Balance
31.12.2020
Cost
874,263
428,541
113,465
1,416,269
Accumulated
depreciation
and
impairment
losses
(370,663)
(357,199)
(46,026)
(773,888)
Net book value
1.1.2021
503,600
71,342
67,439
642,381
Additions
919
1,592
1,011
3,522
Disposals /
Write-offs /Terminations
(72)
(4)
3,327
3,251
Reclassification to
"Assets held for
sale"
(2,868)
(2,868)
Hive-down of banking sector
(497,386)
(67,560)
(65,494)
(630,440)
Depreciation charge
for the
year
(4,193)
(5,363)
(6,283)
(15,839)
Net book value
31.12.2021
-
7
-
7
Balance
31.12.2021
Cost
23
23
Accumulated
depreciation
and
impairment
losses
(16)
(16)
For the year
2021, the Company
transferred property,
plant and
equipment of
€ 2,868 to “Assets
held for sale”
In the
context of
the hive-down
of banking
sector property,
plant and
equipment of
€ 630,440
were contributed
to the
Bank, as
described in
the note
“Corporate Transformation-
Hive-down”
The movement of
property, plant
and equipment
for the
year includes
depreciations of
€ 15,837
(31.12.2020: €
61,377) which
relate to discontinued operations. The impairments/
reversals of impairments relate to discontinued
operations.
The carrying
amount of
owned land
and buildings
included in
the above
balances is
€ 489,110 as at
31.12.2020.
For the year
2020, an impairment
loss of € 10,415 was
recognized for
land and buildings.
The recoverable
amount of
land
and buildings which was
impaired during the
year amounted to €
239,752. During the impairment
test of property, plant
and equipment,
the recoverable
amount was
calculated as
the fair
value which
incorporates
the property
value and
all the
improvements that
make it suitable
for use by the
Company. The
discount rates
used range from
6.5% to 8% depending
on the
characteristics (location,
size, use)
of each
asset.
The fair values of the
properties are calculated
in accordance with
the methods described
in note 1.2.5. and
are classified, in
terms
of fair value hierarchy,
in Level 3 since assumptions
and inputs relating
to properties of relevant
characteristics are used
for the
determination of fair value and therefore encompass a wide range of unobservable market inputs.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
449
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
19.
Goodwill and
other intangible
assets
Software
Banking
rights
Goodwill
Other
Total
Balance 1.1.2020
Cost
776,930
1,785
237
138,339
917,291
Accumulated amortization
and impairment losses
(358,479)
(1,785)
(108,862)
(469,126)
1.1.2020 - 31.12.2020
Net book value
1.1.2020
418,451
237
29,477
448,165
Additions
108,333
108,333
Reclassification to
"Assets held for
sale"
(16,747)
(16,747)
Amortization charge
for the year
(55,686)
(10,607)
(66,293)
Net book value
31.12.2020
454,351
-
237
18,870
473,458
Balance
31.12.2020
Cost
853,355
1,785
237
138,339
993,716
Accumulated amortization
and impairment losses
(399,004)
(1,785)
(119,469)
(520,258)
1.1.2021 - 31.12.2021
Net book value
1.1.2021
454,351
237
18,870
473,458
Additions
14,504
14,504
Disposals
(2,604)
(2,604)
Impairments
(25,512)
(16,217)
(41,729)
Hive-down of banking sector
(420,378)
(420,378)
Amortization charge
for the year
(20,228)
(2,653)
(22,881)
Net book value
31.12.2021
133
-
237
-
370
Balance
31.12.2021
Cost
440
237
677
Accumulated amortization
and impairment losses
(307)
(307)
The above movement for the current year includes
an amount of € 22,850 (31.12.2020: € 66,293) which relates to
amortizations from discontinued operations. All impairments for the year relate to discontinued operations.
The Company during the acquisition of the Citi retail banking operations and the acquisition of shares of Diners in 2014
recognized intangible assets
which related to the customer relationships it obtained as a result of the transaction and the
acquisition of citi’s Wealth Management and the Citi/ Diners credit card clientele. During initial recognition the value of
intangible assets was € 83,073 while as at 31.3.2021 their net
book value was € 16,217.
During the recent period, the occurrence of external events (Covid-19 pandemic), the initiatives taken
internally, like the
restructuring of service and sales channels of the Company, the acceleration of rebalancing of customers’ portfolio
s
in
the context of dealing with the pandemic as well as the operational changes that are expected to occur as a result
of the
implementation of the Transformation
Program, resulted in the essential differentiation
of the management of the clientele
in total, compared to previous years. Additionally, in the period since the original recognition of intangibles, the Company
has established a relationship of cooperation with the clientele obtained from Citi through new contractual
relationships,
diversification of products and services as
well as pricing, resulting
in the distinction between the
two declining significantly.
The above gave the initiative for carrying out an impairment test on 31.3.2021, of which it was concluded
that the explicit
determination of future financial benefits from the above intangible
assets is no longer feasible, which led to their total
impairment.
•
Impairment of € 6,264 in relation to software
the use of which was terminated
within the period, following
a relevant
decision to
replace them with
other existing systems.
•
Impairment of € 19,248 in relation to software which,
in the context of the transformation program,
were deemed to not be
covering the new operational requirements. The amount of the impairment was determined by taking into consideration
the
decision for the cease of use or for replacement with new software as well as the estimated time of replacement. For the
Software not fully impaired, their useful life was adjusted based on the expected date of
replacement.
The additions of
current year mainly concern
software implementations
and purchases of computer
licenses.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
450
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Additions in Software during 2021, include an amount of € 2,378 relating to development expenditure for software. Related
amortization for the year amounted to € 0.01. Respectively, during 2020 the value of development expenditure for software
recognized amounted to € 11,565 with related amortizations
of € 233. The net book value of the above software at the date
of the hive-down
of banking sector
that were contributed to
the Bank was
€
13,516.
Within 2020, the Company transferred to “Assets held for Sale” software with carrying amount of € 16,747 in the context of the
transfer of
the NPE business
unit to
Cepal Hellas.
20.
Deferred tax assets and
liabilities
31.12.2021
31.12.2020
as restated
Assets
5,263,104
Liabilities
24
Total
24
5,263,104
Deferred tax assets and liabilities
are analyzed as follows:
1.1 - 31.12.2021
Balance
1.1.2021
Recognized
in
Hive-down
of banking
sector
Balance
31.12.2021
Income
statement
Equity
Debit difference
of Law
4046/2012
935,651
(11,138)
(924,513)
-
Debit difference
of Law
4465/2017
2,404,145
55,507
(2,459,652)
-
Write-offs and depreciation
of fixed assets and leases
(3,351)
8,154
8
(4,835)
(24)
Loan portfolio
1,346,601
(53,224)
(1,293,377)
-
Valuation of loans due to hedging
(346)
97
249
-
Valuation of derivatives
164,683
(34,679)
(1,750)
(128,254)
-
Defined benefit obligation and insurance
funds
10,595
138
(10,733)
-
Valuation of liabilities
to credit institutions
and other
borrowed funds due to fair
value hedge
2,944
(1,446)
(1,498)
-
Valuation/impairment
of investments
282,325
(8,027)
(274,298)
-
Valuation/impairment
of debt securities and other
securities
(794)
51,026
25,475
(75,707)
-
Other temporary differences
120,651
42,983
(163,634)
-
Total
5,263,104
49,391
23,733
(5,336,251)
(24)
The total movement of the
deferred tax includes an
amount of € 4,666 (31.12.2020: € 63,626 credit) relating
to discontinued
operations.
1.1 - 31.12.2020
as restated
Balance
1.1.2020
Recognized
in
Balance
31.12.2020
Income
statement
Equity
Debit difference
of Law
4046/2012
980,206
(44,555)
935,651
Debit difference
of Law
4465/2017
751,740
1,652,405
2,404,145
Write-offs and depreciation
of fixed assets and leases
12,969
(16,320)
(3,351)
Loans portfolio
2,960,217
(1,613,616)
1,346,601
Valuation of loans due to hedging
236
(582)
(346)
Valuation of derivatives
144,231
26,496
(6,044)
164,683
Defined benefit obligation and insurance
funds
10,596
(1,707)
1,706
10,595
Valuation of liabilities
to credit institutions and
other borrowed
funds due
to fair value hedge
3,504
(560)
2,944
Valuation/impairment
of investments
380,750
(98,425)
282,325
Valuation/impairment
of debt securities and other securities
(84,674)
(20,326)
104,206
(794)
Other temporary differences
58,530
62,121
120,651
Total
5,218,305
(55,069)
99,868
5,263,104
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
451
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
21.
Other
assets
31.12.2021
31.12.2020
Tax advances
and withholding
taxes
72,864
175,326
Deposit and
Investment Guarantee
Fund
635,323
Property obtained from auctions
and other property held for sale
330,350
Prepaid expenses
879
16,378
Employee advances
9
5,190
Accrued income
1,961
6,756
Other
215
203,791
Total
75,928
1,373,114
“Tax advances and withholding taxes” include the amount of tax advance
for the year 2021 amounting to € 58,071 which will
be cleared by submitting the income tax return for
the year 2021 and any
credit balance will be refunded.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
452
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year
have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
453
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
LIABILITIES
22.
Debt securities
in issue
and other
borrowed funds
According
to the
Demerger
Deed,
the credit
institution
under the
name “Alpha
Bank S.A”
substituted
as the
universal
successor
of the Banking Business Sector and therefore all the liabilities related to the covered bonds and senior debt securities were
contributed to the Bank in the context of the Corporate Transformation-
Hive Down on 16.4.2021. All liabilities related to
subordinated debt
and hybrid
securities remained within
the Company.
i.
Covered
bonds*
Change
in covered
bond liabilities
are summarized
as follows:
Balance 1.1.2021
512,449
Changes for the year
1.1 - 31.12.2021
Maturities / Repayments
(12,475)
Accrued Interests
3,307
Hive-down of banking sector
(503,281)
Balance
31.12.2021
-
ii.
Senior
debt securities
Balance 1.1.2021
1,553
Changes for the year
1.1 - 31.12.2021
Accrued Interests
45
Hive-down of banking sector
(1,598)
Balance
31.12.2021
-
iii.
Liabilities
from
the
securitization
of
other
loans
Liabilities arising from the securitization of consumer loans, business loans and credit cards are not included in the account
“Debt securities in issue and other borrowed funds”, because the respective securities, with nominal
amount of € 1,666,200
(31.12.2020: 1,958,935) issued by special
purpose entities were owned
by the Company.
These securities were contributed to
the Bank with
the corresponding liabilities.
iv.
Liabilities
from
the
securitization
of
non-performing
loans
On 30.4.2020, the Company proceeded with a securitization transaction of a portfolio of non-performing
retail and wholesale
loans (“Galaxy
securitization”),
and the
terms of
the securitization
were finalized
on 24.6.2020.
More specifically,
non-performing
loans were transferred
to the special purpose
entities Orion X Securitization
Designated Activity
Company, Galaxy II
Funding
Designated Activity Company,
Galaxy III Funding Designated
Activity Company and Galaxy
IV Funding Designated Activity
Company,
established
in Ireland.
The carrying
amount
of these
loans
at 16.4.2021
was
€ 6,022,689
(31.12.2020:
€ 6,148,332).
Until the demerger of the banking business sector on 16.4.2021 the liabilities that arose from the aforementioned
securitization, were not included in the caption “Debt securities in issue and other borrowed funds”, due to the fact that the
respective notes of a total
nominal value of € 11,713,951 (31.12.2020
€ 11,722,272), issued by the special
purpose entities,
were held by the Company at an acquisition cost equal to the carrying amount of the loans securitised. It is noted that the
change in the total nominal amount in relati
on to 31.12.2020 is due to the finalization of the perimeter
of the transaction.
On 16.4.2021 the Senior notes (Class A) with a nominal value of € 3,763,000 as well as the 5% of the mezzanine and junior
notes (Class
B and Class
C) with a
nominal value
of € 350,221 were
contributed to
the Bank. Respectively,
the Company
recognized a liability from the securitization equal to the
value of the bonds recognized by the
Bank, in which the net
amounts
of receivables and liabilities arising from the securitization and from transactions with special purpose companies are offset.
*
Financial
disclosures
regarding
covered
bond
issues,
as determined
by
the
2620/28.8.2009
Act of
the
Bank
of Greece,
have
been
published
on
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
454
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
the Bank’s site.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
455
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The remaining 95% of the mezzanine and junior notes with a nominal value of € 6,654,192 remained with the company.
Following the sale transaction of the 51% of the mezzanine and junior notes which was concluded on 18.6.2021, the
respective securitized loans
were derecognized from
the balance sheet.
The movement of
the liability from the
securitization from
the date of the
corporate transformation
until 18.6.2021 is
presented in the
table below:
Balance 1.1.2021
-
Changes for the year
1.1 - 31.12.2021
Initial Recognition
3,573,572
Accrued interest
3,616
Others/Desecuritization
(9,853)
Derecognition (note 15)
(3,567,335)
Balance
31.12.2021
-
The note
issued by
the special
purpose company
Galaxy III
Funding Designated
Activity
Company,
with a
nominal value
of
€ 946,538, is still owned by the company. Therefore the liability from this securitization of non-performing loans is not included
in the
“ Debt
securities in issue
and other
borrowed funds “
line.
v.
Subordinated
debt
In the context of
the Euro Medium
Term Note Program
of € 15 billion, Alpha
Bank S.A. before
the hive down
issued on
13.2.2020 a subordinated debt at a nominal
value of € 500 million for a period of ten years, with the option to recall in five
years and with a fixed annual interest rate of 4.25%,until
13.2.2025 which is adjusted to a new interest
rate valid from the
recall date until
expiration, determined on
the five-year swap
rate plus margin
of 4.504%.
On 11.3.2021
Alpha
Bank
S.A.
before
the demerger
issued
a subordinated
debt
of nominal
value
€ 500 million,
expired
at 11.6.2031, with
the option to recall
between 11.3.2026
and 11.6.2026 and
a fixed annual interest
rate of 5.5% until
11.6.2026, adjusted to a new
interest rate effective from the
recall date until maturity, determined
on the five-year swap rate
plus margin of
5.823%.
The notes
remained
at Alpha
Services
& Holdings
S.A after
the hive-down
of the
banking sector.
Balance 1.1.2021
519.234
Changes for the year
1.1 - 31.12.2021
New issues
495,660
Maturities / Repayments
(28,188)
Hedging adjustments
(1,624)
Accrued interest
44,014
Balance
31.12.2021
1,029,096
The following table presents additional information for the above mentioned issues:
Held by third parties
Issuer
Currency
Interest Rate
Maturity
Nominal value
31.12.2021
31.12.2020
Alpha Services and Holdings S.A.
Euro
3m Euribor+1.5%
Indefinite
650
650
Alpha Services and Holdings S.A.
Euro
4.25%
13.2.2030
500,000
500,000
Alpha Services and Holdings S.A.
Euro
5.50%
11.6.2031
500,000
Total
1,000,650
500,650
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
456
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
1,044,403
Total of debtsecurities inissue
andother
borrowedfunds,
not held bytheCompany,as
at
31.12.2021
vi.
Other borrowed funds
Balance 1.1.2021
15,300
Changes for the year
1.1 - 31.12.2021
Accrued Interests
7
Balance
31.12.2021
15,307
Additional information regarding the borrowed funds is presented in the table
below:
Held by third parties
Issuer
Currency
Interest Rate
Maturity
Nominal value
31.12.2021
31.12.2020
Alpha Services and Holdings S.A.
Euro
4 x (CMS10-CMS2), min
3,25%, max 10%
31.12.2045
15,542
15,542
Total
15,542
15,542
The following table presents the
changes of debt securities and
other borrowed funds by
separately disclosing the cash and
non-cash flows.
Cash flows
from financing
activities
1.1.2021
Cash flows
Non cash flows
New issues,
maturities,
repayments
Accrued
interest
Foreign
exchange
differences
Hedging
adjustments
Hive-down
of banking
sector
31.12.2021
Covered bond loan (i)
512,449
(12,475)
3,307
(503,281)
-
Senior debt securities
(ii)
1,553
45
(1,598)
-
Subordinated loans
(v)
519,234
467,472
44,014
(1,624)
1,029,096
Other borrowed funds (vi)
15,300
7
15,307
Cash flows from
financing activities
1.1.2020
Cash flows
Non cash flows
New issues,
maturities,
repayments
Accrued
interest
Foreign
exchange
differences
Hedging
adjustments
Hive Down
31.12.2020
Covered bond loan (i)
514,317
(13,443)
11,642
(67)
512,449
Senior debt securities
(ii)
1,369
(43)
227
1,553
Liabilities from the
securitization of shipping
loans
131,985
(136,955)
2,593
2,377
-
Liabilities from the
securitization of other loans
218,944
(221,117)
2,317
(144)
-
Subordinated
loans
651
495,355
19,067
4,161
519,234
Other borrowed funds
15,300
15,300
The above cash flows are
included in the net
cash flows from financing activities in
the cash flow statement of
the year.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
455
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
23.
Liabilities for current income tax and other
taxes
31.12.2021
31.12.2020
Income tax
31,630
50,560
Other taxes
209
13,736
Total
31,839
64,296
The liabilities for income tax were
paid in February 2022.
24.
Employee
defined
benefit
obligations
The total amounts recognized in the financial statements for defined benefit obligations are presented in the table
below:
Balance
Sheet-Liabilities
31.12.2021
31.12.2020
as restated
Bank employee's indemnity
provision due to retirement
in accordance with Law
2112/1920
30
24,726
Savings program
guarantee
2,761
Plans for Diners
(pension and health
care)
8,948
Total Liabilities
30
36,435
Income
Statement
Expenses
/
(Income)
From 1 January
to
31.12.2021
31.12.2020
as restated
Bank employee's indemnity
provision due to retirement
in accordance with Law
2112/1920
1,790
8,085
Savings program
guarantee
39
(196)
Plans for Diners
(pension and health
care)
21
76
Total
1,850
7,965
The amount of € 1,842 (31.12.2020: € 7,959) corresponding to the discontinued operations is included in the movement of
defined benefits obligation
of the
current period.
Balance Sheet and Income Statement amounts are analyzed per fund and
type of benefit as follows:
a.
Employee
indemnity due
to retirement
in accordance
with Law
2112/1920
The contracts of the regular employees of the Bank are indefinite term employee contracts and when terminated, the
provisions of Law 2112/1920
and Law 3198/1955 apply,
as amended by Law 4093/2012,
which provide a lump sum
benefit
payment.
During the year, the Company
changed the method of calculating the
defined benefit obligation taking into account a
decision
of the IFRS
Interpretations Committee (IFRIC Committee) issued in May 2021.
With the implementation of this
decision,
the attribution of the obligation
into periods of service will no
longer begin from the first
day of employment but will be
done according to what is defined in
article 8 of Law 3198/1955. The decision
is treated as a
change in accounting policy in
accordance with the
provisions of IAS
8 (note
38).
The amounts
recognized in
the balance sheet
are as follows:
31.12.2021
31.12.2020
as restated
Present value of defined obligations
30
24,726
Liability
30
24,726
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
456
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The amounts recognized in the
income statement are as follows:
From 1 January
to
31.12.2021
31.12.2020
as restated
Current service cost
643
2,061
Net interest cost
resulted from
net asset/liability
7
228
Past service cost
35
Settlement/Curtailment/Termination
(gain)/loss
1,140
5,761
Total (included in staff
costs)
1,790
8,085
The movement in the present value of
defined obligation is as follows:
2021
2020
as restated
Opening Balance
24,725
76,312
Change in accounting
policy – Retained
Earnings Gain / (Loss)
(28,520)
Change in accounting
policy – Actuarial
Gain / (Loss)
(22,433)
Opening Balance
24,725
25,359
Current service cost
643
2,061
Interest cost
7
228
Benefits paid
(1,355)
(8,181)
(Gain)/Loss
from
Settlement/Curtailment/Termination
1,140
5,761
Past service cost
35
Hive-down of banking sector
(25,147)
Transfer of staff to CEPAL
(5,654)
Actuarial
(gain)/loss-financial
assumptions
1,201
Actuarial
(gain)/loss-experience
assumptions
17
3,916
Closing Balance
30
24,726
The amounts
recognized in
equity during the year
are analyzed as
follows:
31.12.2021
31.12.2020
as restated
Change in
liability gain/(loss)
due to
changes in
financial and
demographic
assumptions
(1,201)
Change in
liability gain/(loss)
due to
experience adjustments
(17)
(3,916)
Total actuarial
gain/(loss)
recognized
directly
in Equity
(17)
(5,117)
The movement in the defined obligation liability is as follows:
31.12.2021
31.12.2020
as restated
Opening balance
24,725
76,312
Change in accounting
policy – Retained
Earnings Gain / (Loss)
(28,520)
Change in accounting
policy – Actuarial
Gain / (Loss)
(22,433)
Opening balance
24,725
25,359
Benefits paid
(1,355)
(8,181)
Loss/(Gain) recognized
in Income
Statement
1,790
8,085
Loss/(Gain) recognized
in equity
17
5,117
Transfer of staff to CEPAL
(5,654)
Hive-down of banking sector
(25,147)
Closing balance
30
24,726
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
457
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Certain figures of the previous year have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
458
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The amount of € 5,654 in 2020 corresponds to the accrued liability relating to the Bank’s personnel that was transferred to the
Bank’s NPL servicing subsidiary Cepal following the
spin off and transfer
of non-performing loans business unit.
b.
Savings
plan
guarantee
For employees hired by the Bank and insured from 1.1.1993 until 31.12.2004 the Company has guaranteed that the lump
sum benefit payment, according to the provisions of the insurance plan, will
be at least equal to
the benefit as defined in Law
2084/1992 and the
Cabinet Act 2/39350/0022/2.3.99.
The amounts included in
the balance sheet
are analyzed as
follows:
31.12.2021
31.12.2020
Present value of defined obligation
2,761
Liability
-
2,761
The amounts included in the
income statement are analyzed as follows:
From 1 January
to
31.12.2021
31.12.2020
Current Service Cost
35
124
Net Interest cost
resulted from
net asset/liability
4
22
(Gain)/Loss
from
Settlement/Curtailment/Termination
(342)
Total (Included in
staff costs)
39
(196)
The movement in the present value of defined
benefit obligation is as follows:
2021
2020
Opening Balance
2,761
2,703
Current service cost
35
124
Interest cost
4
22
(Gain)/Loss
from
Settlement/Curtailment/Termination
(342)
Actuarial
(gain)/loss-financial
assumptions
(58)
Actuarial
(gain)/loss-experience
adjustments
312
Hive-down of banking sector
(2,800)
Closing Balance
-
2,761
The amounts
recognized
directly
in Equity
during the
year are
analyzed
as follows:
31.12.2021
31.12.2020
Change in liability due to changes in financial and demographic assumptions - gain/(loss)
58
Change in liability due to experience adjustments - gain/(loss)
(312)
Total actuarial
gain/(loss)
recognized
in equity
-
(254)
The movement in the obligation is
as follows:
2021
2020
Opening Balance
2,761
2,703
Loss/(gain)
recognized
in income
statement
39
(196)
Loss/(gain) recognized
in equity
254
Hive-down of banking sector
(2,800)
Closing Balance
-
2,761
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
459
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
c.
Supplementary
Pension
Fund and
Healthcare
of Diners
The Company
guarantees from
30.9.2014, date
of acquisition
of Diners Club
Greece A.E.,
the Supplementary
Pension Fund
and
Health Care Plan of the Company, which is managed by an
independent insurance company.
On 2.6.2015,
the merger
through
absorption
of the
company was
completed.
These plans
cover the
pensioners
and those
who
have retired and have
the right to
receive supplementary pension in the future.
The amounts
included in
the balance
sheet are
analyzed as
follows:
31.12.2021
31.12.2020
Present value of defined obligation
10,943
Fair value of plan assets
(1,995)
Liability
-
8,948
The assets
of the scheme
include only
cash.
The amounts included in the
income statement are analyzed as follows:
From 1 January
to
31.12.2021
31.12.2020
Net interest cost
resulted from the
net asset/liability
15
69
Expenses
6
7
Total (included in staff
costs)
21
76
The movement in the present value of defined
benefit obligation is as follows:
2021
2020
Opening Balance
10,943
10,726
Interest Cost
18
86
Benefits paid
directly by
the Company
(20)
Benefits paid by the Plan
(73)
(343)
Actuarial
(gain)/loss-financial
assumptions
414
Actuarial
(gain)/loss-experience
adjustments
80
Hive-down of banking sector
(10,888)
Closing balance
-
10,943
The movement in the fair value of
plan assets is as follows:
2021
2020
Opening Balance
1,995
2,346
Expected return
3
17
Benefits paid
(73)
(343)
Expenses
(6)
(7)
Actuarial losses
(18)
Hive-down of banking sector
(1,919)
Closing Balance
-
1,995
The amounts
recognized
directly
in Equity
during the
year are
analyzed
as follows:
2021
2020
Change in liability due to financial and demographic assumptions - gains/(loss)
(414)
Change in liability due to experience adjustments - gain/(loss)
(80)
Return on plan assets excluding amounts included in income statement
- gain/(loss)
(18)
Total actuarial
gain/(loss)
recognized
in equity
-
(512)
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
460
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
The movement in the
obligation/(asset) is as follows:
2021
2020
Opening Balance
8,948
8,380
Benefits paid
directly by
the Company
(20)
(Gain)/loss recognized
in Income
Statement
21
76
(Gain)/loss recognized in Equity
512
Hive-down of banking sector
(8,969)
Closing Balance
-
8,948
The results of the abovementioned valuations are based on
the assumptions of the actuarial studies. The
principal actuarial
assumptions used for the above mentioned defined benefit plans are as
follows:
31.12.2021
31.12.2020
as restated
Discount rate
0.59%
0.10% - 0.58%
Inflation rate
2.00%
1.30%
Return on plan
assets
1.50%
Future salary growth
2.00%
1.70%
Future pension
growth
0.00%
The discount
rate was
based on
the iBoxx
Euro Corporate
AA+ adjusted
to the
characteristics
of the
programs.
The average duration per
program is depicted
in the table
below:
31.12.2021
31.12.2020
as restated
Bank employee's indemnity
provision due to retirement
in accordance with Law
2112/1920
5.2
7.7
Saving program
guarantee
16.4
Plans for Diners
(pension and health
care)
15.9
The table
below presents
the sensitivity
analysis of
the financial assumptions in
regards to the
obligation of the
above programs:
Percentage
variation
in liability (%)
Increase in discount
rate by 0.5%
(2.5%)
Decrease in discount
rate by 0.5%
2.7%
Increase in future salary growth rate
by 0.5%
2.6%
Decrease in future salary growth
rate
by 0.5%
(2.5%)
The compensation of staff due
to retirement under Law 2112/1920
is an unfunded benefit and therefore
the payment of a
contribution is not
expected within 2022.
25.
Other liabilities
31.12.2021
31.12.2020
Suppliers
4,976
54,790
Deferred income
235,904
Accrued Expenses
7,292
80,856
Liabilities to third
parties
24
51,160
Liabilities to merchants
from the use of credit cards
288,012
Lease liabilities
120,754
Other
159,053
Total
12,292
990,529
“Deferred income” includes an amount of € 228,453, which represents the result
from the transfer of the Bank’s Non
Performing
Exposures
business
unit (carve-out)
to its
subsidiary
Cepal Hellas.
Τhe Bank
did not
recognize
the outcome
from the
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
461
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
transfer in the results of the year 2020, considering
the fact that this transaction is part of the overall commercial
agreement
with the investor in which also includes the transfer of 80% of the company’s shares and there was considerable uncertainty
at that point. This item was transferred to the Bank in the context of the Hive-down of the banking sector and was taken into
account in the
final result from
the sale of
its stake in
Cepal that
took place on
18.6.2021.
Liabilities to merchants from the use of credit cards, Leases liabilities and other liabilities were contributed to the Bank during
the corporate transformation.
26.
Provisions
Balance 1.1.2020
200,746
Changes for the
year 1.1- 31.12.2020
Other provisions
8,132
Other provisions used
(8,526)
Provision for
separation schemes
1,165
Transfer to “Loans
and advances
to customers”
(1,000)
Use of
provision for
separation
schemesl
(12,509)
Provisions to cover credit
risk relating to letters of guarantee,
letters of credit and undrawn loan
commitments
1,662
Foreign exchange differences
(171)
Balance
31.12.2020
189,499
Changes for the
year 1.1- 31.12.2021
Other provisions
(100)
Other provisions used
(7,388)
Provision for
separation schemes
97,670
Use of
provision for
separation schemes
(1,668)
Provisions to cover credit risk from off-balance sheet items
6,343
Foreign exchange differences
10
Hive-down of banking sector
(284,366)
Balance
31.12.2021
-
The movement of provisions for the current period includes an amount of € 103,965 (31.12.2020: € 10,788) corresponding to
the discontinued operations.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
462
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
Certain figures of the previous year have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
461
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
EQUITY
27.
