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ANNUAL REPORT
For the
period from
1 January
to 31
December 2022
(In accordance
with Law
3556/2007)
Athens, March 14,
2023
TABLE
OF CONTENTS
Statement by the Members
of Board of Directors
7
Board of Directors’
annual management report
as at 31.12.2022
7
Non Financial Report
34
Explanatory Report of the Board
of Directors of Alpha
Services and Holdings for the Year
2022
55
Corporate Governance Statement
for the
year 2022
58
Independent Auditors’ Report
(on Group Financial Statements)
94
Consolidated Financial Statements
as at 31.12.2022
Consolidated Income Statement
98
Consolidated Statement of
Comprehensive
Income
99
Consolidated Balance Sheet
100
Consolidated Statement of
Changes in Equity
101
Consolidated Statement of
Cash Flows
103
Notes to the Consolidated Financial
Statements
104
Accounting policies applied
1.1
Basis of presentation
107
1.1.1
Going concern
107
1.1.2
Adoption of new standards and of
amendments to standards
110
1.2
Accounting policies
114
1.2.1
Basis of consolidation
114
1.2.2
Operating Segments
116
1.2.3
Transactions in foreign currency and
translation of foreign operations
117
1.2.4
Cash and cash equivalents
117
1.2.5
Classification and measurement of
financial instruments
117
1.2.6
Derivative financial instruments and
hedge accounting
124
1.2.7
Fair Value Measurement
126
1.2.8
Property, Plant and Equipment
128
1.2.9
Investment property
128
1.2.10
Goodwill and other intangible assets
129
1.2.11
Leases
130
1.2.12
Insurance activities
131
1.2.13
Credit impairment losses on loans and advances
to customers, undrawn loan commitments,
letters of credit and letters of guarantee
132
1.2.14
Credit impairment losses on due from banks
and bonds
134
1.2.15
Impairment losses on investments and
non-financial assets
135
1.2.16
Income tax
136
1.2.17
Non-current assets held for sale
136
1.2.18
Defined contribution and defined benefit
plans
137
1.2.19
Share options granted to employees
138
1.2.20
Provisions and contingent liabilities
138
1.2.21
Securities sale and repurchase agreements
and securities lending
139
1.2.22
Securitization
139
1.2.23
Equity
139
1.2.24
Interest income and expense
140
1.2.25
Fee and commission income
140
1.2.26
Dividend Income
141
1.2.27
Gains less losses on financial transactions
141
1.2.28
Gains less losses on derecognition of financial
assets measured at amortised cost
141
1.2.29
Discontinued operations
141
1.2.30
Related parties definition
141
1.2.31
Earnings per share
142
1.2.32
Comparatives
142
1.3
Significant accounting judgments and key
sources of estimation uncertainty
142
Income statement
2
Net interest income
146
3
Net fee and commission income and
other income
146
4
Dividend income
148
5
Gains less losses on financial transactions
148
6
Gains less losses on derecognition of
financial assets measured at amortised
cost
149
7
Other income
150
8
Staff costs and expenses for separation
schemes
150
9
General administrative expenses
153
10
Other expenses
154
11
Impairment losses ,provisions to cover
credit risk on loans and advances to
customers and related expenses
154
12
Impairment losses and provisions to
cover credit risk on other financial
instruments
156
13
Income tax
156
14
Earnings/(losses) per share
158
Assets
15
Cash and balances with Central Banks
159
16
Due from banks
160
17
Trading securities
160
18
Derivative financial instruments
(assets and liabilities)
161
19
Loans and advances to customers
169
20
Investment securities
172
21
Investments in associates and joint
ventures
175
22
Investment property
181
23
Property, plant and equipment
182
24
Goodwill and other intangible assets
183
25
Deferred tax assets and liabilities
184
26
Other assets
186
Liabilities
27
Due to Banks
186
28
Due to customers
187
29
Debt securities in issue and other
borrowed funds
187
30
Liabilities for current income tax and
other taxes
191
31
Employee defined benefit obligations
191
32
Other liabilities
196
33
Provisions
197
Equity
34
Share capital
199
35
Share premium, Special Reserve from
Share Capital Decrease
200
36
Reserves
201
37
Retained earnings
202
38
Hybrid securities
202
Additional information
39
Contingent liabilities and commitments
203
40
Group Consolidated Companies
210
41
Disclosures of Law 4261/5.5.2014
222
42
Segment reporting
227
43
Risk Management
232
43.1
Credit Risk
233
43.2
Market Risk
305
a. Foreign currency risk
306
b. Interest rate risk
309
43.3
Liquidity Risk
312
43.4
Fair value of financial assets and liabilities
319
43.5
Transfers
of financial assets
328
43.6
Offsetting financial assets - liabilities
330
43.7
Disclosures on interest rate reform
331
44
Capital Adequacy
332
45
Related-party transactions
335
46
Auditors’ fees
337
47
Disclosures of Law 4151/2013
337
48
Assets held for sale
337
49
Corporate events relating to the Group
structure
342
50
Restatement of financial statements
346
51
Discontinued Operations
348
52
Strategic plan
349
53
Events after the reporting period
350
Financial Statements as at
31.12.2022
Income Statement
353
Statement of Comprehensive
Income
354
Balance Sheet
355
Statement of Changes in Equity
356
Statement of Cash Flows
358
Notes to the Financial Statements
359
Accounting policies applied
1.1
Basis of presentation
361
1.1.1
Going concern
362
1.1.2
Adoption of new standards and of
amendments to standards
364
1.2
Accounting policies
368
1.2.1
Transactions in foreign currency and
translation of foreign operations
368
1.2.2
Cash and cash equivalents
369
1.2.3
Classification and measurement of
financial instruments
369
1.2.4
Derivative financial instruments and
hedge accounting
375
1.2.5
Fair Value Measurement
376
1.2.6
Investments in subsidiaries
377
1.2.7
Property, plant and equipment
377
1.2.8
Goodwill and other intangible asset
378
1.2.9
Leases
379
1.2.10
Credit impairment losses on loans and advances
to customers, undrawn loan commitments,
letters of credit and letters
of guarantee
379
1.2.11
Credit impairment losses on due from
banks and bonds
382
1.2.12
Impairment losses on investments and non-
financial assets
383
1.2.13
Income tax
384
1.2.14
Non-current assets held for sale
384
1.2.15
Non-current assets held for sale
385
1.2.16
Defined contribution and defined benefit
plans
386
1.2.17
Share options granted to employees
386
1.2.18
Provisions and contingent liabilities
387
1.2.19
Equity
387
1.2.20
Interest income and expense
388
1.2.21
Fee and commission income
388
1.2.22
Gains less losses on financial transactions
389
1.2.23
Gains less losses on derecognition of
financial assets measured at amortised
cost
389
1.2.24
Discontinued operations
389
1.2.25
Related parties definition
389
1.2.26
Earnings per share
390
1.2.27
Comparatives
390
1.3
Significant accounting judgments and key
sources of estimation uncertainty
390
Income statement
2
Net interest income
391
3
Net fee and commission income
392
4
Dividend income
393
5
Gains less losses on derecognition of
financial assets measured at amortised
cost
393
6
Gains less losses on financial transactions
393
7
Other income
393
8
Staff costs and expenses
393
9
General administrative expenses
394
10
Impairment losses, provisions to cover
credit risk and related expenses
394
11
Impairment losses, provisions to cover
credit risk and related expenses on other
financial instruments
395
12
Income tax
395
13
Earnings/(losses) per share
397
Assets
14
Due from banks
398
15
Loans and advances to customers
398
16
Investment securities
400
17
Investments in subsidiaries
402
18
Property, plant and equipment
403
19
Goodwill and other intangible assets
404
20
Other assets
404
Liabilities
21
Debt securities in issue and other borrowed
funds
405
22
Liabilities for current income tax and
other taxes
406
23
Employee defined benefit obligations
406
24
Deferred tax liabilities
408
25
Other liabilities
410
26
Share capital
410
Equity
27
Share premium
411
28
Special Reserve from Capital Decrease
411
29
Reserves
411
30
Retained earnings
412
Additional information
31
Contingent liabilities and commitments
412
32
Risk Management
413
32.1
Credit Risk
413
32.2
Market Risk
421
a. Foreign currency risk
421
b. Interest rate risk
421
32.3
Liquidity Risk
423
32.4
Fair value of financial assets and liabilities
425
32.5
Transfers
of financial assets
428
33
Related-party transactions
429
34
Auditors’ fees
431
35
Assets held for sale
431
36
Awarding of stock options rights to
employees
432
37
Corporate events
434
38
Restatement of financial statements
435
39
Discontinued Operations
438
40
Strategic plan
439
41
Events after the balance sheet date
441
Appendix of the Board of Directors’
Annual Management
Report
443
Disclosures of Law 4374/2016
446
Availability of Annual Financial
Report
459
7
ANNUAL FINANCIAL REPORT
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 paragraph 2 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 14,
2023
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
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
8
ANNUAL FINANCIAL REPORT
Board of directors’ annual management
report as at 31.12.2022
Macroeconomic
environment
GREEK ECONOMY
The recovery of domestic economic activity continued
in 2022, as
real GDP expanded by 5.9%. Growth
was driven by private
consumption and investment. Net exports
weighed down the overall
growth figure, as the rise in imports, primarily
of goods, offset the
rise in exports. In addition, the contribution
of public consumption
was negative, despite the fiscal interventions
adopted by the Greek
government against the rising energy costs,
due to the phasing out
of the pandemic related fiscal measures
implemented in 2021
(base effects). Solid growth dynamics in 2022 supported
by strong
performance in
tourism, the material rise in foreign direct
investment and the ongoing decline in unemployment,
reflect the
resilience of the Greek economy against the
adverse external
developments following the war in Ukraine,
supply chain disruptions
and inflationary pressures.
Inflation, based on the Harmonized Index
of Consumer Prices
(HICP), remained on an upward trend in
the first two months of
2022 and accelerated after the outburst of
the war. The HICP
increased, on average, by 9.3% in 2022,
compared to an increase
of 0.6% in 2021, mainly due to the rising energy
prices globally –
given that Greece is a net energy importer–,
the supply chain
disruptions and the shortages in raw materials.
Harmonized
inflation is expected to reach 4.5% in 2023,
according to the
European Commission (Winter 2023 Economic
Forecast), whereas
the Bank of Greece (Interim Report on
Monetary Policy, December
2022) foresees an HICP increase of 5.8%
in 2023.
Fiscal support to households and businesses
remained in place in
2022, mainly in order to mitigate the negative
impact of the rising
energy cost and the inflationary pressures.
According to the 2023 State Budget
(November 2022),
interventions against the negative consequences
of the energy
crisis amounted to Euro 10.7 billion in 2022,
of which Euro 8.1
billion are related to electricity and natural
gas consumption subsidy
schemes.
In 2022, Greece successfully tapped the
international debt capital
markets, raising in total Euro 8.3 billion through
the issuance of a
new 10-year Greek Government Bond
(GGB) in January and a new
5-year GGB in July as well as through
the reopening of existing
GGBs in April, May, July, October and November. Borrowing costs,
however, have risen worldwide,
due to the elevated uncertainty
that stems from the adverse effects of inflation.
The spread of the
10-year GGB, compared to the respective
German GB, increased
to 205 basis points (bps) on 31.12.2022,
compared to 152 bps in
December 2021.
In April 2022 and in January 2023, Standard
& Poor’s and Fitch
upgraded Greece’s sovereign credit rating by
one notch, from BB to
BB+, with a stable outlook (one scale below
the investment grade).
According to the European System of Accounts
(ESA)
methodology, Greece’s primary deficit reached 5% of the GDP in
2021, whereas, according to the 2023 State
Budget (November
2022), it is estimated to narrow to 1.6% of
the GDP in 2022 and to
turn into a surplus of 0.7% of the GDP
in 2023. Furthermore, the
General Government debt-to-GDP ratio is expected
to decline to
168.9% in 2022, from 194.5% in 2021, and
further to 159.3% in 2023.
Residential property prices continued
to trend upwards in 2022.
According to the latest available (provisional)
data by the Bank of
Greece, in the first nine months of 2022, nominal
house prices rose
by 10.4% on an annual basis at an accelerating
pace during the year.
The unemployment rate was equal to 12.2%
on average
in 2022,
compared to 14.7% in 2021. Employment
grew by 5.2% in 2022,
whereas the unemployed and the people outside
the labor force
decreased by 15.4% and 4% respectively.
According to the Interim Report on
Monetary Policy (December 2022)
issued by the Bank of Greece, Greek
banks recorded profits in the
first three quarters of 2022, mainly due
to non-recurring revenues and
lower credit risk provisions. The Total Capital Ratio (TCR) for the
Greek banks, on a consolidated basis, stood
at 16.2% in September
2022,whereas the corresponding Common
Equity Tier 1 (CET 1) ratio
reached 13.5%, from 16.2% and 13.6%
respectively, in December
2021.
The balance of the private sector’s deposits
was Euro 188.7 billion in
December 2022, of which Euro 141.3 billion
were household deposits
and Euro 47.4 billion were corporate deposits.
In 2022, the private
sector’s net deposit inflows in
the domestic banking system reached
Euro 8.6 billion. The latter is mainly due
to the increase of
households’ deposits (Euro 6 billion),
which in turn is related to
significant gains in employment (mainly
in the retail trade and tourism
sectors) and in fiscal support to deal with
the consequences of the
energy crisis.
The outstanding amount of total credit to
the private sector in the
banking system amounted to Euro 115.5 billion at the end of
December 2022, while the annual rate of change
(Bank of Greece
data) stood at 6.3%. Specifically, the annual rate of change regarding
credit to non-financial corporations stood at 11.8% in December
2022.
According to the latest data by the Bank of
Greece, Non- Performing
Loans (NPLs) at the end of September
2022 amounted to Euro 14.6
billion, reduced by 3.8 billion since December
2021. The total NPLs
ratio reached 9.7% at the end of September
2022, whereas the NPLs
ratio for the business portfolio (8.9%)
was lower compared to the
mortgage (10.4%) and consumer loans portfolios
(18.5%).
THE PROSPECTS OF THE GREEK
ECONOMY
The GDP growth is expected to decelerate
in 2023, due to the
adverse effects of inflationary pressures on
the purchasing power
of the European citizens and, therefore, on
private consumption
and exports of services, which, however, are expected
to continue
to support economic growth in 2023, albeit
to a lesser extent than
in previous years. The Recovery and Resilience
Facility (RRF)
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
9
ANNUAL FINANCIAL REPORT
absorption, the implementation of the
Public Investment Budget
(PIB) and the increased Foreign Direct
Investment (FDI) flows
are estimated to be the main factors that will
maintain the GDP
annual change rate in positive territory
in 2023.