Share
capital
Movement from
1.1. to 31.12.2021
(number of shares)
Open Balance
as at 1.1.2021
Shares from Share
Capital Increase
through
the stock options
exercise
Shares from Share
Capital Increase
through
cash
Balance as at
31.12.2021
Share Capital paid
on 31.12.2021
Number of
ordinary shares
1,543,699,381
2,281,716
800,000,000
2,345,981,097
703,794
The Company’s share
capital on 31.12.2021
amounts to € 703,794 (31.12.2020:
€ 463,110) divided into
2,345,981,097
(31.12.2020: 1,543,699,381) ordinary,
registered shares with voting rights with a nominal value of €
0.30 each.
In the context of Stock Options Plan for the granting of stock options to key management personnel of the Bank and its
connected entities, as further described in note 36, within January 2021, 2,281,716 options rights vested and exercised from
the beneficiaries, in accordance with Performance Incentive Program
for the fiscal years of 2018 and 2019. As a result of the
above, 2,281,716 ordinary, registered, voting shares with
nominal value of Euro
0.30 were issued and
the Share Capital of
the
Bank increased
by €
684 according
to the
Resolution
of the
Ordinary
General
Meeting
of the
Shareholders
of 31.7.2020
and
the respective decisions of the Board of Directors of
the Company on 31.12.2020 and 9.2.2021.
The trading
of 2,281,716
new
common,
registered,
ordinary
shares of
the Company
on the
Athens
Stock Exchange
commenced
on 22.2.2021.
In addition, the
Extraordinary General Meeting of Shareholders of
15.6.2021 approved, inter alia,
the issue of
common share
capital up to the amount of € 0.8 billion in cash, the abolition of pre-emptive rights of existing shareholders and the issuance
of new common shares with voting rights with a nominal value of € 0.30 each, while the Board of Directors of 30.6.2021
decided to
set the Offering
Price at € 1.00
per New Share.
The above
Share Capital
Increase was
completed on
8.7.2021
and the share capital of the Company increased by € 240,000 with the issuance of 800,000,000 common, registered, voting
shares, with a
nominal value of
€ 0.30
each.
Following
the above,
Share
Capital
during
the year
2021 increased
by € 240,684.
28.
Share premium
Balance as at
1.1.2021
10,801,029
Increase in Share Capital - share premium from the rights issue
1,483
Increase in Share Capital – share premium
from the issuance of share capital
560,000
Balance as at
31.12.2021
11,362,512
Share premium
as at 31.12.2021
amounted to
€ 11,362,512 (31.12.2020:
€ 10,801,029).
Considering the share capital increase described above from the exercise of the options rights of the Company’s shares, the
share premium increased by € 1,483 resulting from the fair valuation, οn the date of awarding to the employees, of the option
rights, which were
exercised from the
beneficiaries during the
exercise period.
In addition, the share capital increase in cash on
8.7.2021 resulted in the increase of the share
premium by €
560,000 which
resulted from the difference of the nominal value of the shares of
€ 0.3 and
the issue price of €
1 each.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
462
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
29.
Reserves
Reserves are
analyzed as
follows:
a.
Statutory
reserve
31.12.2021
31.12.2020
Statutory reserve
420,425
420,425
According to article 158 of Law 4548/2018, one-twentieth (1/20) of the net profit of the year is deducted annually from each
year’s net
profit for the
formation of the statutory
reserve. The deduction for
the formation of the
statutory reserve ceases to
be
mandatory when
the reserve
amounts one
-third (1/3)
of the share
capital. Based
on the provisions
of the aforementioned
article
this reserve can be used only before any dividend distribution in order to offset any debit balance in the Retained Earnings.
b.
Reserve
of investment
securities
measured
at fair
value
through
other comprehensive
income
2021
2020
Opening Balance 1.1
128,737
386,746
Changes for the year
1.1 - 31.12
Net change in fair value of
securities measured at fair value through other comprehensive
income, after income tax
(20,136)
8,815
Fair value of securities measured at fair value through other comprehensive
income transferred to profit or loss,
after income tax
(42,319)
(266,824)
Hive-down of banking sector
(66,282)
Total
(128,737)
(258,009)
Balance 31.12
-
128,737
The movements
for the year
of the reserve
of investment
securities measured
at fair value
through other
comprehensive
income
that relate
to the
revaluation of
the investment
securities and
the transfer
of the related
reserve to Income Statement,
amounts
(amounts before income tax) to a debit amount of € 28,361 and a debit amount of € 59,603 respectively (1.1 - 31.12.2020:
credit amount
€
12,415 and
debit amount
€
375,808, respectively).
c.
Cash flow
hedge reserve
recognised
directly in
equity
2021
2020
Opening balance 1.1
(223,671)
(238,467)
Changes for the year
1.1 - 31.12
Change in cash
flow hedge reserve
after income tax
4,286
14,797
Hive-down of banking sector
219,385
Balance 31.12
-
(223,671)
d.
Other
reserves
2021
2020
Opening balance 1.1
(264)
(264)
Changes for the year
1.1 - 31.12
Balance 31.12
(264)
(264)
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
463
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
e.
Reserve
valuation
for stock
options
rights
to employees
2021
2020
Opening balance 1.1
1,667
-
Changes for the year
1.1 - 31.12
Exercise of rights
(1,667)
Reserve valuation for stock options right to employees
3,083
1,667
Balance 31.12
3,083
1,667
At 31.12.2021, in the context of the Stock Options Plan and the stock options granted to key management personnel of the
Bank
and
its
connected
entities,
as detailed
described
in
note
36, a
reserve
was
recognized
amounting
to €
3,083
(31.12.2020:
€ 1,667) from the valuation of the
abovementioned options.
Total reserves
(a+b+c+d+e)
423,244
326,893
30.
Retained
earnings
i.
Since 2020 there were no distributable profits, in accordance with article
159 of Codified Law 4548/2018, the Ordinary
General Meeting of Shareholders on 22.7.2021 decided the
non-distribution of dividends to ordinary shareholders of the
Company.
ii.
Pursuant to
article 159 of
Law 4548 /
2018 and due
to the fact that
there are no
distributable profits
for the year
2021,
the Board of Directors of the Company at
the Ordinary General Assembly Meeting of Shareholders will propose the non-
distribution of dividends
to the
shareholders of the
Company.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
464
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ADDITIONAL
INFORMATION
31.
Contingent liabilities and commitments
a.
Legal
issues
According to the demerger
deed, the new bank
under the name
“ Alpha Bank Societe
Anonyme “ is replaced
as the universal
successor
in the
Hive-Down
of the
Banking Division
and therefore
all pending
litigation
and related
contingent
liabilities
to the
banking activity were
transferred to
the new
bank.
In the
context of
managing operational
risk events
and based
on the
accounting
principles
applied, the
Company
has internal
controls and
procedures
to monitor
all legal
claims and
similar actions
by third parties
in order
to assess
the probability
of a
negative outcome
and the potential
loss.
For cases
where there
is a
significant
probability
of a
negative outcome,
and the
result may
be reliably
estimated,
the Company
recognizes a
provision that
is included in
the Balance
Sheet under
the caption
“Provisions”.
As at 31.12.2021,
the Company
did
not have
such cases
that require the
formation of
a provision.
For those cases,
that according
to their progress
and the assessment
of the legal
department
as at December
31, 2021,
a
negative outcome is not probable or the potential outflow cannot be estimated reliably due to the complexity of the cases,
and their
duration the
Company
has not
recognized
a provision.
As of
31.12.2021
the legal
claims against
the Company
where
potential outflow cannot be estimated reliably
due to the
complexity of the cases and
their duration reflect a
single case of
€ 360,926.
It is noted, however, that in March 2022, the plaintiffs from the above lawsuit amounting to € 360,926 withdrew from the
lawsuit.
According to the legal department’s estimation, 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 Company.
b.
Tax
issues
Alpha Services
and Holdings
S.A. has
been audited
by the tax
authorities for
the years
up to and
including 2010.
Years 2011,
2012, 2013 are considered as closed, in accordance with the Ministerial Decision 1208/20.12.2017
of the Independent Public
Revenue Authority. On 13.7.2020 a regular audit
order was issued for
the year 2014, which
was completed in December 2020.
For the years 2011 up to 2020 the Company 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. The tax audit for the tax certificate
of 2021 is in progress. Emporiki
Bank has been audited by the tax authorities for the years up to and including 2008. Years 2009-2013 are considered as
closed, in accordance with the Ministerial Decision 1208/20.12.2017
of the Independent Public Revenue Authority.For the
years 2011 up to 2013 Emporiki Bank has obtained a tax certificate with no qualifications. Alpha Bank S.A. resulted from the
hive-down of the banking sector and started its operation on 16.4.2021,
with the first tax fiscal year being from 1.7.2020 to
31.12.2021.
The Bank’s branch in London
has been audited by
the tax authorities up to
and including 2016, the end
of operation of which
was declared
in the
Companies Register on
23.12.2020.
On 2.6.2015, the merger by 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. Years 2011 to 2015 are considered as closed, in
accordance with the Ministerial Decision 1208/20.12.2017 of the Independent Public Revenue Authority. For the
years 2011
up to 2013, Diners Club off Greece A.E.P.P. 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, interest on late submission and penalties may be imposed by tax authorities, as a result of tax audits for
unaudited tax years,
the amount of
which cannot be
accurately determined.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
465
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro unless
otherwise indicated
c.
Off Balance
Sheet Commitments
Contingent liabilities for the Company arise from the undrawn loan commitments, which are to be executed only if the
counterparties comply with the conditions agreed for their execution. As at 31.12.2021, the balance of the above undrawn loan
commitments amounted to €
1,625.
d.
Pledged assets
The entity did not have any pledged assets as at 31.12.2021.
32.
Risk Management
Following the completion of the corporate transformation, the
main financial risks to which
the Company is exposed are
as
follows:
32.1
Credit Risk
The credit risk
to which the
Company is exposed
comes from the
following:
DUE FROM
BANKS
Exposure to credit institutions relates
to loans, interbank transactions (which
include positions in derivatives), and
International
Trade activities.
Following
the basic
rules of
designation,
monitoring
and revision
of corporate
lending,
boundaries
are for
the
monitoring of credit risk for the overall exposure per credit institution counterparty, excluding positions related
to bonds issued
by them. The approved credit limits are monitored on a daily basis. The validity period of the limits is specified in the approval
of the limits in accordance with the counterparty credit institutions rating from international credit rating agencies.
In addition to the
regular revisions of counterparty
credit institutions
limits, interim revisions
may be carried out
either due to
circumstances associated
with the trading activity of the
Company or due to markets
conditions or problems associated
with
counterparty credit institutions. Trigger events for an extraordinary review are regularly monitored per counterparty in order to
review the
relevant limits when
such trigger events
exist.
At each
reporting date,
a loss
allowance for
expected
credit losses
on due
from banks
is recognized.
The loss allowance is based on expected credit losses related to the probability of default within the next twelve months,
unless there has been a significant increase in credit risk from the date of initial recognition in which case expected credit
losses are recognized over the life of the instrument. In addition, if the receivable falls under the definition of purchased or
originated
credit
impaired
(POCI)
financial
assets,
a loss
allowance
equal
to the
lifetime
expected
credit
losses
is recognized.
Due from bank’s credit risk
is assessed based on
credit rating of rating
agencies or internal credit rating of
the counterparty
when a
loan exposure exists
at company level.
The Company defines as low
credit risk all investment grade
counterparties, for which it calculates a
credit allowance equal to
a 12-month expected
credit loss (Stage
1).
For counterparties which do not meet the
criteria of investment grade, the assessment of the
significant increase in credit
risk for which calculation of lifetime expected credit losses is required (Stage 2), is based on the two following conditions
(whichever occurs first):
-
Downgrade by at least two notches of the counterparty credit rating between the reporting date and the initial recognition
date
-
The 12-month PD at reporting date is
above 5% in absolute terms and
has increased more than 50% compared to the
respective PD existing
at initial recognition
date
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
466
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
INVESTMENTS
IN DEBT
SECURITIES
Investments in debt securities relate to securities that are classified into investment security portfolio.
If there is a loan
relationship with the counterparty
issuer at the time of classification of the security position as
investment, the Corporate
Credit Policy
procedures
apply. These
positions
are subject
to Bank
investment
limits and
issuer’s
limits and
are monitored
on a
daily basis.
At each
reporting
date, a
loss allowance
for expected
credit losses
on bonds,
which are
not measured
at fair
value
through profit or loss, is recognized. In addition, if the debt securities fall under the definition of purchased or originated credit
impaired
(POCI) financial
assets,
a loss
allowance eq
ual to
the lifetime
expected credit
losses is
recognized.
The loss
allowance
is based on expected credit losses related to the
probability of default within the next twelve months, unless there has been
a significant increase in credit risk
from the date of
initial recognition in which case expected credit losses are
recognized over
the life of the instrument. Credit risk of investment in debt securities is assessed
based on credit ratings of rating agencies or
internal credit rating in case of
Greek corporate issuers for which loan exposure exists.
The Company defines as
low credit risk
all investment grade securities, for
which it calculates a
credit allowance equal to a
12-month expected credit
loss (Stage 1).
For debt securities, which do not
meet the criteria of
investment grade, the assessment of the
significant increase in credit
risk for which calculation of lifetime expected credit losses is required (Stage 2), is based on the two following conditions
(whichever occurs first):
-
Downgrade by at least two notches of the counterparty credit rating between the reporting date and the initial recognition
date
-
The 12-month PD at reporting date is
above 5% in absolute terms and
has increased more than 50% compared to the
respective PD existing
at initial recognition
date
In addition, the
Company is monitoring, the
change in credit
spreads since the
initial recognition date. A
change in the
credit
spread of the issue of more than 500bps since the initial recognition date is a trigger for the review of the debt instrument
staging.
Depending on the outcome of the above review the debt instrument will remain at Stage 1 or be allocated at Stage 2,
regardless of whether the primary staging criteria for allocation to Stage 2
have been triggered or not.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
467
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
FINANCIAL
ASSETS EXPOSURE
TO
CREDIT RISK
The maximum credit risk
exposure per category
of financial asset
in which the
Company is exposed
is depicted in
the “Net
exposure to credit
risk” column.
31.12.2021
Exposure before
impairment
Provision for
impairment
losses
Net exposure to
credit risk
A. Credit
risk exposure
relating to
balance sheet
items
Balances with central banks
Due from banks
25,705
25,705
Loans and
advances to
customers:
Loans measured at amortised
cost
Loans measured at fair value
through profit
or loss
Advances to customers measured
at amortised cost
18,446
18,446
Advances to customers measured
at fair value through profit or loss
Total
18,446
-
18,446
Derivative financial assets
Trading securities:
Government bonds
Total
-
-
-
Securities measured
at amortised
cost:
Securities measured
at amortised
cost (Government
bonds)
Securities measured at amortised cost (other)
1,004,725
11,665
993,060
Total
1,004,725
11,665
993,060
Securities
measured at
fair value
through
other comprehensive
income:
Securities
measured at
fair value
through
other
comprehensive
income (Government
bonds)
Securities measured at fair value through other comprehensive
income (other)
Total
-
-
-
Securities measured at fair value through profit
or loss:
Securities measured
at fair value through profit
or loss (other)
22,537
22,537
Total
22,537
-
22,537
Assets held
for sale
Loans and
receivables
measured at
amortised cost
858,883
805,924
52,959
Assets held for sale Loans and receivables measured
at fair value through profit or loss
Total
858,883
805,924
52,959
Total amount of
balance sheet items exposed
to credit risk (a)
1,930,296
817,589
1,112,707
Other balance sheet items not exposed to credit risk
6,237,781
1,241
6,236,540
Total Assets
8,168,077
818,830
7,349,247
B. Credit risk
exposure relating
to off balance
sheet items:
Letters of guarantee,
letters of credit and other
guarantees
Undrawn loan commitments
relating to assets held for sale
1,625
1,625
Guarantees of
bond loans
issued by
subsidiaries of
the Bank
Total amount of off
balance sheet items exposed
to credit risk (b)
1,625
-
1,625
Total credit
risk exposure
(a+b)
1,931,921
817,589
1,114,332
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
468
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
Exposure before
impairment
Provision for
impairment
losses
Net exposure to
credit risk
A. Credit
risk exposure
relating to
balance sheet
items
Balances with central banks
6,421,222
6,421,222
Due from banks
2,703,146
72,956
2,630,190
Loans and
advances to
customers:
Loans measured at amortised
cost
42,661,350
7,946,812
34,714,538
Loans measured at fair value
through profit
or loss
264,068
264,068
Advances to customers measured
at amortised cost
299,196
36,995
262,201
Advances to customers measured
at fair value through profit or loss
40,000
40,000
Total
43,264,614
7,983,807
35,280,807
Derivative financial assets
1,272,924
1,272,924
Trading securities:
Government bonds
29,154
29,154
Total
29,154
-
29,154
Securities measured
at amortised
cost:
Securities measured
at amortised
cost (Government
bonds)
3,138,344
9,192
3,129,152
Securities measured at amortised cost (other)
31,949
980
30,969
Total
3,170,293
10,172
3,160,121
Securities
measured at
fair value
through
other comprehensive
income:
Securities
measured at
fair value
through other
comprehensive
income (Government
bonds)
3,551,341
5,427
3,545,914
Securities measured at fair value through other comprehensive
income (other)
1,612,916
8,712
1,604,204
Total
5,164,257
14,139
5,150,118
Securities measured at fair value thro
ugh profit or loss:
Securities measured
at fair value through profit
or loss (other)
168,883
168,883
Total
168,883
-
168,883
Assets held
for sale
Loans and
receivables
measured at
amortised cost
602,465
459,147
143,318
Assets held for sale Loans and receivables measured
at fair value through profit or loss
Total
602,465
459,147
143,318
Total amount of
balance sheet items exposed
to credit risk (a)
62,796,958
8,540,221
54,256,737
Other balance sheet items not exposed to credit risk
12,521,237
1,757,224
10,764,013
Total Assets
75,318,195
10,297,445
65,020,750
B. Credit risk
exposure relating to
off balance sheet
items:
Letters of guarantee,
letters of credit and other
guarantees
3,691,134
105,208
3,585,926
Undrawn loan commitments
4,088,802
1,464
4,087,338
Guarantees of
bond loans
issued by
subsidiaries of
the Bank
15,542
15,542
Total amount of off
balance sheet items exposed
to credit risk (b)
7,795,478
106,672
7,688,806
Total credit
risk exposure
(a+b)
70,592,436
8,646,893
61,945,543
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
469
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ANALYSIS
PER RATING
Other financial instruments subject to credit risk
The following table presents the other financial instruments measured at amortised cost and at fair value through other
comprehensive income as at 31.12.2021 and 31.12.2020 by IFRS 9 Stage
and credit rating.
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
securities
(POCI)
Total
Balances with
central
Banks
AAA
AA+ to AA
A+ to A
BBB+ to BBB
Lower than BBB
Unrated
Carrying amount
(before allowance
for expected
credit losses)
-
-
-
-
-
Allowance for
expected credit
losses
Net carrying amount
-
-
-
-
-
Value of collaterals
Due from
Banks
AAA
AA+ to AA
A+ to A
BBB+ to BBB
Lower than BBB
25,705
25,705
Unrated
Carrying amount
(before allowance
for expected
credit losses)
25,705
-
-
-
25,705
Allowance for
expected credit
losses
Net carrying amount
25,705
-
-
-
25,705
Value of collaterals
Securities measured
at fair
value through
other comprehensive
income
AAA
AA+ to AA
A+ to A
BBB+ to BBB
Lower than BBB
Unrated
Carrying amount
(before allowance
for expected
credit losses)
-
-
-
-
-
Allowance for
expected credit
losses
Net carrying amount
-
-
-
-
-
Value of collaterals
Securities measured
at amortized
cost
AAA
AA+ to AA
A+ to A
BBB+ to BBB
Lower than BBB
1,004,725
1,004,725
Unrated
Carrying amount
(before allowance
for expected
credit losses)
1,004,725
-
-
-
1,004,725
Allowance for
expected credit
losses
(11,665)
(11,665)
Net carrying amount
993,060
-
-
-
993,060
Value of collaterals
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
470
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated
credit
impaired
securities
(POCI)
Total
Balances with
central
Banks
AAA
AA+ to AA
A+ to A
BBB+ to BBB
Lower than BBB
6,421,222
6,421,222
Unrated
Carrying amount
(before allowance
for expected
credit losses)
6,421,222
-
-
-
6,421,222
Allowance for
expected credit
losses
Net carrying amount
6,421,222
-
-
-
6,421,222
Value of collaterals
Due from
Banks
AAA
AA+ to AA
673,408
673,408
A+ to A
649,318
649,318
BBB+ to BBB
900,706
900,706
Lower than BBB
370,618
370,618
Unrated
39,135
69,961
109,096
Carrying amount
(before allowance
for expected
credit losses)
2,633,185
-
69,961
-
2,703,146
Allowance for
expected credit
losses
(2,995)
(69,961)
(72,956)
Net carrying amount
2,630,190
-
-
2,630,190
Value of collaterals
Securities measured
at fair
value through
other comprehensive
income
AAA
43,804
43,804
AA+ to AA
592,715
592,715
A+ to A
311,353
311,353
BBB+ to BBB
1,327,388
1,327,388
Lower than BBB
2,775,318
2,104
2,777,422
Unrated
86,849
24,726
111,575
Carrying amount
(before allowance
for expected
credit losses)
5,137,427
26,830
-
-
5,164,257
Allowance for
expected credit
losses
(13,808)
(331)
(14,139)
Net carrying amount
5,123,619
26,499
-
-
5,150,118
Value of collaterals
Securities measured
at amortized
cost
AAA
AA+ to AA
30,700
30,700
A+ to A
BBB+ to BBB
325,009
325,009
Lower than BBB
2,809,171
2,809,171
Unrated
4,050
1,363
5,413
Carrying amount
(before allowance
for expected
credit losses)
3,168,930
1,363
-
-
3,170,293
Allowance for
expected credit
losses
(10,165)
(7)
(10,172)
Net carrying amount
3,158,765
1,356
-
-
3,160,121
Value of collaterals
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
471
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Trading portfolio Derivative financial assets – Investment Securities measured at fair value through profit or loss
The following table presents other financial instruments measured at fair value through profit or
loss per credit rating.
2021
2020
Trading securities
AAA
AA+ to AA
A+ to A
BBB+ to BBB
Lower than BBB
29,154
Unrated
Net carrying amount
-
29,154
Value of collaterals
Derivative financial assets
AAA
AA+ to AA
106,467
A+ to A
107,482
BBB+ to BBB
16,862
Lower than BBB
1,039,450
Unrated
2,663
Net carrying amount
-
1,272,924
Value of collaterals
Securities measured at fair value through profit
or loss
AAA
AA+ to AA
A+ to A
BBB+ to BBB
Lower than BBB
340
Unrated
22,537
168,543
Net carrying amount
22,537
168,883
Value of collaterals
…….…FINANCIAL STAT
EMENTS AS AT 31.12.2021
472
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
ANALYSIS
OF FINANCIAL
ASSETS
PER IFRS
9 STAGE
Due from Banks
The following table presents the classification of Due from Banks per
IFRS 9 Stage as of 31.12.2021 and
31.12.2020.
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated
credit impaired
Receivables
(POCI)
Total
Balance
31.12.2021
Carrying amount
(before allowance
for expected
credit losses)
25,705
25,705
Allowance for
expected credit
losses
Net carrying amount 31.12.2021
25,705
-
-
-
25,705
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated
credit impaired
Receivables
(POCI)
Total
Balance
31.12.2020
Carrying amount
(before allowance
for expected
credit losses)
2,633,185
69,961
2,703,146
Allowance for
expected credit
losses
(2,995)
(69,961)
(72,956)
Net carrying amount 31.12.2020
2,630,190
-
-
-
2,630,190
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
473
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of Euro
unless otherwise indicated
Investment
Securities
Investment securities measured at
amortized cost
The following table presents the
classification of securities per IFRS
9 Stage and issuer’s
category as of 31.12.2021
and
31.12.2020:
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased or
originated
credit impaired
securities
(POCI)
Total
Greek Government bonds
Carrying amount
(before allowance
for expected
credit losses)
Allowance for
expected credit
losses
Net value
-
-
-
-
-
Other Government
bonds
Carrying amount
(before allowance
for expected
credit losses)
Allowance for
expected credit
losses
Net value
-
-
-
-
-
Other securities
Carrying amount
(before allowance
for expected
credit losses)
1,004,725
1,004,725
Allowance for
expected credit
losses
(11,665)
(11,665)
Net value
993,060
-
-
-
993,060
Total securities measured
at amortized cost
Carrying amount
(before allowance
for expected
credit losses)
1,004,725
-
-
-
1,004,725
Allowance for
expected credit
losses
(11,665)
-
-
-
(11,665)
Net value
993,060
-
-
-
993,060
31.12.2020
Stage 1
Stage 2
Stage 3
Purchased or
originated
credit impaired
securities
(POCI)
Total
Greek Government bonds
Carrying amount
(before allowance
for expected
credit losses)
2,788,311
2,788,311
Allowance for
expected credit
losses
(9,132)
(9,132)
Net value
2,779,179
-
-
-
2,779,179
Other Government
bonds
Carrying amount
(before allowance
for expected
credit losses)
350,034
350,034
Allowance for
expected credit
losses
(61)
(61)
Net value
349,973
-
-
-
349,973
Other securities
Carrying amount
(before allowance
for expected
credit losses)
30,585
1,363
31,948
Allowance for
expected credit
losses
(972)
(7)
(979)
Net value
29,613
1,356
-
-
30,969
Total securities measured
at amortized cost
Carrying amount
(before allowance
for expected
credit losses)
3,168,930
1,363
-
-
3,170,293
Allowance for
expected credit
losses
(10,165)
(7)
-
-
(10,172)
……… FINANCIAL STATEMENTS
AS AT 31.12.2021
474
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation of
other financial
assets (except
loans) before
allowance for
expected credit
losses per
IFRS 9
Stage
The tables below present the movement
of the carrying amount before allowance
for expected credit losses for Due from banks,
the movement of the fair value of
investment securities measured at fair value through other comprehensive
income and investment securities measured at amortized cost including expected
credit
losses per IFRS
9 Stage.
31.12.2021
Due from banks
Investment securities measured at fair value through other
comprehensive income
Securities measured at amortized
cost
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Balance 1.1.2021
2,633,185
-
69,961
-
2,703,146
5,123,619
26,499
-
-
5,150,118
3,168,930
1,363
-
-
3,170,293
Changes
for the year
1.1 31.12.2021
Transfers to Stage
1
from Stage 2 or 3
-
-
-
Transfers to Stage
2
from Stage 1 or 3
-
-
-
Transfers to Stage
3
from Stage 1 or 2
5,659,643
5,659,643
1,042,150
1,042,150
1,297,405
1,297,405
New financial assets
originated
-
(705,081)
(4,228)
(709,309)
(22,906)
(22,906)
Derecognition of
financial assets
-
10,802
240
11,042
49,035
24
49,059
Interest on
carrying
amount before
impairment
-
-
-
Changes due to
modifications
that
did not result in
derecognition
-
-
-
Write-off
-
-
Repayments,
foreign exchange
differences and
other
movements
(4,386,043)
(4,386,043)
(667,276)
(502)
(667,778)
(210,706)
(23)
(210,729)
Hivedown of
banking
sector
(3,881,080)
(69,961)
(3,951,041)
(4,804,214)
(22,009)
(4,826,223)
(3,277,033)
(1,364)
(3,278,397)
Balance
31.12.2021
25,705
-
-
-
25,705
-
-
-
-
-
1,004,725
-
-
-
1,004,725
……… FINANCIAL STATEMENTS
AS AT 31.12.2021
475
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Due from banks
Investment securities measured at fair value through other
comprehensive income
Securities measured at amortized
cost
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Balance 1.1.2020
3,336,602
-
69,961
-
3,406,563
6,168,811
230
-
-
6,169,041
1,078,143
-
-
-
1,078,143
Changes for
the year 1.1
31.12.2020
Transfers to Stage
1
from Stage
2 or 3
-
228
(228)
-
-
Transfers to Stage
2
from Stage
1 or 3
-
(26,559)
26,559
-
(1,349)
1,349
-
Transfers to Stage
3
from Stage
1 or 2
-
-
-
New financial assets
originated
5,673,937
5,673,937
2,893,394
2,893,394
4,021,422
4,021,422
Derecognition of financial assets
-
(3,212,125)
(742)
(3,212,867)
(1,924,002)
(1,924,002)
Interest on
carrying
amount
before
impairment
-
72,994
224
73,218
39,062
14
39,076
Changes due to modifications
that did not
result in
derecognition
-
-
-
Write-off
-
-
-
Repayments,
foreign exchange
differences and
other
movements
(6,377,354)
(6,377,354)
(773,124)
456
(772,668)
(44,346)
(44,346)
Balance 31.12.2020
2,633,185
-
69,961
-
2,703,146
5,123,619
26,499
-
-
5,150,118
3,168,930
1,363
-
-
3,170,293
……… FINANCIAL STATEMENTS
AS AT 31.12.2021
476
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
Reconciliation
of allowance
for expected
credit
losses
The tables below present the movement of the allowance for expected credit losses of due from banks, investment securities measured at fair value through other
comprehensive income and
securities measured at
amortized cost per
IFRS 9
stage.