The European Commission (European
Economic Forecast,
Winter 2023) projects a GDP growth of 1.2%
in 2023, whereas
the 2023 Budget, respectively, of 1.8%.
The rising contribution of investment to
the future growth mix is
depicted on: (i) the strong upward dynamics
in FDI, which in the
first semester of 2022 exceeded 80% of
the 2021 level, (ii) the
expected sizeable injection of investment
in 2023 via the PIB
and the RRF of Euro 15.3 billion in total,
according to the 2023
State Budget, (iii) the prudent adjustment of
labor costs to the
current inflationary environment, which
will enable firms to tackle
the negative impact of the energy crisis and
(iv) the expected de-
escalation of the debt-to-GDP ratio, which will compress
sovereign risk and will increase business confidence.
Downside risks to the 2023 growth outlook
are primarily related
to the adverse effects of potentially higher energy
prices on the
households’ real disposable income as
well as to the tightening
monetary policy, the rising borrowing cost and its implications
on
debt sustainability, the risks arising from the RRF funds’
absorption rate and the Plan’s implementation and
finally to
possible delays in the reforms implementation.
GLOBAL
ECONOMY
In 2022, the global economy faced major challenges,
such
as
the Russian invasion of Ukraine, the inflationary
pressures,
China’s zero-Covid-19 policy, the energy crisis and the supply
chain disruptions. The major contributors
to growth – the United
States, China and the Euro area – showed
signs of a slowdown,
after a rapid recovery in 2021. According
to the latest available
economic data, the slowdown of economic
growth is not
expected to be identical among countries,
as it depends on i) the
exposure to the geopolitical tensions,
ii) the degree of
dependency on Russian gas and iii)
the expansionary policies
implemented in the fiscal and monetary
fields in each country.
The combination of high inflation, slow growth
and excessive
debt levels for states and households could pose
significant risks
to the global economy.
The global GDP growth accelerated by 6.2%
in 2021, while,
according to the International Monetary Fund
(IMF) (World
Economic Outlook Update, January 2023),
it is expected to
increase by 3.4% in 2022 and by 2.9%
in 2023. The projected
downward movement is explained mainly
by the simultaneous
monetary policy tightening around the world
to tackle the inflation
pressures.
In 2023, the global economy is expected
to decelerate, as the
tight monetary policy, which is necessary to tame inflation,
is
expected to continue hikes in interest
rates in the beginning
of the
year. The substantial rise in borrowing costs has
already raised
the cost of living for the households and
the expenses for
businesses.
Global inflation rose rapidly in 2022, mainly
as a result of
imbalances between supply and demand,
increasing prices for
goods and energy products. According
to the IMF, global inflation
reached 8.8% in 2022 and is expected
to remain at a high level for
a longer time, at 6.6% in 2023 and at 4.3%
in 2024.
The Federal Reserve System (FED) raised
the interest rates
seven times in 2022, causing them to
reach the highest level in 15
years. The Bank of England (BoE) was one of
the first central
banks which started to raise interest rates,
in December 2021,
while other major central banks, such
as the European Central
Bank (ECB), proceeded with consecutive
interest rate increases in
2022. At its meeting in December 2022,
the ECB raised its basic
interest rates by 50 basis points and it is expected
to raise them
further due to the upward revision of the
inflation outlook.
Undoubtedly, at the end of 2022, central banks showed signs of
reducing speed
in interest rates increases, as inflation eases
down from its peak. However, the battle against inflation has
not
been won yet and keeping interest
rates at high levels is crucial,
until the inflation returns to the target level.
Additional uncertainties that could affect the global
economy are
the following:
First, the Russian invasion of Ukraine. The
unforeseen duration of
the invasion and the reduction of gas and
oil exports, as a result of
nine rounds of sanctions from the EU, could
lead to heightened
Russian aggression in the next months.
Second, the reopening of China’s economy. China’s recent
decision to abandon its strict zero-Covid-19 policy could
disrupt
supply chains in the short term, yet boost global
growth in 2023.
Third, the rising cost of living. Inflationary pressures
are hitting
mainly the most vulnerable households.
Prices increased
substantially in 2022, due to disruptions
in international trade.
Fourth, food and energy security. The disruptions in the global
supply chains, primarily due to the Russian
invasion of Ukraine
and the pandemic, have caused concerns
about the adequacy of
supplies. In responding to food and energy
shocks, governments
need to mitigate the negative impact,
through support measures
targeting low-income groups.
Fifth, fiscal and monetary policy. Urgent action is needed
to
mitigate the risk of global slowdown. Fiscal
interactions in
emerging markets and developing economies
have become more
necessary to support people. In advanced
economies fiscal consolidation is a challenge,
as governments
should prioritize the reduction of sovereign
debt. In addition,
central banks may need to tighten their
monetary policy further
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
10
ANNUAL FINANCIAL REPORT
than what was originally expected,
in order to curb inflation in
2023.
EURO AREA
According to the ECB macroeconomic projections
(December
2022), the factors for the deceleration in
real GDP growth in
2022 are the energy crisis and the uncertainty
caused by the war
in Ukraine, the inflation pressures, the global
economic
slowdown and the higher interest rates. Real
GDP growth is
projected to slow down from 3.4% in 2022
to 0.5% in 2023 and
then to increase to 1.9% in 2024 and to 1.8%
in 2025.
On the inflation front, the Harmonized Index
of Consumer Prices
(HICP) is estimated at 8.4% in 2022, 6.3%
in 2023, 3.4% in 2024
and 2.3% in 2025. High uncertainty surrounds
the outlook on
inflation in the coming months, due to
the fiscal support provided
by the governments and the base effect for energy
prices, yet it
is projected to fall gradually throughout
2023.
In the short term, the labor market is estimated
to remain
resilient, in accordance with the economic activity
path. After a
strong increase in 2022, employment growth
is estimated to
decline in 2023, due to lower labor demand,
reflecting the
slowdown in the European economy. The unemployment
rate is
projected to increase to 6.9% in 2023 from
6.7% in 2022 and will
continue by decreasing marginally to 6.8%
and 6.6% in 2024
and 2025 respectively.
COUNTRIES WHERE THE BANK
OPERATES
Cyprus
Economic activity in Cyprus, according
to the available data from
the Statistical Service (CYSTAT), increased by 5.4% on an
annual basis (seasonally-adjusted figures)
in the third quarter of
2022, against an increase of 6.3% in the
second quarter and of
6.6% in the first quarter of 2022. Growth
was mainly driven by
domestic demand, especially by private consumption.
The European Commission (Winter 2023
Economic Forecast)
estimates the GDP growth rate to stand at 5.8%
in 2022 and
1.6% in 2023. Risks to the outlook are
tilted to the downside,
arising from the geopolitical uncertainty caused
by the war in
Ukraine. Tourism performance in 2023 is unclear, depending on
the impact of inflationary pressures on
the households’
purchasing power, mainly in the European countries. On
a
positive note, the implementation of the national
Recovery and
Resilience Plan (RRP) is expected to support
economic activity,
particularly investments.
Annual harmonized inflation, according to
the CYSTAT,
increased to 8.1% in 2022 from 2.3%
in 2021, while, according
to the European Commission (Winter 2023
Economic Forecast),
it is forecast to decelerate to 4% in 2023.
Cyprus does not import
Russian natural gas, however high inflation
is mainly attributed
to soaring oil prices, as the country depends
heavily on oil
products.
Public debt-to-GDP decreased significantly from 113.5% in 2020
to 101% in 2021 and it is expected
to fall to 89.6% in2022, due to
high nominal GDP growth, and further
to 84% in 2023 (European
Commission, Autumn 2022 Economic Forecast).
The current account deficit, according to
the Central Bank of
Cyprus, increased to Euro 435.7 million
in the third quarter of 2022
from Euro 132.8 million in the corresponding
period of the previous
year, due to the significant increase in the trade deficit. According
to the European Commission (Autumn 2022
Economic Forecast),
the current account deficit is expected to increase
from 6.8% of
the GDP in 2021 to 9.6% in 2022 and
to 7.3% in 2023.
Romania
The GDP, according to available data from the National Institute of
Statistics (NIS), increased by 4%, on an
annual basis in the third
quarter of 2022 (unadjusted figures), compared
with a larger
increase of 5.1% in the second quarter
and of 6.4% in the first
quarter of 2022.
According to the European Commission
(Winter 2023 Economic
Forecast), the GDP growth rate is expected
to reach 4.5% in 2022,
with private consumption and investment being
the main drivers of
growth. Regarding 2023, the European Commission
estimates the
GDP growth rate to increase by 2.5%, as
investment is expected
to support economic activity due to the anticipated
inflow of EU
funds, in particular from
the Recovery and Resilience Facility
(RRF).
Annual harmonized inflation, according to
the NIS, stood at 12% in
2022, exceeding the EU average (9.2%). The
rise
in prices
accelerated since the second half of 2021,
while double-digit
inflation has been recorded since April 2022.
The European Commission (Winter 2023
Economic Forecast)
predicts that harmonized inflation will stand
at 9.7% in 2023, one
of the highest among the EU member states.
According to the European Commission
(Autumn 2022 Economic
Forecast), the government debt-to-GDP ratio is estimated
to
decrease from 48.9% in 2021 to 47.9% in
2022 and further to
47.3% in 2023.
Additionally, the current account deficit increased by 62%,
on an
annual basis, reaching Euro 25.3 billion
in the period January-
November 2022, according to the National
Bank of Romania
(BNR). Significant deterioration of Euro 8.6
billion was recorded in
the balance of goods, while the surplus of
the balance of services
increased by Euro 2.4 billion. The European
Commission (Autumn
2022 Economic Forecast) estimates
that the current account
deficit will rise from 7.5% of the GDP in 2021
to 9.1% in 2022 and
to 8.8% in 2023.
United Kingdom
According to the UK Office for National Statistics,
the GDP
increased by 1.9%, on an annual basis, in
the third quarter of
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
11
ANNUAL FINANCIAL REPORT
2022, compared with a larger increase of 4%
in the second
quarter and of 10.7% in the first quarter of
2022. The European
Commission (Autumn 2022 Economic Forecast)
predicts that the
GDP will increase by 4.2% in 2022 from
7.5% in 2021.
Regarding 2023, the European Commission
estimates that GDP
is expected to decrease by 0.9%, as the
high energy cost for
households and higher interest rates are expected
to weaken
domestic demand.
The Bank of England raised its policy
rate nine times between
December 2021 and December 2022, finally
reaching 3.5%. The
decision was catalytically affected by the sharp
rise in inflation,
due to high energy prices. Inflation
in the United Kingdom stood
at 10.5% on an annual basis, in December
2022 and at 9.1% on
average in 2022.
Analysis of Group Financial Information
As of 31.12.2022, the Group’s Total Assets increased by Euro
4.7 billion or 6.4% compared to 31.12.2021,
amounting to Euro
78.0 billion. The balance sheet growth was
funded mainly
through increased customer deposits and
bond issuances.
The balance of Due to Customers amounted
to Euro 50.2 billion,
increased by Euro 3.3 billion or 7.0% compared
to 31.12.21.
The balance of Debt securities in issue and other
borrowed
funds increased by Euro 330.0 million or
12.7% in comparison
with 31.12.2021, mainly due to the issue
of two new senior
preferred bonds with a total nominal value of
Euro 850 million
and a repayment of senior debt of Euro 369
million.
The balance of loans and advances
to Customers increased by
Euro 1.9 billion and amounted to Euro 38.7
billion, compared to
Euro 36.9 billion on 31.12.2021, mainly due
to new net
disbursements of Euro 2.4 billion, less loan
portfolios transferred
to assets held for sale (Projects Solar, Hermes and Leasing)
and
loan portfolios sold to third parties (Projects Light
and Shipping)
for approximately Euro 0.5 billion.Additionally
the loan-to-deposit
ratio has reached the percentage of 77.1%
(31.12.2021: 78%).
As at 31.12.2022, the balance of Investment
securities stood at
Euro 13.5 billion (31.12.2021: Euro 10.6 billion)
representing an
increase of 26.6%. The said increase
is due to the acquisition of
ECB-eligible bonds, following the higher
liquidity from the growth
in funding.
The Group’s Total Equity amounted to Euro 6.3 billion as at
31.12.2022, increased by Euro 223 million compared
to
31.12.2021, mainly due to the profits recognized
for the year of
Euro 398 million less losses from the valuation
of bonds
recognized directly in equity of Euro 152
million. The Total
Capital Adequacy Ratio of the Group
remained stable at 16.2%.
Regarding the results of the year, the Group’s net profits
after
income tax amounted to Euro 398 million
(31.12.2021: net losses
of Euro 2.9 billion), mainly affected by organic growth
of Euro 429
million, gains of Euro 298 million from the
sale of the Bank’s
merchant acquiring business unit to Nexi S.A.,
the sale of specific
Non-Performing Loans included in the Company’s
business plan
leading to the recognition of impairment
losses amounting to Euro
286 million and by impairment losses of
Euro 58 million for REOs
included in the perimeters of the Skyline
and Startek transactions,
following their valuation based on bids
from third parties.
Moreover,an additional Euro 36 million loss was recognized
for the
Sky transaction, as it approached its closing
stage before
finalization.
Below are the main drivers for the results
of the year:
•
Net interest income stood at Euro 1.3 billion, presenting
a
decrease of Euro 52.9 million or 3.8% versus
the comparative
period. The decrease is mainly due to i)
the lower stock of
loan balances, following the derecognition of
loans for the
Galaxy, Cosmos, Shipping and Orbit perimeters in 2021 and
2022 and ii) the increase in the cost of borrowing
from the
issue of new bonds and the increase in market
interest rates
since September. The above are partially offset by the
increase in revenues associated with new
lending, the
purchases of securities (or bonds or fixed
income securities)
and the repricing of the banking book, following
the increases
in market rates in the second half of 2022. Furthermore,
in
2021, additional interest income was recognized
for the
Targeted Longer-
Term Refinancing Operations (TLTROs) III
program, in relation to the period from 24.6.2020
to
31.12.2020.
•
Net fee and commission income remained stable
at Euro 396
million, showing a slight increase of 0.1%
since last year.