31.12.2021
Due from banks
Investment securities measured at fair value through other
comprehensive income
Securities measured at amortized
cost
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Opening Balance
1.1.2021
2,995
-
69,961
-
72,956
13,808
331
-
-
14,139
10,165
7
-
-
10,172
Changes for
the year 1.1
31.12.2021
Transfers to Stage
1
from Stage
2 or 3
-
-
-
Transfers to Stage
2
from Stage
1 or 3
-
-
-
Transfers to Stage
3
from Stage
1 or 2
-
-
-
Remeasurement
of expected credit losses (a)
-
-
-
Expected credit losses on new receivables/
securities (b)
756
756
1,763
1,763
(10,857)
(10,857)
Change in credit risk parameters (c)
(415)
(415)
2,108
(69)
2,039
32
(3)
29
Allowance for expected credit
losses
receivables/
securities (a)+(b)+(c)
341
-
-
-
341
3,871
(69)
-
-
3,802
(10,825)
(3)
-
-
(10,828)
Derecognition of financial assets
(2,443)
(30)
(2,473)
(72)
(72)
Foreign exchange and other
movements
2
2
-
Hivedown of
banking
sector
(3,336)
(69,961)
(73,297)
(15,238)
(232)
(15,470)
(10,933)
(4)
(10,937)
Closing
Balance
31.12.2021
-
-
-
-
-
-
-
-
-
-
(11,665)
-
-
-
(11,665)
……… FINANCIAL STATEMENTS
AS AT 31.12.2021
477
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise indicated
31.12.2020
Due from banks
Investment securities measured at fair value through other
comprehensive income
Securities measured at amortized
cost
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Stage 1
Stage 2
Stage 3
Purchased or originated
credit impaired (POCI)
Total
Opening Balance
1.1.2020
3,664
-
69,961
-
73,625
24,744
12
-
-
24,756
7,413
-
-
-
7,413
Changes for
the year 1.1
31.12.2020
Transfers to Stage
1
from Stage
2 or 3
-
11
(11)
-
-
Transfers to Stage
2
from Stage
1 or 3
-
(42)
42
-
(2)
2
-
Transfers to Stage
3
from Stage
1 or 2
-
-
-
Remeasurement
of expected credit losses (a)
-
(9)
364
355
8
8
Expected credit losses on new receivables/
securities (b)
962
962
6,735
6,735
9,343
9,343
Change in credit risk parameters (c)
(1,631)
(1,631)
(4,506)
(68)
(4,574)
(567)
(3)
(570)
Allowance for expected credit
losses
receivables/
securities (a)+(b)+(c)
(669)
-
-
-
(669)
2,220
296
-
-
2,516
8,776
5
-
-
8,781
Derecognition of financial assets
-
(13,118)
(8)
(13,126)
(6,022)
(6,022)
Foreign exchange and other
movements
-
(7)
(7)
-
Closing
Balance
31.12.2020
2,995
-
69,961
-
72,956
13,808
331
-
-
14,139
10,165
7
-
-
10,172
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
478
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
An additional income amounted to €
101 (31.12.2020 € 92
expense), has been recognized in the expected credit losses of the
period, which relates to the difference in the accumulated impairment
losses between the trade and the settlement date for
the securities measured at fair value through other comprehensive income. The above mentioned accumulated
impairment,
depending on the valuation of the
securities, is recognized in “Other assets” or
“Other liabilities”.
32.2
Market risk
Market risk is the risk
of losses arising from unfavorable changes in
the value or volatility of
interest rates, foreign exchange
rates, stock
exchange indices, equity
prices and
commodities.
The company
is exposed
to market
risk, which
is the
risk of
potential loss
due to
adverse changes
in market
variables,
such as
changes in interest
rates and exchange
rates.
a.
Foreign currency
risk
The financial
assets and
liabilities
of the
Company
are in
Euro,
therefore the
foreign exchange
risk is
eliminated.
b.
Interest Rate Risk
Banking book interest rate risk relates to the volatility on Equity and interest income of the Bank due to the mismatch between
the nonnegotiable Assets Liabilities and the measured at fair value through other comprehensive
income portfolio. The interest
rate risk management framework is determined in accordance with the Asset Liability Risk Management
Policy. Based on this
framework,
the risk
analysis
of the
Banking
Portfolio
is analyzed
through
the Interest
Rate Gap
Analysis.
Particularly,
assets
and
liabilities are classified in Gaps depending on their reprising date for
floating rate items, or maturity date for
fixed rate items.
For those assets and liabilities with no maturity date, the distribution of flows is based on models of their behavior analysis.
These models
have been
validated
by the
competent
Division.
Stress interest
rate scenarios
are carried
out on
a monthly
basis
and their impact
on the interest
income
change through
EAR (Earnings
at Risk) and
Equity Value
through EVE
(Economic Value
of Equity) is
calculated. Corresponding
limits have
been set
for both measures
(EaR & EVE)
which are monitored
on a regular
basis.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
479
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
478
ANNUAL FINANCIAL REPORT
The amounts
are presented
in thousands
of Euro
unless otherwise
indicated
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
480
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
The following
table presents
the Interest
Rate Repricing
Analysis
of both
Assets
and Liabilities,
financial
and non
financial.
31.12.2021
Less than 1
month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 5 years
> 5 years
Noninterest
bearing
Total
ASSETS
Cash and balances
with Central
Banks
Due from Banks
25,705
25,705
Trading securities
Derivative financial
assets
Loans and
advances
to customers
18,446
18,446
Investment
securities:
Measured at fair value through
other comprehensive
income
133
133
Measured at fair value through
profit and loss
22,537
22,537
Measured at amortized
cost
480,636
512,424
993,060
Investments in subsidiaries,
associates and
joint ventures
6,160,102
6,160,102
Investment properties
Property, plant
and equipment
7
7
Goodwill and other
intangible assets
370
370
Deferred tax
assets
Other Assets
75,928
75,928
Assets held for
sale
52,959
52,959
Total Assets
48,375
480,636
512,424
-
-
-
6,307,812
7,349,247
LIABILITIES
Due to banks
Derivative financial liabilities
Due to customers
Debt securities
in issue and
other
borrowed funds
1,044,403
1,044,403
Liabilities for current
income tax
and
other taxes
31,839
31,839
Deferred tax liabilities
24
24
Employee
defined
benefit
obligations
30
30
Other Liabilities
12,292
12,292
Provisions
Total Liabilities
-
-
-
-
1,044,403
-
44,185
1,088,588
EQUITY
Share capital
703,794
703,794
Share premium
11,362,512
11,362,512
Reserves
423,244
423,244
Retained earnings
(6,228,891)
(6,228,891)
Total Equity
-
-
-
-
-
-
6,260,659
6,260,659
Total Liabilities
and Equity
-
-
-
-
1,044,403
-
6,304,844
7,349,247
Open Exposure
48,375
480,636
512,424
-
(1,044,403)
-
2,968
-
Cumulative Exposure
48,375
529,011
1,041,435
1,041,435
(2,968)
(2,968)
-
-
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
481
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
31.12.2020
as
restated
Less than 1
month
1 to 3
months
3 to 6
months
6 to 12
months
1 to 5 years
> 5 years
Noninterest
bearing
Total
ASSETS
Cash and balances
with Central
Banks
6,421,222
261,010
6,682,232
Due from Banks
1,927,600
298,222
206,666
270
197,432
2,630,190
Trading securities
2.003
27,415
29,418
Derivative financial
assets
1,272,924
1,272,924
Loans and
advances
to customers
11,300,262
7,417,610
2,903,942
1,349,722
8,244,706
4,064,565
35,280,807
Investment
securities:
Measured at fair value through
other comprehensive
income
419,473
288,703
522,259
323,979
1,910,935
1,705,230
5,170,579
Measured at fair value through
profit and loss
202,741
13,412
2,164
218,317
Measured at amortized
cost
89,241
489,363
2,581,517
3,160,121
Investments in subsidiaries,
associates and
joint ventures
2,488,619
2,488,619
Investment properties
46,659
46,659
Property, plant
and equipment
642,381
642,381
Goodwill and other
intangible assets
473,458
473,458
Deferred tax
assets
5,263,104
5,263,104
Other Assets
1,373,114
1,373,114
Assets held for
sale
274,773
274,773
Total Assets
21,544,222
8,017,947
3,632,867
1,762,942
10,647,277
8,578,323
10,823,118
65,006,696
LIABILITIES
Due to banks
623,762
342,715
384,391
109,751
11,873,180
13,333,799
Derivative financial liabilities
1,769,222
1,769,222
Due to customers
9,273,744
5,478,015
3,337,877
3,867,884
11,701,657
5,875,909
39,535,086
Debt securities
in issue and
other
borrowed funds
651
15,300
1,552
1,031,033
1,048,536
Liabilities for current
income tax
and
other taxes
64,296
64,296
Employee
defined
benefit
obligations
36,434
36,434
Other Liabilities
990,529
990,529
Provisions
189,499
189,499
Total Liabilities
11,667,379
5,836,030
3,723,820
3,977,635
24,605,870
5,875,909
1,280,758
56,967,401
EQUITY
Share capital
463,110
463,110
Share premium
10,801,029
10,801,029
Reserves
326,893
326,893
Retained earnings
(3,551,737)
(3,551,737)
Total Equity
-
-
-
-
-
-
8,039,295
8,039,295
Total Liabilities
and Equity
11,667,379
5,836,030
3,723,820
3,977,635
24,605,870
5,875,909
9,320,053
65,006,696
Open Exposure
9,876,843
2,181,917
(90,953)
(2,214,693)
(13,958,593)
2,702,414
1,503,065
-
Cumulative Exposure
6,421,222
-
-
-
-
-
261,010
6,682,232
From the Interest Rate Gap
Analysis and from the
application of alternative scenarios regarding the changes in
the market
interest rates or the changes in the base interest rates of the Company, the immediate change in the net interest income
and equity relating to securities measured at fair value through other
comprehensive income is directly calculated and the
respective
hedging
instruments.
In the
Interest
Rate Gap
Analysis,
the variance,
up to
the point
it’s feasible
(interest
rate equals
to zero),
is studied,
according to
the interest
rate curves
by currency
in force.
It is noted that the sensitivity of the net interest income for the Company is zero as the investment portfolios, Assets and
Liabilities, include fixed
interest rate securities.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
482
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
Certain figures of the previous year have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
481
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
32.3
Liquidity Risk
Liquidity risk relates to Company’s ability to maintain sufficient funds to cover its planned or extraordinary obligations. Liquidity
Risk comprises both funding liquidity risk and the risk arising from the Company’s failure to recognize or address changes in
market conditions that affect the ability to liquidate assets quickly and with minimal loss in value (market liquidity risk).
For those assets and liabilities with no maturity date, the distribution of flows is based on models of their behavior analysis.
These models have
been validated
by the
competent Division.
Company’s
executive
and
senior
management
is
informed
on
current
liquidity
risk
exposures
on
a
daily
basis,
ensuring
that
the Company’s liquidity risk profile stays within approved limits. Moreover, management
receives on a daily basis a liquidity
report,
which
presents
a detailed
analysis
of Company’s
funding
sources
and counterbalancing
capacity.
Among
others,
for the
purpose of proper management of liquidity risk and in line with supervisory requirements, the Company monitors and
manages
on a monthly basis, the amount, quality and concentration of counterbalancing capacity, the cash flows arising from assets and
liabilities (inflows, outflows – maturity ladder) over time, the concentration and cost of funding, the rollover of funding.
According to the Liquidity Gap Analysis, the cash flows arising from balance sheet items are calculated and classified into
time periods in accordance with the contractual
maturity date or the estimated maturity date based
on a statistical analysis
(convention). Investment portfolios,
which may be used to raise liquidity, and they are allocated in the first period under the
condition they have not
been used to
raise liquidity either through
the Central Bank or
through interbank repos agreement, are
an exception to
the above.
Wholesale funding
Mediumterm borrowing from international
capital markets
The Company’s constant aspiration is to cooperate with international investors
who may offer medium term financing through
purchase of
securities
issued by
the Company.
For this
purpose,
the Company
retains special
financing programs
appealing
to
international investors and provides adequate coverage
of credit needs through international capital markets by planning asset
level needs on an annual basis. However, the Company acknowledges that the demand of these bonds may not be enough to
fully meet the needs in specific time intervals as a result of factors which concern the credit assessment in the domestic and
international economic environment.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
482
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
The table
below presents
the Liquidity
Gap Analysis
for all
Assets
and Liabilities.
31.12.2021
< 1 month
1 to 3
months
3 to 6
months
6 to 12
months
> 1 year
Total
ASSETS
Cash and balances
with central
banks
Due from banks
25,705
25,705
Trading securities
Derivative financial assets
Loans and
advances to
customers
18,446
18,446
Investment
securities:
Measured at fair value through other comprehensive
income
133
133
Measured at fair value through
profit or loss
22,537
22,537
Measured at amortized cost
993,060
993,060
Investments in
subsidiaries,
associates
and joint
ventures
6,160,102
6,160,102
Investment properties
Property, plant and equipment
7
7
Goodwill and other intangible assets
370
370
Deferred tax assets
Other Assets
75,928
75,928
Assets held for
sale
52,959
52,959
Total Assets
48,375
52,959
-
18.446
7.229.467
7,349,247
LIABILITIES
Due to banks
Derivative financial
liabilities
Due to customers
Debt securities in issue and other borrowed funds
1,044,403
1,044,403
Liabilities for current income
tax and other taxes
31,839
31,839
Employee
defined
benefit
obligations
30
30
Deferred tax assets
24
24
Other Liabilities
12,292
12,292
Provisions
Total Liabilities
-
31,839
-
24
1,056,725
1,088,588
EQUITY
Share capital
703,794
703,794
Share premium
11,362,512
11,362,512
Reserves
423,244
423,244
Retained earnings
(6,228,891)
(6,228,891)
Total Equity
-
-
-
-
6,260,659
6,260,659
Total Liabilities and
Equity
-
31,839
-
24
7,317,384
7,349,247
OPEN LIQUIDITY
GAP
48,375
21,120
-
18.422
(87,917)
-
CUMULATIVE LIQUIDITY
GAP
48,375
69,495
69,495
87,917
-
-
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
483
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
31.12.2020
as
restated
< 1 month
1 to 3
months
3 to 6
months
6 to 12
months
> 1 year
Total
ASSETS
Cash and balances
with central
banks
6,682,232
6,682,232
Due from banks
1,848,931
293
213,208
181,050
386,708
2,630,190
Trading securities
29,418
29,418
Derivative financial assets
1,272,924
1,272,924
Loans and
advances to
customers
856,362
973,580
1,334,957
2,953,687
29,162,221
35,280,807
Investment
securities:
Measured at fair value through other comprehensive
income
5,170,579
5,170,579
Measured at fair value through
profit or loss
218,317
218,317
Measured at amortized cost
73,108
3,087,013
3,160,121
Investments in
subsidiaries,
associates
and joint
ventures
2,488,619
2,488,619
Investment properties
46,659
46,659
Property, plant and equipment
642,381
642,381
Goodwill and other intangible assets
473,458
473,458
Deferred tax assets
607,466
3,336,445
1,319,193
5,263,104
Other Assets
1,373,114
1,373,114
Assets held for
sale
66,938
21,782
143,318
42,735
274,773
Total Assets
16,145,701
1,603,121
1,691,483
6,587,025
38,979,366
65,006,696
LIABILITIES
Due to banks
424,238
30,095
378,804
111,090
12,389,572
13,333,799
Derivative financial
liabilities
1,769,222
1,769,222
Due to customers
6,917,176
5,592,779
3,510,024
4,212,178
19,302,929
39,535,086
Debt securities in issue and other borrowed funds
1,048,536
1,048,536
Liabilities for current income
tax and other taxes
7,836
50,560
5,900
64,296
Employee
defined
benefit
obligations
36,434
36,434
Other Liabilities
2,469
4,426
6,452
12,542
964,640
990,529
Provisions
189,499
189,499
Total Liabilities
9,113,105
5,635,136
3,945,840
4,341,710
33,931,610
56,967,401
EQUITY
Share capital
463,110
463,110
Share premium
10,801,029
10,801,029
Reserves
326,893
326,893
Retained earnings
(3,551,737)
(3,551,737)
Total Equity
-
-
-
-
8,039,295
8,039,295
Total Liabilities and
Equity
9,113,105
5,635,136
3,945,840
4,341,710
41,970,905
65,006,696
OPEN LIQUIDITY
GAP
7,032,596
(4,032,015)
(2,254,357)
2,245,315
(2,991,539)
-
CUMULATIVE LIQUIDITY
GAP
7,032,596
3,000,581
746,224
2,991,539
-
-
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
484
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
Certain figures of the previous year have been restated as described in note 38.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
485
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
Trading and investment portfolios measured at fair
value through profit or loss
and through other comprehensive income are
listed based on
their liquidation potential and
not according to
their maturity.
Cash flows arising from financial liabilities including derivative financial liabilities,
are allocated into time bands according to
their maturity date. Estimated interest payments are also included. Liabilities in foreign currency have been
converted into
Euro. Outflows and inflows relating to derivatives are estimated according to
their contractual terms.
31.12.2021
Total
Balance
Sheet
Nominal inflows
/ (outflows)
Total
Less than
one month
1 to 3
months
3 to 6
months
6 to 12
months
More than a
year
Nonderivative liabilities
Due to banks
Due to customers
Debt securities
in issue and
other
borrowed funds
1,044,403
(4,140)
(7,880)
(12,154)
(24,575)
(1,141,903)
(1,190,653)
Other liabilities
12,292
(12,292)
(12,292)
Derivatives held for assets fair
value hedge
Outflows
Inflows
Derivatives held for trading
Outflows
Inflows
Total
1,056,695
(4,140)
(20,172)
(12,154)
(24,575)
(1,141,903)
(1,202,945)
Off Balance sheet
items
Financial guarantees
Total off Balance
sheet items
-
-
-
-
-
-
-
31.12.2020
Total
Balance
Sheet
Nominal inflows
/ (outflows)
Total
Less than
one month
1 to 3
months
3 to 6
months
6 to 12
months
More than a
year
Nonderivative liabilities
Due to banks
13,333,799
(419,215)
(20,189)
(364,202)
(82,193)
(12,336,612)
(13,222,411)
Due to customers
39,535,086
(6,919,802)
(5,597,386)
(3,516,507)
(4,224,294)
(19,351,600)
(39,609,589)
Debt securities
in issue and
other
borrowed funds
1,048,536
(2,834)
(5,559)
(8,413)
(16,870)
(1,115,820)
(1,149,496)
Other liabilities
990,529
(2,697)
(4,817)
(7,015)
(13,587)
(971,717)
(999,833)
Derivatives held for assets fair
value hedge
11,861
Outflows
(323)
(3,097)
(3,536)
(32,360)
(39,316)
Inflows
1,820
36,959
38,779
Derivatives held for trading
1,757,361
Outflows
(279,437)
(516,845)
(249,923)
(131,000)
(1,776,742)
(2,953,947)
Inflows
266,697
457,516
190,436
121,819
1,298,600
2,335,068
Total
56,677,172
(7,357,288)
(5,687,603)
(3,958,721)
(4,347,841)
(34,249,292)
(55,600,745)
Off Balance sheet
items
Undrawn loan commitments
Financial guarantees
(111,150)
(65,694)
(132,915)
(240,017)
(2,060,850)
(2,610,626)
Total off Balance
sheet items
-
(111,150)
(65,694)
(132,915)
(240,017)
(2,060,850)
(2,610,626)
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
486
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
32.4
Fair value of
financial assets and liabilities
Hierarchy
of financial
instruments
that
are
not
measured
at
fair
value
31.12.2021
Level 1
Level 2
Level 3
Total fair value
Total Carrying
amount
Financial Assets
Loans and
advances to
customers
18,446
18,446
18,446
Investment securities
Measured at amortized cost
1.007.645
1.007.645
993.060
Financial liabilities
Due to customers
Debt securities
in issue and
other borrowed
funds
1,018,226
227
9,234
1,027,687
1,044,403
31.12.2020
Level 1
Level 2
Level 3
Total fair value
Total Carrying
amount
Financial Assets
Loans and
advances to
customers
34,681,276
34,681,276
34,976,739
Investment securities
Measured at amortized cost
1,571,354
1,677,492
3,248,846
3,160,121
Financial liabilities
Due to customers
39,529,151
39,529,151
39,535,086
Debt securities
in issue and
other borrowed
funds
531,105
486,925
9,887
1,027,917
1,048,536
The tables above depict the fair value and the carrying amount of those financial assets that are not measured at fair value,
per fair value
hierarchy.
For the comparative period, the fair value of loans measured at amortised cost is estimated using model for discounting
estimated contractual cash flows until maturity. The components of the discount rate are the interbank market yield curve, the
liquidity premium and the expected loss rate. For those loans that for credit risk purposes are classified as impaired and are
individually
assessed
for impairment,
the model
uses the
expected
future cash
flows excluding
expected
credit losses.
For the
fair valuation of the impaired loans which are collectively assessed for impairment on product level, assumptions for princip
al
repayment after taking into account the allowance for expected credit losses are
utilized.
The interbank market yield curve and the liquidity premium constitute the discount rate
for impaired loans.
For the current year, the
fair value of advances from
customers does not differ from the
book value as they represent short
term receivables from
Group companies.
The fair value of deposits is estimated based on the interbank market yield curve and the liquidity premium until their maturity.
Level 1
includes securities and
debt securities in
issue that
are traded in
active markets.
Level 2 includes securities and debt securities in issue, the fair value of which, is determined based on nonbinding market
prices provided
by dealers
brokers
or through
the use
of discounted
cash flow
methodologies
such (income
approach)
using
interest rates
and credit
spreads which are
observable in
the market.
Level 3 includes other
borrowed funds of the
company to Special Purpose Entity. The
fair value of these
liabilities was
calculated by discounting future cash flows taking into account nonobservable market data.
The fair value of the remaining financial assets and liabilities which are measured at amortised does not differ materially from
their respective book
value.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
487
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
Fair value hierarchy
financial assets
and liabilities measured
at fair value
31.12.2021
Level 1
Level 2
Level 3
Fair Value
Derivative financial assets
Trading securities
- Bonds and Treasury bills
- Shares
Securities measured at fair value through other comprehensive
income
- Bonds and Treasury bills
- Shares
133
133
Securities measured
at fair value through profit or loss
- Bonds, issues and Treasury bills
22,537
22,537
- Other variable yield securities
- Shares
Loans measured at fair value
through profit or loss
Other receivables measured
at fair value through profit or loss
Derivative financial
liabilities
31.12.2020
Level 1
Level 2
Level 3
Fair Value
Derivative financial assets
2,420
1,270,504
1,272,924
Trading securities
- Bonds and Treasury bills
29,154
29,154
- Shares
264
264
Securities measured at fair value through other comprehensive
income
- Bonds and Treasury bills
4,868,589
280,511
1,018
5,150,118
- Shares
13,031
7,430
20,461
Securities measured
at fair value through profit or loss
- Bonds and Treasury bills
168,883
168,883
- Other variable yield securities
5,757
16,340
22,097
- Shares
18,360
8,977
27,337
Loans measured at fair value
through profit or loss
264,068
264,068
Other receivables measured
at fair value through profit or loss
40,000
40,000
Derivative financial
liabilities
1,769,222
1,769,222
The tables above depict the fair value of financial instruments measured at fair value by fair value hierarchy based on the data
used for its
determination.
In order to determine the
fair value of the
securities issued under the Galaxy transaction and recognized on
18.6.2021, it has
been used the consideration for the sale of loans at 18.6.2021 and they are presented at level 3, as it has been considered
that no change
occur until 31.12.2021.
In order to determine the
fair value of the
securities issued under the Cosmos transaction and recognized on
17.12.2021, it has
been used the consideration for the sale of loans at 17.12.2021 and they are presented at level 3, as it has been considered
that no change
occur until 31.12.2021.
In regards to the determination
of the fair value of securities and derivatives
as at 31.12.2021 and their classification
at fair
value hierarchy levels
the following apply:
Level 1 includes
securities which are traded
in an
active market and
exchange traded derivatives.
Level 2
includes securities
whose fair
value is
calculated
based
on nonbinding
market
prices provided
by dealers
brokers or
securities whose fair value is estimated based the income approach methodology with the use of interest rates and credit
spreads which are
observable in the
market.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
488
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
Level 3 includes securities whose
fair value is
estimated using significant unobservable inputs.
The valuation methodology of securities is subject to approval. It should be noted that specifically for securities whose fair
value is
calculated
based on
market
prices, bid
prices are
considered
and daily
checks are
performed
in regards
to their
change
in fair value.
Equity shares whose fair value is estimated based on models are classified to Level 2 or Level 3, depending on the extent
of the contribution of unobservable data to the calculation of the final fair value. The fair value of nonlisted shares, as well
as shares
not traded
in an
active market
is determined
either based
on the
Company’s
share on
the issuer’s
equity or
by the
multiples valuation method or the estimations
made by the Company regarding the future
profitability of the issuer taking into
account the expected growth rate of its operations, as well as the weighted average rate of capital return which is used as
discount rate.
For the
valuation
of over
the counter
derivatives
income
approach
methodologies
are
used:
discounted
cash flow
models,
option pricing models
or other widely
accepted financial valuation models.
The valuation methodology of the over the counter derivatives
is subject to approval. Mid prices are utilized as they can
relate to both long and short positions. Valuations are checked on a daily basis with the respective prices of the counterparty
banks or clearing houses in the context of the daily process of provision of collaterals and settlement of derivatives. If the non
observable inputs are significant, the fair value that
arises is classified as Level 3
or otherwise as Level 2.
In addition, the Company calculates the credit valuation adjustment (CVA) in order to take into account the counterparty credit
risk for
the OTC
derivatives.
In particular,
taking into
consideration
its own
credit risk,
the Company
calculates
the bilateral
credit
valuation
adjustment
(Bilateral
CVA/BCVA)
for the
OTC derivatives
held on
a counterparty
level
according
to applicable
netting
and collateral agreements. BCVA is calculated across all counterparties
with derivatives with a significant fair value in total
taking into consideration the default probability
of both the counterparty and Company, the impact of the first to default,
the
expected
OTC
derivative
exposure,
the
loss
given
default
of
the
counterparty
and
of
Company
and
the
specific
characteristics
of the
applicable netting and
collateral agreements.
Collaterals are simulated along with the derivative portfolio exposure over the life of the related instruments. Calculations
performed
depend
largely
on observable
market
data.
Market
quoted
counterparty
and Company’s
CDS spreads
are used
in order to derive the respective probability of
default, a market standard recovery rate is assumed for
developed market
counterparties, correlations between market data are taken into account and subsequently a
series of simulations is performed
to model the portfolio exposure over the life of the related instruments. In the absence of observable market data, the
counterparty probability of default and loss given default are determined using the Company’s internal
models for credit rating
and collateral valuation.
A breakdown the fiscal
year of 2020 of
BCVA per counterparty sector and
credit quality, as defined for
the presentation
purposes of the table “Loans by
credit quality and IFRS 9
Stage” is given below:
31.12.2020
Category of counterparty
Corporates
(3,809)
Governments
(20,745)
31.12.2020
Hierarchy of counterparty by credit quality
Strong
(2,849)
Satisfactory
(21,705)
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
489
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
The table below presents the valuation methods used for the determination of Level 3 fair value:
31.12.2021
Total Fair
Value
Fair Value
Valuation Method
Significant
Nonobservable
Inputs
Shares measured
at
fair value through other
comprehensive
income
133
133
Based on the Group's
share in equity
Issuer's equity
Bonds measured
at fair
value through profit or loss
22,537
22,537
Discounted cash
flows
Future cash flows
31.12.2020
Total Fair
Value
Fair Value
Valuation Method
Significant
Nonobservable
Inputs
Bonds measured at fair
value through other
comprehensive
income
1,018
1,018
Based on issuer price
/ Discounted
Cash flows with an estimate
of the
bond yield
Issuer price
Shares measured
at
fair value through other
comprehensive
income
7,430
7,430
Discounted cash
flows /
Multiples
valuation method
Future profitability of the issuer, expected
growth
/ Valuation ratios Average weighted cost of
capital
Bonds measured
at fair
value through profit or loss
168,883
168,883
Based on issuer price / Discounted
cash flows with estimation
of credit
risk
Issuer price
– Credit risk
margin Assessment
of reserve adequacy
for payment of hybrid
securities dividends
Shares measured
at fair
value through profit or loss
8,977
8,977
Discounted cash
flows /
Multiples
valuation method
/ Expected
transaction price
Future profitability of the issuer, expected
growth
/ Valuation ratios
Loans measured
at fair
value through profit
or loss
264,068
264,068
Discounted
cash flows
with
interest being the underlying
instruments, taking into account the
counterparty’s credit risk
Expected loss
and cash
flows from
counterparty’
credit risk
Other receivables
measured at fair value
through profit or loss
40,000
40,000
Discounted cash
flows of the
underlying
receivables
portfolio
Cash Flows from the management
of the
underlying receivables
portfolio
The Company
recognizes
the transfer
between
fair value
hierarchy
Levels
at the
end of
each
reporting
period.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
490
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
A reconciliation for the movement of financial assets measured at fair value
and classified at Level 3 is
depicted below:
31.12.2021
Assets
Securities
measured at fair
value through
other
comprehensive
income
Securities
measured at fair
value through
profit or loss
Loans measured at
fair value through
profit or loss
Derivative financial
assets
Other receivables
measured at fair
value through
profit or loss
Opening Balance
1.1.2021
8,448
177,860
264,068
-
40,000
Total gain/(loss) recognized
in
Income Statement
1
1,869
(15,651)
- Net interest income
422
2,546
- Gains less losses on financial
transactions
1
1,447
(18,197)
- Impairment losses
Total gain/(loss) recognized
in
Equity Reserves
7
Total gain/(loss) recognized
in
Equity Retained earnings
48
Purchases / Disbursements/
Issues
113
22,655
276
321
Sales
(253)
Repayments
(77)
(3,315)
(2,478)
Closing Balance 31.12.2020
(8,427)
(176,532)
(245,962)
(40,321)
Transfer to assets within level 3
from level 2
Transfer to assets out of level 3
due to control
acquisition
Transfer to assets held for sale
Balance
31.12.2021
113
22,537
-
-
-
Gain/(loss) included
in the
income statement
and relate to
financial instruments
included
in the balance sheet at the end
of the reporting period
1.1 31.12.2020
3,282
- Net interest income
340
- Gains less losses on financial
transactions
2,942
- Impairment losses
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
490
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
31.12.2020
Assets
Securities
measured at fair
value through
other
comprehensive
income
Securities
measured at fair
value through
profit or loss
Loans measured at
fair value through
profit or loss
Derivative financial
assets
Other receivables
measured at fair
value through
profit or loss
Opening Balance
1.1.2020
25,978
179,887
315,932
980
-
Total gain/(loss) recognized
in
Income Statement
909
(10,651)
(20,047)
27
Net interest income
270
571
11,539
Gains less losses on financial
transactions
55
(11,222)
(31,586)
27
Impairment losses
584
Total gain/(loss) recognized
in
Equity Reserves
109
Total gain/(loss) recognized
in
Equity Retained earnings
562
Purchases / Disbursements
6,000
9,000
21,299
40,000
Sales
(25,339)
Repayments
(10,532)
(376)
(27,777)
Settlements
(1,007)
Transfer to assets out of level 3
due to control
acquisition
(14,100)
Transfer to assets held for sale
(478)
Balance
31.12.2020
8,448
177,860
264,068
-
40,000
Gain/(loss) included
in the
income statement
and relate to
financial instruments
included
in the balance sheet at the end
of the reporting period
1.1 31.12.2020
3
(10,818)
(19,181)
Net interest income
573
10,786
Gains less losses on financial
transactions
2
(11,391)
(29,967)
Impairment losses
1
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
491
ANNUAL
FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
The following tables present the sensitivity analysis for financial instruments classified
at Level 3 whose valuation was based
on significant unobservable
data as
at 31.12.2021
and 31.12.2020:
31.12.2021
Significant
Nonobservable
inputs
Quantitative
information on
nonobservable
inputs
Significant
nonobservable
inputs change
Total effect in
income
statement
Total effect in equity
Favourable
variation
Unfavourable
variation
Favourable
variation
Unfavourable
variation
Bonds
measured
through
Profit
or
Loss
Cash flows
discounting
Cash flows recovery
Variation in cash
flow recovery
ratio discount rate
capital cost
4,547
(11,429)
Total
4,547
(11,429)
-
-
31.12.2020
Significant
Nonobservable
inputs
Quantitative
information on
nonobservable
inputs
Significant
nonobservable
inputs change
Total effect in
income
statement
Total effect in equity
Favourable
variation
Unfavourable
variation
Favourable
variation
Unfavourable
variation
Derivative Financial
Assets
Assessment of
reserve adequacy
for payment of
hybrid securities
dividends
From 2022 to the
end, possibility
100%
Increase the
possibility of paying
dividends to 100%
(497)
Bonds measured
at fair value
through other
comprehensive
income
Issuer price
Issuer price equal
to 97.11%
Variation +/10%
in issuer price,
Variation /+10% in
estimated return
102
(102)
Shares measured
at fair value
through other
comprehensive
income
Future profitability
of the issuer,
expected growth
/
Value indicators
/
Average weighted
cost of capital
Value indicator P/
BV 0.28x
Variation +/10% in
P/B and EV/Sales
multiples valuation
method. Wacc
+/1%
242
(241)
Bonds measured
at
fair value through
profit or
loss
Issuer price Credit
spread Assessment
of reserve
adequacy for
payment of hybrid
securities dividends
Issuer price equal
to 88.61% /
Average credit
spread equal to
1,411 bps. From
2023 to the
end,
possibility
100%
Variation +/10% in
issuer price, /+10%
in adjustment of
estimated Credit
Risk, /+ 1 year
on the starting
date for dividend
payments
6,127
(5,951)
Shares measured at
fair value through
profit or
loss
Value Indicators
Adjustment on cash
flows discounting
according to
Business plan of
issuer (Average
expected rate of
Business plan
implementation
90%)
Business plan
implementation:
scenario analysis
on the expected
cash flows +/35%
1,900
(2,500)
Loans measured at
fair value through
profit or
loss
Expected credit
loss and cash flows
from credit risk
of
the counterparty
Average credit
spread and liquidity
premium equal
to
36.66%
Decrease of the
expected cash
flows by 10% on
loans individually
assessed
(12,986)
Other Receivables
measured at fair
value through pro
fit
or loss
Cash flows from
the management
of the underlying
receivables
portfolio
Value of collateral
with real estate
equal to € 607.6
million and third
parties equal to
€ 42.4 million
Variation of +/ 4%
in the valuation
of real estate
collateral and
Variation of +/ 33%
on the third parties
claims
9,000
(7,000)
Total
17,027
(28,934)
344
(343)
…….…FINANCIAL STATEMENT
S
AS AT 31.12.2021
492
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
There are no significant interrelationships between the nonobservable
data that significantly affect the fair value.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
493
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
32.5
Transfers of
financial assets
The Company
had carried
out securitization
transactions
of corporate,
shipping,
consumer loans
and credit
cards in
order to
raise liquidity. Securitized loans continued to be recognized in the Company’s balance sheet as it retained in all cases the
risks and
rewards,
as evidenced
by the
characteristics
of the
transactions
(eg
full consolidation
of special
purpose
companies,
bond ownership and the right to collect the deferred consideration from the transfer). The book value of these securitized
loans at 31.12.2020 amounted to € 2,050,515, while there was
essentially no obligation from these
transfers as all notes
of the special purpose companies are owned by it. Within 2021 and before the corporate transformation, one of the above
transactions was revoked with the full repayment of the notes of the special purpose company, ie the securitization of a
bond loan through the
Alpha Quantum DAC (revocation at
19.3.21). Receivables and liabilities from other
transactions were
transferred to the Bank in
the context of the
corporate transformation and ceased to be recognized by
the Company.
In addition, the Company, on 30.4.2020,
proceeded to a securitization transaction
of non performing retail and corporate
loans (“Galaxy”).
More specifically,
non performing
loans were
transferred
to the
special
purpose
entities Orion
X Securitisation
Designated
Activity
Company,
Galaxy
II Funding
Designated
Activity Company,
Galaxy III
Funding Designated
Activity Company
and Galaxy IV Funding Designated Activity Company, established in
Ireland.
Initially, due to the fact that the bonds issued by the above special purpose companies owned by the Company, the Company
continued to recognize securitized loans in its balance sheet as it retained the risks and rewards. On 31.12.2020 the book
value of securitized loans through the four special purpose companies amounted to € 6,148,287, without any obligation to
transfer. As part of the corporate transformation of 16.4.2021, 100% of the senior notes
and 5% of the mezzanine and junior
notes were transferred to the Bank, while the Company continued to recognize securitized loans. On 18.6.2021 the Company
sold 51% of
the mezzanine
and junior notes
issued by the
companies Orion
Securitisation
DAC, Galaxy
II Funding DAC
and
Galaxy IV
Funding DAC,
which led
to the
derecognition
of the
respective loan
portfolios
as it
ceased to
has control
over them.
The book
value of
the securitized
loan portfolio
of Galaxy
III Funding
DAC that
continues
to be
recognized
by the
Company
as
at 31.12.2021 amounts to € 52,959 and given the fact that the notes are owned by the Company ownership of the bond issue,
there is no
transfer obligation.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
494
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
33
Related party transactions
The Company enters into
a number of
transactions with related parties in
the normal course
of business. These transactions
are performed at arm’s length terms and
are approved by the competent bodies.
a.
The outstanding balances of the Company’s transactions with key management personnel
consisting of members of the
Company’s
Board
of Directors
and the
Executive
Committee,
their
close
family
members
and
the entities
controlled
by them,
as
well as,
the results
related to
these transactions are
as follows:
31.12.2021
31.12.2020
Assets
Loans and
advances to
customers
1,791
Liabilities
Due to customers
2,257
Employee
defined
benefit
obligations
219
Provisions
650
Total
-
3,126
Letters of guarantee and approved limits
2,159
The following table shows the results of the transactions with the related parties:
From 1 January
to
31.12.2021
31.12.2020
Income
Interest and similar income
9
36
Fee and commission
income
1
Total
9
37
Expenses
Interest expense
and similar
charges
1
4
Remuneration
paid to key management and close family
members
1,291
5,667
Total
1,292
5,671
The remuneration of key management and their close
family members is analyzed as follows:
From 1 January
to
31.12.2021
31.12.2020
Remuneration of
Board Members,
salaries and
wages
1.178
4,381
Defined benefit obligations
4
11
Remuneration paid to key management
697
Employer
contribution
80
335
Other
29
243
Total
1,291
5,667
It
is noted
that
in accordance
with
the Remuneration
Policy,
the members
of the
Company’s
Board
of Directors,
as approved
by the General Meeting of
Shareholders on 22.7.2021, given that the composition of the
Board of Directors of the
Company is
the same as the one
of the Board of Directors
of the 100% subsidiary Alpha Bank S.A.
the remuneration of the members of the
Board of Directors will
be paid, in
accordance with the above, by
one company which will
be the Alpha Bank
S.A.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
495
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
b.
The outstanding balances with the
Company’s, associates, and joint ventures as
well as the
results related to these
transactions are as
follows:
i.
Subsidiaries
31.12.2021
31.12.2020
Assets
Due from banks
25,705
365,795
Derivative financial assets
5,841
Loans and
advances to
customers
18,446
2,019,923
Investment securities
measured at fair value through other comprehensive
income
233,231
Investment securities
measured at amortized cost
993,060
Investment securities
measured at fair value through
profit or loss
157,261
Loans and advances to customers
measured at fair value through profit
or loss
18,219
Rights of use assets
7,106
Other Assets
540
2,625
Asset held for sale
Total
1,037,751
2,810,001
Liabilities
Liabilities to
credit institutions
313,498
Due to customers
1,498,440
Derivative financial
liabilities
903
Debt securities in issue and other borrowed funds
40,179
15,918
Lease liabilities
7,160
Other liabilities
4,544
248,157
Total
44,723
2,084,076
Letters of guarantee and
other guarantees
392,021
From 1 January
to
31.12.2021
31.12.2020
Income
Interest and similar income
48,496
41,542
Fee and commission
income
4,522
17,656
Dividend income
3,440
Gains less losses
on financial
transactions
10,936
32,805
Gains/(losses)
on derecognition
of financial
assets measured
at amortised
cost
3,117
Other income
2,132
6,744
Total
66,086
105,304
Expenses
Interest expense
and similar
charges
4,152
11,053
Amortisation og rights of use assets
608
2,576
Commission expense
428
789
Gains less losses
on financial
transactions
14,014
34,235
General administrative
expenses
13,935
24,952
Impairment losses
and provisions
to cover
credit risk
and related
expenses
44,737
1,040
Total
77,874
74,645
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
496
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ii.
Joint Ventures
31.12.2021
31.12.2020
Assets
Loans and
advances to
customers
9,624
Other assets
97
Total
-
9,721
Liabilities
Due to customers
13,721
Total
-
13,721
From 1 January
to
31.12.2021
31.12.2020
Income
Interest and similar income
206
410
Gains less losses
on financial
transactions
303
1,173
Other income
16
48
Total
525
1,631
Expenses
Interest expense
and similar
charges
2
Total
-
2
iii.
Associates
31.12.2021
31.12.2020
Assets
Loans and
advances to
customers
54,835
Other assets
44
Total
54,879
Liabilities
Due to customers
841
Other liabilities
Total
841
From 1 January
to
31.12.2021
31.12.2020
Income
Interest and similar income
229
912
Fee and commission
income
2
Gains less losses
on financial
transactions
314
1,809
Other income
9
35
Total
552
2,758
Expenses
General administrative
expenses
5,844
Impairment losses,
provisions to
cover credit
risk and
related expenses
4,125
Total
4,125
5,844
For the impairments of
investments subsidiaries, associates and joint ventures there
are references in the
relevant notes.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
497
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
c.
The Hellenic
Financial
Stability
Fund (HFSF)
exerts
significant
influence
on the
Company,
In particular,
in the
context
of Law 3864/2010 and
based to Relationship Framework Agreement (“RFA”)
signed on 23.11.2015, which replaced
the
previous one signed in
2013, HFSF has
participation in the
Board of Directors
and other significant Committees of
the Bank,
Therefore, according
to IAS 24, HFSF and its related
entities are considered
related parties for the Company.
The outstanding balances and the results related
to these transactions are analyzed as
follows:
From 1 January
to
31.12.2021
31.12.2020
Income
Fee and commission
income
1
4
34
Auditors’ fees
The total fees of “Deloitte Certified Public Accountants S.A.”, statutory auditor of the Company and member of Deloitte
Touche Tohmatsu
Limited («DTTL»),
as well
as of the
remaining firms
of DTTL
and their
respective partners
are analyzed
below, in accordance with the provisions of paragraph 2 and 32,
article 29, of Law 4308/2014.
From 1 January
to
31.12.2021
31.12.2020
Statutory audit
of the annual accounts*
862
1.550
Other audit services
Issuance of tax certificate
135
201
Other fees
for nonaudit
services
480
333
Total
1,477
2,084
Auditors’ fees for statutory audit of the annual accounts amounting to € 862, include fees concerning the Company
amounting to € 454,fees concerning the discontinued
operations amounting to € 387 as well as € 21 that relate to fees for
2020.
Auditors’ fees for issuance of tax certificate amounting to € 135, include fees concerning the Company amounting to € 85
and fees
concerning the discontinued
operations amounting to
€ 50.
Other fees for nonaudit services amounting to €
480, include fees concerning the Company amounting to €
395 and fees
concerning the
discontinued operations amounting
to €
85.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
498
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
*
Statutory audit
of the annual
accounts incl
udes expenses
amounting up
to 2% of the approved
fees.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
499
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
35
Assets held
for sale
31.12.2021
31.12.2020
Investments
in subsidiaries,
associates
and joint
ventures
131,020
Fixed Assets
435
Loans
52,959
143,318
Total Assets held
for sale
52,959
274,773
Loans
Portfolio
During 2021, the Bank initiated the process through onephase
procurement procedure to dispose a portfolio of loans of retail
banking mostly without
collaterals, which consists of:
a)
The Company’s
securitized
loan portfolio
to the
special
purpose
entity
Galaxy
III Funding
Designated
Activity
Company
b)
Loan perimeter within the Bank
During December 2021, binding offers were submitted by
potential investors and the Bank proceeded with
their evaluation.
With the decision of 20.12.2021 of the Executive
Committee of the Bank, a preferred investor emerged
and with the decision
of 22.12.2021 of the Board of Directors,
an approval for the signing of the binding
transfer agreement between the Bank
and
the said investor
was given.
On 28.12.2021 the Bank entered into a binding agreement with the investor
for the sale of the portfolio.
Taking into account the above,as well
as the estimate that the transaction is expected
to be completed within the first quarter
of 2022, the Company classified loans with a book value of € 52,959 in the category “Assets held for sale”, which are going to
be transferred
to the
Bank for the
implementation of the
transaction.
The fair value, including costs to sell, of this loan portfolio on 31.12.2021 does not differ from the respective book value, since
for the calculation of the expected credit risk losses, a 100% probability of completion of the above transaction has been taken
into account.
It is noted that, within the first quarter of 2021, the Company transferred from the category “Assets held for sale” to the
category “Loans and advances to customers” loans with a book value of € 115 million as they did not meet the conditions for
its classification in the
category “ Assets held
for sale “.
The remaining loan portfolio was
contributed to the Banking
sector.
Investments
in
subsidiaries
On 25.1.2021,
the Company
completed
the transfer
of Alpha
Bank Albania
S.A. to
Alpha International
Holding S.M.S.A.
at its
book value
of €
66,938 which was
the same as
its fair value.
Moreover, on 12.2.2021, completed the sale
of its subsidiary AIP
Attica II S.A. As
at 31.12.2020, the book
value amounted
to
€ 21,782,
while
the
price,
considering
the
Company’s
shareholding,
amounted
to
€ 26,165.In
the
above
mentioned
amount
it is also included the contingent consideration payable after the end of three years, subject to collection of specific rents.
The transfer
resulted in
a profit
of € 4,043 after
transaction
costs and
was recognized
in “Gains
less losses
on financial
transactions” of the Income Statement and it is included in
the results from discontinued operations.
Fixed
Assets
and other
items
held for
sale
In the assets held for sale, as at 31.12.2020, were included fixed assets with a carrying amount of € 435 which were
transferred in the Banking sector as well as the Company’s participation in the “Forthnet S.A. with a carrying amount of one
euro. On 13.11.2020 a partial sale of the abovementioned
participation was completed, for an amount
of € 95 leading to a
recognition
of profit
of €
90 after
transaction
costs
in
“Gains
less
losses
on
financial
transactions
for
discontinued
operations”.
In addition, on 8.9.2020 and on 13.11.2020 the convertible bonds of “Forthnet S.A.” were sold for an amount of € 374, leading
to a recognition of profit of € 364 after transaction costs in “Gains less losses on financial transactions from discontinued
operations”. On 5.3.2021 the sale of the remaining shareholding (0.27% of the share capital of Forthnet S.A.) was completed
and from the outcome of the transaction a profit amounting to € 280 was recognized in “Gains less losses on financial
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
500
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
transactions from discontinued
operations”.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
501
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
36
Awarding of stock
options rights to
employees
The Annual General Meeting of Shareholders of 31.7.2020 approved the establishment
and implementation of a five year plan
which provides the right to acquire newly – issued shares of the Bank (Stock Options Plan) by awarding of stock options rights
to management and employees of the Bank and its connected entities. The plan concerns the period 20202024 and according
to that the beneficiaries may exercise their right
to acquire each new share with an offer price equal to the nominal
value of
the share, i.e. 0.30 €. The General Meeting also approved the assignment to the Board of Directors of the responsibility to
determine the beneficiaries, the terms of options’ awarding, as well as any other term and condition related to the plan, in
accordance with the applicable legal and regulatory framework and Bank’s policies.
Following the exercise of
the Options Rights, the
New Shares are
subject to a
twelve (12) months retention period.
The Board of
Directors of the
Bank, at its
meeting of 30.12.2020: (a)
approved the Plan’s Regulation (b)
awarded Stock Options
Rights under the Performance Incentive Program for the fiscal years 2018 and 2019 to identified employees of the Bank and
its connected entities.
On 31.12.2020, the Bank informed the beneficiaries about the terms and the exact amount of their reward according to their
performance for the
years 2018 and
2019.
In this context, for the years 2018 and
2019, the total number of options
rights, granted and may exercised
within the period
20212024,
equals
to 4,146,394,
each of
which
corresponds
to one
(1) New
Share,
i.e.
in case
all Option
Rights
are exercised,
up to a total of 4,146,394 newly – issued common, registered shares of the Bank, with a nominal value of Euro
0.30 each.
Correspondingly,
based on
the deferr
al periods
of each
Program,
the exercise
periods have
been set
as follows:
Exercise period
Total maximum
number of
options that can
be exercised
January 2021
2,563,945
January 2022
552,818
January 2023
552,890
January 2024
476,741
Total
4,146,394
For the options for
which the exercise period is
January 2021, there are no
specific vesting conditions at the time
of awarding,
while for the rest of the
options the condition
to remain under the Bank employment is prerequisite.
In addition to the above, the Board of Directors of the Company during its meeting on 16.12.2021 granted the Options rights,
within the Performance Incentive Program for the year 2020 to
specific Members of the Bank and its
Affiliates.
In this context, for the fiscal year 2020, the number of Options, granted and may exercised within the period 2022-2025
equals to 5,297,802
each of which
corresponds to one (1)
New Share, i.e.
in case
all Option Rights
are exercised, up
to a
total
of 5,297,802 newly issued common, registered, multiple Shares will be available, with a
nominal value of Euro 0.30 each.
It is noted that under the Performance Incentive Program for the year 2020, 3,612,094 options were granted to Senior
Executives, the exercise of which is subject to the postponement of the amendment or repeal of the provisions for the
prohibition of additional remuneration,
which were introduced of article 10 par. 3 of the law on the Financial
Stability Fund
and which should enter into
force, within a period
of two (2)
years, which begins on
January 15, 2022 and ends
on January 15,
2024.
Respectively
based on
the postponement
periods of
each Program,
the Exercise
Periods
were defined
as follows:
Exercise period
Total maximum number
of options that
can
be exercised
from personnel
belonging to
the
Bank and its related
entities
January 2022
3,178,645
January 2023
706,351
January 2024
706,351
January 2025
706,455
Total
5,297,802
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
502
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
For the options for
which the exercise period is
January 2022, there are no
specific vesting conditions at the time
of awarding,
while for the rest of the
options the condition to remain under the Bank employment is
prerequisite.
Variations to the number of
existing options during the fiscal year
are shown in the
table below:
Balance 1.1.2021
4,146,394
Options Rights
awarded during
the year
5,296,625
Options Rights
canceled during
the year due
to nonreserved
(76,838)
Options Rights exercised
during the year
(2,281,716)
Options Rights expired
during the year
(282,229)
Balance
31.12.2021
6,802,236
The price
of the
Company’s
share
at the
time of
exercising
the Options
rights amounted
to € 0.77.
The Periods of Exercise of
the active rights on 31.12.2021 are
depicted below.
Exercise period
Total maximum
number of
options that can
be exercised
January 2022
3,703,742
January 2023
1,232,064
January 2024
1,160,132
January 2025
706,298
Total
6,802,236
The weighted average lifespan of the above rights is
19.5 months.
From the disposal of the above rights, an amount of € 3,083 was recognized in reserve equity credit, of which € 175 was
recognized as expense from discontinued
activities in the Income Statement of 31.12.2021
(31.12.2020: € 1,495) and an
amount of € 2,908 (31.12.2020: €
172) was recognized in the acquisition cost of the Investments in subsidiaries.
For the Options rights awarded on 31.12.2021 with an exercise date of January 2022, the fair value was determined as the
variation between the share price on
31.12.2021, which is the
date of issue, and
the exercise price. A
similar methodology was
applied for the
rights awarded on
31.12.2020 with an
exercise date of
January 2021.
For the other Options rights
the fair value was
determined using the Black &
Scholes valuation model. The important variables
that enter the model,
as presented in the
table below, are the
share price, the exercise price,
the volatility of the
share price as
well as the remaining duration until the expiration. Historical volatility has been used as variability, the standard deviation of
the logarithmic changes of the daily share price for
a period equal to the
remaining duration of each right.
Options under
the Performance
Incentive
Program for the
years 2018 and
2019
Options, under
the Performance
Incentive
Program for the year 2020
Average weighted value
0.7
0.79
Expected volatility %
72.23%
58.20%
Expected duration (in
years)
2
2
Weighted average
share price
0.9702
1.077
Exercise price
0.3
0.3
Expected dividends
No risk interest rate
(0.52)%
(0.48)%
The weighted fair value of the
rights granted during the year under the
Performance Incentive Program for the year 2020
amounted to €
1,665 (31.12.2020: €
1,172).
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
503
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
37
Corporate
events
‣
On 25.1.2021, in the context of
the restructuring of the Company’s subsidiaries and pursuant the approval of
the Central
Bank of Albania No. 3/ 13.1.2021 and of the Competition Committee of Albania
dated 30.7.2020, the transfer of the
shares of Alpha
Bank Albania
SH.A, owned
wholly by the
Bank, to Alpha
International Holding
S.M.S.A. was
completed.
‣
On 12.2.2021,
the sale
of the
Company’s
subsidiary
AIP Attica
II S.A.
was completed.
‣
On 5.3.2021, the sale of the remaining shares of the company Forthnet held by the Bank was completed, following the
partial disposal
as of
13.11.2020,
with the
acceptance
of a
Public Offering
of Newco
United
Group Hellas
S.A.R.L.
for the
acquisition of all
the common
stocks of
Forthnet S.A.
‣
On 12.3.2021,
the Company
proceeded
to
a share
capital
increase
in cash
in
its subsidiary
Alpha
Group
Investments
Ltd, for an amount of € 265,000 and on the same date
the latter proceeded to a share capital increase
in cash in its
subsidiary, Umera Ltd,
for an
amount of €
265,000.
‣
On 12.4.2021
the Company
proceeded
to a
share capital
increase
in cash
in its
subsidiary,
Alpha Group
Investments
Ltd,
for an amount
of €
100,960
‣
According to the decision of the Extraordinary General Meeting of Shareholders of 23.7.2021, the share capital of its
subsidiary Alpha Bank S.A increased by € 100 mil. with the
issuance
of
1,000,000,000
common,
registered,
voting
shares, in
cash with
a nominal
value of
€ 0.10 each
and a
selling
price of
Euro 1,00
each. The
total difference
between
the nominal value and the selling price amounted to € 900 mil. and credited to “Share premium”. The total amount of
increase amounted to
€ 1
billion.
‣
On 20.9.2021,
Alpha Services
and Holdings
S.A. proceeded
with the
increase
in cash
of the
share capital
of its
subsidiary
Alpha Group Jersey
Ltd, of €
650.
‣
On 29.9.2021,
Alpha Services
and Holdings
S.A.,
in the
context
of Cosmos
transaction,
proceeded
with the
establishment
of its
subsidiary REOCO
Cosmos Single
Member
S.A., whereas
on 1.10.2021
its initial
share capital
amounted
to € 75
was
paid.
‣
On 18.10.2021
within
the framework
of its
updated
Business
Plan, Alpha
Services
and Holdings
S.A. (“HoldCo”),
the 100%
parent company of the Bank, entered into a binding agreement with companies managed and consulted by Davidson
Kempner Capital Management LP (“Davidson Kempner”),
for the sale of 51% of the Mezzanine and Junior Notes of the
securitization of the Cosmos portfolio, which
consists of nonperforming exposures of gross book value
of
€ 3.4
billion
(“Cosmos Transaction”).
The Bank retained
100% of the
Senior Notes,
using the provisions
of the “Hercules”
Guarantee
Program,
as well
as 5%
Mezzanine
and Junior
Notes.
On 17.12.2021
the Company
completed
the “Cosmos”
transaction.
‣
On 10.12.2021, the Bank completed the decrease of its share capital by way of distribution in kind in the amount of
€ 10,825 by canceling 108,252,500 common, registered, voting shares, with a nominal value of € 0.10 each, held by the
Company, with a parallel distribution of 95% of the mezzanine and junior notes, owned by the Bank and issued by the
Irish company under the name
“Cosmos Securitization Designated Activity Company”, with a total fair
value equal to the
amount of
the above decrease
of the
Bank’s share capital.
‣
On 29.12.2021, the increase of the share capital of the Bank by the amount of € 16,000 in cash was completed by
the Company and the issuance of 160,000 new shares with a nominal value of € 0.10 each
and an offering price of
€ 1.00 each. The total difference between the nominal value and the offering price of
the new shares, ie. the amount of
€ 144,000 was credited to the account “Share premium” of the Bank.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
504
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
38
Restatement of financial statements
Within the financial year, the Company has changed the method of calculating the defined benefit obligation arising from
the pension
compensation
under the
Greek labour
legislation,
taking into
account
the IFRIC
Committee’s
decision.
Based on
this decision, the distribution of the obligation into periods of service no longer starts from the first day of employment but
subsequently, as prescribed
in article 8
of Law
3198/1955.