•
Gains less losses on financial transactions
for 2022
amounted to a profit of Euro 471 million and
include profits of
Euro 298 million, following the sale to
Nexi S.P.A. of 90% of
the Subsidiary Alpha Payment Services
S.M.S.A. that
received the Bank’s merchant acquiring business
unit, as well
as gains of Euro 142 million from the trading
profit of
derivatives. The corresponding figure
for 2021 was Euro 218
million and included gains from the sale of
Cepal for Euro 111
million.
•
Other income stood at Euro 96 million,
representing a Euro
69 million increase since 2021, which is
mainly driven by the
increased income from insurance activities
of Euro 56 million,
following the reversal of insurance provisions
as a result of
market interest rates going from negative
to positive since
September 2022.
•
Operating expenses amounted to Euro
1.1 billion
(31.12.2021: 1.3 billion) and are analyzed
as follows: staff
costs of Euro 376 million (31.12.2021: Euro 407
million),
general and administrative expenses of Euro
448 million
(31.12.2021: 475 million), depreciation and
amortization of
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
12
ANNUAL FINANCIAL REPORT
Property, Plant and Equipment (PPE) and intangible assets
of Euro 157 million (31.12.2021: 157 million)
and other
expenses of Euro 102 million (31.12.2021
132 million).
Moreover, in 2021, an amount of Euro 97.7 million was
recognized as a provision for the Voluntary Separation
Scheme (VSS) in Greece. The overall
reduction in
operating expenses is driven mainly by the
reduction in the
number of Staff, following the completion of
the staff
retirement program in 2021, by a reduction
in the cost of
social security contributions due to a reduction
in the
relevant rates as well as by the sale of
the former
Subsidiary Cepal Holdings S.A. on 18.6.2021.
In addition,
other expenses for 2022 include impairment
losses for real
estate assets that are part of the perimeters
of the Skyline
and Startek transactions of Euro 58 million
as well as
additional impairment of real estate assets
included in the
Sky transaction of Euro 36 million.
•
Impairment losses and provisions to cover credit
risk and
related expenses amounted to Euro 559
million,
representing a 61% decrease compared
to 2021, and
include losses of Euro 272 million for
the NPEs transactions
for Projects Solar, Leasing, Sky, Light and Shipping. The
underlying cost of risk stood at Euro 209
million, taking into
account the additional provisions for the uncertainty
in the
macroeconomic environment due to high
inflation and
increased interest rates. By contrast, the impairment
losses
and provisions to cover credit risk for 2021
stood at Euro
1,433 million due to the initiation of the
NPEs de-leveraging
plan for Projects Cosmos, Sky, Solar and Leasing, the
impact of which amounted to Euro 1 billion.
Taking into account the above, profits before tax in 2022
reached Euro 644 million (against Euro 2.9
billion losses in
2021), whilst the income tax for the year
amounted to Euro 263
million, resulting in net profits from continuing
operations of
Euro 381 million. Finally, in July 2022, the Group
completed the
sale of its Subsidiary in Albania with profits
from discontinued
operations of Euro 17 million.
Since the Company has committed to specific
targets for the
period 2021-2024 through the announcements
of the updated
strategic plan, the Management monitors
the normalized
gains/losses of the Group against the
targets it has set, in order
to monitor the implementation of the business
plan. Following a
revised and enhanced methodology as
of January 1, 2022, the
Group monitors the Normalized Results.
The Normalized Results do not include results
that are not
related to the normal course of business
activities or that
are
not repetitive in nature and therefore affect the
results
of the
Company. Indicatively, the main income and expense items that
are excluded for purposes of the normalized
profit calculation
are listed below:
•
Transformation costs;
•
Results due to divestment of non-core assets
and results of
transactions of Non-Performing Exposures;
•
Results with a short-term impact or arising from
unexpected
or exceptional events with a significant economic
impact;
•
Initial (one-off) impact from the adoption of new or
amended
International Financial Reporting Standards
(IFRS);
•
Tax-related one-off expenses and gains/losses.
The normalized profits for 2022 reached
Euro 429 million against
Euro 330 million in 2021. An analysis of
the normalized profits for
2022 and 2021 is presented in the Appendix
of the Βoard οf
Directors’ Annual Management Report.
Significant Developments
SIGNIFICANT CORPORATE EVENTS OF THE
YEAR 2022
•
On 3.5.2022 Alpha Services and Holdings S.A.
announced
the expansion of its Executive Committee.
Over the last three
years, the Group has achieved significant
milestones in
delivering on the commitments stated in
the Strategic Plan
set in 2019. The Management Team’s focus has shifted on
revamping and growing the Group’s core business,
expanding revenue streams and placing
further emphasis on
achieving excellence in the cost structure.
To ensure that
senior management capacity is deployed efficiently
in the
Group’s strategic priority areas, its organizational
structure is
being revamped. The Executive Committee
is getting
enlarged, both at the level of Alpha Services
and Holdings
S.A. and of the Bank, to deepen the bench of
the top
management and enhance execution capacity. At the same
time, in key areas, the responsibilities of
General Managers
are unified in order to improve the speed of
decision-making,
increase empowerment and establish horizontal
coordination
across all the supporting functions, driving change
in a more
integrated manner.
•
On 1.6.2022 in the context of the implementation
of the
transformation plan of the Subsidiary Alpha
Astika Akinita
S.A. into a company with the sole purpose of
providing real
estate management services, the completion of
the
integration of the real estate management
service activity of
the company “Alpha Real Estate Management
and
Investments Single Member S.A.”, a Subsidiary
of Alpha
Services and Holdings, into Alpha Astika Akinita
S.A. was
announced.
•
On 30.6.2022 the share capital of the Bank’s Subsidiary,
Alpha Payment Services S.M.S.A., increased
by Euro 61,364
thousand, following the issuance of six
million, one hundred
and thirty-six thousand and four hundred and
forty-seven
(6,136,447) new, common, registered shares, with a nominal
value of Euro ten (Euro 10.00) and an offer price of
Euro fifty
(Euro 50.00) per share. The increase
was performed in the
context of the contribution of the merchant acquiring
business
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
13
ANNUAL FINANCIAL REPORT
sector of Alpha Bank S.A. to Alpha Payment
Services
S.M.S.A.
•
On 30.6.2022 the Bank’s Subsidiary, Alpha Payment
Services S.M.S.A., was renamed Nexi
Payments Greece
S.A. Thereinafter, the sale of 51% of Nexi Payments
Greece S.A. to Nexi S.P.A. was completed for the amount
of Euro 156,900 thousand, in the context of Project
Prometheus, initiating a strategic partnership
in the
merchant acquiring business of Alpha Bank
S.A. in Greece,
which will provide Nexi Payments Greece
S.A. access to
Alpha Bank S.A.’s network with the objective of distributing
merchant acquiring products and services
to Alpha Bank’s
Customers in Greece.
•
On 15.7.2022 and on 18.7.2022 Alpha Services
and Holdings
S.A. proceeded with a share capital increase
in its Subsidiary,
Galaxy Mezz Ltd, via: a) a distribution in
kind of the 44% of
the mezzanine and junior bonds of
the Galaxy and Cosmos
securitizations that it held after completing
the respective
transactions for the amount of Euro 22,496
thousand and b) a
cash injection for the amount of Euro 894
thousand and the
issuance of new common shares. As a
result of the above
contribution of cash and bonds by Alpha
Services and
Holdings S.A., 86,628,044 new shares
with a nominal value of
Euro 0.27 each were issued and the share
capital of Galaxy
Mezz Ltd amounted to Euro 23,474 with
a total number of
shares of 86,941,164. On 22.7.2022, the
Ordinary General
Meeting of the Company’s Shareholders approved
the
reduction in kind of the share capital, by
reducing the nominal
value of each ordinary shareissued by
the Company by the
amount of Euro 0.01, and the payment of
the amount of the
reduction of share capital in kind through
the distribution to the
Company’s Shareholders of shares issued by
the company
Galaxy Mezz Ltd that the Company holds, of
a value
corresponding to the value of the reduction
of the share
capital, i.e. 86,941,158 ordinary shares
issued by Galaxy
Mezz, of a nominal value of Euro 0.27 at a
ratio of 1 Galaxy
Mezz share for every 27 Company shares
they owned on the
cut-off date, i.e. 25.10.2022.
The share capital decrease of Alpha Services
and Holdings
S.A. and the distribution to its Shareholders of
its shares in
Galaxy Cosmos Mezz Plc was completed
on 31.10.2022, the
date on which the trading of the shares
was initiated on the
Alternative Market of Athex (ENA Plus).
•
On 18.7.2022 the sale of the entire share capital
of Alpha
Bank Albania SHA by the Group’s Subsidiary Alpha
International Holdings S.A. to OTP Bank
Plc was completed,
in the context of Project Riviera, for the amount
of Euro 55
million.
•
On 21.7.2022 the Group completed the assessment
of the
binding offers submitted in the context of Project Skyline
and
announced the selection of the joint venture of
Dimand S.A.
and Premia Properties REIC as preferred
bidder.
•
On 29.7.2022 the sale of an additional 39.01%
stake in Nexi
Payments Greece to Nexi S.P.A. was completed.
SIGNIFICANT EVENTS RELATING TO THE LOAN
PORTFOLIO OF THE YEAR 2022
•
On 12.2.2022 Alpha Services and Holdings
S.A. reached an
agreement with an affiliate of Cerberus Capital
Management
L.P.
for the sale of a portfolio of Cypriot Non-Performing
Loans
and real estate properties with a total
Gross Book Value of Euro
2.3 billion (Project Sky).The Portfolio will be
sold by the 100%
(indirect) Subsidiary of the Group, Alpha
International Holdings
S.M.S.A.
•
On 24.3.2022 the sale of a retail unsecured
NPEs portfolio of a
total Gross Book Value before impairments of Euro 1.2 billion
as at 31.12.2021 (Project Orbit) to Hoist
Finance AB (publ) was
completed.
•
In the context of the implementation of
the Bank’s business plan
for the reduction of NPEs, the sale of certain
portfolios of
receivables from NPEs was decided and,
since the conditions
for their categorization were met, they have been
classified as
at 30.6.2022 in the assets held for sale
portfolio at their
recoverable amount. The respective portfolios
are the following:
I.
A portfolio of receivables from NPEs (Leasing
transaction) of a total Gross Book Value before
impairments of Euro 338 million, as at 31.3.2022,
with a
recoverable value of Euro 71 million;
II.
A portfolio of receivables from collateralized
business
loans, with a total Gross Book Value amounting to Euro
393 million with reference date 31.3.2022
(Solar
transaction) and a recoverable value of Euro
62 million;
III.
A portfolio of receivables from loans and/or
credits to
large and small and medium-sized enterprises
with
collaterals (Hermes transaction) of a total
Gross Book
Value of Euro 690 million (as at 31.3.2022) and a
recoverable value of Euro 264 million
IV.
A portfolio of receivables from unsecured
retail NPEs
(Light transaction), with a total Gross Book
Value of
Euro 224 million, as at 31.3.2022, and a
recoverable
value of Euro 21 million. The transaction
was completed
on 7.11.2022.
•
On 30.6.2022 Alpha Services and Holdings
S.A. successfully
concluded a Synthetic Securitization of
a Euro 650 million
performing SMEs and Corporate loans portfolio
(Project Tokyo)
with the European Investment Bank
Group.
•
On 14.7.2022 the sale to Marlin Acquisitions
DAC of a Portfolio
of Non-Performing Shipping Loans of a
recoverable amount of
Euro 40 million was completed. The
relevant assets had been
classified as held for sale.
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
14
ANNUAL FINANCIAL REPORT
EVENTS AFTER THE BALANCE SHEET
DATE
•
On 23.1.2023 the sale of the Subsidiary of
the Group AGI–
CYPRE Property 29 Limited was completed.
•
On 1.2.2023 the parent company completed
the first issuance
of Fixed Rate Reset Additional Tier 1 (AT1) Perpetual Notes
of Euro 400 million. The AT1 securities were issued with a call
option at 5.5 years and a yield of 11.875%.
•
On 3.2.2023, the Bank implemented a Voluntary Separation
Scheme for regular Staff working under an employment
contract of indefinite duration or with a paid
mandate. The
cost of the above program is estimated at
approximately Euro
50 million.
•
On 6.2.2023 a binding agreement between
Alpha Bank S.A.
and the joint venture Dimand S.A. - Premia Properties
REIC
was reached for the development of an equity
cooperation in
the real estate investment sector, through the sale of a
real
estate portfolio amounting to Euro 438
million (Project
Skyline). The binding agreement provides,
through successive
transfers, for the acquisition of the above
real estate portfolio
by the Group Company Skyline Real Estate
Single Member
S.A. and for the acquisition of the majority
stake (65%) of
Skyline Real Estate Single Member S.A. by
Premia Properties
REIC. The exclusive provider of property
management
services will be the Subsidiary of the Alpha
Bank Group,
Alpha Αstika Akinita S.A.
•
On 14.2.2023, the admission to trading
of 700,783 new,
common, registered shares of the parent company
on the
Athens Exchange (ATHEX) was approved, resulting from a
share capital increase following the exercise
of stock options
rights. The trading began on 16.2.2023.
•
On 24.2.2023, Alpha Bank S.A.completed
the issuance of a
new Series of Covered Bonds, with a nominal
value of € 400
million under the context of the Covered
Bonds Programme II.
Risk Management
The Group has established a framework
of thorough
management of risks, based on best practices
and regulatory
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 the daily conduct
of the Group
’
s activities
within and across borders, making
the corporate governance of
the Group effective.
Since November 2014, the Group falls under
the responsibility of
the Single Supervisory Mechanism (SSM)
the financial
supervision system which involves the European
Central Bank
(ECB) and the Bank of Greece
–
and as a significant banking
institution is directly supervised by the ECB.
The SSM operates
jointly with the European Banking Authority
(EBA), the European
Parliament, the Eurogroup, the European
Commission and the
European Systemic Risk Board (ESRB), within
the scope of their
respective competences.
The applicable banking regulatory framework
in the European
Union (EU), i.e. the Basel III capital framework,
is effective as of
January 1, 2014. The said framework entered
into force through
Regulation (EU) No 575/2013 on
“
prudential requirements for
credit institutions and investment firms
”
(the
“
Capital Requirements
Regulation
”
or the
“
CRR
”
) published on June 27, 2013, in
conjunction with Directive 2013/36/EU on
“
access to the activity of
credit institutions and the prudential supervision
of credit
institutions and investment firms
”
(the
“
Capital Requirements
Directive IV
”
or the
“
CRD IV
”
) published on June 27, 2013 that has
been transposed into the Greek legislative
framework by Law
4261/2014. The framework was amended
by Regulation (EU) No
2019/876 (CRR II) of May 20, 2019 and
Directive (EU) 2019/878
(CRD V) of May 20, 2019. The latter has been
transposed into the
Greek legislative framework by Law 4799/2021.