In addition, in the context of the hivedown of the banking sector and its transfer to the Bank, the activities that relate to
banking sector
meet the
definition
of discontinued
operations
for the
Company
in accordance
with IFRS
5. Consequently,
the
results of the banking activity are presented in aggregate as results from discontinued operations in a separate line of the
Income Statement and the
respective comparative amounts have
been restated.
As a result of
the above changes, certain figures of
the Income Statement and Statement of
Other Comprehensive Income of
the previous
period have
been restated,
as per
the tables follow:
The restated Income statement for the period 1.1 until 31.12.2020, is presented below:
From 1 January
to 31.12.2020
Published
amounts
Restatement
Reclassification
Restated
amounts
Discontinued
Operations
Continuing
Operations
Interest and similar income
1,806,416
1,806,416
(1,507,829)
298,586
Interest expense
and similar
charges
(501,044)
(501,044)
473,661
(27,383)
Net interest income
1,305,372
-
-
1,305,372
(1,034,168)
271,203
Fee and commission
income
325,358
325,358
(305,611)
19,747
Commission expense
(44,484)
(44,484)
44,464
(19)
Net fee and commission income
280,874
-
-
280,874
(261,147)
19,728
Dividend income
10,726
10,726
(10,126)
600
Gains less losses on
derecognition of financial assets
measured at amortized
cost
178,205
178,205
(177,466)
739
Gains less losses on financial
transactions
410,718
410,718
(430,653)
(19,935)
Other income
18,819
18,819
(18,403)
416
Total other income
618,468
-
-
618,468
(636,648)
(18,180)
Total income
2,204,714
-
-
2,204,714
(1,931,963)
272,751
Staff costs
(334,317)
152
(334,165)
333,666
(499)
General administrative
expenses
(369,272)
7,613
(361,659)
360,843
(816)
Depreciation and amortization
(128,902)
(128,902)
128,900
(2)
Other expenses
(15,983)
(15,983)
15,983
Total expenses before
impairment losses,
provisions
to cover credit risk and
related expenses
(848,474)
7,765
-
(840,709)
839,392
(1,317)
Impairment losses, provisions
to cover credit risk
and related
expenses
(1,142,715)
(7,613)
(1,150,328)
796,469
(353,859)
Profit/(loss) before
income
tax
213,525
152
-
213,677
(296,102)
(82,425)
Income tax
(75,128)
(44)
(75,172)
43,534
(31,638)
Profit/(loss)
after income tax
from continuing operations
138,397
108
-
138,505
(252,568)
(114,063)
Profit/(loss) after income
tax
from discontinued operations
252,568
Profit/(loss) of the year
138,397
108
-
138,505
(252,568)
138,505
Earnings/(losses) per
share
Basic (€ per share)
0.0897
0.0897
Diluted (€ per share)
0.0897
0.0897
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
505
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
The restated Statement of comprehensive income for the year from 1 January to 31.12.2020, is presented below:
From 1 January
to 31.12.2020
Published
amounts
Restatement
Restated
amounts
Profit/(loss) for
the year,
recognized in the
Income Statement
138,397
108
138,505
Other comprehensive
income
Items that may be reclassified to
the Income Statement
Net change in investment securities’
reserve measured at fair value through other
comprehensive income
(363,393)
(363,393)
Net change in
cash flow hedge
reserve
20,841
20,841
Income Tax
99,340
99,340
Items that may be reclassified to
the Income Statement
(243,212)
-
(243,212)
Items that will not be reclassified to the Income Statement
Net change in actuarial gains/(losses)
of defined benefit obligations
(3,242)
(2,641)
(5,883)
Gains/(losses) from equity securities measured at fair value through other comprehensive
income
4,064
4,064
Income tax
(239)
767
528
Items that will not be reclassified to the Income Statement
583
(1,874)
(1,291)
Other comprehensive
income for
the year,
after income
tax
(242,629)
(1,874)
(244,503)
Total comprehensive
income for
the year
(104,232)
(1,766)
(105.998)
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
506
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
The restated Balance sheet 31.12.2020 is presented below:
31.12.2020
Published
amounts
Restatement
Restated
amounts
ASSETS
Cash and balances
with central
banks
6,682,232
6,682,232
Due from banks
2,630,190
2,630,190
Trading securities
29,418
29,418
Derivative financial assets
1,272,924
1,272,924
Loans and
advances to
customers
35,280,807
35,280,807
Investment securities
- Measured at fair value through other comprehensive
income
5,170,579
5,170,579
- Measured at fair value through
profit or loss
218,317
218,317
- Measured at amortized
cost
3,160,121
3,160,121
Investments
in subsidiaries
associates
and joint
ventures
2,488,619
2,488,619
Investment property
46,659
46,659
Property, plant and equipment
642,381
642,381
Goodwill and other intangible assets
473,458
473,458
Deferred tax assets
5,277,158
(14,054)
5,263,104
Other assets
1,373,114
1,373,114
64,745,977
(14,054)
64,731,923
Assets classified
as held for
sale
274,773
274,773
Total Assets
65,020,750
(14,054)
65,006,696
LIABILITIES
Due to banks
13,333,799
13,333,799
Derivative financial
liabilities
1,769,222
1,769,222
Due to customers
39,535,086
39,535,086
Debt securities in issue and other borrowed funds
1,048,536
1,048,536
Liabilities for current income
tax and other taxes
64,296
64,296
Employee
defined
benefit
obligations
84,899
(48,465)
36,434
Other liabilities
990,529
990,529
Provisions
189,499
189,499
Total Liabilities
57,015,866
(48,465)
56,967,401
EQUITY
Share capital
463,110
463,110
Share premium
10,801,029
10,801,029
Reserves
326,893
326,893
Retained earnings
(3,586,148)
34,411
(3,551,737)
Total Equity
8,004,884
34,411
8,039,295
Total Liabilities and
Equity
65,020,750
(14,054)
65,006,696
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
507
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
39
Discontinued
operations
Following the demerger by way
of hivedown of its
banking business sector, which was completed on
16.4.2021, the results
of the banking sector for the current reporting period i.e. 1.1.2021 to 16.4.2021, which constituted the main sector of the
operations of the demerged entity, are
presented as discontinued operations. The comparative figures for the
period 1.1.2020
to 31.12.2020, are
presented based on
the results of
the net assets
transferred.
The results of the
banking sector are depicted in
the table below:
From 1
January to
16.4.2021
31.12.2020
Interest and similar income
451,420
1,507,829
Interest expense
and similar
charges
(127,585)
(473,661)
Net interest income
323,835
1,034,168
Fee and commission
income
85,195
305,611
Commission expenses
(10,100)
(44,464)
Net fee and commission income
75,095
261,147
Dividend income
103
10,126
Gains less
losses on
derecognition of
financial assets
measured at
amortized cost
2,541
177,466
Gains less losses
on financial
transactions
(303,439)
430,653
Other income
5,644
18,403
Total other income
(295,151)
636,648
Total income
103,779
1,931,963
Staff costs
(83,410)
(333,666)
Expenses for separation
schemes
(97,670)
General administrative
expenses
(98,022)
(360,843)
Depreciation and amortization
(39,007)
(128,900)
Other expenses
(43,678)
(15,983)
Total expenses
before impairment
losses, provisions
to cover
credit risk
and related
expenses
(361,787)
(839,392)
Impairment losses,
provisions to
cover credit
risk and
related expenses
(54,342)
(796,469)
Profit/(loss) before
income tax
(312,350)
296,102
Income tax
(26,036)
(43,534)
Net earnings/(losses)
after income
tax from
discontinued operations
(338,386)
252,568
The results for the banking sector
from 1.1.2021 to 16.4.2021 have been
mainly affected from the following:
The increase
in the
interest
income
which
mainly
attributed
to
the recognition
of income
amounted
to €
36,407
from
TLTRO
III, which relates to retrospective recognition of income due to the additional
0.5% for the period 24.6.2021 to 31.3.2021
given that
the targets have
been achieved.
The increase of
losses reported under “Gain
less losses on
financial transactions” due to
the impairment of
subsidiaries
amounted to
€ 359,009,
as described in
detail in
note 17.
The recognition of a provision amounted to € 97,200 under “Staff Costs”, in the context of a three year strategic
transformation plan of the network of branches and central
units, for personel separation schemes.
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
508
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
The statement of comprehensive income of the
banking sector is presented in the
table below:
From 1
January to
16.4.2021
31.12.2020
Profit/(loss) for the
period recognized in
the Income
Statement
(338,386)
252,568
Other comprehensive
income
Items that may be reclassified to
the Income Statement
Net change in investment securities’ reserve
measured at fair value through other comprehensive
income
(87,964)
(363,393)
Net change in
cash flow hedge
reserve
6,036
20,841
Income Tax
23,759
99,340
Items that may be reclassified to
the Income Statement
(58,169)
(243,212)
Items that will not be reclassified to the Income Statement
Remeasurement
of defined benefit liability/ (asset)
(5,883)
Gains/(losses)
from equity
securities
measured
at fair
value
through other
comprehensive
income
117
4,064
Income Tax
(33)
528
Items that will not be reclassified to the Income Statement
84
(1,291)
Other comprehensive
income for
the period,
after income
tax
(58,085)
(244,503)
Total comprehensive
income for
the period
(396,471)
8,065
…….…FINANCIAL STATEMENTS
AS AT 31.12.2021
509
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
40
Events after
the balance
sheet date
•
On 4.2.2022, the Company signed a contract
for an open revolving account
with the Bank with
the right to use
a working
capital limit up to the amount of € 50 mil., with a EUR3M+2,05 rate
and a duration of each individual financing up to 6
months.
•
In the context of the implementation of the stock option plan with the issuing of new shares to executives of the Company
and its related entities, as detailed in note 36, 1,430,168 stock options were exercised during January 2022 by the holders
who exercised the share stock options, in accordance with the program and in the context of the Performance Incentive
Program for the years 2018, 2019 and 2020. As a result of the above, 1,430,168 common, registered, with a right of vote
shares were
issued, the
face value
of each
equal to
€ 0.30 and
the share
capital increased
by € 429,
as per
the decision
of
the Annual General Assembly
of shareholders of 31.7.2020 and
the relevant decisions of
the Company’s Board of
Directors
of 31.12.2020 and 16.12.2021. The trading of the 1,430,168 new, common, registered shares of the Company in the
Athens Stock Exchange
commenced on 10.2.2022.
•
Following the recent developments in
Ukraine and Russia it
is noted that
the Company has no
significant exposure to the
countries involved.
•
On 24.1.2022, the Company, 100% parent entity of Alpha Group Jersey Limited announced that Alpha Group Jersey
resolved the repayment of the outstanding amount of its Series B Preferred Securities. Specifically, Alpha Group Jersey
resolved the repayment in full of the outstanding amount of the initial € 600.000 Series B CMSLinked, without accumulated
dividend,
non voting
preferred
securities
(ISIN: DE000A0DX3M2),
which
are under
subordinated
guarantee
by the
Company,
at the preferred divident payment
date of 18 February 2022, at the repayment
price for a total amount of € 16 million.
Before the
repayment,
as it is
required by
its articles
of incorporation,
Alpha Group
Jersey has
requested and
received, the
consent of
Alpha Services
and Holdings
S.A., of
the Single
Supervisory
Mechanism
and, to
the degree
that it
is required,
of
the Bank of Greece.
As a result
of the above Alpha Group
Jersey repayed on 18.2.2022 the outstanding nominal amount of
€ 15.5 million.
On 18.2.2022, the Company repaid
its debt liability towards
Alpha Group Jersey, which in
turn repaid the
remaining nominal
amount from issued bonds amounting to € 15.5 million. The
above transaction did not affect the results of the Company.
•
On 25.2.2022,
Alpha
Services
and Holdings
S.A.
transferred
to Alphalife
A.E.A.Z.
ten (10)
common,
registered
with
voting
rights shares, not listed, with a nominal value
of € 0.10 for a total consideration of € 12.5 of its shareholding in the Bank
which represent approximately 0,00000002 %
of the share
capital of the
later.
•
On 24.3.2022,
the sale of
the Non-performing
and Unsecured
Retail Loan
Portfolio (Orbit
transaction) was
completed (note
35).
Athens, 31 March 2022
THE CHAIRMAN
OF THE BOARD OF DIRECTORS
THE CHIEF EXECUTIVE
OFFICER
THE GENERAL MANAGER
AND CHIEF FINANCIAL OFFICER
THE ACCOUNTING
AND TAX MANAGER
VASILEIOS T.
RAPANOS
ID No AΙ 666242
VASSILIOS E. PSALTIS
ID No AΙ 666591
LAZAROS A. PAPAGARYFALLOU
ID No AK 093634
MARIANA D. ANTONIOU
ID No Χ 694507
508
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
Report on
use of
Funds raised
through payment
in cash
and disapplication
of the
pre-emption
rights
of
the
existing
ordinary
registered
shares,
with
voting
rights
Pursuant to the Authorization granted to,
by the virtue of
the resolution of the
Extraordinary General Meeting of the shareholders
of the Company on
15.6.2021, which was
resolved by the
Board of Directors of
the Company on 8.7.2021.
In accordance
with article
4.1.2 of
the Athens
Exchange Regulation
and decisions
no. 25/17.7.200
8
& 6.12.2017
of the Board
of Directors
of Athens
Exchange
and no.
8/754/14.4.2016
of the
Board of
Directors of
Hellenic
Capital Market
Commission,
it
is hereby announced
that the Company’s
share capital is increased
by the issuance of 800,000,000
new ordinary registered
voting shares,
with nominal
value of
€
0.30 per
share leading
to total
funds raised
of €
0.8 billion
through payment
in cash and
disapplication of
the pre-emption
rights of
the existing
shares.
Specifically,
the share
capital of
the Company
was increase
d
by cash
payment of
€ 240,000,000
and the
issuance and
offer by
the Company
of 800,000,000
ordinary registered
voting shares,
with nominal
value € 0.30
each and
offering price
€ 1.00 each, for
which the difference
between the
nominal value
and the offering
price, amounting
to € 560,000,000,
was credited
to Company’s
equity “Share premium”
account. The
issuance costs
to date, amounted
to € 40,313,656.56 and
were fully covered
by the funds
raised. The certification
of the Share Capital increase
payment was granted
by the Company’s Board
of Directors meeting held
on
8.7.2021.
The purpose of
the share capital
increase of Alpha
Services and
Holdings S.A.
is the enhancement
of the capital
adequacy of
Alpha Services
and Holdings
S.A. and the
consolidated entities
of the Group
in the context
of executing
its announced
growth
strategy.
In order to achieve
the above mentioned
purpose, the Issuer
of the shares committed
to carry out the
share capital increase
of its
subsidiary Bank, within
3 months from the completion
of the share capital increase
of Alpha Services and
Holdings S.A., which
was
completed on
28.7.2021.
Table for
the Use of
Proceeds from the
Share Capital
Increase
Description of the
use of funds
raised
Total funds
raised
8.7.2021
Use of funds
as of
31.12.2021
Balance of Funds
as at 31.12.2021
Enhancement of
the capital adequacy
of Alpha Services
and Holdings
S.A. and
the consolidated entities of the Group in the context of executing
its announced
growth strategy
800,000,000.00
800,000,000.00
Issuance costs
(40,313,656.56)
(40,313,656.56)
Total
759,686,343.44
759,686,343.44
Athens, 31 March 2022
THE CHAIRMAN
THE
CHIEF
EXECUTIVE
THE GENERAL MANAGER
THE ACCOUNTING
OF THE BOARD OF DIRECTORS
OFFICER
AND CHIEF FINANCIAL
OFFICER
AND TAX MANAGER
VASILEIOS T. RAPANOS
VASSILIOS E. PSALTIS
LAZAROS
A.
PAPAGARYFALLOU
MARIANA
D.
ANTONIOU
ID No AΙ 666242
ID No AΙ 666591
ID No AK 093634
ID No Χ 694507
509
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
510
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless
otherwise indicated
Deloitte Certified
Public
Accountants S.A.
3a Fragkokklisias &
Granikou str.
Marousi Athens GR 151-25
Greece
Tel: +30 210 6781 100
www.deloitte.gr
TRUE TRANSLATION
Report on factual findings from
the agreed-upon procedures
on the Report of
Use of Funds Raised
To
the Board of Directors
of the Company “Alpha
Services and Holdings S.A.”
According to
the engagement
letter dated
14 March
2022 received
from the
management of
“Alpha
Services and
Holdings S.A.”
(The Company),
we have performed
the following
agreed-upon procedures
in the
context of
the
regulatory framework requirements of the Athens
Stock of Exchange as well as the relevant
legislative
framework
of
the Hellenic Capital Market Commission on the Report on Use of Funds
raised
from
the
share
capital
increase
through payment
in cash
and disapplication
of the
pre-emption rights
of the
existing ordinary
registered
shares, with
voting rights as resolved by the Extraordinary General Meeting of
the Shareholders of the Company on 15.06.2021,
which was specified by the
decision of the
Board of Directors
of the Company on
08.07.2021.
The management
of the
Company
is responsible
for the
preparation
of the
above-mentioned Report.
We
performed
our agreed-upon
procedures in
accordance with
the International
Standard on
Related
Services 4400,
which applies
to “Engagements
to perform
agreed-upon procedures
regarding financial
information”.
Our responsibility
is to
perform the following
agreed-upon procedures and
to report our factual
findings to you.
Agreed-upon procedures
In specific,
the procedures
we have
performed are
summarized as
follows:
1)
We compared
the amounts referred
to as Use
of Funds in
the «Report
on Use
of funds raised
from the
share capital
increase» against
the corresponding
amounts recorded
in the
Company's books
and records,
during the period referred to.
2)
We inspected
the consistency
of the
content of
the Report
to the
Prospectus issued
by the
Company for
this
purpose, as well
as to
the relevant
decisions and
communications of
the governing
bodies of
the Company.
Findings
Based on
the above
-mentioned agreed-upon
procedures, we
report to
you the
following:
a)
The amounts shown
as Use of
Funds in the
«Report on Use
of funds raised
from the share
capital
increase», by category
of use,
are derived
from the
books and records
of the
Company,
during the
period
referred to.
This document has been prepared by Deloitte Certified Public Accountants Societe Anonyme.
Deloitte Certified
Public
Accountants
Societe
Anonyme,
a Greek
company,
registered
in Greece
with registered
number 000122360
1000 and
its registered
office at
511
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless
otherwise indicated
Marousi, Attica,
3a Fragkokklisias
& Granikou
str.,
151 25, is
one of the
Deloitte Central
Mediterranean S.r.l.
(“DCM”) countries. DCM,
a company
limited by guarantee
registered in
Italy with
registered number
09599600963 and
its registered
office at
Via Tortona
no. 25, 20144,
Milan, Italy
is one of
the Deloitte
NSE LLP geographies.
Deloitte NSE LLP is a UK limited liability partnership and member firm of DTTL, a UK private company
limited by guarantee.
DTTL and each of its member firms are legally separate and independent entities. DTTL, Deloitte NSE LLP and Deloitte
Central Mediterranean S.r.l.
do not provide services
to clients. Please see www.deloitte.com/about
to learn more about our global network of member firms.
512
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless
otherwise indicated
b)
The content
of the Report
includes at
least the information
required for
this purpose
by the re
gulatory
framework of
the Athens Stock
of Exchange
as well
as the
relevant legislative
framework
of the Hellenic
Capital Market
Commission and is
consistent with
the referent
in the prospectus
with regards
to the
enhancement of
the capital
adequacy of
Alpha Services
and Holdings
S.A. and the
consolidated entities
of
the Group in
the context
of executing
its announced growth
strategy and
the relevant
decisions and
communications of the governing bodies of
the Company.
Because the
above procedures
do not
constitute either
an audit
or a
review made
in accordance
with International
Standards on
Auditing or International
Standards on
Review Engagements
(or relevant
national standards
or
practices), we do not express
any assurance other than
what is referred above.
Had we
performed additional
procedures or
had we performed
an audit
or review
of the
financial statements
in
accordance
with International
Standards
on Auditing
or International
Standards on
Review,
other matters
might have
come to our attention
other than those included in the previous
paragraph.
Restriction of
use
Our report
is addressed exclusively
to the Board
of Directors
of the
Company,
in the
context of
compliance with
its
obligations to
the regulatory
framework
of the
Athens Stock
Exchange as
well as
the relevant
legislative framework
of the Hellenic Capital Market Commission. Therefore,
this report is not be used for any
other purpose as it
is limited
to the
items specified
above and
does not extend
to any
financial statements
prepared by
the Company
for the
year
ended 31 December
2021 and for
which we have
issued a separate
Audit Report, dated 31
March 2022.
Athens, 31 March 2022
The Certified
Public Accountant
Alexandra B. Kostara
Reg. No.
SOEL: 19981
Deloitte
Certified Public
Accountants
S.A.
3a Fragoklissias
& Granikou
Str.,
151 25
Maroussi
Reg. No. SOEL:
Ε120
……BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
511
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
Appendix of the
Board of
Directors’ Annual
Management
Report
According to European
Securities and Markets
Authority (ESMA)
guidelines in relation to
Alternative Performance
Measures
(APMs), not-defined
under IFRS,
which published
in October
2015 and
were applicable
from 3
July 2016,
on the following
tables
the definitions
and the calculations
of the related
(APMs) which
are included in
the Board of
Directors’ Annual
Management
Report as
at 31.12.2021 are
disclosed.
As described
in the
accounting
policies
section,
the financial
statements
for the
year
1.1
- 31.12.2021
have
been
prepared
in accordance with
International Financial
Reporting Standards
(IFRS), as adopted
by the European
Union, in accordance
with
Regulation 1606/2002 of the European Parliament
and the Council
of the European Union
on 19 July
2002.
Alternative Performance
Measures, include
or exclude amounts
which are not defined
under IFRS,
aiming at consistency
and
comparability
among financial
periods
or years
and provision
of information
regarding
non-recurring
events.
However,
the not
defined under IFRS measures presented are not a substitute for IFRS measures.
(Amounts in millions
of Euro)
Definition
Interpretation of the ratio
Calculation
31.12.2021
31.12.2020
Loans to deposits
ratio
The indicator reflects the relationship of
loans and advances
to customers with
the amounts due to
customers
Numerator
+
Loans and advances
to
customers
36,860
39,380
Denominator
+
Due to customers
46,970
43,831
Ratio
=
78%
90%
(Amounts in millions
of Euro)
Definition
Interpretation of
the ratio
31.12.2021
31.12.2020
Normalised net profit after income tax
The caption illustrates
net profit after income tax
excluding non
-
recurring results,
results recognized
in the context of planned
transactions or in relation
to the transformation
plan of the Group
330
87
For the year 2021, the analysis of the normalised net profit after income tax is presented
in the section “Analysis of Group
Financial Information” of
the Board of
Directors’ Management Report.
Normalised
profit for
the period
1.1.2020-31.12.2020
was Euro
87 million.
This is
after accounting
for gains/losses
that
have been designated as non-recurring.
For the period 1.1.2020-31.12.2020, gains/losses
recognized either in the context of
planned transactions or the
transformation plan of the
group for the
are analysed below:
•
gains less losses on financial transactions and gains less losses on derecognition of financial assets measured at
amortised cost of
amount Euro 689 million
that mainly relate to
gains from sales of
bonds and interest-bearing
Greek
Government and other bonds.
•
expenses before impairment losses and
provisions to cover credit risk of amount Euro 118 million that relate to (a)
provision for employees separation schemes of Euro 26 million for the subsidiary Alpha Bank Cyprus, (b) impairment of
fixed and intangible assets of Euro 22 million, (c) carve out expenses relating to Cepal
of amount Euro 24 million, (d)
provisions for legal cases & operational risk losses other expenses of amount Euro 14 million and (e) other expenses of
amount Euro
32 million
that are either
related to
the implementation
of the transformation
plan or
the transactions
of the
business plan or
they are of
a non-recurring nature.
……BOARD OF DIRECTOR’S ANNUAL MANAGEMENT REPORT AS AT 31.12.2021
512
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
•
Impairment losses and provisions
to cover credit risk of amount
Euro 602 million which relates
a) to the impact of the
global economic crisis caused by the Covid-19 pandemic and b) to the incorporation of sales scenarios in the expected
credit losses calculation.
•
Income tax on the above mentioned results of amount Euro 6 million (expense)
as well as amount Euro 54 million (income)
that concerns a reversal of
deferred tax liability, which has
been calculated on investments
classified as “held for sale”, as
a result of change
in tax regime by
the article 20 of
the Law 4646/2019,
according to which the
gains from the sale
of the
aforementioned investments
is exempt from taxation,
while the losses are deductible
up to the amount that have
been
recognized as of 31.12.2019.
Disclosures
of
Law
4374/2016
According to article 6 of Law 4374/1.4.2016
“Transparency among credit institutions,
media companies and subsidized
persons” introduced to all credit institutions
established in Greece the obligation to publish
annually and on consolidated
basis:
a)
All payments made within the year directly or indirectly to media
company and its related parties, according to IAS 24, or
communication and advertising company.
b)
All payments made within the year due to donation,
subsidy, grant or other grantis to individuals
and legal entities.
The information required
is presented below,
in Euro:
PAYMENTS
TO MEDIA
COMPANIES
(Article
6 Par.1
of L.4374/2016)
Name*
Amounts before taxes
1984 PRODUCTIONS
AE
4,795.02
1984 ΑΝΕΞΑΡΤΗΤΗ
ΔΗΜΟΣΙΟΓΡΑΦΙΑ
Α.Μ.Κ.Ε.
9,125.00
24 MEDIA
ΨΗΦΙΑΚΩΝ
ΕΦΑΡΜΟΓΩΝ
ΑΕ
57,805.00
ADWEB LTD
ΕΤΑΙΡΕΙΑ ΠΕΡΙΟΡΙΣΜΕΝΗΣ
ΕΥΘΥΝΗΣ
10,895.00
AIRLINK-ΕΛΛ/ΚΕΣ
ΕΠΙΧ/ΣΕΙΣ ΕΚΔ.& ΟΠΤΙΚ/ΚΩΝ
ΜΕΣΩΝ ΑΕ
6,647.94
ALPHA EDITIONS AE
4,640.00
ALPHA ΔΟΡΥΦΟΡΙΚΗ
ΤΗΛΕΟΡΑΣΗ Α.Ε
274,900.41
ALPHA ΡΑΔΙΟΦΩΝΙΚΗ
Α.Ε.
19,117.98
AMOS INTERNATIONAL I.K.E
1,650.00
ART SAVY ΜΟΝ. Ι.Κ.Ε.
7,550.00
ASM PUBLICATIONS PC
6,000.00
BANKINGNEWS
AE
65,000.00
BETTERMEDIA IKE
4,500.00
BRAINBUZZ MEDIA CONSULTING
IKE
2,500.00
BRAINFOOD
ΕΚΔΟΤΙΚΗ
ΕΠΕ
1,800.00
CLOCKWORK
ORANGE
MINDTRAP
LIMITED
10,800.00
CPAN CONNECT
- ED
PUPLIC AFFAIRS
NETWORK LTD
BANKWARSGR
10,800.00
CR MEDITERRANEAN
ENTERPRISES
(ΜΟΝ. ΙΚΕ)
3,000.00
D.G. NEWSAGENCY A.E.
21,675.00
DDB ΑΕ
7,997.04
DIMERA ΕΚΔΟΤΙΚΗ ΑΝΩΝΥΜΗ
ΕΤΑΙΡΙΑ
1,605.50
DPG DIGITAL MEDIA A.E.
48,085.00
ELCPRODUCTIONS
ΑΣΤΙΚΗ
ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΗ
ΕΤΑΙΡΕΙΑ
450.00
ENIGMA M.G. ΜΟΝΟΠΡΟΣΩΠΗ Ι.Κ.Ε.
3,081.00
ETHOS MEDIA ΑE
5,700.00
EUROMEDIA ACTION
AE
6,000.00
DISCLOSURES OF LAW 4374/2016
514
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
EXIT BEE GREECE
ΥΠΟΚΑΤΑΣΤΗΜΑ ΑΛΛΟΔΑΠΗΣ
11,520.00
FAROSNET Α.Ε
19,660.00
FAST RIVER
ΔΗΜ.KEIMENO CONCEPTI
ΕΚΔ.ΕΠΕ
4,500.00
FINAΝCIAL MARKETS
VOICE AE
ΕΦΗΜΕΡ FM
VOICE
5,000.00
FORWARD MEDIA IKE
15,532.98
FREED ΑΕ
17,666.00
FRONTSTAGE ΨΥΧΑΓΩΓΙΚΗ
ΑΕ
28,194.67
GATEWORK A.E.
875.00
GLOBVY A.E.
14,600.00
GLOMAN AE
7,525.00
DISCLOSURES OF LAW 4374/2016
515
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
GM COMMUNICATION
ΙΚΕ
17,688.00
GRAMMABOOKS
Ι.Κ.Ε.
5,000.00
GREEN BOX ΕΚΔΟΤΙΚΗ
ΑΕ
7,300.00
HARRIS ΕΠΙΚΟΙΝΩΝΙΑ
ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ
1,200.00
HELLAS JOURNAL
INC
8,800.00
HTTPOOL
Greece/
LinkedIn
103,689.71
ICAP AE
12,270.00
ICAP GROUP A.E
3,200.00
INFINITAS Ι.Κ.Ε.
720.00
INFONEWS I.K.E.
14,500.00
INSIDER
PUBLICATIONS
ΕΚΔΟΣΕΙΣ
ΜΟΝ/ΠΗ
ΕΠΕ
14,807.00
INTERNATIONAL RADIO NETWORKS ΑΕ
DEE JAY
18,658.30
J.O INFOCENT ΕΠΙΚΟΙΝΩΝΙΕΣ
MON.ΕΠΕ
5,402.00
K.E.D. HEALTH O.E.
18,250.00
KEYWE Ι.Κ.Ε.
6,500.00
KISS AE
ΜΕΣΑ ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
8,812.07
KONTRA IKE
3,000.00
KONTRA MEDIA
ΜΕΣΑ ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
Α.Ε.
16,879.40
KOOLWORKS Μ. A.E.
4,017.00
KYRTSOS GROUP Ε.Ε.
5,000.00
LIQUID PUBLISHING
A.E.
47,357.50
LOCAL NEWS ΔΗΜΗΤΡΙΟΣ Κ. ΤΟΛΗΣ ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
145.14
LOVE RADIO
BROADCASTING
AE
1,620.00
M.V. PRESS
ΜΟΝΟΠΡΟΣΩΠΗ ΙΚΕ
ΕΚΔΟΣΕΙΣ
5,399.13
MARATHON PRESS
IKE
1,600.00
MASTER MINDS
PRIVATE COMPANY
1,000.00
MEDIA2DAY ΕΚΔΟΤΙΚΗ
ΑΝΩΝΥΜΗ ΕΤΑΙΡΕΙΑ
134,519.55
MINDSUPPORT ΙΚΕ
5,126.99
MINDTHEGAP MEDIA
COMMUNICATIONS
ΜΟΝ. Ι.Κ.Ε.
8,493.00
MONITOR GROUP
Μ. ΕΠΕ
Α.ΠΑΠΑΣΤΑΘΟΠΟΥΛΟΣ
Μ.ΕΠΕ
800.00
MONOCLE
MEDIA LAB
MONONEWS
ΜΙΚΕ
87,715.00
MOTORMEDIA ΚΑΙ ΣΙΑ ΕΕ
1,520.00
NAG MEDIA Α.Ε.
7,000.00
NEW MC ΚΑΙ ΣΙΑ Ε.Ε.
1,540.00
NEW MEDIA
NETWORK SYNAPSIS
S.A.
97,746.00
NEWPOST PRIVATE
COMPANY
23,065.00
NEWSFRONT ΝΑΥΤΙΛΙΑΚΕΣ
ΕΚΔΟΣΕΙΣ
ΙΚΕ
740.00
NEWSIT ΕΠΕ
71,613.00
NEWSROOM Ι.Κ.Ε.
2,385.00
NK MEDIA GROUP
Ε.Π.Ε.
18,000.00
NOVA BROADCASTING
AE
72,552.50
OLIVE MEDIA AE
1,525.00
ONE BRAND STUDIO IKE
6,525.00
ONE DIGITAL SERVISES Α.Ε.
19,000.00
PARALOT MEDIA & MARKETING
LIMITED
3,000.00
PERFECT MEDIA
ADVERTISING ΜΙΚΕ
70,305.52
PHAISTOS NETWORKS
AE
12,664.90
POLITICAL
PUBLISHING
I.K.E.
2,000.00
POWERGAME MEDIA
IKE
7,500.00
PREMIUM A.E.
29,873.00
PRIME APPLICATIONS
A.E.
54,810.00
PROJECT AGORA LTD
16,070.00
PROPERTY MARKETING
SERVICES ΔΙΑΦΗΜΙΣΤΙΚΗ
ΙΚΕ
5,000.00
R MEDIA
ΕΚΔΟΤΙΚΗ ΕΤΕΡΟΡΡΥΘΜΗ
ΕΤΑΙΡΙΑ
3,000.00
RADIO PLAN BEE ΙΔΙΩΤΙΚΗ ΚΕΦΑΛΑΙΟΥΧΙΚΗ ΕΤΑΙΡΕΙΑ
2,510.22
DISCLOSURES OF LAW 4374/2016
516
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
REAL MEDIA
ΜΕΣΑ ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
Α.Ε
103,613.20
DISCLOSURES OF LAW 4374/2016
517
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
REPORT PRIVATE COMPANY
800.00
S.& A. NEMO ONLINE
ΕΠΕ
1,350.00
SABD ΕΚΔΟΤΙΚΗ
Α.Ε.
83,471.50
SAMOS BUSINESS DEVELOPMENT
ΙΚΕ
7,750.00
SFERA RADIO
ΑΝΩΝΥΜΟΣ
ΡΑΔ/ΚΗ ΕΤΑΙΡΙΑ
7,136.40
SOL DE
GRECIA ΜΟΝΙΚΕ
2,500.00
SOLAR ΡΑΔΙΟΤ/ΚΕΣ
& ΨΥΧΑΓΩΓΙΚΕΣ
ΥΠΗΡ.Α.Ε
20,859.00
SPORT TV
ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΗ
ΠΡΟΒΟΛΗ
ΑΕ
60,794.45
SPORTNEWS ΥΠΗΡΕΣΙΕΣ
ΔΙΑΔΙΚΤΙΟΥ Α.Ε
11,250.00
TELIA COMMUNICATIONS
AE
6,510.00
THE TOC DIGITAL
MEDIA ΥΠΗΡΕΣΙΕΣ
ΕΝΗΜΕΡ.Α.Ε
23,697.00
THE WALT DISNEY
COMPANY GREECE ΜΕΠΕ
4,506.88
THINK DIGITAL INTERNET
ΚΑΙ ΔΙΑΦΗΜΙΣΗ
ΜΟΝ/ΠΗ ΑΕ
3,000.00
TLIFE ΕΦΑΡΜΟΓΕΣ
ΔΙΑΔΙΚΤΥΟΥ ΕΕ
9,850.00
TOMORROW NEWS
I.K.E.
3,535.00
U MEDIA ΕΞΕΙΔΙΚΕΥΜΕΝΕΣ
ΔΙΑΦ. ΥΠΗΡΕΣΙΕΣ
Ι.Κ.Ε.
74,484.00
USAY Σ.ΠΑΥΛΟΠΟΥΛΟΣ
ΜΟΝ.ΕΠΕ
4,470.00
VICE GREECE ΜΟΝ/ΠΗ
ΑΕ
800.00
VITO PR &
EVENTS ΥΠΟΚΑΤΑΣΤΗΜΑ
ΑΛΛΟΔΑΠΗΣ
2,467.00
W.S.F. WALL STREET FINANCE Ι.Κ.Ε.
8,800.00
WORLD TWENTY
FOUR SEVEN
E.E.
2,500.00
ΑΒΡ
ΕΚΔΟΤΙΚΗ
ΙΔΙΩΤΙΚΗ
ΚΕΦΑΛΑΙΟΥΧΙΚΗ
ΕΤΑΙΡΕΙΑ
9,146.00
ΑΘΑΝΑΣΙΑΔΗΣ
Π. & ΣΙΑ ΑΕ
31,000.00
ΑΘΑΝΑΣΙΟΥ ΔΑΜΙΑΝΟΣ
ΕΦΗΜΕΡΙΔΑ Η ΔΗΜΟΚΡΑΤΙΚΗ
ΤΗΣ ΡΟΔΟΥ
1,825.00
ΑΘΕΝΣ ΒΟΙΣ ΑΝΩΝΥΜΗ ΕΚΔΟΤΙΚΗ ΕΤΑΙΡΕΙΑ
56,650.00
ΑΛΗΘΙΝΟ ΡΑΔΙΟΦΩΝΟ
ΑΕ REAL FM
57,623.62
ΑΛΤΕΡ ΕΓΚΟ
ΕΠΙΧ.ΜΕΣΩΝ
ΜΑΖΙΚΗΣ ΕΝΗΜΕΡΩΣΗΣ
ΑΕ
771,274.81
ΑΝΑΣΤΑΣΙΟΣ ΚΑΡΑΜΗΤΣΟΣ
& ΣΥΝΕΡΓΑΤΕΣ
ΕΕ OLIVE
MAGAZINE GR
9,720.00
ΑΝΕΞΑΡΤΗΤΑ
ΜΕΣΑ
ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
Α.Ε
43,392.60
ΑΝΤΕΝΝΑ TV
AE
376,595.90
ΑΠΕ-ΜΠΕ ΑΕ
19,000.00
ΑΠΟΣΤΟΛΟΣ
ΚΑΡΑΜΠΕΡΟΠΟΥΛΟΣ
ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ
475.81
ΑΡΓΟΛΙΔΑ ΚΑΘΗΜΕΡΙΝΗ ΕΦΗΜΕΡΙΔΑ
- ΧΡΗΣΤΟΣ Α.ΚΑΛΑΝΤΖΗΣ
2,335.00
ΑΡΙΣΤΕΙΔΟΥ ΙΩΑΝ.
ΛΥΔΙΑ -
ΕΛΕΥΘΕΡΟ
ΒΗΜΑ ΤΗΣ
ΦΛΩΡΙΝΑΣ
835.00
ΑΤΤΙΚΕΣ ΕΚΔΟΣΕΙΣ Α.Ε.
5,750.00
ΒΑΣΙΛΟΠΟΥΛΟΣ Χ - ΠΕΤΡΟΠΟΥΛΟΣ Δ. ΟΕ (NEMA PROBLEMA)
4,324.98
ΒΟΡΕΙΑ
ΕΝΗΜΕΡΩΤΙΚΗ
ΑΕ
1,000.00
ΓΕΝΙΚΕΣ ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΕΣ
ΕΠΙΧ. ΑΕ
8,262.80
ΓΕΩΡΓΙΟΣ ΠΑΠΑΤΡΙΑΝΤΑΦΥΛΛΟΥ & ΣΙΑ ΕΕ
4,200.00
ΓΝΩΜΗ Μ.ΙΚΕ
640.00
Δ. ΜΠΟΥΡΑΣ & ΣΙΑ ΕΕ
30,000.00
ΔΕΣΜΗ ΑΕ
ΕΜΠ.ΔΙΑΦ.ΡΑΔ.ΕΤΑΙΡΕΙΑ
& ΕΦ.ΔΙΑΔΙΚΤΥΟΥ.
3,163.00
ΔΗΜ.ΡΟΥΧΩΤΑΣ & ΣΙΑ ΟΕ ΑΣΦΑΛΙΣΤΙΚΗ ΑΓΟΡΑ
141.51
ΔΗΜΗΤΡΙΟΣ
ΑΛ ΑΡΑΜΠΑΤΖΗΣ
ΣΕΡΡΑΪΚΟΝ
ΘΑΡΡΟΣ
5,000.00
ΔΗΜΟΣΙΟΓΡΑΦΙΚΟΣ ΟΡΓΑΝΙΣΜΟΣ
Ο ΧΡΟΝΟΣ ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
340.00
ΔΗΜΟΤΙΚΗ ΕΠΙΧ/ΣΗ
ΤΗΛΕΟΡΑΣΗΣ Δ.ΑΣΠΡ
/ΡΓΟΥ ATTICA
TV
5,961.00
ΔΙΟΓΕΝΗΣ
ΜΚΟ ΑΣΤΙΚΗ
ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΗ
ΕΤΑΙΡΕΙΑ
4,500.00
ΔΙΟΝΑΤΟΣ Ι. & ΣΙΑ Ε.Ε.
15,000.00
ΔΟΥΣΗΣ ΑΝΑΣΤΑΣΙΟΣ & ΣΙΑ ΕΕ - DOUSIES COM EE
8,330.00
ΔΥΑΔΙΚΗ ΕΝΗΜΕΡΩΣΗ
ΕΕ
12,784.00
ΔΥΟ ΔΕΚΑ
ΑΝΩΝ.ΕΚΔΟ.ΕΤΑΙΡΕΙΑ
56,900.00
ΕΘΝΙΚΟΣ ΚΗΡΥΞ
ΤΗΣ ΝΕΑΣ
ΥΟΡΚΗΣ
ΕΛΛΑΣ ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ
5,997.60
ΕΙΔ.ΛΟΓ/ΣΜΟΣ
ΚΟΝΔ.ΕΡΕΥΝΑΣ
ΤΟΥ
ΕΘΝ.ΑΣΤΕΡ.
ΑΘΗΝΩΝ
1,000.00
ΕΙΔΗΣΕΙΣ ΝΤΟΤ
ΚΟΜ ΑΕ
469,465.14
ΕΚΔΟΣΕΙΣ MOTORI ΕΠΕ
1,500.00
DISCLOSURES OF LAW 4374/2016
518
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΕΚΔΟΣΕΙΣ ΑΠΟΣΤΟΛΟΥ
ΕΛΕΝΗ
280.00
DISCLOSURES OF LAW 4374/2016
519
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΕΚΔΟΣΕΙΣ ΕΝΤΥΠΟΥ
ΥΛΙΚΟΥ ΚΑΡΑΜΑΝΟΓΛΟΥ
Ε.Π.Ε.
5,310.00
ΕΚΔΟΣΕΙΣ ΕΠΕΝΔΥΣΗ ΑΕ
10,000.00
ΕΚΔΟΣΕΙΣ
Ν.ΠΑΠΑΝΙΚΟΛΑΟΥ
ΑΕ
6,338.78
ΕΚΔΟΣΕΙΣ ΝΑΣΤΑ ΙΚΕ
1,200.00
ΕΚΔΟΣΕΙΣ ΝΕΟ
ΧΡΗΜΑ ΑΕ
NEWMONEY GR
34,320.00
ΕΚΔΟΣΕΙΣ ΠΡΩΤΟ
ΘΕΜΑ ΕΚΔΟΤΙΚΗ
ΑΕ
443,844.10
ΕΚΔΟΣΕΙΣ ΣΟΦΙΑ
ΜΟΣΧΑΝΔΡΕΟΥ
& ΣΙΑ
ΕΕ
9,421.77
ΕΚΔΟΣΕΙΣ ΣΤΑΜΟΥΛΗ ΑΕ
4,000.00
ΕΚΔΟΤΙΚΗ ΒΟΡΕΙΩΝ
ΠΡΟΑΣΤΙΩΝ
Μ. Ι.Κ.Ε.
1,500.00
ΕΚΔΟΤΙΚΗ ΤΡΙΠΟΛΕΩΣ
ΒΑΣΙΛΕΙΟΣ
ΗΛ. ΚΑΡΥΔΗΣ
& ΣΙΑ
ΟΕ
280.00
ΕΛΕΥΘΕΡΙΑ ΑΕ
196.75
ΕΛΕΥΘΕΡΙΑ ΤΟΥ ΤΥΠΟΥ ΕΚΔΟΤΙΚΗ
Α.Ε.
60,750.00
ΕΛΛΗΝΙΚΟ
ΙΝΣΤΙΤΟΥΤΟ
ΕΞΥΠΗΡΕΤΗΣΗΣ
ΠΕΛΑΤΩΝ
400.00
ΕΛΛΗΝΟΓΕΡΜΑΝΙΚΟ
ΕΜΠΟΡΙΚΟ
& ΒΙΟΜΗΧΑΝΙΚΟ
ΕΠΙΜΕΛΗ
1,350.00
ΕΛΝΑΒΙ Ι.Κ.Ε.
2,660.00
ΕΝΙΚΟΣ ΑΝΩΝΥΜΗ ΕΤΑΙΡΕΙΑ
90,853.00
ΕΝΤΥΠΟΕΚΔΟΤΙΚΗ Α.Ε.Β.Ε.Τ.
8,000.00
ΕΞΕΡΕΥΝΗΤΗΣ-ΕΞΠΛΟΡΕΡ
ΑΕ
14,450.00
ΕΠΙΚΟΙΝΩΝΙΑ ΕΠΕ
20,000.00
ΕΡΙΝΥΑ ΕΙΔΗΣΕΙΣ Μ
ΙΚΕ
13,100.00
ΕΡΩΤΙΚΟΣ ΡΑΔΙΟ ΑΕ
819.00
ΕΣΤΙΑ ΕΠΕΝΔΥΤΙΚΗ
ΜΜΕ ΑΕ
40,000.00
ΕΤΑΙΡΕΙΑ
ΕΠΙΧ/ΚΗΣ
ΑΝΑΠΤΥΞΗΣ
ΑΘΗΝΩΝ
1,300.00
ΕΦΗΜΕΡΙΣ
ΕΣΤΙΑ
ΑΝΩΝΥΜΗ
ΕΚΔΟΤΙΚΗ
ΕΤΑΙΡΕΙΑ
49,149.14
ΖΟΥΓΚΛΑ ΤΖΙ ΑΡ Α.Ε.
60,413.00
ΖΟΥΓΡΗΣ ΔΗΜΗΤΡΙΟΣ
ΚΑΙ ΣΙΑ
ΕΕ
2,000.00
ΖΩΗ ΛΕΥΚΟΦΡΥΔΟΥ
ΙΚΕ
1,310.44
Η ΑΛΗΘΕΙΑ ΜΟΝ. Ε.Π.Ε. - ΑΜΒΡΟΣΙΟΥ ΓΕΩΡΓΙΟΣ
560.00
Η ΑΥΓΗ Α.Ε.
2,500.01
Η ΘΕΣΠΡΩΤΙΚΗ
ΑΛΕΞΑΝΔΡΟΣ
ΘΕΜΕΛΗΣ
780.00
Η ΘΕΣΣΑΛΙΑ
491.04
Η ΚΑΘΗΜΕΡΙΝΗ ΑΕ
336.60
Η ΝΑΥΤΕΜΠΟΡΙΚΗ -ZOFRANK
HOLDINGS CO. LIMITED
7,880.00
ΗΛΙΑΣ ΚΑΝΕΛΛΗΣ & ΣΙΑ ΕΕ
3,300.00
ΗΤ PRESS ONLINE ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
9,000.00
ΗΧΟΣ ΚΑΙ ΡΥΘΜΟΣ
AE
8,657.10
ΗΧΩ ΤΗΣ
ΑΡΤΑΣ ΚΑΘΗΜΕΡΙΝΗ
ΕΦΗΜΕΡΙΔΑ
ΕΛΕΝΗ
ΣΤΑΜΟΥ
ΕΚΔΟΣΕΙΣ
245.00
ΘΕΜΑ ΡΑΔΙΟ Α.Ε.
2,675.79
ΘΕΟΧΑΡΗΣ ΣΠΥΡ. ΓΕΩΡΓΙΟΣ
5,746.00
Ι. Κ. ΔΡΑΓΟΥΝΗΣ ΕΚΔΟΣΕΙΣ Ι.Κ.Ε.
5,000.00
Ι. ΤΟΜΕΛΙΤΟΥ - ΚΑΣΤΟΡΙΝΗ
1,556.60
ΙΚΑΡΟΣ ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΕΣ
ΕΠΙΧ/ΣΕΙΣ Α.Ε.
16,360.00
ΙΝΣΤΙΤΟΥΤΟ
ΕΡΕΥΝΩΝ
& ΜΕΛ.
ΤΗΣ
ΚΕΝΤ.ΕΝ.ΕΠΙΜ.ΕΛΛ/ΔΟΣ
2,900.00
ΙΟΝΙΚΕΣ ΕΚΔΟΣΕΙΣ Α.Ε.
2,550.00
Κ.Μ ΧΑΤΖΗΗΛΙΑΔΗΣ & ΣΙΑ Ε.Ε.
5,160.00
ΚΑΘΗΜΕΡΙΝΕΣ ΕΚΔΟΣΕΙΣ
Α.Ε.
409,456.95
ΚΑΛΕΣ ΙΣΤΟΡΙΕΣ ΙΚΕ
30,000.00
ΚΑΛΛΙΟΠΗ ΚΟΖΥΡΗ - ΜΙΧΑΛΗΣ ΚΟΖΥΡΗΣ
Ο.Ε.Ε. - ΑΝΑΤΟΛΗ
118.00
ΚΑΛΟΠΟΥΛΟΥ
ΓΕΩ.ΜΑΡΙΑ (WOMANIDOL)
2,800.00
ΚΑΠΙΤΑΛ.GR A.E.
104,270.00
ΚΟΙΝΩΝΙΚΗ
ΣΥΝΕΤΑΙΡΙΣΤΙΚΗ
ΕΠΙΧΕΙΡΗΣΗ
ΠΡΟΤΑΣΙΣ
1,100.00
ΚΟΣΜΟΡΑΔΙΟ ΕΕ
2,768.01
ΚΩΝ/ΝΟΣ Δ.
ΔΕΜΕΡΤΖΗΣ
275.00
ΚΩΝΣΤΑΝΤΑΚΟΣ
ΑΝΤΩΝΙΟΣ ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
5,500.00
ΚΩΣΤΑΡΕΛΛΑΣ Ν. ΙΩΑΝΝΗΣ
120.00
DISCLOSURES OF LAW 4374/2016
520
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΛΑΚΩΝΙΚΟΣ ΤΥΠΟΣ
ΧΡΙΣΤΙΝΑ ΑΝΝΑ ΧΙΩΤΗ
831.50
DISCLOSURES OF LAW 4374/2016
521
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΛΑΜΙΑΚΟΣ ΤΥΠΟΣ ΑΕ
730.00
ΛΑΜΨΗ ΕΚΔΟΤΙΚΕΣ
& ΡΑΔ/ΚΕΣ
ΕΠΙΧΕΙΡΗΣΕΙΣ Α.Ε.
12,333.01
ΛΥΚΑΒΗΤΟΣ
ΕΚΔΟΣΕΙΣ
ΜΟΝΟΠΡΟΣΩΠΗ
Ι.Κ.Ε.
3,500.00
ΜΑΚΕΔΟΝΙΑ
ΕΝΗΜΕΡΩΣΗ
Α.Ε.
3,641.51
ΜΑΚΕΔΟΝΙΑ ΤV A.E.
16,790.22
ΜΑΛΤΕΖΟΣ
ΑΝΔ.
ΔΗΜΗΤΡΙΟΣ
- ΕΚΔΟΣΕΙΣ
ΕΚΗΒΟΛΟ
350.00
ΜΑΝΕΣΙΩΤΗΣ
ΝΙΚ - ΨΩΜΙΑΔΗΣ ΚΩΝ ΟΕ FMVOICEGR
23,200.00
ΜΑΡΙΑ ΒΑΣΙΛΑΚΗ ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ
12,500.00
ΜΑΡΙΝΑ Γ.ΤΟΥΛΑ & ΣΙΑ ΟΕ
2,400.00
ΜΕΤΡΟΝΤΗΛ ΜΟΝ. ΙΚΕ
3,324.00
ΜΠΑΜ MEDIA Ι.Κ.Ε.
5,000.00
ΜΠΟΥΣΙΑΣ
ΕΠΙΚΟΙΝΩΝΙΕΣ
ΕΠΕ
4,974.82
Ν. & Ι.
ΑΓΓΕΛΑΚΗΣ ΚΡΗΤΙΚΑ ΜΕΣΑ ΕΝΗΜΕΡΩΣΗΣ
ΕΠΕ
120.00
ΝΕΑ ΤΗΛΕΟΡΑΣΗ ΑΕ
336,729.49
ΝΕΑ ΤΗΣ ΒΟΙΩΤΙΑΣ ΙΩΑΝΝΗΣ
Η. ΚΑΝΤΑΣ
513.39
ΝΕΟ ΡΑΔΙΟΦΩΝΟ
ΤΩΝ ΔΗΜΟΣΙΟΓΡΑΦΩΝ
ΕΠΕ
13,298.99
ΝΕΟΤΥΠΟΓΡΑΦΙΚΗ ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ Ο ΛΟΓΟΣ
21,689.90
ΝΟΗΣΙΣ ΙΚΕ
7,880.00
ΟΚΤΑΣ MEDIA ΙΚΕ
32,000.00
ΟΜΙΛΟΣ ΤΟΤΣΗ
169.82
ΟΠΙΝΙΟΝ ΠΟΣΤ
ΗΛΕΚΤΡΟΝΙΚΕΣ
ΕΚΔΟΣΕΙΣ
ΑΕ
5,930.00
ΟΡΓΑΝΙΣΜΟΣ ΜΕΓΑΡΟ ΜΟΥΣΙΚΗΣ ΑΘΗΝΩΝ
1,800.00
ΟΡΘΟΔΟΞΗ
ΚΙΒΩΤΟΣ ΕΚΔΟΣΕΙΣ
ΑΕ
1,500.00
ΟΡΙΖΟΝΤΕΣ ΕΠΕ
125.00
ΟΤΕ Α.Ε
46,307.91
Π.Δ. ΕΚΔΟΣΕΙΣ ΕΠΕ
7,500.00
ΠΑΛΟ
ΨΗΦΙΑΚΕΣ
ΤΕΧΝΟΛΟΓΙΕΣ
ΕΠΕ
2,003.00
ΠΑΠΟΥΛΙΔΗΣ
ΘΕΟΔΩΡΟΣ
Μ.ΙΚΕ
8,876.71
ΠΑΡΑΕΝΑ Μ. ΕΠΕ
102,794.24
ΠΑΡΑΠΟΛΙΤΙΚΑ ΕΚΔΟΣΕΙΣ
ΑΕ
43,905.00
ΠΑΤΡΙΣ - ΚΑΘΗΜΕΡΙΝΗ ΠΡΩΙΝΗ
ΕΦΗΜΕΡΙΔΑ - ΕΚΔΟΣΕΙΣ Α.ΜΥΚΩΝΙΑΤΗΣ
ΑΕ
630.00
ΠΑΤΡΙΣ Δ.Ο.Β.
Ι.Κ.Ε ΕΚΔΟΣΗ
ΕΦΗΜΕΡΙΔΑΣ
3,620.00
ΠΕΛΟΠΟΝΝΗΣΟΣ
ΠΑΤΡΩΝ
ΕΚΔΟΣΕΙΣ
ΑΕ
8,000.00
ΠΡΟΤΑΓΚΟΝ Α.Ε.
30,200.00
ΠΡΩΙΝΟΣ ΤΥΠΟΣ
- ΣΤΕΛΛΑ Ι.
ΣΤΑΥΡΙΔΟΥ
417.50
ΠΡΩΤΗ ΕΚΔΟΤΙΚΗ
Α.Ε.
100.80
ΡΑΔ/ΚΑ ΗΛΕΚΤ/ΚΑ
ΕΚΔΟΤΙΚΑ ΜΕΣΑ
ΕΛΛΑΔΑΣ
ΑΕ
3,000.00
ΡΑΔΙΟ ΘΕΣΣΑΛΟΝΙΚΗ
AE
6,064.18
ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΕΣ ΕΠΙΧΕΙΡΗΣΕΙΣ
ΑΕ
9,224.50
ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΗ
Α.Ε.
170,886.62
ΡΑΔΙΟΦΩΝΙΚΕΣ ΕΠΙΧΕΙΡΗΣΕΙΣ
RADIO NORTH 98FM ΜΟΝ. ΕΠΕ
2,856.00
ΡΑΔΙΟΦΩΝΙΚΕΣ
ΠΑΡΑΓΩΓΕΣ
ΜΟΝ.
Α.Ε.
4,614.20
ΡΑΔΙΟΦΩΝΙΚΗ
ΕΠΙΚΟΙΝΩΝΙΑ
ΑΕ ΔΙΕΣΗ FM
8,823.40
ΣΕΛΑΝΑ Α.Ε
4,000.00
ΣΕΡΡΑΙΚΕΣ ΕΚΔΟΣΕΙΣ
ΜΟΝΟΠΡΟΣΩΠΗ Ε.Π.Ε.
250.00
ΣΗΜΕΡΙΝΗ
ΤΩΝ
ΣΕΡΡΩΝ
ΕΚΔΟΣΗ
ΕΦΗΜΕΡΙΔΩΝ
,
ΜΕΤΟΚΗΣ-ΜΕΤΟΚΗ
ΟΕ
420.00
ΣΙΜΟΠΟΥΛΟΣ Ν. ΜΙΛΤΙΑΔΗΣ ΕΚΔΟΣΕΙΣ ΕΦΗΜΕΡΙΔΩΝ
-ΕΝΤΥΠΩΝ
439.00
ΣΙΜΟΥΣΙ Ε.Ε.
6,712.25
ΣΚΟΥΤΕΡΗΣ ΖΡΗΣΤΟΣ
Γ. ΚΟΡΙΝΘΙΑΚΗ
ΗΜΕΡΑ
600.32
ΣΤΑΥΡΟΣ Κ.