The Group
’
s approach constitutes a solid foundation
for the
continuous redefinition of the Risk Management
Strategy through
(a) the determination of the extent to which
the Bank is willing to
undertake risks (risk appetite),(b) the assessment
of potential
impacts of the activities development strategy
on the definition of
the risk appetite limits, so that the relevant decisions
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 appetite
responsibilities among the Group Units.
Specifically, the Group, taking into account the nature, the scale
and the complexity of its activities and
risk profile, develops a risk
management strategy based on the
following three lines of
defense, which are the key factors
for its efficient operation:
•
The Business Units of Retail Banking,
Wholesale Banking,
Wealth Management 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.
•
The Risk Management, Monitoring and Control
as well as the
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
to
conducting banking business of the first
line of defense in order
to ensure the objectivity in the decision-making process,
to
measure the effectiveness of these decisions
in terms of risk
undertaking and to comply with the applicable
legislative and
institutional framework, by monitoring the
internal regulations
and ethical standards as well as to display and
evaluate the
total exposure of the Bank and the Group
to risk, based on the
established guidelines.
•
The Internal Audit constitutes the third line of
defense. The
Internal Audit is an independent function,
reporting to the Audit
Committee of the Board of Directors, and
audits the activities of
the Bank and the Group, including the activities
of the Risk
Management Unit.
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15
ANNUAL FINANCIAL REPORT
CREDIT RISK
Credit Risk arises from the potential failure
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 risk-
adjusted return, is the continuous, timely and systematic
monitoring of the loan portfolio and the
maintenance of credit
exposures within the framework of acceptable
overall risk
undertaking limits. At the same time, the
conduct of daily
business within a clearly defined framework
of granting credit, on
the basis of specific credit criteria, is ensured.
The framework of the Group
’
s credit risk management is being
developed on the basis of a series of credit
policy procedures as
well as systems and models for measuring,
monitoring and
controlling credit risk. These models are
subject to an ongoing
review process in 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 in order to further
strengthen and
improve the credit risk management framework
during 2022, the
following actions were implemented:
•
Update of the Credit Policy Manuals for
Wholesale Banking
and Retail Banking in Greece and abroad,
taking into account
the regulatory guidelines on 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.
•
Ongoing validation of the Risk Models in
order to ensure their
accuracy, reliability, stability and predictive capacity.
•
Development of a specific Credit Policy, which defines
the
criteria and conditions for the evaluation
of new financing to
enterprises through the Recovery and Resilience
Facility
(RRF) Program.
•
Conclusion of the project on the digital
transformation and
automation of the credit approvals for
the Housing and
Consumer Loans portfolio.
•
Implementation of business specifications
in the context of the
project on the digital transformation and automation
of the
credit approvals for Small Business Loans.
•
Update of the Credit Risk Early Warning Policy, through the
enrichment of early warning triggers with
regard to the
assessment of the impact of the energy crisis
and
the
increase of interest rates as well as the monitoring
of
leveraged financing.
•
Update of the Group’s Loan Collateral Policy
with regard to
the enrichment of the annual valuation process
through
indicators.
•
Periodic conduct of stress test exercises as a
tool for
assessing the impact of various macroeconomic
scenarios on
the business strategy formulation, the business
decision-taking
and the Group’s capital position. The stress
tests are conducted
in accordance with the requirements of
the regulatory
framework and constitute a key component
of the Group’s credit
risk management strategy.
•
Continuous reassessment of the macroeconomic
environment
and adjustment of the Bank’s sectorial assessment
outlook
regarding the Russia / Ukraine war effects on
the Greek
economy sectors, considering the new available
data points and
the dynamic interaction with our corresponding
Customers.
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.
•
Upgrade and automation of the aforementioned
credit 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 the Wholesale and
the Retail Credit for
monitoring, measuring and controlling credit
risk.
•
Implementation of a project with regard to
the transition from the
existing Rating Systems to a single Credit
Risk Rating Platform
provided by Moody’s.
•
Continuous monitoring and servicing of credit
risk data needs in
the context of potential sales portfolios and
securitization
schemes.
•
Continuous upgrade of Credit Risk Datamarts
in terms of data
quality, bug fixing, new fields and algorithms
creation/introduction.
•
Continuous strengthening of the control and
monitoring
mechanism of new financing for all the
Retail Banking and
Wholesale Banking portfolios and in particular
of the
automatic decision-making mechanism for Retail
Banking
(THALIS).
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
(ESG) RISKS
The Group adopts a proactive approach
to the management of
Environmental, Social and Governance
(ESG) risks. The
Non
Financial Report included in this provides
full information including
the Business model, the risks addressed,
the management and
monitoring of those risks.Particular emphasis
on risks arising from
climate change, which is a
key component of its Risk
Management Strategy. Following the recommendations of
the Task
Force on Climate-related Financial Disclosures
(
“
TCFD
”
), the Bank
assesses current and upcoming environmental
policies, legal
requirements and regulatory guidelines
relating to climate and the
environment, in order to record and efficiently manage
any
transitional risks related to its activities. In
this context, the Group
has developed a comprehensive action plan,
submitted to the
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16
ANNUAL FINANCIAL REPORT
European Central Bank (ECB) in May 2021,
in which it presented
how the climate risk assessment would be
incorporated in its
operations and in the risk management process.
The
implementation of the plan began in June
2021, continued
throughout 2022 and was enhanced,
taking into consideration
the feedback provided by the Single Supervisory
Mechanism
(SSM) in the context of the Climate Stress Test, conducted in
January 2022, and the Thematic Review of
Climate-related and
Environmental Risk Strategies, Governance
and Risk
Management Frameworks, conducted
in June 2022. This plan is
still in place and will be completed during 2023.
As part of this plan and in alignment
with the ECB expectations,
in 2022:
•
The Bank updated its Risk Inventory in
order to include the
dimension of climate-related risks in its Risk
Registry. The
main climate-risk transmission channels in the area
of risk
management include transition risk (e.g.
the risk of any
negative financial impact on the institution,
stemming from the
current or from prospective impacts of
the transition to an
environmentally-sustainable economy on
its counterparties or
its invested assets) and physical risk
(e.g. the risk of any
negative financial impact on the institution,
stemming from the
current or prospective impacts of the physical
effects of
environmental factors on its counterparties
or its invested
assets).
•
The Bank conducted a materiality assessment
analysis
to
identify the sectors that are most sensitive
to climate-
related
risks. In alignment with the guidance across
different sources
[e.g. ECB, European Banking Authority (EBA),
European
Commission], the Bank considers Climate and
Environmental
risks as a theme, i.e. as a transversal
risk, incorporating such
factors as drivers of existing financial and
non-financial risk
categories in its risk management framework.
Consequently,
the materiality assessment covered all key
risk aspects (i.e.
Credit Risk/Operational Risk/Market Risk/Liquidity
Risk/Reputational Risk and Business/Strategic
Risk).
•
The Bank conducted a transition risk assessment
exercise in
its Non-Financial Corporations (NFC) portfolio
based on the
Climate Policy Relevant Sectors (CPRS) perimeter
corporate
portfolio, to identify its exposure per sector
and the allocation
of the portfolio to potentially high transition
risk categories.
Beyond the materiality assessment conducted
in its NFC
portfolio, the Bank recognizes the materiality
of Climate and
Environmental risks in its retail portfolio,
in terms of the energy
efficiency of real estate collateral held by
the Bank. In this
context, the Bank is working towards integrating
information
on the Energy Performance Certificate
(EPC) of relevant real
estate properties into its credit decision-making
process. In
parallel, the Bank has developed a model
to proxy the energy
efficiency score
and the EPC label of the real estate
properties which are included in its portfolio or
are used as
collateral on existing assets. Using this
model, the Bank was
able to derive an estimate of its EPC distribution
across the
above perimeter of real estate properties.
•
Regarding physical risk, the Bank conducted
a materiality
assessment for physical risks in the
loan portfolio. The Bank
has laid down a methodology based on sensitivity
and exposure
analysis to derive vulnerability to physical
risk factors. The
vulnerability assessment aims to
identify potential significant
hazards and related risks and forms the basis
for the decision to
continue the risk assessment, while it
is aligned with the
InvestEU methodology (“Technical guidance on the climate
proofing of infrastructure in the period 2021-2027”)
and with the
“ECB: Good practices for climate related and
environmental risk
management: Observations from the 2022
thematic review”).
The analysis is applied to the Corporate portfolio
per NACE
sector (22 NACE codes) at a country
level, while for exposures
covered by real estate collateral the analysis
is applied per
climate zone at a regional level, based on
the location of the
real estate property. The vulnerability analysis combines the
outcome of the sensitivity analysis and
the exposure analysis,
categorizing physical climate risk as High,
Medium or Low.
•
Regarding Operational Risk, although historical
data do
not
reflect material losses from ESG-related events,
the Bank
introduced several enhancements to better
manage, monitor
and mitigate ESG-related risks, effectively acknowledging
that
there are potentially material ESG factors
that could drive
operational risk in the future. This
is mostly based on a
conservative forward-looking view (i.e.
future ESG-related
losses may be greater compared to historical
ones) as well as
on the fact that such events may have material
reputational
impact in the future, due to the shifting expectations
of the
Customers and the society as a whole
regarding ESG issues.
•
Especially regarding legal risk, the Bank
is in the process of
introducing enhancements to better identify, manage, mitigate
and monitor legal risk driven by ESG-related
factors. Emphasis
is placed on ESG-related legal risk due to customer
and third-
party controversial activities (through enhancements
on the
obligor assessment process) as well as due
to internal
processes that are being established to prevent
greenwashing
going forward (through the introduction of
internal controls
regarding the identification and the tagging
of sustainable
finance exposures).
•
Turning to market risk, based on the preliminary assessment
of
the Bank’s bond portfolio following the Climate
Policy Relevant
Sectors (CPRS) methodology,
taking also into consideration
the average residual
maturity of the ESG-sensitive perimeter
in
order to identify the portfolio’s sensitivity to environmental
risks
that are expected to materialize in long-term
horizons, there is
limited potential effect from climate-related and other
ESG
factors. The Bank has also proceeded
to a materiality
assessment of Physical Risk for the
Corporate Portfolio. The
Bank’s exposure to physical risk can be considered
minimal or
immaterial due to its minor size.
•
In terms of liquidity risk materiality, there seems to be no
material effect from climate-related and other
ESG factors. On
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ANNUAL FINANCIAL REPORT
the asset liquidity side, this is driven by the
composition of the
buffer, mainly consisting of sovereign rather than corporate
bonds, which are considered to be
immaterially impacted by
ESG factors, as described in the market
risk section above.
On the funding side, deposits constitute
the main funding
source, mostly consisting of retail Customers,
thus corporate
Customers constitute a relatively smaller part
of the Bank’s
funding position, limiting the exposure to
ESG risks.
•
Reputational risk is generally considered
to arise as a result of
the manifestation of other risk types
(i.e. a second-
order
impact), while it could also give rise
to other risk
types
subsequently (e.g. liquidity outflows, following
a reputational
impact). In that sense, a separate evaluation
of the materiality
of ESG-related drivers is not required.
The materiality
assessment for other risk types suffices to cover potential
one-off (acute) events with reputational repercussions
(e.g.
within operational risk) as well as longer-term
brand value
impacts that could arise in
the context of Strategic Risk. In
addition, and in order to effectively and efficiently monitor
Reputational Risk, the Bank plans to formalize
and
consolidate in one document its overall Reputational
Risk
Management Framework.This Framework
will include all
aspects and drivers of reputational risk, including
ESG-related
drivers. This particular project is planned
to be completed by
the end of the first half of 2023.
•
Business and Strategic Risk includes
the risk of potential
(internal or external) adverse events that negatively
affect an
institution’s ability to achieve its objectives and, consequently,
it has a negative effect on earnings (profit and
loss account)
and, through the latter, on solvency. Strategic risk can be
defined as the impact on capital, arising
from adverse
business decisions, improper implementation
of those
decisions or lack of responsiveness
to political, fiscal,
regulatory, economic, cultural, market or industry changes.
The relevance of ESG factors in Business and
Strategic Risk
is reflected through the failure to account
for rising ESG
factors, considering both idiosyncratic (strategic)
and systemic
(business) components .In this context, the
Bank
acknowledges that ESG factors could have
a significant
impact from a Business and Strategic Risk
perspective,
recognizing as key drivers the potential shift
in consumer
preferences, behavioral/demand patterns,
the market
sentiment and the potential change in
the competitive
landscape, which could result to loss of the
Bank’s market
share and affect its revenue and profitability, due to ESG
considerations. The impact that ESG
factors can have on
Business and Strategic Risk is also highlighted
by the fact that
they can lead to significant reputational risk,
as a second-
order effect, in terms of a long-term impact on
the Bank’s
brand and reputation (e.g. the Bank gradually
lagging in terms
of strategy and brand in ESG-related issues,
compared to its
peers). The impact of the Bank’s financing activity
and overall
strategic direction on the environment is
often subject to
public scrutiny and, hence, associated with
reputational
considerations.
To address the aforementioned risks, the Bank has started
deploying a comprehensive strategic plan
by carrying out the
following key actions:
a)
Performed an impact analysis of its loan
portfolio by
utilizing the UNEP FI Principles for Responsible
Banking (PRB) Tool and by conducting a Global
Reporting Initiative (GRI) materiality analysis,
in order to
understand the positive and the negative
socioeconomic, environmental and social
impacts of its
portfolio.
b)
Introduced ESG Key Performance Indicators
(KPIs)
(such as % of disbursements to RES over
total
disbursements to the energy sector, the gross
disbursements aligned with the Sustainable
Finance
Framework etc.), which will be monitored
on a quarterly
and annual basis, in order to take corrective
action,
when needed.
c)
Is in the process of developing science-based, sector-
specific targets around its financed emissions,
in
alignment with the Paris Agreement on climate
change
and the net zero emissions target for 2050.
d)
Is in the process of developing short-, medium-
and
long-term targets until 2050, so as to incorporate
the
short-term transition pathway into its three-year
Business Plan.
•
Based on the outcome of the materiality assessment
exercise,
for obligors falling within the ESG-sensitive
perimeter, obligor-
level assessment questionnaires have been
developed, aiming
at collecting data and assessing the borrowers
in terms of ESG
criteria. Regarding the non- ESG-sensitive
perimeter, a sector-
agnostic assessment
is applied, considering fundamental
aspects of ESG criteria that are common across
all sectors. The
relevant questionnaires serve also as
ESG rating models and
are expected to be finalized following a pilot
exercise planned
for early 2023.