ΒΛΑΧΟΠΟΥΛΟΣ
ΗΜΕΡΗΣΙΣ
ΕΦΗΜΕΡΙΣ
ΦΩΝΗ ΤΗΣ
ΞΑΝΘΗΣ
145.00
ΣΥΓΧΡΟΝΗ
ΕΠΟΧΗ
ΕΚΔΟΤΙΚΗ
ΑΕΒΕ/ΡΙΖΟΣΠΑΣΤΗΣ
3,000.00
ΤΕΚΜΗΡΙΩΣΗ
Μ ΕΠΕ
ΕΦΗΜΕΡΙΔΑ
ΤΑΧΥΔΡΟΜΟΣ
231.44
ΤΕΡΖΕΝΙΔΗΣ
ΑΛ.ΚΩΝ/ΝΟΣ
ΠΡΩΙΝΗ
ΕΙΔΗΣΕΙΣ
224.00
ΤΟ ΜΑΝΙΦΕΣΤΟ ΙΚΕ
2,000.00
ΤΟΠΙΚΕΣ ΕΦΗΜΕΡΙΔΕΣ
Ι.Κ.Ε.
260.00
DISCLOSURES OF LAW 4374/2016
522
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΤΣΙΤΑΣ Χ. ΠΡΟΔΡΟΜΟΣ
3,900.00
DISCLOSURES OF LAW 4374/2016
523
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΤΥΠΟΚΥΚΛΑΔΙΚΗ
Α.Ε.
768.20
ΤΥΠΟΣ ΘΕΣΣΑΛΟΝΙΚΗΣ
TYPOS MEDIA
ΕΠΕ
8,425.50
ΤΥΠΟΣ ΧΑΛΚΙΔΙΚΗΣ ΘΩΜΑ ΘΕΟΔΩΡΑ
571.60
ΥΠΑΙΘΡΟΣ ΧΩΡΑ Α.Ε
1,400.00
ΦΕΛΝΙΚΟΣ
ΗΛΕΚΤΡ.
ΜΕΣΩΝ
ΕΝΗΜΕΡΩΣΗΣ
Μ.ΕΠΕ
6,072.00
ΦΙΛΑΘΛΟΣ ΙΚΕ
11,000.00
ΦΙΛΕΛΕΥΘΕΡΟΣ
ΤΥΠΟΣ
ΜΟΝΟΠΡΟΣΩΠΗ
ΑΕ
72,660.77
ΦΩΤΑΓΩΓΟΣ ΕΠΕ
3,775.00
ΧΟΝΔΡΟΓΙΑΝΝΗ ΧΡΥΣΟΥΛΑ-ΧΡΙΣΤΙΝΑ
1,407.50
ΧΡΥΣΗ ΕΥΚΑΙΡΙΑ ΕΚΔΟΣΕΙΣ ΑΕ
160.02
6,903,817.06
PAYMENTS
TO
MEDIA
COMPANIES
OF
AMOUNTS
LESS
THAN
€100
PER
MEDIA
COMPANY
Name*
ΑΡΧΑΙΟΛΟΓΙΑ
ΚΑΙ ΤΕΧΝΕΣ
ΓΝΩΜΗ ΜΟΝΟΠΡΟΣΩΠΗ
ΕΚΔΟΣΕΙΣ ΕΠΕ
ΕΛΕΥΘΕΡΙΑ ΑΕ
ΑΝΩΝΥΜΟΣ
ΕΚΔΟΤΙΚΗ
ΕΤΑΙΡΕΙΑ
Ι.Δ ΚΟΛΛΑΡΟΥ & ΣΙΑ ΑΕ ΒΙΒΛΙΟΠΩΛΕΙΟ
ΤΗΣ ΕΣΤΙΑΣ
ΚΥΚΛΑΔΙΚΗ Ε.Ε.
ΚΥΚΛΟΣ
ΑΕ
ΠΑΓΚΡΗΤΙΑ
ΗΜΕΡΗΣΙΑ
ΕΦΗΜΕΡΙΔΑ
ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ
GRATIA ΕΚΔΟΤΙΚΗ
ΙΚΕ
ΠΑΠΑΔΟΓΙΑΝΝΗ
ΜΑΡΙΑ
ΤΑ ΝΕΑ ΤΗΣ ΤΕΧΝΗΣ
ΙΚΕ
ΤΡΙΑΝΤΑΦΥΛΛΟΠΟΥΛΟΥ
Α.
ΔΕΣΠΟΙΝΑ
ΕΚΔΟΣΗ
ΕΦΗΜΕΡΙΔΩΝ
The above
table refers
to Media
Companies of
amounts less
than €
100, with total
amount equal to
€ 519.84.
TOTAL FOR MEDIA PAYMENTS
6,904,336.90
Amounts
TELEVISION
TAX
PAYMENTS
63,082.72
DIGITAL TAX PAYMENTS
2%
25,250.81
SPECIAL FEE PAYMENTS
0,02%
1,146.33
MUNICIPAL FEE
PAYMENTS 2%
9,929.62
PAYMENTS DUE TO DONATIONS, SPONSORSHIP, SUBSIDIES OR
OTHER CHARITABLE REASONS
(Article 6 Par. 2 of L.4374/2016)
Α) TO LEGAL ENTITIES
Name*
Amounts Before Taxes
4ος ΔΙΕΘΝΗΣ ΜΑΡΑΘΩΝΙΟΣ ΛΑΡΝΑΚΑΣ
RADISSON BLU (DKC EVENTS SPECIALISTS
LTD)
126.05
7ο ΓΥΜΝΑΣΙΟ ΚΟΡΥΔΑΛΛΟΥ
715.00
ACFE ΙΝΣΤΙΤΟΥΤΟ ΚΑΤA
ΤΗΣ ΑΠΑΤΗΣ
1,250.00
ALBANIAN ASSOCIATION
OF BANKS
764.19
ARIONA HELLAS SA
20,000.00
ASOCIATIA C.F.A.
ROMANIA
(CERTIFIED FINANCIAL
ANALYSTS)
2,000.00
ASOCIATIA KOGAYON
5,000.00
ASOCIATIA PARINTILOR
SI TUTORILOR
SCOLII ELENE
DIN BUCURESTI
ATHENA
5,000.00
ASOCIATIA PENTRU
PROMOVAREA
PERFORMANTEI
IN EDUCATIE
5,000.00
CAMERA
DE
COMERT
BILATERALA
ELENO-ROMANA
2,990.00
EBEN
1,000.00
ERNST & YOUNG BUSINESS ADVISORY
SOLUTIONS
35,000.00
ETHOS
MEDIA
ΑΝΩΝΥΜΗ
ΕΤΑΙΡΕΙΑ
ΕΚΔΟΤΙΚΗ
ΣΥΝΕΔΡΙΑΚΗ
5,700.00
EXPONENTIAL
IMPACT
- Not
for profit
95,000.00
FUNDATIA DEMOCRATIE
PRIN CULTURA
9,954.00
GLOBAL SUSTAIN
3,000.00
DISCLOSURES OF LAW 4374/2016
524
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
DISCLOSURES OF LAW 4374/2016
525
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
HACK THE BOX ΜΟΝΟΠΡΟΣΩΠΗ ΙΚΕ
10,000.00
IMH ΣΥΝΕΔΡΙΟ - 8TH
BANKING FORUM
& FINTECH EXPO
3,000.00
IMH ΣΥΝΕΔΡΙΟ - 9TH
BANKING FORUM
& FINTECH EXPO
3,000.00
J & P VERITAS IKE
4,000.00
MADAME FIGARO ΒΡΑΒΕΙΑ
"ΓΥΝΑΙΚΕΣ ΤΗΣ ΧΡΟΝΙΑΣ
2021"
270.00
MEDIA PRINT (''TO KNOW'' CONCERT)
1,400.18
MIND VIEW
STRATEGY AND
RESEARCH
5,000.00
PALLADIAN COMMUNICATIONS
SPECIALISTS
14,000.00
PERPARIM TEPELENA
HOSPITAL
1,324.94
PESHKOPI
MUNICIPALITY
5,051.34
POGRADEC
MUNICIPALITY
1,711.91
PUBLIC AFFAIRS AND NETWORKS
MON
3,000.00
RED CROSS
ALBANIA
8,123.91
SAFER INTERNET
HELLAS
1,000.00
SAFEWATERSPORTS
ΝΠΙΔ
ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΟ
ΣΩΜΑΤΕΙΟ
20,000.00
SHKODRA MENTAL HEALTH INSTITUTION
1,059.75
TEK URA CΕΝΤΕR
2,056.94
THE AMERICAN COLLEGE OF GREECE
4,000.00
THE PROPELLER CLUB
OF THE US
2,000.00
THE TIPPING POINT AMKE
4,000.00
THE TWELVE APOSTLES
CHURCH
233.90
ΤΗΙΝΚΒΙΖ ΣΥΛΛΟΓΟΣ ΕΠΙΧΕΙΡΗΜΑΤΙΚΟΤΗΤΑΣ
ΤΩΝ ΦΟΙΤΗΤΩΝ ΤΟΥ ΟΙΚΟΝΟΜΙΚΟΥ
ΠΑΝΕΠΙΣΤΗΜΙΟΥ
ΑΘΗΝΩΝ
1,000.00
TIRANA ECONOMIC FORUM
5,025.68
WORLD VISION
ALBANIA
5,959.11
XHAVIT MARA HOSPITAL
3,036.27
ΑΝΟΙΧΤΗ ΑΓΚΑΛΙΑ
ΦΙΛΟΙ ΚΟΙΝΩΝΙΚΗΣ
ΠΑΙΔΙΑΤΡΙΚΗΣ
& ΙΑΤΡΙΚΗΣ
3,000.00
ΑΝΤΙΚΑΡΚΙΝΙΚΟΣ
ΣΥΝΔΕΣΜΟΣ
ΚΥΠΡΟΥ
300.00
ΑΝΩΤΑΤΗ ΣΧΟΛΗ ΚΑΛΩΝ
ΤΕΧΝΩΝ
4,015.95
ΓΕΝΙΚΟ ΑΝΤΙΚΑΡΚΙΝΙΚΟ
ΟΓΚΟΛΟΓΙΚΟ
ΝΟΣΟΚΟΜΕΙΟ
ΑΘΗΝΩΝ Ο ΑΓΙΟΣ ΣΑΒΒΑΣ
15,220.00
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΑΘΗΝΩΝ Γ. ΓΕΝΝΗΜΑΤΑΣ
29,596.78
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΑΘΗΝΩΝ Ο ΕΥΑΓΓΕΛΙΣΜΟΣ
119,492.50
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΑΙΤΩΛΟΑΚΑΡΝΑΝΙΑΣ
ΝΟΣΗΛΕΥΤΙΚΗ
ΜΟΝΑΔΑ ΑΓΡΙΝΙΟΥ
1,612.10
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΘΕΣΣΑΛΟΝΙΚΗΣ
Γ. ΓΕΝΝΗΜΑΤΑΣ-
Ο ΑΓΙΟΣ ΔΗΜΗΤΡΙΟΣ / ΟΡΓΑΝΙΚΗ ΜΟΝΑΔΑ Ο ΑΓΙΟΣ ΔΗΜΗΤΡΙΟΣ
7,905.00
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΚΟΡΙΝΘΟΥ
11,285.16
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΝΟΣΗΜΑΤΩΝ
ΘΩΡΑΚΟΣ ΑΘΗΝΩΝ
"Η ΣΩΤΗΡΙΑ"
16,657.79
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΠΑΙΔΩΝ ΠΑΤΡΩΝ
ΚΑΡΑΜΑΝΔΑΝΕΙΟ
3,990.00
ΓΕΝΙΚΟ
ΝΟΣΟΚΟΜΕΙΟ
ΣΥΡΟΥ
15,506.00
ΓΝΑ ΕΛΕΝΑ
ΒΕΝΙΖΕΛΟΥ
ΑΛΕΞΑΝΔΡΑ
3,193.55
ΓΝΑ ΚΑΤ
15,000.00
ΓΥΜΝΑΣΙΟ ΒΡΟΝΤΑΔΟΥ
498.80
ΔΗΜΟΣ ΕΛΑΣΣΟΝΑΣ
3,543.10
ΔΗΜΟΣ ΛΥΚΟΒΡΥΣΗΣ
ΠΕΥΚΗΣ
800.00
ΔΗΜΟΣ ΜΗΝΩΑ
ΠΕΔΙΑΔΑΣ
1,987.04
ΔΙΚΗΓΟΡΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΑΓΡΙΝΙΟΥ
4,000.00
ΔΙΚΗΓΟΡΙΚΟΣ ΣΥΛΛΟΓΟΣ
ΠΕΙΡΑΙΩΣ
800.00
ΕΘΕΛΟΝΤΕΣ ΔΑΣΟΠΥΡΟΣΒΕΣΤΕΣ
ΑΤΤΙΚΗΣ
10,000.00
ΕΘΕΛΟΝΤΙΚΕΣ
ΔΥΝΑΜΕΙΣ ΔΑΣΟΠΥΡΟΣΒΕΣΗΣ
&
ΔΙΑΣΩΣΗΣ - ΚΛΙΜΑΚΙΟ ΡΟΔΟΠΟΛΗΣ
25,000.00
ΕΘΕΛΟΝΤΙΚΗ ΟΜΑΔΑ ΚΑΠΑΝΔΡΙΤΙΟΥ ΠΟΛΥΔΕΝΔΡΙΟΥ
43,760.00
ΕΘΝΙΚΗ ΛΥΡΙΚΗ ΣΚΗΝΗ
100,000.00
ΕΘΝΙΚΟ ΚΑΙ ΚΑΠΟΔΙΣΤΡΙΑΚΟ
ΠΑΝΕΠΙΣΤΗΜΙΟ
ΑΘΗΝΩΝ
3,095.32
ΕΙΔΙΚΟ ΚΕΝΤΡΟ ΕΦΟΔΙΑΣΜΟΥ ΜΟΝΑΔΩΝ ΣΤΡΑΤΟΥ
2,000.00
ΕΙΣΦΟΡΑ ΣΤΟ ΣΩΜΑΤΕΙΟ
"Η ΜΑΝΑ" ΕΙΣ ΜΝΗΜΗΝ
ΛΟΥΚΗ ΠΑΠΑΦΙΛΙΠΠΟΥ
(ΑΝΤ1)
200.00
ΕΛΕΤΑΕΝ ΑΜΚΕ
4,000.00
ΕΛΚΕ ΕΘΝΙΚΟ ΚΑΙ ΚΑΠΟΔΙΣΤΡΙΑΚΟ
ΠΑΝΕΠΙΣΤΗΜΙΟ
ΑΘΗΝΩΝ
6,000.00
ΕΛΚΕ
ΠΑΝΕΠΙΣΤΗΜΙΟΥ
ΑΙΓΑΙΟΥ
50,000.00
DISCLOSURES OF LAW 4374/2016
526
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΕΛΚΕ ΠΑΝΕΠΙΣΤΗΜΙΟΥ
ΔΥΤΙΚΗΣ
ΑΤΤΙΚΗΣ
60,000.00
DISCLOSURES OF LAW 4374/2016
520
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΕΛΚΕ ΠΑΝΕΠΙΣΤΗΜΙΟΥ ΠΑΤΡΩΝ
2,000.00
ΕΛΛΗΝΙΚΑ
ΧΡΗΜΑΤΙΣΤΗΡΙΑ
ΑΕ
6,200.00
ΕΛΛΗΝΙΚΗ ΔΗΜΟΚΡΑΤΙΑ ΥΠΟΥΡΓΕΙΟ ΕΣΩΤΕΡΙΚΩΝ ΚΑΙ ΔΙΟΙΚΗΤΙΚΗΣ ΑΝΑΣΥΓΚΡΟΤΗΣΗΣ ΑΡΧΗΓΕΙΟ ΕΛΛΗΝΙΚΗΣ
ΑΣΤΥΝΟΜΙΑΣ
15,123.11
ΕΛΛΗΝΙΚΗ
ΕΤΑΙΡΙΑ
ΑΠΕΙΚΟΝΗΣΗΣ
ΜΑΣΤΟΥ
500.00
ΕΛΛΗΝΙΚΗ
ΕΤΑΙΡΙΑ
ΠΡΟΣΤΑΣΙΑΣ
&
ΑΠΟΚΑΤΑΣΤΑΣΕΩΣ
ΑΝΑΠΗΡΩΝ
ΠΡΟΣΩΠΩΝ
(ΕΛΕΠΑΠ)
1,500.00
ΕΛΛΗΝΙΚΗ ΣΧΟΛΗ ΣΚΥΛΩΝ ΟΔΗΓΩΝ
Η ΛΑΡΑ
3,500.00
ΕΛΛΗΝΙΚΟ
ΙΝΣΤΙΤΟΥΤΟ
ΕΞΥΠΗΡΕΤΗΣΗΣ
ΠΕΛΑΤΩΝ
2,500.00
ΕΛΛΗΝΙΚΟΣ ΕΡΥΘΡΟΣ ΣΤΑΥΡΟΣ
5,206.77
ΕΛΛΗΝΟΑΜΕΡΙΚΑΝΙΚΟ
ΕΜΠΟΡΙΚΟ ΕΠΙΜΕΛΗΤΗΡΙΟ
7,000.00
ΕΛΛΗΝΟΓΑΛΛΙΚΗ
ΣΧΟΛΗ
ΟΥΡΣΟΥΛΙΝΩΝ
500.00
ΕΛΛΗΝΟΓΕΡΜΑΝΙΚΟ
ΕΜΠΟΡΙΚΟ ΚΑΙ
ΒΙΟΜΗΧΑΝΙΚΟ
ΕΠΙΜΕΛΗΤΗΡΙΟ
2,000.00
ΕΜΠΟΡΙΚΗ
ΛΕΣΧΗ
ΞΑΝΘΗΣ
2,500.00
ΕΜΠΟΡΙΚΟΣ ΣΥΛΛΟΓΟΣ
ΑΡΓΟΥΣ
500.00
ΕΝΩΣΗ ΑΣΤΥΝΟΜΙΚΩΝ
ΥΠΑΛΛΗΛΩΝ
ΦΘΙΩΤΙΔΑΣ
899.94
ΕΝΩΣΗ ΑΣΦΑΛΙΣΤΙΚΩΝ ΕΤΑΙΡΙΩΝ
ΕΛΛΑΔΟΣ
6,131.96
ΕΝΩΣΗ ΚΥΠΡΙΩΝ
ΣΥΝΤΑΞΙΟΥΧΩΝ
(Ε.ΚΥ.ΣΥ)
100.00
ΕΠΙΣΕΥ
ΕΡΕΥΝΗΤΙΚΟ
ΠΑΝΕΠΙΣΤΗΜΙΑΚΟ
ΙΝΣΤΙΤΟΥΤΟ
ΣΥΣΤΗΜΑΤΩΝ
ΕΠΙΚΟΙΝΩΝΙΩΝ
ΚΑΙ
ΥΠΟΛΟΓΙΣΤΩΝ
10,000.00
ΕΠΙΤΡΟΠΗ
ΕΛΛΑΔΑ
2021
1,000,000.00
ΕΡΕΥΝΗΤΙΚΟ
ΚΕΝΤΡΟ
ΣΤΡΑΤΗΓΙΚΗΣ
ΔΙΟΙΚΗΣΗΣ
ΕΠΙΧΕΙΡΗΣΕΩΝ
ΚΑΙ
ΕΠΙΧΕΙΡΗΜΑΤΙΚΟΤΗΤΑΣ
5,000.00
ΕΡΥΘΡΟΣ ΣΤΑΥΡΟΣ ΚΕΡΥΝΕΙΑΣ
100.00
ΕΤΑΙΡΕΙΑ
ΑΞΙΟΠΟΙΗΣΕΩΣ
ΚΑΙ
ΔΙΑΧΕΙΡΙΣΕΩΣ
ΤΟΥ
ΟΙΚΟΝΟΜΙΚΟΥ
ΠΑΝΕΠΙΣΤΗΜΙΟΥ
ΑΘΗΝΩΝ
Α.Ε.
1,000.00
ΕΤΑΙΡΙΑ
ΑΞΙΟΠΟΙΗΣΗΣ
ΚΑΙ
ΔΙΑΧΕΙΡΙΣΗΣ
ΠΕΡΙΟΥΣΙΑΣ
ΔΗΜΟΚΡΙΤΕΙΟΥ
ΠΑΝΕΠΙΣΤΗΜΙΟΥ
ΘΡΑΚΗΣ
1,000.00
ΕΤΑΙΡΙΑ ΑΡΧΙΠΕΛΑΓΟΣ
ΑΜΚΕ
8,000.00
ΕΤΑΙΡΙΑ ΜΑΚΕΔΟΝΙΚΩΝ
ΣΠΟΥΔΩΝ
4,000.00
ΕΤΑΙΡΙΑ
ΠΡΟΣΤΑΣΙΑΣ
ΣΠΑΣΤΙΚΩΝ
ΠΟΡΤΑ ΑΝΟΙΧΤΗ
3,000.00
ΕΥΘΥΜΕΙΟ ΚΕΝΤΡΟ
300.00
ΙΔΡΥΜΑ ΑΝΤΩΝΗΣ
& ΙΩΑΝΝΗΣ ΑΓΓΕΛΙΚΟΥΣΗΣ
200.00
ΙΔΡΥΜΑ ΕΥΣΤΑΘΙΑΣ
Ι. ΚΩΣΤΟΠΟΥΛΟΥ
200,000.00
ΙΔΡΥΜΑ ΖΗΝΩΝΟΣ
ΚΑΙ ΤΕΡΕΖΑΣ
ΡΩΣΣΙΔΗ
500.00
ΙΔΡΥΜΑ ΙΩΑΝΝΟΥ Φ. ΚΩΣΤΟΠΟΥΛΟΥ
36,500.00
ΙΔΡΥΜΑ ΚΩΝΣΤΑΝΤΙΝΟΣ
ΣΗΜΙΤΗΣ
3,000.00
ΙΕΡΑ ΜΗΤΡΟΠΟΛΙΣ ΣΕΡΡΩΝ
ΚΑΙ ΝΙΓΡΙΤΗΣ ΓΕΝΙΚΟΝ ΕΚΚΛΗΣΙΑΣΤΙΚΟΝ
ΦΙΛΑΝΘΡΩΠΙΚΟΝ
ΤΑΜΕΙΟΝ ΠΑΝΑΓΙΑ Η
ΠΟΝΟΛΥΤΡΙΑ
1,500.00
ΙΕΡΟΣ ΝΑΟΣ
ΕΙΣΟΔΙΩΝ
ΘΕΟΤΟΚΟΥ
ΚΕΦΑΛΟΥ
ΚΩ
3,000.00
ΙΝΣΤΙΤΟΥΤΟ ΕΝΑΛΛΑΚΤΙΚΩΝ
ΠΟΛΙΤΙΚΩΝ - ΈΝΑ
2,000.00
ΙΟΒΕ
4,000.00
ΚΑΝΕ ΜΙΑ ΕΥΧΗ ΕΛΛΑΔΟΣ ΑΜΚΕ
4,000.00
ΚΑΠΙΤΑΛ ΛΙΝΚ ΕΛΛΑΣ ΜΟΝ ΕΠΕ
5,000.00
ΚΕΝΘΕΑ
(ΚΕΝΤΡΟ
ΕΝΗΜΕΡΩΣΗΣ
ΓΙΑ
ΤΑ
ΝΑΡΚΩΤΙΚΑ
ΚΑΙ
ΘΕΡΑΠΕΙΑΣ
ΕΞΑΡΤΩΜΕΝΩΝ
ΑΤΟΜΩΝ)
100.00
ΚΕΝΤΡΟ
ΕΡΕΥΝΩΝ
ΤΟΥ
ΠΑΝΕΠΙΣΤΗΜΙΟΥ
ΠΕΙΡΑΙΑ
6,000.00
ΚΕΠ ΦΙΛΟΘΕΗΣ
215.02
ΚΙΒΩΤΟΣ ΤΟΥ
ΚΟΣΜΟΥ, ΑΣΤΙΚΗ
ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΗ
ΕΤΑΙΡΙΑ
7,300.00
ΚΙΝΗΣΗ ΠΟΛΙΤΩΝ
ΓΙΑ ΜΙΑ
ΑΝΟΙΧΤΗ ΚΟΙΝΩΝΙΑ
2,000.00
ΚΟΙΝΩΝΙΚΟ ΠΑΝΤΟΠΩΛΕΙΟ
ΔΗΜΟΥ ΚΑΡΔΙΤΣΑΣ
772.80
ΚΟΙΝΩΦΕΛΗΣ ΕΠΙΧΕΙΡΗΣΗ
ΔΗΜΟΥ ΑΙΓΙΝΗΣ
5,000.00
ΚΥΠΡΙΑΚΟΣ ΕΡΥΘΡΟΣ
ΣΤΑΥΡΟΣ (ΚΛΑΔΟΥ
ΛΑΡΝΑΚΑΣ)
300.00
ΛΥΚΕΙΟ ΤΩΝ ΕΛΛΗΝΙΔΩΝ ΣΩΜΑΤΕΙΟ ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΟΥ ΧΑΡΑΚΤΗΡΑ
3,000.00
ΜΑΚΑΡΕΙΟ ΝΟΣΟΚΟΜΕΙΟ
2,357.00
ΜΑΚΙΠ ΜΟΝΑΔΑ ΑΝΤΙΜΕΤΩΠΙΣΗΣ
ΚΙΝΔΥΝΩΝ ΙΠΠΟΚΡΑΤΕΙΟΥ
ΠΟΛΙΤΕΙΑΣ
1,810.10
ΜΑΡΓΑΡΙΤΑ-ΕΡΓΑΣΤΗΡΙ
ΕΙΔΙΚΗΣ
ΑΓΩΓΗΣ
1,500.00
ΜΕΛΑΘΡΟΝ ΑΓΩΝΙΣΤΩΝ
ΕΟΚΑ
400.00
ΜΕΡΙΜΝΑ - ΑΣΤΙΚΗ ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΗ
ΕΤΑΙΡΙΑ
200.00
ΜΟΥΣΕΙΟ ΜΠΕΝΑΚΗ
66,200.00
ΜΟΥΣΕΙΟ ΣΟΛΩΜΟΥ
ΚΑΙ ΕΠΙΦΑΝΩΝ ΖΑΚΥΝΘΙΩΝ
Α.Σ.