•
Criteria have been developed to evaluate
each requested
transaction, on top of the assessment at
obligor level, including
the alignment with specific criteria, as defined
on the Bank’s
Sustainable Finance Framework, in order to
identify and
capture sustainable activities as well as
transaction-specific
characteristics.
Moreover, the Group has already incorporated in its Risk Appetite
Framework (RAF) a set of qualitative commitments
regarding
climate risks.
Specifically:
•
The Group is committed to integrating climate
risks into its
overall risk management framework. In this
context, the Bank
regularly monitors its exposure concentration
in climate-
sensitive sectors in its loan portfolio, also
introducing a credit
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ANNUAL FINANCIAL REPORT
concentration risk indicator within the
RAF, which monitors the
level of concentration of the Bank’s exposures
within the loan
portfolio in sectors that are more sensitive
to climate transition
risks, with the exception of exposures that are
aimed at
financing or enabling the transition of such obligors
to more
sustainable activities and business models.
As calculation
approaches become more mature and
more data points
become available through measurement
and monitoring, the
Group will further enhance its RAF with
the introduction of
additional specific quantitative indicators
and the setting of
respective thresholds.
•
The Group aims to enhance its due diligence process
with
respect to the assessment of its Customers’
ESG/climate
risk profile, through the collection of
relevant information.
In this setting, the Bank will take initiatives
to encourage
its Customers to clearly define and communicate
their
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-and in
the long-
term.
•
The Group, to the extent possible, will start
collecting Energy
Performance Certificates (EPCs) from
its Customers 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 the financing, directly or
indirectly, of
specific activities considered as harmful
to the environment
and to 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 Greenhouse Gas
(GHG) emissions or
flaring from existing producing fields.
In addition, the Group has identified a
set of quantitative Key
Performance Indicators (KPIs) relating
to Climate and
Environmental Risks within its RAF.
In order to assess the impact of climate
risk on the calculation
of Expected Credit Loss (ECL), detailed
information on the
location of collateral as well as information
on EPCs 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 the ECL.
More specifically, the following are in progress:
•
Development of new scorecards, simplified and
advanced
(full-blown), for environmental risks, providing
differentiation
by industry and depending on the size of the
company (e.g.
turnover) as well as scorecards for governance
and social
risks.
•
Development of a validation methodology for
the new models
that assess environmental, governance and
social risks and
integration of the former into the Credit
Risk Models Validation
Framework.
•
Performing enhancements or additions
to the current set of
models used for risk parameter estimation and
prediction, in
order to integrate ESG risks. Identifying ESG-related
data
needs, leveraging the data that will be collected
for the
borrower’s assessment and supplementing
it with additional
information, where needed.
•
Examining alternative methodological approaches
for the
quantification and the integration of ESG
risks into the credit
risk parameters.
Moreover, as part of the initiative to incorporate sustainability
criteria in its lending operations, the Group
has developed a
Sustainable Finance Framework, which defines
criteria in line with
the International Capital Markets Association
(ICMA) principles
and the EU Taxonomy Regulation, which will be incorporated into
the credit policies of the financial Institutions’
Subsidiaries until
2023. The Framework will be audited by
an independent third
party, to ensure the proper implementation of the aforementioned
principles.
The Group continues to develop and implement
its ambitious
ESG Workplan, aiming to enhance the sustainability
of its
business model and to ensure long-term value
creation for
its
Shareholders.
In addition, ESG issues are presented in the
section “Corporate
responsibility and sustainability”.
LIQUIDITY RISK
Liquidity risk derives from the possibility of cash
outflows not
being fully covered by cash inflows (funding
liquidity risk) as well
as from the possibility of failure to timely
address changes in
market conditions that affect the ability to
liquidate assets quickly
and with minimal loss in value (market
liquidity risk).
During 2022, customer deposits increased
by Euro 3.28 billion,
representing an increase of 6.99% compared
to 31.12.2021.
In 2022, the Subsidiaries continued to have
increased liquidity.
Their liquidity buffer, comprising Cash and Deposits on Central
Banks, government bonds both eligible
and non- eligible as
collateral by the Central Bank, bonds
issued by financial
institutions, subordinated notes both eligible
and non-eligible as
collateral by the Central Bank etc., on 31.12.2022
stood at the
level of Euro 1.66 billion for Cyprus and of Euro
0.57 billion for
Romania.
The decision of the European Central Bank
(ECB) (on 7.4.2020
and on 22.4.2020) to accept Greek sovereign
debt instruments as
collateral in the Eurosystem credit operations,
even though they
do not meet the minimum ECB rating
requirements, was
sustained through 2022. The ECB recognizes,
through this
decision, the recent progress achieved
by the Greek economy
and pursues a common treatment of states
in the Eurozone.
Already from 24.6.2020, the Bank participated
in the TLTROs III
program which provided long-term financing
with a conventional
BOARD OF DIRECTOR’S
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ANNUAL FINANCIAL REPORT
negative interest rate of -1% up until 24.6.2022,
under
conditions pertaining to the amount of the
financing which were
successfully fulfilled by the Bank.
The revision of the monetary policy by
the ECB impacted the
deposit interest rate that became 0%
from 24.6.2022 to
13.9.2022, 0.75% from 14.9.2022 to 2.11.2022, 1.5% from
3.11.2022 to 20.12.2022 and 2% from the period 21.12.2022 up
to January 2023. In this context, the Bank’s
financing from the
Eurosystem stood at Euro 13 billion on
31.12.2022.
Alpha Bank successfully placed two
Minimum Requirement for
own funds and Eligible Liabilities (MREL) bonds
during 2022. On
21.10.2022 a Euro 0.4 billion bond was issued,
with a 7%
coupon rate and a three-year maturity, while it is callable in the
second year. Moreover, Alpha Bank successfully placed on
6.12.2022 a Euro 0.45 billion bond with a coupon
of 7.5% and a
four and a half-years maturity, while it is callable after 3.5 years.
On 5.5.2022, the ECB published amendments
regarding
the
gradual phasing-out of the pandemic collateral easing
measures
introduced in April 2020, as announced on
March 24, 2022, as
well as the clarification with regard to
the eligibility criteria for
sustainability-linked bonds and Asset-
Backed Securities
(ABSs). In May, inflation rose significantly, mainly because of
the surging energy and food prices, due
to the impact of the war
in Ukraine. On this basis, on 9.6.2022,
the ECB announced the
intention to reinvest the principal payments
from maturing
securities purchased under the Pandemic
Emergency Purchase
Programme (PEPP) at least until the end of 2024.
Moreover, on
15.6.2022, the ECB announced more
flexibility in reinvesting
redemptions coming due in the PEPP portfolio
to provide price
stability.
In order to ensure that the banks are prepared
to confront the
crisis caused by the pandemic of Covid-19,
the Single
Supervisory Mechanism (SSM) requested an
exceptional
liquidity monitoring exercise conducted
on a monthly basis. The
SSM has not identified any specific issues as
a result of this
exercise up to this point.
In the context of the review of the Internal
Liquidity Adequacy
Assessment Process, the Bank updated
the liquidity stress test
scenarios.
The interbank financing (short-, medium-
to long-term) and the
Early Warning Indicators of the Bank, and of the Group’s
Subsidiaries are monitored and analyzed on
a daily basis, in
order to draft relevant reports and capture daily
variations. It is
noted that during 2022 no limit breach was
realized.
Taking into consideration the Greek economy and the new
economic environment 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 confirm whether the
existing liquidity buffer is
adequate to cover the Bank’s needs. These stress
tests are
carried out in accordance with the approved
Liquidity Risk Policy
of the Group. It is noted that, according
to these stress tests,
during 2022, the Liquidity Buffer remained adequate
to cover all
the Bank’s needs.
During 2022, 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 efficient management
in the beginning
of a possible liquidity crisis in order to take
remedial actions, in a
timely manner, to mitigate a reduction in the 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 the Net Interest Income of the Bank
and the Fair
Value of Assets and Liabilities (Economic Value of Equity).
The change in the Net Interest Income and
the change in the
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 tests
scenarios results are presented to the Assets-Liabilities
Management Committee and to the Risk
Management Committee
of the Board of Directors.
During 2022, the war in Ukraine and the
energy crisis
resulted in
extremely uncertain global prospects which contributed
to lower
growth in the economy and higher inflation.
As a result, the
Federal Reserve raised the key interest
rate at the level of 4.5%
from 0.25%, while the European Central
Bank (ECB) increased its
key lending rate to 2.5% from 0% and the
deposit rate at the level
of 2% from the negative value of -0.50%.
It is estimated that higher interest rates will
lead to an increase in
interest income resulting in an improvement
in the Net Interest
Margin. Specifically, an interest rate increase by 200 basis points
may improve the Net Interest Income by
15-20%, depending on
the degree of repricing of the cost of customer
deposits.
At the end of 2022, new Guidelines were
issued with regard to the
monitoring of the IRRBB and to the introduction
of the Credit
Spread Risk of the Banking Book (CSRBB)
applicable as of
30.6.2023 and 31.12.2023 respectively. The most significant
change from the existing Guidelines referred
to the incorporation
of the CSRBB. The CSRBB captures
the risk of an instrument’s
changing spread, while assuming the same
level of
creditworthiness.
The restoration of the Bank’s loan portfolio
was achieved
by
decreasing NPEs through the Galaxy and Cosmos
securitizations
and through the sale of other loan portfolios.
The improvement of
the loan portfolio credit quality acts as protection
against the
IRRBB which is worsened by higher default
rates of Customers
(firms and households) that are sensitive
to inflation and interest
rates rise.
Furthermore, during 2022, no IRRBB
limit breach was realized for
the Bank and its Subsidiaries, while new limits
were defined in
terms of Net Interest Income and Economic
Value of Equity.
The systems used for IRRBB analysis are Sendero
Data
Management and Risk Manager. The upgraded version used
resulted to better support for regulatory reports
and KRIs,
Dynamic Gap, DV01 by time bucket and
Fair Value Gap.
Moreover, it enhanced the Earning at Risk calculation. Finally, the
Subsidiary Banks in Cyprus and Romania have
also 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.
MARKET, FOREIGN CURRENCY AND
COUNTERPARTY
RISK
BOARD OF DIRECTOR’S
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20
ANNUAL FINANCIAL REPORT
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 impacts 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 valuations
of bond and
derivative positions are monitored on an
ongoing basis. Stress
tests are conducted on a regular basis
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. The limits
above are monitored on an ongoing basis
and any limit breaches
identified are reported officially.
For the mitigation of the 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 the year, the trading book market risk, as measured
by
Value at Risk, fluctuated between Euro 0.5 million and Euro 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.
Taking into consideration the bond reclassification performed by
the Bank from the Fair Value through Other Comprehensive
Income (FVOCI) to the Amortized Cost portfolio,
the risk appetite
was reviewed. During the year, yields increased: the 10-year
German Government Bond yield by 275 basis
points (bps), the
10-year Greek Government Bond yield
by 326 bps, while the 10-
year Italian Government Bond yield by 355
bps. The increase
in
yields had a limited impact on the FVOCI bond
portfolio due to
the reclassification.
OPERATIONAL
RISK
Operational Risk is defined as the risk of financial
or qualitative
negative effects resulting from inadequate or
internal processes
not implemented effectively, 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
Approach and
meets all the qualitative criteria required
by this Approach.
The Group has implemented a new operational
risk Governance
Risk Compliance (GRC) platform, which became
operational in
the second quarter of 2022. Further to loss
event monitoring, that
was supported by the previous system, the
platform that replaced
it has enhanced functionality in the areas of
Operational Risk
Assessments (i.e. RCSAs), Key Risk
Indicators (KRIs) monitoring,
Operational Risk mitigation plans and is also
used by the
Cybersecurity and Information Security Division
and the Group
Data Protection Officer.
The development of KRIs as a control monitoring
mechanism has
continued at both Bank and Group level.
Concurrently, the
operational risk events monitoring processes have
been further
strengthened.
In line with the Group
’
s established Operational Risk Framework,
the Risk and Control Self-Assessment (RCSA)
procedure has
been implemented across the Group, according
to the 2022 plan.
The RCSA procedure aims to identify and
assess potential
operational risks and to implement action plans
for their
remediation.
The evolution of Operational Risk Events,
the RCSA results and
all other Operational Risk-related issues
are systematically
monitored by the Group
’
s competent perational Risk and
Internal
Control Committees, which have increased
responsibilities to
review the relevant information and to ensure
that appropriate
measures for the mitigation of Operational
Risk are adopted.
War in Ukraine
As regards the Group
’
s preparedness and ability to apply
the
sanctions, the terms of 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
the Bank
’
s suppliers list and active contracts,
there is no supplier
side dependency with any firm from
the countries directly involved
in the conflict.
Regarding possible Cyber risk incidents, the
Bank maintains its
increased 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 of 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 with
the other Greek banks
for mutual updates and coordinated activity
if required.
ENERGY AND INFLATIONARY CRISIS
The Group is closely monitoring the energy
crisis and its impact on
inflation due to the war between Russia and
Ukraine as well as the
increase in interest rates and is assessing on
an on-going basis
the effect on its business operation, financial position
and
profitability. At household level, the available income has been
affectedby the inflationary pressures due
to the overall increase of
BOARD OF DIRECTOR’S
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21
ANNUAL FINANCIAL REPORT
energy prices that will consequently
lead in an increase of
production costs of consumer goods.
As long as the crisis is persisting and
the facts are changing, the
Group may proceed with the appropriate changes
in its strategy
as well as in its business and funding plans.
If considered
necessary, it may also examine the implementation of new
measures, over and above those as analyzed
below, in order to
mitigate the effect of the energy and inflationary
crisis.
To this end, the Group took the following actions:
•
In an effort to assess the crisis in the sectors affected,
an
initial assessment was made, based on an
expert judgement,
taking into account (a) the cost of raw materials,
(b) the cost
of production, (c) the cost of transport and
(d) the possibility of
passing through the increase in costs
to the final consumer.
•
An impact analysis on credit risk parameters
was carried out:
In 2023, the real GDP is expected to grow by
1.5% according
to the Interim Report on Monetary Policy of
the Bank of
Greece (December 2022), by 1.1% based on
the OECD’s
“2023 Economic Survey for Greece, January
2023”, by 1.8%
according to the 2023 State Budget and by
1%
based on the
Autumn 2022 Economic Forecast, published
by the European
Commission in November 2022. GDP growth
is expected to
decelerate in 2023, compared to 2022,
mainly due to the
inflationary pressures and their effect on disposable
income,
private consumption and exports of services,
but the rise in
investment through the RRF and the PIB
is expected to
counterbalance the negative impact of
the energy crisis.
According to the Bank of Greece, the
risks surrounding the 2023
forecast mainly involve the geopolitical developments.
The most
prominent short-term risk factor for
the Greek economy is the
evolution of the energy prices and of energy
inflation and their
effects on household disposable income, private
consumption,
investment and external demand.
In addition, according to the Harmonized
Index of Consumer
Prices (HICP), inflation in 2023 is expected
to reach 6% according
to the European Commission (Autumn 2022
Economic Forecast)
and 5% according to the Bank of Greece
(Interim Report on
Monetary Policy, December 2022). Inflationary pressures are
expected
to de-escalate, due to base effects as well
as to the
decrease of the prices of the energy products
in the recent
months.
-
The policy and procedures for granting
credits were adapted:
Special instructions were given to the
Operational and Credit
Units.
-
Rating: Credit assessment process for
Borrowers with
indications of default (Unlikeliness to Pay – UTP),
rating downgrades, Stage 2 triggers, calculation
of
impairments of exposures classified
in Stage 3 based
on an individual rating (Stage 3 Individual
impairment).
It is noted that the Group has established and
implements a robust credit assessment process
for
Borrowers with indications of default to
assess their
viability and long-term repayment capacity. The credit
assessment process for Customers with
indications of
default takes place during the periodic
review of the
existing credit limits, upon request for a new
loan,
following extraordinary requests, following a
notification
by the Wholesale Banking Credit Committee
or during
the examination of a request for loan settlement
and the
corresponding implementation status
for Retail Banking.
The credit assessment process for Borrowers
with
indications of default, in combination with
the existing
Credit Risk Early Warning Mechanism, ensure the
timely
recognition by the Group of the events,
at borrower level
(businesses and individuals) and at portfolio
level, as
well as the relevant management actions
to be taken for
these specific Borrowers.
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, 2022. In line with the announcements
of the Financial
Conduct Authority (FCA), the end of 2021
brought to a close the
first major phase of LIBOR cessation with
24 of the 35 LIBOR
settings ceasing. Specific GBP and JPY
settings, following
guidance by the FCA, continued to be published
under a different
calculation methodology known as “synthetic”
for a short period of
time to facilitate the transition. Furthermore,
the continuation of
some USD LIBOR settings through June 30,
2023 is intended only
to support the transition of legacy products.
The Group took all the necessary steps in
order to comply
with the above regulations. A detailed action
plan was drafted
and the internal Working Group, representing
several
workstreams, identified dependencies on LIBORs
and
implemented the necessary amendments.
The Group informed its Customers of
the LIBOR transition well in
advance by uploading on its website all the
relevant information.
Furthermore, dedicated correspondence
was sent to Customers
with direct exposure to the new alternative
interest rates.
Furthermore, the Group is currently preparing
the transition of the
remaining USD LIBOR settings which will
continue to exist up to
June 30, 2023.
With regard to new industry developments,
on November 23, 2022
the FCA announced a consultation on their
proposal to require
LIBOR’s administrator, IBA, to continue to publish the 1-, 3- and
6-
month USD LIBOR settings under a different calculation
methodology known as “synthetic” until the
end of September
2024 for legacy contracts only.
Furthermore, the Euro Risk Free Rates
Working Group has
recommended a forward-looking term rate as
a fallback for
EURIBOR for certain asset classes. On June
13, 2022, the
European Money Markets Institute
(EMMI) started to publish a
beta version of its EURIBOR fallback
rate (Euro Forward Looking
Term Rate – EFTERM). This is a term
rate designed to measure
the average expected Euro STR rates over
the standard
EURIBOR settings. On October 10, 2022,
the EMMI announced
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
22
ANNUAL FINANCIAL REPORT
the launch of EFTERM as of November 14, 2022.
The Group continues to monitor all relevant
market
developments, taking all necessary actions
to ensure
compliance where required and to support
its Customers.
Management of Non-Performing Exposures
(NPEs) and Real Estate Owned Assets
(REOs)
NPEs
MANAGEMENT
The Group has set as a key priority 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.
The Group proceeded with an NPEs reduction
effort during
2022, reaching also a single digit NPEs
ratio (7.8%) on
31.12.2022. The total NPEs reduction within
2022 amounted to
Euro 2.0 billion and this was the result of
a dedicated effort
towards achieving the NPEs reduction
target. The organic
reduction and particularly long-term
restructuring solutions in
conjunction with early indications of a decelerating
trend in loan
defaults constitute a major component
for reaching the 2022
target. Furthermore, portfolio sales remain critical
in
safeguarding the implementation of the submitted
plan.
In 2022, the macro headwinds
–
mainly reflected through energy
inflation and ascending interest rates
–
reduced the real income
and increased loan installments, both developments
putting
enormous stress on the financially-
vulnerable segments of the
population. The Group, having a good command
of its
Customers, managed to address these challenges
successfully
through:
•
the launch of new targeted campaigns;
•
the rollout of the management proactive actions
framework;
•
the introduction of new restructuring solutions.
These actions
led to:
•
a record high Retail (RTL) viable modification both
at the
Performing Exposures (PEs) and NPEs
fronts during 2022;
•
the shrinkage of RTL inflows and the elimination
of Wholesale
(WHL) inflows, during the second half of the
year improving
both default and cure rates, maintaining a
robust performance
on its entire loan book.
In 2023, the macro challenges are expected
to be present albeit
less intense
–
so the Bank intends to capitalize
on the
management proactive actions framework,
leveraging our
knowledge and experience, upon the
most sensitive parts of our
loan portfolio. This, along with the improved
internal data
analysis and the enhanced servicing practices
(CEPAL), will
allow us:
•
to successfully defend the strong credit standing
of our loan
book;
•
to achieve our ambitious NPEs deleveraging
targets, coming
exclusively from the organic activity.
REOs
MANAGEMENT
In addition to the efficient and effective management of
its NPEs,
during the last few years the Group has captured
within its
strategic priorities the successful management
of REOs as well. In
this context, the Group during 2022 continued
its strategy as
follows:
Ongoing implementation of a management
strategy for REOs
through the Subsidiary
Α
lpha Astika Akinita S.A. (following
the
integration of the activity of providing
real estate management
services of the company
“
Alpha Real Estate Management and
Investments Single Member S.A.
”
into Alpha Astika Akinita S.A. on
1.6.2022) with the aim to:
•
Monitor the repossession procedure (asset
onboarding).
•
Coordinate the asset management operations
through the
Group’s Special Purpose Vehicles (SPVs)
•
Supervise and coordinate asset management
and development.
•
Supervise and coordinate repossessed asset
commercialization, in accordance with
the applicable Group
policy.
•
Set and monitor the Key Performance Indicators
(KPIs) for the
collaborating asset management agencies
(internal units and
external collaborators).
With regard to the commercialization of REOs,
a website has been
created.
Through the website as a main point of first
contact with interested
parties, Alpha Astika Akinita S.A. has
managed to dispose of assets representing a
book value of
approximately Euro 85 million during 2022.
The sale prices
achieved have outperformed the targeted
sale prices by
approximately 7% because of the increased
demand for real
estate assets. This demand has been driven
mainly by inflationary
adjustments which traditionally favor less
liquid assets. Our
projections are that for the year 2023
the sale activity will continue
at the same pace.
On 6.2.2023, Alpha Services and Holdings
S.A. announced the
definitive agreement with the consortium comprised
of Dimand
S.A. and Premia Properties REIC
for the formation of an equity
partnership in real estate investment through
the sale of a Euro
438 million real estate portfolio (Project Skyline).
The transaction,
which is the largest real estate portfolio transaction
in Greece in
recent years, comprises 573 assets of
multiple types, including
offices, commercial real estate, residential and
industrial/logistics
assets, with a gross area of approximately 500,000
sq.m. Alpha
Astika Akinita S.A., the listed real estate
company of the Group,
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
23
ANNUAL FINANCIAL REPORT
through an exclusive agreement, will offer property
and facility
management of the Skyline portfolio and the
Alpha Bank Group
will remain as a tenant for certain assets,
while the rest of the
portfolio will either be redeveloped and
repositioned for rental
use or sold directly to the market.
Through the Skyline transaction, the Group
will accomplish the
liquidation of 475 repossessed assets. The
size of the
transaction and the quality of its participants
confirm the positive
prospects of the Greek real estate market
and the quality of the
Group
’
s real estate portfolio.
Capital Adequacy
The scope of the Group
’
s Capital Strategy pertains to
maintaining a strong capital adequacy both
from an economic
and from a regulatory perspective.
It aims at monitoring and
adjusting the Group
’
s capital levels, taking into consideration
the
capital markets
’
demand and supply, in an effort to achieve the
optimal balance between economic and
regulatory
considerations.
The Group
’
s Risk and Capital Strategy sets specific
risk limits,
based on the risk appetite, and monitors
deviations therefrom.
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 the
regulatory framework at all times.
1.
Supervisory Review and Evaluation
Process (SREP)
According to the 2021 Supervisory Review
and Evaluation
Process (SREP) decision communicated by
the European
Central Bank (ECB), Alpha Services and
Holdings S.A.
was required to meet on a consolidated basis
for 2022 an
Overall Capital Requirement (OCR) on the
Total Capital ratio of
at least 14.31% [the OCR includes the
Capital Conservation
Buffer (CCB) of 2.50%, the Other Systemically
Important
Institutions (O-SII) buffer of 0.75% and the applicable
Countercyclical Capital Buffer (CCyB) of 0.06%
for the fourth
quarter of 2022, mainly stemming from
the contribution of the
Subsidiaries].
The OCR consists of the minimum threshold
of the Total Equity
Ratio (8%), in accordance with Article 92
(1) of the CRR, and the
additional supervisory requirements
for Pillar II (P2R), in
accordance with Article 16 (2) (a) of
Regulation 1024/2013/EU,
which amount to 3.0%, as well as the combined
security
requirements (i.e. CCB, O-SII, CCyB),
in accordance with Article
128 (6) of Directive 2013/36/EU. The
minimum ratio should be
kept on an ongoing basis, considering the
CRR/CRD IV
Transitional Provisions.
The Bank of Greece has set the O-SII buffer at 0.75%
for 2022,
increased by 0.25% compared to 2021
and the Countercyclical
Capital Buffer at 0%, effective from January 1, 2022.
The capital adequacy requirements set by
the SSM/ ECB 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.
Support measures due to Covid-19
In the light of the impact of the Covid-19
pandemic,
the European
Central Bank (ECB), the European Banking
Authority (EBA) and
the European Commission (EC) announced
a series of measures
in order to ensure that the supervised
banks will be able to
continue financing the real economy.
Specifically, on March 12, 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
equity capital defined by the Capital Conservation
Buffer and
the Countercyclical Capital Buffer. In addition, on July 28, 2020,
the ECB announced through a press release
that banking
institutions are allowed to operate below
the aforementioned
thresholds at least up to the end of 2022.
•
Furthermore, the upcoming change that
was expected in
January 2021 under CRD V regarding
the Pillar 2 Requirement
(P2R) buffer was applied earlier, allowing the P2R to be
covered by Additional Tier 1 (AT1) capital by 18.75% and by
Tier 2 (T2) capital by 25% and not only by CET 1
capital as was
the case until then.
The European Commission decided to
revise the existing
regulatory framework by bringing forward
regulations that would
normally come into effect with the CRR 2/CRD
V framework as well
as to mitigate the Covid-19 impact on the economy
and encourage
banks to grant new loans.
As a result, in June 22, 2020 the EU published
Regulation (EU) No
2020/873 in its Official Journal, which included
amendments in
relation to the capital requirements set by
Regulations (EU) No
575/2013 and 876/2019. The revised Regulation
includes, inter
alia, articles 468 and 473a which introduce
new provisions aiming
to:
•
Mitigate the negative impact on the regulatory
capital of the
banks from the increase in the expected
credit loss as a result
of the Covid-19 pandemic. This article extends
to another two
years the ability to add back to the
regulatory capital the
expected credit losses recognized in 2020 and
afterwards
relating to performing financial instruments. This
transition
period is effective until the end of 2024.
•
Introduce a temporary prudential filter to neutralize
debt market
volatility deriving from the effects of the Covid-19
pandemic.
The filter is effective from January 1, 2020
to December 31,
2022. As a result of the application of
the filter, the banks will be
able to add back a percentage of the unrealized
gains and
losses in the sovereign debt securities placements
that affected
the CET 1 capital. For 2022 the applied percentage
is 40%.
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
24
ANNUAL FINANCIAL REPORT
The Group decided to implement articles 468
and 473a of
Regulation (EU) No 2020/873. Finally, on December 22,
2020, the Commission Delegated Regulation
(EU) No
2020/2176 of 12 November 2020 amending
the Commission
Delegated Regulation (EU) No 241/2014 was
published in
the Official Journal of the European Union.
The said Regulation includes certain provisions
for the
deduction of software assets from CET 1
items.
3.
IFRS 9 Capital Impact
Regarding the International Financial Reporting
Standard
(IFRS) 9, the Group makes use of Article 473a
of Regulation
(EU) No 2395/2017 of the European Parliament
and of the
Council, amended by Regulation (EU) No
873/2020, and
applies the transitional provisions for the
calculation of Capital
Adequacy on a separate and on a consolidated
basis. The
Group is adequately capitalized to meet
the needs arising from
the application of the Standard, which will
be fully implemented
in 2023. The impact from the full implementation
is estimated at
approximately 1.3% and the CET 1 ratio
would stand at 11.9%,
as of 31.12.2022, for the Group.
4.
Capital Adequacy Ratios
On 31.12.2022, the consolidated Common
Equity
Tier (CET) 1
capital stood at Euro 4.5 billion, while
the Risk Weighted Assets
(RWAs) amounted to Euro 34.3 billion, resulting in a
CET 1
ratio of 13.2%, up by 0.9% versus 30.6.2022.
In the context of the scheduled NPEs
transactions (e.g. Sky,
Solar), the Bank has completed the reclassification
of the
transactions to Held For Sale. Following
the completion of the
transactions, the capital adequacy ratios
are expected to be
enhanced.
In addition, the Synthetic Securitization
of a Euro 0.65 billion
performing SMEs and Corporate Loans portfolio
(Project Tokyo)
was successfully concluded, as part of
the Strategic Plan
“
Project
Tomorrow
”
, validating the strategy to utilize alternative
sources of
capital enhancement.