3,000.00
ΜΟΥΣΙΚΟΣ ΚΑΙ
ΔΡΑΜΑΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΩΔΕΙΟΝ ΑΘΗΝΩΝ
1871
30,000.00
DISCLOSURES OF LAW 4374/2016
521
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
DISCLOSURES OF LAW 4374/2016
522
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΝΟΜΙΚΗ ΒΙΒΛΙΟΘΗΚΗ
ΑΕΤΕΕ
11,000.00
ΝΟΣΟΚΟΜΕΙΟ ΘΕΙΑΣ ΠΡΟΝΟΙΑΣ
ΠΑΜΜΑΚΑΡΙΣΤΟΣ
1,575.00
ΟΙΚΟΝΟΜΙΚΟ
ΣΥΝΕΔΡΙΟ ΔΕΛΦΩΝ
ΑΜΚΕ
15,000.00
ΟΡΓΑΝΙΣΜΟΣ
ΜΕΓΑΡΟΥ
ΜΟΥΣΙΚΗΣ
ΘΕΣΣΑΛΟΝΙΚΗΣ
10,000.00
ΠΑΓΚΥΠΡΙΑ ΟΡΓΑΝΩΣΗ ΤΥΦΛΩΝ (Π.Ο.Τ)
200.00
ΠΑΓΚΥΠΡΙΟΣ
ΑΝΤΙΝΑΡΚΩΤΙΚΟΣ
ΣΥΝΔΕΣΜΟΣ
30.00
ΠΑΝΕΠΙΣΤΗΜΙΑΚΟ ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΑΛΕΞΑΝΔΡΟΥΠΟΛΗΣ
1,153.32
ΠΑΝΕΠΙΣΤΗΜΙΑΚΟ
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΙΩΑΝΝΙΝΩΝ
18,000.00
ΠΑΝΕΠΙΣΤΗΜΙΟ
ΚΥΠΡΟΥ
1,500.00
ΠΑΣΥΚΑΦ (ΠΑΓΚΥΠΡΙΟΣ
ΣΥΝΔΕΣΜΟΣ ΚΑΡΚΙΝΟΠΑΘΩΝ
ΚΑΙ ΦΙΛΩΝ)
200.00
ΠΕΛΟΠΟΝΝΗΣΙΑΚΟ
ΛΑΟΓΡΑΦΙΚΟ ΙΔΡΥΜΑ
Β.ΠΑΠΑΝΤΩΝΙΟΥ
ΚΟΙΝΩΦΕΛΕΣ ΙΔΡΥΜΑ
5,000.00
ΠΟΛΙΤΙΣΤΙΚΟ
ΙΔΡΥΜΑ
ΙΟΝΙΚΗΣ
ΤΡΑΠΕΖΑΣ
15,000.00
ΠΡΟΓΡΑΜΜΑ ΜΑΖΙ
ΜΕ ΣΤΟΧΟ ΤΗΝ ΠΑΙΔΕΙΑ
51,680.00
ΠΡΟΓΡΑΜΜΑ ΜΑΖΙ ΜΕ ΣΤΟΧΟ ΤΗΝ ΥΓΕΙΑ
146,143.18
ΠΡΟΓΡΑΜΜΑ ΟΙ ΦΘΟΡΕΣ
ΠΟΥ ΠΛΗΓΩΝΟΥΝ
14,350.00
ΠΡΟΤΥΠΟ ΕΘΝΙΚΟ ΝΗΠΙΟΤΡΟΦΕΙΟ
ΚΑΛΛΙΘΕΑΣ
14,000.00
Σ.ΑΥΓΟΥΛΕΑ
- ΛΙΝΑΡΔΑΤΟΥ
ΑΝΩΝΥΜΗ
ΕΚΠΑΙΔΕΥΤΙΚΗ
ΕΤΑΙΡΕΙΑ
1,000.00
ΣΕΒ
ΣΥΝΔΕΣΜΟΣ
ΕΠΙΧΕΙΡΗΣΕΩΝ
ΚΑΙ
ΒΙΟΜΗΧΑΝΙΩΝ
18,000.00
ΣΚΑΚΙΣΤΙΚΟΣ
ΟΜΙΛΟΣ
ΗΡΑΚΛΕΙΟΥ
ΚΡΗΤΗΣ
750.00
ΣΤΗΡΙΞΗ
ΕUROPA
DONNA
ΚΥΠΡΟΥ
ΤΑ
ΧΡΙΣΤΟΥΓΕΝΝΑ
ΜΕ
ΠΡΟΣΦΟΡΑ
ΔΩΡΟΚΟΥΠΟΝΙΩΝ
2,000.00
ΣΤΗΡΙΞΗ
ΕΚΣΤΡΑΤΕΙΑΣ
ΠΣΣΕ "ΥΙΟΘΕΤΗΣΤΕ
ΜΙΑ
ΟΙΚΟΓΕΝΕΙΑ
ΤΑ ΧΡΙΣΤΟΥΓΕΝΝΑ'
ΜΕ ΠΡΟΣΦΟΡΑ
ΔΩΡΟΚΟΥΠΟΝΙΩΝ
1,000.00
ΣΤΗΡΙΞΗ
ΣΥΝΔΕΣΜΟΥ
ΒΑΓΟΝΙ
ΑΓΑΠΗΣ
ΤΑ
ΧΡΙΣΤΟΥΓΕΝΝΑ
ΜΕ
ΠΡΟΣΦΟΡΑ
ΔΩΡΟΚΟΥΠΟΝΙΩΝ
2,000.00
ΣΥΛΛΟΓΟΣ
ΓΥΝΑΙΚΩΝ
ΣΠΕΤΣΩΝ
800.00
ΣΥΛΛΟΓΟΣ Η ΚΑΡΔΙΑ
ΤΟΥ ΠΑΙΔΙΟΥ
1,500.00
ΣΥΛΛΟΓΟΣ
ΦΙΛΩΝ
ΑΜΕΡΙΚΑΝΙΚΗΣ
ΓΕΩΡΓΙΚΗΣ
ΣΧΟΛΗΣ
62,000.00
ΣΥΛΛΟΓΟΣ ΦΙΛΩΝ ΤΩΝ ΠΑΙΔΙΩΝ ΜΕ ΧΡΟΝΙΕΣ ΡΕΥΜΑΤΟΠΑΘΕΙΕΣ
1,500.00
ΣΥΝΔΕΣΜΟΣ
ΓΟΝΕΩΝ
ΔΗΜΟΤΙΚΟΥ
ΣΧΟΛΕΙΟΥ
ΕΓΚΩΜΗΣ
Β'
100.00
ΣΥΝΔΕΣΜΟΣ
ΓΟΝΕΩΝ
ΔΗΜΟΤΙΚΟΥ
ΣΧΟΛΕΙΟΥ
ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΕΩΣ
100.00
ΣΥΝΔΕΣΜΟΣ
ΓΟΝΕΩΝ
ΔΗΜΟΤΙΚΟΥ
ΣΧΟΛΕΙΟΥ
ΠΑΛΑΙΟΜΕΤΟΧΙΟΥ
150.00
ΣΥΝΔΕΣΜΟΣ ΕΞΑΓΩΓΕΩΝ
ΒΟΡΕΙΟΥ ΕΛΛΑΔΟΣ
(Σ.Ε.Β.Ε.)
3,720.00
ΣΥΝΔΕΣΜΟΣ
ΘΕΡΑΠΕΥΤΙΚΗΣ
ΙΠΠΑΣΙΑΣ
ΕΛΛΑΔΟΣ
2,500.00
ΣΥΝΔΕΣΜΟΣ
ΘΕΣΣΑΛΙΚΩΝ
ΕΠΙΧΕΙΡΗΣΕΩΝ
ΚΑΙ
ΒΙΟΜΗΧΑΝΙΩΝ
1,000.00
ΣΥΝΕΞΕΛΙΞΗ ΣΥΛΛΟΓΟΣ ΓΟΝΕΩΝ
ΚΑΙ ΦΙΛΩΝ ΑΝΘΡΩΠΩΝ ΜΕ ΑΥΤΙΣΜΟ
200.00
ΣΩΜΑ ΟΜΟΤΙΜΩΝ
ΚΑΘΗΓΗΤΩΝ
ΠΑΝΕΠΙΣΤΗΜΙΟΥ
700.00
ΤΟ ΧΑΜΟΓΕΛΟ ΤΟΥ ΠΑΙΔΙΟΥ
1,000.00
ΤΟΠΙΚΗ
ΔΙΟΙΚΟΥΣΑ
ΕΠΙΤΡΟΠΗ
ΠΑΡΑΡΤΗΜΑΤΟΣ
ΕΛΕΠΑΠ
ΑΓΡΙΝΙΟΥ
250.00
ΤΣΟΜΩΚΟΣ ΔΗΜΟΣΙΕΣ
ΣΧΕΣΕΙΣ ΑΕ
6,000.00
ΦΑΡΙΣ ΚΟΙΝΩΦΕΛΗΣ ΕΠΙΧΕΙΡΗΣΗ ΔΗΜΟΥ
ΚΑΛΑΜΑΤΑΣ
10,000.00
ΦΕΣΤΙΒΑΛ ΚΙΝΗΜΑΤΟΓΡΑΦΟΥ
ΘΕΣΣΑΛΟΝΙΚΗΣ
40,000.00
ΦΙΛΑΝΘΡΩΠΙΚΟΣ
ΣΚΟΠΕΥΤΙΚΟΣ
ΑΓΩΝΑΣ
ΠΑΣΥΚΑΦ
220.00
ΦΛΟΓΑ ΣΥΛΛΟΓΟΣ ΓΟΝΙΩΝ ΠΑΙΔΙΩΝ ΜΕ ΝΕΟΠΛΑΣΜΑΤΙΚΕΣ ΑΣΘΕΝΕΙΕΣ
1,800.00
ΧΟΡΗΓΙΑ
22ης ΕΤΗΣΙΑΣ
ΔΙΑΔΡΟΜΗΣ
ΑΓΑΠΗΣ ΠΑΓΚΥΠΡΙΟΥ
ΣΥΝΔΕΣΜΟΥ
"ΈΝΑ ΟΝΕΙΡΟ
ΜΙΑ ΕΥΧΗ"
1,000.00
2,806,750.47
Β) TO
INDIVIDUALS
- FOUR
(4)
BENEFICIARIES
13,007.43
DONATIONS
OF FIXED
ASSETS
Name*
107ο
ΝΗΠΙΑΓΩΓΕΙΟ
ΑΘΗΝΩΝ
10ο ΓΕΝΙΚΟ ΛΥΚΕΙΟ ΗΡΑΚΛΕΙΟΥ
11o ΝΗΠΙΑΓΩΓΕΙΟ
ΙΛΙΟΥ
11η Μ.Κ.Β. ΗΡΑΚΛΕΙΟΥ ΚΡΗΤΗΣ
13ο ΝΗΠΙΑΓΩΓΕΙΟ
ΓΛΥΦΑΔΑΣ
14o ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΑΓΙΟΥ
19ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΛΑΜΙΑΣ
DISCLOSURES OF LAW 4374/2016
523
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
DISCLOSURES OF LAW 4374/2016
524
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
1o ΓΕΛ ΧΟΛΑΡΓΟΥ
1o ΓΥΜΝΑΣΙΟ
ΑΓ. ΠΑΡΑΣΚΕΥΗΣ
1o Ε.Ε.Ε.Κ.
ΔΗΛΛΟΥ ΠΥΛΑΙΑΣ
ΧΟΡΤΙΑΤΗ
1o ΕΠΑΛ ΑΤΑΛΑΝΤΗΣ
1o ΚΕΣΥ ΠΕΙΡΑΙΑ
1o ΝΗΠΙΑΓΩΓΕΙΟ
ΓΙΑΝΝΙΤΣΩΝ
1o ΝΗΠΙΑΓΩΓΕΙΟ ΠΕΡΑΜΑΤΟΣ
1o ΝΗΠΙΑΓΩΓΕΙΟ ΣΚΥΔΡΑΣ
1ο ΓΥΜΝΑΣΙΟ ΑΛΕΞΑΝΔΡΕΙΑΣ
ΗΜΑΘΙΑΣ
1ο ΔΗΜ.ΣΧΟΛΕΙΟ ΑΞΙΟΥΠΟΛΗΣ
1ο ΔΗΜΟΤΙΚΟ
ΠΑΝΑΙΤΩΛΙΟΥ
1ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΠΑΝΑΙΤΩΛΙΟΥ
1ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΠΕΡΙΣΤΕΡΙΟΥ
1ο ΕΙΔΙΚΟ ΔΗΜ.ΣΧΟΛΕΙΟ ΚΕΡΑΤΣΙΝΙΟΥ
1ο ΕΙΔΙΚΟ ΔΗΜ.ΣΧΟΛΕΙΟ ΚΟΡΥΔΑΛΛΟΥ
1ο ΚΑΙ 2ο ΓΥΜΝΑΣΙΟ
ΑΡΤΕΜΙΔΟΣ
1ο ΚΕ.ΔΑ.ΣΥ -Α'ΘΕΣΣΑΛΟΝΙΚΗΣ
1ο ΝΗΠΙΑΓΩΓΕΙΟ
ΑΧΑΡΝΩΝ
1ο ΟΛΟΗΜΕΡΟ
ΔΗΜ.ΣΧΟΛΕΙΟ
ΓΙΑΝΝΙΤΣΩΝ
2 ΓΕ.Λ. ΔΙΑΠΟΛ/ΚΗΣ ΕΚΠΑΙΔ.ΕΛΛΗΝΙΚΟΥ
26ο ΓΥΜΝΑΣΙΟ
ΑΘΗΝΩΝ
2o ΔΗΜΟΤΙΚΟ ΓΛΥΦΑΔΑΣ
2o ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΠΙΚΕΡΜΙΟΥ
2ο ΓΥΜΝΑΣΙΟ
ΑΓΙΩΝ ΑΝΑΡΓΥΡΩΝ
2ο ΓΥΜΝΑΣΙΟ
ΘΕΡΜΗΣ
2ο ΔΗΜ.ΣΧ
ΟΛΕΙΟ
ΑΓΙΑΣ
ΠΑΡΑΣΚΕΥΗΣ
2ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΑΜΑΛΙΑΔΟΣ
2ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΓΟΥΜΕΝΙΣΣΑΣ
2ο Κ.Ε.Σ.Υ.-Γ ΑΘΗΝΑΣ
30ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΒΟΛΟΥ
33o ΝΗΠΙΑΓΩΓΕΙΟ ΠΕΡΙΣΤΕΡΙΟΥ
3o ΝΗΠΙΑΓΩΓΕΙΟ
ΘΕΣ/ΝΙΚΗΣ
3ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΑΙΓΑΛΕΩ
3ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΝΕΑΣ ΙΩΝΙΑΣ
3ο ΝΗΠΙΑΓΩΓΕΙΟ ΚΑΜΑΤΕΡΟΥ
48o ΓΥΜΝΑΣΙΟ
ΑΘΗΝΑΣ
4o ΕΠΑΛ
ΝΑΥΤΙΚΗΣ
ΚΑΤΕΥΘΥΝΣΗΣ
4ο ΓΥΜΝΑΣΙΟ ΧΑΡΙΛΑΟΥ ΘΕΣΣΑΛΟΝΙΚΗΣ
4ο ΔΗΜ.ΣΧΟΛΕΙΟ ΗΛΙΟΥΠΟΛΕΩΣ
4ο ΔΗΜ.ΣΧΟΛΕΙΟ ΜΕΤΑΜΟΡΦΩΣΕΩΣ
4ο ΝΗΠΙΑΓΩΓΕΙΟ
ΣΑΛΑΜΙΝΑΣ
56ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΑΘΗΝΩΝ
5o ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΚΑΛΛΙΘΕΑΣ
5o Ε.Κ
Γ' ΑΘΗΝΑΣ - ΙΛΙΟΝ
5ο ΔΗΜ.ΣΧΟΛΕΙΟ
ΑΓΙΑΣ
ΠΑΡΑΣΚΕΥΗΣ
5ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΝΙΚΑΙΑΣ
66ο ΔΗΜΟΤΙΚΟ
ΓΥΜΝΑΣΙΟ
ΑΘΗΝΩΝ
6o ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΠΥΛΑΙΑΣ
6η
Υ.ΠΕ.
(ΥΓΕΙΟΝΟΜΙΚΗ
ΠΕΡΙΦΕΡΕΙΑ)
6ο ΔΗΜΟΤΙΚO ΣΧΟΛΕΙΟ
ΠΕΡΑΜAΤΟΣ
8o ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΑΓ. ΔΗΜΗΤΡΙΟΥ
8ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΚΑΛΑΜΑΤΑΣ
8ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΚΙΛΚΙΣ
8ο ΝΗΠΙΑΓΩΓΕΙΟ ΠΕΤΡΟΥΠΟΛΕΩΣ
90o ΔΗΜΟΤΙΚΟ
ΘΕΣΣΑΛΟΝΙΚΗΣ
DISCLOSURES OF LAW 4374/2016
525
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
93ο ΔΙΘΕΣΙΟ
ΝΗΠΙΑΓΩΓΕΙΟ
ΑΘΗΝΩΝ
DISCLOSURES OF LAW 4374/2016
526
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
96ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΑΘΗΝΩΝ
9o ΔΗΜΟΤΙΚΟ
ΝΙΚΑΙΑΣ
9o ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΑΧΑΡΝΩΝ
9o ΝΗΠΙΑΓΩΓΕΙΟ ΠΕΡΙΣΤΕΡΙΟΥ
9ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΑΧΑΡΝΩΝ
9ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΧΑΛΚΙΔΟΣ
ACHELOOS GROW
UP
EΝΩΣΗ
ΥΠΑΛΛΗΛΩΝ
ΠΥΡΟΣΒ.
ΣΩΜΑΤΟΣ
Α' ΑΣΤΥΝΟΜΙΚΟ ΤΜΗΜΑ ΠΕΡΙΣΤΕΡΙΟΥ
Α.Σ.ΠΑΙ.ΤΕ.
Α.Τ. ΑΣΦΑΛΕΙΑΣ
ΑΓΡΙΝΙΟΥ
Α.Τ. ΚΟΡΥΔΑΛΛΟΥ
Α.Τ. ΝΕΑΣ ΣΜΥΡΝΗΣ
Α.Τ. ΧΑΡΙΛΑΟΥ
ΑΘΛΗΤΙΚΟΣ
ΟΜΙΛΟΣ
"ΠΑΥΛΟΣ
ΜΕΛΑΣ"
ΑΘΛΗΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΑΜΕΑ
ΘΕΣ/ΝΙΚΗΣ
ΑΘΛΗΤΙΚΟΣ ΦΥΣΙΟΛ/ΚΟΣ
ΜΟΡΦΩΤΙΚΟΣ
ΑΝΩΤΑΤΗ ΣΥΝΟΜΟΣΠΟΝΔΙΑ
ΠΟΛΥΤΕΚΝΩΝ
ΑΡΧΗΓΕΙΟ
ΕΛΛΗΝΙΚΗΣ
ΑΣΤΥΝΟΜΙΑΣ
ΑΣΤΥΝΟΜΙΚΟ ΤΜΗΜΑ.
ΣΠΕΤΣΩΝ
Γ.Α.Δ.Α. / ΔΑΕΕΒ / ΤΜΗΜΑ 5
ΓΕΝΙΚΗ ΑΣΤΥΝΟΜΙΚΗ
Δ/ΝΣΗ ΘΕΣ/ΝΙΚΗΣ
ΓΕΝΙΚΟ ΛΥΚΕΙΟ ΑΣΗΜΙΟΥ
ΓΕΝΙΚΟ ΛΥΚΕΙΟ
ΘΕΡΜΟΥ
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ ΑΤΤΙΚΗ
-Κ.Α.Τ.
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΚΙΛΚΙΣ
ΓΡΑΦΕΙΟ ΑΡΧΕΙΕΡΑΤΕΙΑΣ
Δ/ΝΣΗ 2/ΘΜΙΑΣ ΕΚΑΠΑΙΔΕΥΣΗΣ
ΠΕΙΡΑΙΑ
Δ/ΝΣΗ
ΑΣΦΑΛΕΙΑΣ
ΑΤΤΙΚΗΣ
Δ/ΝΣΗ Δ/ΘΜΙΑΣ ΕΚΠΑΙΔ.
ΜΑΓΝΗΣΙΑΣ
Δ/ΝΣΗ ΔΕΥΤΕΡ. ΕΚΠ. ΔΥΤ. ΑΤΤΙΚΗΣ
ΔΑΝΕΙΣΤΙΚΗ ΒΙΒΛΙΟΘΗΚΗ ΔΗΜΟΥ
ΚΟΡΥΔΑΛΛΟΥ
ΔΗΜΟΣ ΒΟΡΕΙΑΣ
ΚΥΝΟΥΡΙΑΣ
ΔΗΜΟΣ ΔΙΟΝΥΣΟΥ-ΔΗΜ.ΚΟΙΝ. ΣΤΑΜΑΤΑΣ
ΔΗΜΟΣ ΚΡΩΠΙΑΣ
ΠΡΩΤΟΒΑΘΜΙΑ
ΔΗΜΟΣ ΜΑΝΔΡΑΣ
ΔΗΜΟΣ
ΝΕΣΤΟΥ-Τ.Κ.
ΚΕΧΡΟΚΑΜΠΟΥ
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΑΛΙΚΩΝ ΛΑΚΩΝΙΑΣ
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΑΝΔΡΑΒΙΔΑΣ
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΑΡΙΣΤΟΜΕΝΗΣ
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΝΕΟΧΩΡΙΟΥ
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΠΕΝΤΑΛΟΦΟΥ
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΠΕΡΙΒΟΛΑΚΙΟΥ
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΧΡΥΣΑΣ
ΤΣΑΚΩΝ
ΔΙΕΥΘΥΝΣΗ
ΑΣΤΥΝΟΜΙΑΣ
ΑΧΑΙΑΣ
ΔΙΕΥΘΥΝΣΗ
ΑΣΤΥΝΟΜΙΑΣ
ΗΡΑΚΛΕΙΟΥ
ΔΙΕΥΘΥΝΣΗ
ΑΣΦΑΛΕΙΑΣ
ΘΕΣ/ΝΙΚΗΣ
ΔΟΜΗ ΦΙΛΟΞΕΝΙΑΣ
ΕΛΑΙΩΝΑ
Ε.Ε.Ε.Κ. ΠΑΥΛΟΥ ΜΕΛΑ
ΕΘΕΛΟΝΤΙΚΗ ΟΜ
ΑΔΑ ΚΑΠΑΝΔΡΙΤΙΟΥ-
ΕΘΝΙΚΟ
ΚΕΝΤΡΟ
ΑΜΕΣΗΣ
ΒΟΗΘΕΙΑΣ
ΕΙΔΙΚΟ ΓΥΜΝΑΣΙΟ
-ΛΥΚΕΙΟ ΙΛΙΟΥ
ΕΙΔΙΚΟ ΝΗΠΙΑΓΩΓΕΙΟ
ΚΩΦΩΝ ΚΑΙ ΒΑΡΗΚΩΩΝ
ΑΡΓΥΡΟΥΠΟΛΗΣ
ΕΙΔΙΚΟ ΣΧΟΛΕΙΟ
ΒΕΡΟΙΑΣ
ΕΙΔΙΚΟ ΣΧΟΛΕΙΟ ΚΩΦΩΝ
ΠΑΝΟΡΑΜΑΤΟΣ
DISCLOSURES OF LAW 4374/2016
527
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΕΝΩΣΗ ΑΣΤΥΝΟΜΙΚΩΝ
ΥΠΑΛΛΗΛΩΝ
DISCLOSURES OF LAW 4374/2016
528
ANNUAL FINANCIAL REPORT
The amount are presented in thousands of
Euro unless otherwise
indicated
ΕΝΩΣΗ
ΥΠΑΛΛΗΛΩΝ
ΠΥΡΟΣΒ.
ΣΩΜΑΤΟΣ
ΕΠΑΛ ΒΑΣΙΛΙΚΩΝ
ΕΠΙΛΕΚΤΗ ΟΜΑΔΑ ΕΙΔΙΚΩΝ
ΑΠΟΣΤΟΛΩΝ
ΕΡΓΑΣΤΗΡΙ ΕΠΑΓΓ/ΚΗΣ
ΕΚΠΑΙΔΕΥΣΗΣ
ΕΥΡΩΠΑΙΚΗ ΕΚΦΡΑΣΗ
Ε.Κ.Π.Ε.Θ.Ε
Ζ' ΜΑΚ Λ/Κ/ΝΕΑ ΠΕΡΑΜΟΣ
ΙΕΡΟΣ ΝΑΟΣ
ΑΓ. ΜΑΡΙΝΑΣ
ΩΡΩΠΟΥ
ΙΕΡΟΣ ΝΑΟΣ
ΑΓΙΑΣ ΑΙΚΑΤΕΡΙΝΗΣ
ΙΕΡΟΣ ΝΑΟΣ
ΘΕΙΑΣ ΜΕΤΑΜΟΡΦΩΣΕΩΣ
ΚΑΛΛΙΤEΧΝΙΚΟ
ΓΥΜΝΑΣΙΟ
ΓΕΡΑΚΑ
ΚΔΑΠ-μεΑ
ΚΕΝΤΡΟ ΥΓΕΙΑΣ
ΒΟΛΟΥ
ΚΕΝΤΡΟ ΥΓΕΙΑΣ ΠΟΛΥΚΑΣΤΡΟΥ
ΛΙΜΕΝΑΡΧΕΙΟ
ΣΠΕΤΣΩΝ
ΜΗΧΑΝ/ΝΗΤΟ
ΤΑΓΜΑ ΠΕΖΙΚΟΥ
ΛΗΜΝΟΥ
ΜΟΙΡΑ ΑΕΡΟΣΚΑΦΩΝ ΝΑΥΤΙΚΟΥ
ΜΟΥΣΙΚΟ
ΣΧΟΛΕΙΟ ΠΕΙΡΑΙΑ
ΜΟΥΣΙΚΟ ΣΧΟΛΕΙΟ ΣΑΜΟΥ
ΝΟΣΟΚΟΜΕΙΟ ΕΛΕΝΑ ΒΕΝΙΖΕΛΟΥ
ΟΙΚΟΥΜΕΝΙΚΗ
ΟΜΟΣΠΟΝΔΙΑ
ΟΛΟΗΜΕΡΟ
ΔΗΜ.ΣΧΟΛΕΙΟ
ΖΑΓΚΛΙΒΕΡΙΟΥ
ΠΑΜΠΕΙΡΑΪΚΗ ΕΝΩΣΗ ΠΟΛΥΤΕΚΝΩΝ
ΠΑΤΡΑΙΚΟΣ ΟΜΙΛΟΣ
ΦΟΥΣΚΩΤΩΝ ΣΚΑΦΩΝ
ΠΟΔΟΣΦ.ΑΘΛ.ΟΜ.ΑΛΣΟΥΠΟΛΗΣ
ΠΟΛΙΤΙΣΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΑΠΟΔΟΥΛΟΥ
ΠΥΡΟΣΒΕΣΤΙΚΗ ΥΠΗΡΕΣΙΑ
ΑΓΡΙΝΙΟΥ
ΠΥΡΟΣΒΕΣΤΙΚΗ ΥΠΗΡΕΣΙΑ
ΑΡΙΔΑΙΑΣ
ΣΥΛΛΟΓΟΣ ΑΠΑΝΤΑΧΟΥ ΜΟΛΟΧΙΩΤΩΝ
ΣΥΛΛΟΓΟΣ ΓΟΝΕΩΝ
ΚΑΙ ΚΗΔΕΜΟΝΩΝ
19ου ΔΗΜΟΤΙΚΟΥ
ΣΧΟΛΕΙΟΥ ΑΧΑΡΝΩΝ
ΣΥΛΛΟΓΟΣ ΓΟΝΕΩΝ ΦΙΛΩΝ
ΑΜΕΑ
ΣΥΛΛΟΓΟΣ
ΥΠΑΛΛΗΛΩΝ
ΠΕΡΙΦΕΡΕΙΑΚΩΝ
ΥΠΗΡΕΣΙΩΝ
Υ.Π.Ε.Π.Θ.
ΣΥΛΛΟΓΟΣ ΦΑΡΟΣ
ΕΛΠΙΔΑΣ
ΣΥΛΛΟΓΟΣ
ΦΙΛΩΝ
ΠΕΡΙΣΤΕΡΑΔΩΝ
ΣΥΛΛΟΓΟΣ ΧΡΥΣΟΧΩΡΙΤΩΝ
ΤΡΙΦΥΛΙΑΣ
ΣΥΝΔΕΣΜΟΣ
ΠΡΟΠΟΝΗΤΩΝ
ΠΟΔΟΣΦΑΙΡΟΥ
ΤΕΘ ΠΑΤΜΟΥ
ΤΜΗΜΑ ΑΣΦΑΛΕΙΑΣ ΗΛΙΟΥΠΟΛΕΩΣ
ΤΜΗΜΑ ΑΣΦΑΛΕΙΑΣ
ΚΟΛΩΝΟΥ
ΤΜΗΜΑ ΔΟΚΙΜΩΝ
ΑΣΤ/ΚΩΝ
ΚΟΜΟΤΗΝΗΣ
ΤΟΠΙΚΗ ΚΟΙΝΟΤΗΤΑ ΑΕΤΟΥ
ΤΟΠΙΚΗ ΚΟΙΝΟΤΗΤΑ
ΠΑΠΑΔΑΤΩΝ
ΤΟΠΙΚΗ ΚΟΙΝΟΤΗΤΑ ΠΑΥΛΟΥ ΒΟΙΩΤΙΑΣ
ΥΠΗΡΕΣΙΑ
ΕΣΩΤΕΡΙΚΩΝ
ΥΠΟΘΕΣΕΩΝ
ΥΠΟΥΡΓΕΙΟ ΠΡΟΣΤΑΣΙΑΣ
ΠΟΛΙΤΗ
The above
table refers
to donations
of fully
amortised fixed
assets of
the Bank
with total
residual value €
22.74.
TOTAL FOR MEDIA PAYMENTS
6,904,336.90
TOTAL PAYMENTS DUE TO DONATIONS, SPONSORSHIP,
SUBSIDIES OR OTHER CHARITABLE REASONS
TO
LEGAL ENTITIES
2,806,750.47
TOTAL PAYMENTS DUE TO DONATIONS, SPONSORSHIP,
SUBSIDIES OR OTHER CHARITABLE REASONS
TO
INDIVIDUALS
13,007.43
529
ANNUAL FINANCIAL REPORT
Availability
of
Annual
Financial
Report
The Annual
Financial
Report
as
at 31.12.2021,
which
includes:
•
The Statement by the Members of Board of Directors
•
The Board
of
Directors’
Annual
Management
Report
•
The Explanatory
Report
of the
Board
of Directors
•
The
Corporate
Governance
Statement
•
The Independent
Auditors’
Report
•
The Annu
al Financial
Statements
of the
Company
and
the
Group
are available
on the website
address: https://www.alphaholdings.gr/en/inve
stor-relations/group-results
-and-reporting/
financial-statements-bank-and-group.
The Annual Financial Statements, the Independent Auditors’ report and the Board of Directors’ Report of consolidated
companies are
available on
the website:
https://www.alphaholdings.gr/el/enimerosi
-ependuton/oikonomika
-stoixeia-omilou/
oikonomikes-katastaseis
-thigatrikon-alpha-services
-and-holdings?listfilter=161EA04F75F54BFFA2899C005E10489D
The Annual
Financial
Statements
of the
Company
and Group
of Alpha
Services
and Holdings
SA, as
at 31.12.2021,
in XHTML
format, as well as the XBRL file with the appropriate tagging, on the Consolidated Financial
Statements are available on the
website: https://www.alphaholdings.gr/en/investor
-relations/group-results-and
-reporting/financial-statements
-bank-and-
group.