On 8.2.2023 Alpha Services and Holdings S.A.
completed the
issuance of its Euro 400 million Perpetual
Fixed Rate Reset
Additional Tier 1 Notes (the
“
AT1 Notes
”
). The AT1 Notes, which
are non-call 5.5 notes, are issued with a
yield of 11.875%.
Dividend payment is discretionary on a semi-annual
basis. The
issuance is expected to increase the Group
’
s capital adequacy
ratios by 116 basis points.
5.
Deferred Tax Assets (DTAs)
The Deferred Tax Assets (DTAs) which are included in the
Group
’
s capital base as at 31.12.2022 stood
at Euro 5.2
billion.According to article 5 of Law 4303/17.10.2014,
as
amended by article 4 of Law 4340/1.11.2015, on the
“
Recapitalization of financial institutions
and other provisions of
the Ministry
of Finance
”
and Laws 4549/2018 and 4722/2020
and,
most recently, by Law 4831/2021, DTAs that have been
recognized and are due to the debit difference arising
from the
Private Sector Involvement (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 abovementioned 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 General
Meeting of
Shareholders financial statements.
In accordance with article 39 of Regulation
(EU) No 575/2013 of
the European Parliament and of the Council
on
“
prudential
requirements for credit institutions and
investment firms
”
(the
“
Capital Requirements Regulation
–
CRR
”
), which amended
Regulation (EU) No 648/2012, a risk weight of
100% will be applied
to the abovementioned DTAs that may be converted into tax
credit,
instead of being deducted from the Regulatory
Equity Capital.
On 31.12.2022, the amount of DTAs, which is eligible for the scope
of the aforementioned Law, is common for the Bank and
the Group
and is included in the Common Equity Tier 1, stands at
Euro 2.7
billion and constitutes 60.3% of the Group
’
s Common Equity Tier 1
and 8.0% of the respective Weighted Assets.
Any change in the above framework that will
result in the non-
recognition of DTAs as a tax credit will have an adverse effect on
the Bank
’
s and the 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 STA. As regards
Market Risk, the Bank uses for the significant
exposures a Value
at Risk (VaR) model developed at Bank level and approved by
the
Bank of Greece. Additionally, the Bank uses the STA to calculate
Market Risk for the remaining, non-significant
exposures.
7.
Internal Capital Adequacy Assessment
Process (ICAAP) and Internal Liquidity
Adequacy Assessment Process
(ILAAP)
The ICAAP and ILAAP are an integral part
of the Internal Control
System (ICS) of the Group. They are aligned
with best practices
and the general principles and requirements
set by the regulatory
framework, including the guidelines provided
by the Single
Supervisory Mechanism (SSM) and/ or the
European Banking
Authority (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.
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ANNUAL FINANCIAL REPORT
•
The estimation of the Internal Capital
required for the
coverage of all risks and the determination,
the
•
management and the monitoring of the
liquidity buffer.
•
Capital and liquidity planning, taking also
into consideration
the Group’s risk appetite and the approved business
plan.
ICAAP and ILAAP are integrated into
the business decision-
making and risk management processes of
the 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 to Senior Management Members.
The Board of
Directors, 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
SSM of the European Central Bank (ECB).
The ICAAP and
ILAAP Reports are assessed yearly by
the ECB as part of the
Supervisory Review and Evaluation Process
(SREP).
8.
Regulatory Liquidity
The Group
’
s NPE deleveraging, coupled with
the customer
deposits increase, the restored market access
and the issuances
of Euro 2.9 billion, improved the Group
’
s funding mix. As of
December 31, 2022, the Group
’
s Liquidity Coverage Ratio (LCR)
is estimated at 161%.It is noted that
methodological adjustments
that may affect the liquidity indicators are expected
to
implemented in the context of the continuous
supervisory
dialogue and will be reflected in the Pillar 3.
9.
MREL
The Minimum Requirement for own funds
and Eligible Liabilities
(MREL) constitutes a buffer that the Bank has
to maintain in
order to absorb losses in the event of
resolution. The minimum
levels of MREL are determined by the Single
Resolution Board
(SRB) on an annual basis.
As per the latest official SRB decision, as of
January 1, 2022, the
Bank shall comply, on a consolidated basis, with an intermediate
MREL target equal to 14.02% of the Total Risk Exposure Amount
(TREA) and 5.91% of the Leverage Exposure
(LRE).
As of January 1, 2026, the consolidated
MREL will become
“
fully
loaded
”
and will be set at 23.37% of the
TREA and 5.92% of the
LRE.
On December 31, 2022, the Bank
’
s MREL ratio on a
consolidated basis stood at 20.79%. The said
ratio includes the
profit of the financial reporting period that ended
on December
31, 2022 as well as the recently completed
Additional Tier 1
issuance (
“
AT1 Notes
”
).
Transformation
TRANSFORMATION
PLAN
Alpha Bank
’
s Transformation Plan,
“
the alpha blueprint
”
, is an
ambitious and holistic plan aiming to achieve significant
performance enhancement and strengthen
capabilities across the
Group. The Plan is the vehicle to unlock
impact on three key pillars
of the Group
’
s strategy: customer-centric growth, organizational
effectiveness and operational efficiency. The first horizon of the
Transformation Plan (1.0) started in April 2020, continued
into the
implementation phase in June 2021 and
ended in December 2022.
In 2023, the Plan will progress into its second
horizon,
Transformation 2.0. The first horizon of the Plan had 7
thematic
areas: (1) Retail, (2) Wholesale, (3) Growth and
Innovation and
improvement of customer experience
(CX), (4) Lending, (5) Core
Technology,
(6) Efficiency and (7) People and culture. The
Transformation has already delivered significant
financial (cost
savings and revenue growth enablement)
and non-financial impact
(e.g. new capabilities and platforms).
In Retail Banking, the key accomplishments
are: (a) the
development of a customer-centric core offering through
segmentation and holistic value propositions
on top of a redefined
basic (
“
lean core
”
) offering, (b) the increased productivity of
the
Branch Network (several major in-Branch operational
efficiency
projects, including the centralization and
automation of back-office
and administrative activities, have already been
completed) and (c)
the expansion of digital capabilities, delivering
important
infrastructure projects that will enable
future revenue growth.
Moreover, a new segment, Priority, was defined and deployed in
over 200 Branches with more than 280,000
Customers.
Furthermore, more than half of Retail
lending applications are
being reviewed via Straight-Through
Processing (STP) through the
new digital underwriting engine. Another
important achievement of
the Plan is the development of a fully digital
lending product,
myAlpha Quick Loan.
In Wholesale Banking, the key achievements
are: (a) the definition
of a clear strategy by segment, focusing
on profitability and capital
returns, (b) the upgrade of the Bank
’
s digital product offering to
increase efficiency and (c) the enhancement of
customer
experience. The Group
’
s strategy focuses on further improving
the
Economic Value Added (EVA) of its Customers, through the
change of its operating and service models, specifically
as regards
Customers with a negative value added.
This includes the creation
of targeted actions and procedures for Customers
with a negative
value added, including the transfer of
Customers to a more
efficient service model. Moreover, the Relationship Managers
’
(RMs) productivity
is significantly increased through a systematic
account planning process, new tools that enable
a better customer
understanding and the introduction of new
RMs incentives beyond
pure financial ones. The way the Wholesale
RMs operate has
been transformed by completely revamping
their everyday tools
and processes, thus allowing them to spend
more time to serve
the Customers. The transactions of
Wholesale Banking Customers
at the Branch Network have been reduced by
more than 55% and
more than 14,500 Customers were trained
on and migrated to
digital solutions, while more than 50% of
the renewals of
legalizations are performed via the internet. 16
new digital
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products have been designed, with many already
being available
to the Customers, thus changing the servicing
model. In parallel,
adequate progress with regard to important
digital infrastructure
projects has been made, which will enable
the migration of sales
and servicing to digital channels.
Significant progress has been achieved
in increasing internal
operational efficiency, where five core projects (e.g. automations
and operating model changes) have been
completed, capturing a
productivity increase of over 20%
in the Central Units. The new
way of working has led to faster servicing
for Bank Customers,
less operational risk
as well as to the smooth operation
of the
Organization.
Furthermore, third-party spend initiatives have
already delivered
approximately a yearly amount of Euro
15 million of recurring
savings for the Bank. Lastly, a new IT operating model has been
defined, aiming to increase efficiency and speed
of delivery.
Initiatives to decrease IT cost by over
Euro 12 million on a yearly
basis are currently on track, aiming to meet
the same demand at
a lower cost within 2023.
As regards Growth and Innovation, the
Bank has defined a
detailed roadmap for delivering digital services
for Mass and
Small Business Customers by identifying a
series of
enhancements in digital tools and capabilities
over the next three
years, with an expected Euro 30 million cumulative
decrease in
costs until 2025 and more than 30% of sales
targeted to be
carried out via digital and hybrid channels
across product
categories.
Finally, in Human Resources, the Bank
’
s most notable
achievements are: (1) the rollout of a new
performance
management framework; (2) a new talent
definition and
management framework, including succession
nomination; (3) a
new Employee Value Proposition; (4) a new workforce planning
methodology and tooling as well as (5) a new
talent development
plan that promotes the retention of
top talent in the Bank.
Beyond the impact across business areas,
the Transformation
Plan significantly enhanced the ability of
the Group to deliver
“
change
”
projects, enabling the Group to stretch
“
beyond its
normal delivery capacity
”
, by pursuing multiple transformative
initiatives all at the same time, with accelerated
pace, at scale
and with a high level of ambition.
During 2022, Transformation 1.0 was completed, achieving
significant impact for the Bank, both in
financial and non-
financial terms. After the completion of 1.0,
the Bank is
progressing full steam into Transformation 2.0 which
will entail
deeper and more focused changes associated
with significant
financial benefit.
DIGITAL TRANSFORMATION AND INNOVATION
ACTIVITIES
During the implementation of Alpha Bank
’
s Transformation Plan
“
the alpha blueprint
”
, digital change is drastically accelerated,
enhancing Alpha Bank
’
s competitiveness and its ability to
respond directly and effectively to the ever-
changing needs of its
Customers, by strengthening the capabilities
of the Bank
’
s digital
channels, by deploying innovative digital
infrastructure
technologies as well as by enhancing
the functionalities of
Customer Journeys, focusing on areas that concern
the
clientele
’
s basic needs.
In 2022, the Bank continued upgrading
its digital channels (e-
Banking for Retail and Business Users, ATMs, APSs), supporting
the daily transactional needs of the Customers,
while offering
greater ease of use, speed and safer
transactions.
In 2022, the Customers continued to choose
the Bank’s digital
channels for their transactions, as evidenced
by
the fact that
95% of those transactions were carried out
digitally, with only
5% being concluded at the cashiers of
the Bank
’
s Branch
Network. In fact, both the number and the
value of transactions
via the digital channels recorded an increase
of 15% and 21%
respectively, compared to 2021. There was also an increase in
the registration of new subscribers to e-Banking
in 2022, with 1
in 3 new subscribers completing their
registration exclusively
remotely, via the myAlpha Mobile application. In addition,
the
automatic activation of Push Notifications
in myAlpha Mobile
for the easy and fast online transactions approval
by all mobile
users as well as the display of connected devices
to e-Banking
in the myAlpha Web environment became available.
During the year, even more functionalities, improvements and
management capabilities became available
via the myAlpha Web
for Retail Users platform, such as the upgrade
of the subscriber
“
Know Your Customer
”
(KYC) information update via
“
Gov.gr
”
,
without the need to visit
a Branch, the ability to add and activate
inactive accounts as well as the possibility of
issuing the new
Aegean Bonus debit card.
At the same time, in order to address
the increased number of
incidents of online fraud, a series of actions
were implemented,
with the aim of informing Customers as promptly
and effectively as
possible. Specifically, the activation of a second confirmation code
(One-Time Password
–
OTP) mechanism was implemented
in
high- risk transactions that are carried out
via e-Banking and the
deactivation of e-Banking subscriptions as
well as the cancellation
of scheduled post-dated transactions, in case of
suspected online
fraud, were made possible. In addition,
as of June 2022, the users
of the myAlpha Mobile application are being
notified via informative
Push Notifications about changes they
make to the Security
Settings of their subscription, such as, among
others, the change
of the Username/Password and the addition
or deletion of a paired
device.
Similarly, myAlpha Web for Business Users was enriched with new
features, such as the increase in the number
of multiple transfers
and the ability to save them in order
to re-execute them, the ability
to create an .xml file for multiple transfers,
the ability to carry out
and save multiple payment transactions,
the increase of a
transaction limit
up to Euro 500,000 without currency conversion,
the ability to carry out urgent transfers in Greece
and abroad
(without currency conversion) but also with
the option of
“
OUR
expenses
”
as well as email Alerts regarding
the expiration of
Legalization Documents to legal representatives
and to corporate
subscribers, in order to inform Customers
ahead of time, so that
they can complete the process of renewing
the Legalization
Documents of their Business.
In addition, the extension of business
loans payments (payment
of any amount to revolving accounts, the payment
of overdue
debts of accounts under litigation, the appearance
of the next
three installments of the loan), the registration
of post-dated
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ANNUAL FINANCIAL REPORT
orders in Foreign Currency as well as the
new online currency
conversion service
“
WEB FX
”
were implemented in myAlpha
Web for Business Users. At the same time, enhancing
the
security of digital business transactions became
a priority and,
as in the e-Banking for Retail Users, a second
confirmation
code (OTP) was activated while carrying out
high-risk
transactions via e-Banking for Business
Users.
At the same time, at the beginning of the year, Alpha online
Term
Deposit for Business, a new online product, became
available via
myAlpha Web for Business Users, with an
initial capital of
Ε
uro
50,000 and the possibility of early liquidation
of the whole initial
capital online.
In December 2022, the new innovative service
“
bizpay
”
for the
management of business expenses was
made available to the
public. Alpha Bank is the first Greek bank
to provide such a
service on the market. The bizpay service consists
of the mobile
bizpay App, which is the pillar of
the service and, together with
the bizpay cards and the management
tool through myAlpha
Web for Business Users, provides a comprehensive
solution for
the easy registration, monitoring and management
of the
corporate expenses of every Business.
The Customers
’
preference for myAlpha Mobile was
clear during
the first half of 2022, with the users carrying
out transactions via
their mobile phone outnumbering the ones carrying
them out via
myAlpha Web. In fact, 8 out of 10 Customers
with active e-
Banking credentials used myAlpha Mobile on
a monthly basis,
while the number and value of transactions
via the application
recorded an increase of 35% and 36%
respectively.
In addition, an impressive number of new
and existing Alpha
Bank Customers also chose Alpha Bank for
the issuing of
their
Fuel Pass, Fuel Pass II and Tourism Pass, i.e. the financial
support granted to citizens to address the
increase in the fuel
cost and the financial support granted to
domestic tourism
businesses, all of which were accessible via
the myAlpha Mobile
App. New e-Banking subscriptions in
that context increased by
50% compared to 2021.
At the same time, the trend for online sales
was significantly
strengthened through e-Banking for Retail
Users, with a typical
example being the exclusively digital consumer
loan myAlpha
Quick Loan, which became available via
myAlpha Mobile and
myAlpha Web in early 2022. Specifically, the vast majority of
loan applications disbursed were submitted via
mobile phones,
accounting for 64% of all consumer loans
(up to Euro 5,000) and
40% of the total volume (in Euro)
(loans up to Euro 5,000)
disbursed in 2022 by the Bank.
The percentage of the new online debit cards
issued appears
correspondingly high, reaching 29% of
the total number of cards
issued. Equally, the percentage of online term deposits for Retail
Users (Alpha online Term Deposit and Alpha online Term
Deposit with Bonus) has performed well, with
42% of the total
number of new term deposits via the Bank
’
s Digital Networks.
Regarding the remote registration of Customers
with the
Bank,
the Retail Onboarding service, which was
launched in December
2020, offers prospective Customers the opportunity
to open an
account and to obtain a debit card as well
as e-Banking
credentials through their mobile phone
without visiting the Branch
Network. In 2022, 32% of the total new
accounts were opened with
the Bank through this service and, specifically, via the myAlpha
Mobile application.
Similarly, the Digital Business Onboarding service, which
was
launched in August 2020 and was further enhanced
in February
2021, offers prospective corporate Customers
the opportunity to
obtain a current account and a subscription
to Business e-
Banking without visiting the Branch Network.
In 2022, 41% of
the new corporate Customers chose to start
their relationship
with Alpha Bank through www.alpha.gr
.
The digital wallets (Apple Pay, Google Pay, myAlpha Wallet,
Garmin Pay and Xiaomi Pay), which Alpha
Bank was the first to
offer to its Customers, continued their upward course
in 2022,
recording a significant increase, with the
number of registered
cards in myAlpha Wallet, Apple Play and Google
Pay exceeding
560, 775 and 527 thousand respectively.
In the first half of 2022, Alpha Bank received
seven distinctions
at the Digital Finance Awards, in recognition of
the digital
innovation introduced through its products and
services as well
as through the initiatives to upgrade
its IT systems, contributing
to the transformation of the Greek banking sector
and creating
tangible benefits for its Customers, both
Individuals and
Businesses.
In particular, the Bank received:
•
Two Gold Awards for the Digital Business Onboarding service
and the Core Banking Private Cloud and Containerization
project in the categories “Best CX/ Customer Loyalty
Initiative”
and “Best Core Banking System Project”
respectively.
•
Four Silver Awards for myAlpha Web for Retail
Users, myAlpha
Wallet, the possibility to open a first account in the myAlpha
Mobile App and the Digital Business Onboarding
services in the
categories “Best Internet Banking”, “Best
Wallet”, “Best Digital
Product Launch” and “Best Corporate Financing
Digital
Initiative”.
•
A Bronze Award for the Retail and Business Onboarding
services in the category “Best Operations/Business
Process/Agile/Development Project”.
In the second half of 2022, Alpha Bank
was honored with three
distinctions at the Mobile Excellence Awards,
in recognition of
the digital innovations it introduces in
the digital products and
services provided via its mobile applications.
In particular, the Bank received:
•
A Gold Award for the online consumer loan
myAlpha Quick
Loan via myAlpha Mobile and myAlpha
Web in the category
“Best CX/Customer Loyalty Initiative”.
•
A Silver Award for the online consumer loan myAlpha
Quick
Loan via myAlpha Mobile in the category “Integration
of Mobile
in a Multi-Channel and Omni-
Channel Strategy”.
•
A Bronze Award for the Bonus app in the category
“Use of
Mobile for Customer Loyalty”.
As far as the ATM Bank Network is concerned, the deposit
and
payment service was enhanced through
the bundle banknotes
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ANNUAL FINANCIAL REPORT
deposit capability, which resulted in an increase of 8.4% in
the
volume of deposit and cash payment transactions,
compared
to 2021.
At the same time, voice-guided transactions
for people with
limited vision was extended to 300 ATMs of the Branch
Network, providing to even more visually-impaired
individuals
the ability to withdraw cash and make balance
inquiries,
simply by connecting their headphones to
the corresponding
ATM slot.
Regarding the network of Automated Payment
Systems
(APSs), in the end of 2022, 96% of the
Branch Network had
installed at least one APS, via which deposit
and payment
transactions are carried out both in cash
and by debiting an
Alpha Bank card.
In 2022, the Bank continued improving
the already available
functionality of issuing Approved Electronic
Signatures for its
Customers and Staff, in accordance with Regulation
(EU) No
910/2014 (eIDAS), via myAlpha Web and myAlpha
Mobile for
Retail Users, but also via the myAlpha
Web for Business
Users platform, thus enabling the remote signing
of
documents by all its Customers and
laying the foundations for
a new era of remote service experience.
The third International Innovation Competition
FinQuest by
Alpha Bank was launched in December 2021
in search of
innovative B2B and B2C solutions at prototype
stage
or
already on the market, which make use of open
data to
improve the experience of our Customers
or to serve our
partners, as well as solutions in the field
of data analytics that
offer an integrated ESG profiling of medium-sized or
larger
companies. The competition received more
than 60 entries
from 19 different countries, which were evaluated
by
experienced Bank Executives, and the
leading companies
were selected to enter the Accelerator stage,
where the
finalists attended six workshops and mentoring
sessions in
order to adapt their proposal to the demands
of the Bank and
the market.
Finally, at the September presentation, the teams presented
their proposals in front of a jury, claiming a cash prize as well
as the possibility to cooperate with
the Bank. The winning
teams were Quantfolio (1st prize), SPIN
Analytics (2nd prize)
and DoGood People, S.L. (3rd prize),
while Net Zero Analytics
and ResNovae also participated in
the final stage.
Strategic priorities until the end of 2025
In May 2021, Group announced its strategic
plan focusing on
five main pillars (for the period until the end of
2024):
•
NPEs clean-up supported by large NPEs
transactions but also
by proactive management actions;
•
Core operations efficiency enhancements that
would result in
a leaner operating model;Enhancement of asset-light
fees and
commission income;
•
Enhancement of asset-light fees and commission
•
Revenues increase driven by asset growth
and
•
Growth acceleration in Subsidiaries abroad
by exploring local
market opportunities.
Since then, the environment that we operate
in has changed
significantly as food and energy price shocks
resulted in high
inflationary pressures, further amplifying
the upward trends
already observed from 2021. The European
Central Bank
’
s
(ECB) monetary policies adapted to
the new environment with
several interest rate increases performed
throughout 2022 and
early 2023, with additional increases expected
in the following
ECB meetings.
The above changed the Balance Sheet and
Profit and Loss
(P&L) dynamics for the banks and are expected
to affect a
number of performance drivers:
•
revenues are on a higher trajectory mainly driven
by the Net
Interest Income increase due to the Bank’s balance
sheet
structure (i.e. Loan-to-deposit ratio below 100%, excess
liquidity, etc.) that benefits from the base curve increases,
•
costs will also trend higher reflecting the
inflationary
environment and the increased needs for
investments and
•
the cost of risk is expected to trend moderately
higher,
accounting for potential asset quality deterioration
as a result of
the rising interest rate environment.
Overall, for the medium term, we anticipate
better bottom line
performance over capital employed.
Specifically, Alpha Bank
’
s Strategic Plan (2023-2025)
is based
on actions aiming at the sustainable development
and
profitability of the Group and is driven by the
following key
initiatives:
•
Revenue increase driven by the asset growth
initiative which
derives a) from the expected recovery of
the Greek economy
and the funds from the EU RRF mechanism
which should
improve the Net Interest Income generated
from performing
loans as well as the commission income
for the Bank and b)
from the expected increase in investment
portfolio securities
benefiting from the current high-yield environment,
further
enhancing the Bank’s Net Interest Income.
•
Initiatives for the reduction of Non-Performing Exposures
(NPEs), which include a series of organic
NPEs management
actions (i.e. cures, partial debt forgiveness,
collateral-based
recoveries and other closing procedures)
which aim to
significantly reduce NPEs for the period 2023-2025 and
which
are expected to lead to a significant
reduction in the cost of risk
as well as the operating expenses related
to NPEs
management. The NPEs ratio for 2023
is estimated to stand
below 7% with the aim to be further
reduced in
the following
years. As the NPEs management actions
will further reduce the
relevant balances, the Group will be able
to improve asset
quality levels at par with other European
banks, while
maintaining a satisfactory capital position above
the minimum
capital requirements.
•
The efficiency enhancements initiative of core operations,
aiming to achieve operational excellence by
focusing on core
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commercial banking activities, executing the
business and
retail banking growth strategy, increasing efficiency and
reducing operating costs throughout the
Group;
•
The asset-light fees and commissions income growth
initiative 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.
•
Initiatives related to the development of our
international
presence, through both the commercial and
the non-
commercial book, leveraging on the
local markets’
momentum.
The main objectives for 2023 that will enable
the Bank to
achieve the abovementioned Strategic
Plan goals for the
period up to 2025 are the following:
•
Support business growth in Greece with
net new loan
originations of more than Euro 1.7 billion;
•
Direct excess liquidity towards Assets under
Management (AuMs) and investments
in portfolio
bonds;
•
Maintain the strong performance in the
Net Commission
Income mainly driven through a) the increase
in new
disbursements, b) higher AuMs as well as c)
increased
sales of bancassurance products;
•
Carry on with the NPEs Reduction Plan
through
targeted management activities;
•
Complete important projects that will rationalize
the
Group’s operating cost base such as Projects Skyline
and Sky.
The inflationary pressures observed in 2022
have created
uncertainty in relation to the economic activity
of both the
domestic and the global economy. The Group assesses on
a continuous basis its policy and actions
mix to ensure the
achievement of its targets in the medium
term.
Corporate responsibility and sustainability
In addition to the information regarding
the Group
’
s activities in
order to address the Environmental, Social
and Governance
(ESG) risks described in the previous specific
section, further
Group activities in the field of corporate
responsibility and
sustainability are described below.
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, the measurement and
the management of the
risks undertaken as well as to the compliance
with the applicable
legal and regulatory framework, as in
force, to transparency and to
the provision of comprehensive, accurate
and truthful information
to the Shareholders.
As part of the Group
’
s initiative to proactively develop
its ESG
agenda, while enhancing its sustainability
performance across all
dimensions, during the first half of 2022 a
new ESG governance
structure was established
to provide proactive management of all
ESG topics, to ensure internal alignment and
to enable the
effective dispersal of expertise across the Bank
’
s Units. In this
respect, a new Governance and Sustainability
Division was
created, incorporating the Secretariat of
the Board of Directors as
well as a specialized Sustainability Unit,
with the overall
responsibility for the management of corporate
governance topics
as well as Sustainable Development and ESG
issues.
Furthermore, in 2022 the Climate and ESG
Risk Management
Functional Area was established, with its
main objectives being
the enhancement of the respective risk
management framework
and the integration of the ESG agenda
into the other risk areas.
In the same context, the Corporate Governance,
Sustainability and
Nominations Committee was assigned,
ο
n a
Βο
ard level, the
central role in ESG oversight, while
at an executive level, a Group
Sustainability Committee was established,
with the responsibility
for steering and managing all ESG and sustainability
issues. The
Group Sustainability Committee
’
s main tasks are the following:
•
To steer the Group’s strategy and direction on
sustainability and ESG-related topics, including
environmental and social issues.
•
To agree on and propose for endorsement by the
Executive Committee and for approval by
the Board
of
Directors the Group’s ESG policy and its
targets, including
financial and non-financial Key Performance
Indicators
(KPIs).
•
To monitor the Group’s sustainability performance against
policy targets and benchmarks.
•
To provide guidance on sustainability and ESG-related
topics.
•
To define criteria for sustainable credit approval,
debt
issuances and investments, which will be
incorporated
into the relevant policies.
•
To monitor alignment with ESG requirements, including
regulatory expectations.
The Group
’
s Governance is analytically presented
in the section
“
Governance
”
of the Non-Financial Report.
The Group 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 into its financial activities.
In 2019, the Group endorsed the six
Principles for Responsible
Banking, which were developed as an international
initiative of the
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
30
ANNUAL FINANCIAL REPORT
UNEP FI, and has committed to aligning
its operation therewith.
To this end, the Group has set targets, which are monitored on
an annual basis, aiming to increase its positive
effect
on society
and the environment, utilizing new business
opportunities and
generating value for all Stakeholders.
During 2022, the Group continued to refine
and implement its
ESG Workplan, which is now integrated in
its wider ESG
agenda, aiming to integrate sustainability principles
across all of
its operations. This will lead to the publication
of an overall ESG
and Sustainability strategy in 2023.
As stated in its Corporate Responsibility
Policy, the Group
respects and defends the diversity of its
Employees by
promoting a culture that fosters diversity
and inclusion. Alpha
Bank implements fair labor practices and policies
with regard to
its Employees, following well-stablished international
guidelines.
It ensures high-quality work conditions and opportunities
for
professional development on the basis of
merit and equitable
treatment, offers fair remuneration, provides Employees
with
continuous education and training, while
securing health and
safety in the workspace.
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
its
citizens. Therefore, the Group seeks to contribute
to the
building of a sustainable, inclusive and
fair society, through
the design and implementation of programs
with significant
social impact that create equal access
to healthcare and
education, foster arts and culture and contribute
to the
protection of the environment.
Regarding the reduction of the energy footprint
on the
environment, important steps were taken
in the period 2015-
2022, as Alpha Bank managed to reduce
its total electricity
consumption by 43%, through actions to
save energy and to
upgrade the energy efficiency of its Branch Network
and
headquarter offices in Greece.
In 2022, the Bank achieved a further reduction
of its total
energy consumption by 11%, continuing the significant
“
green
”
performance of 2021, when, among
other things, it
achieved a reduction of its annual CO2
emissions by 13.4%
(15.6% in Scope 1 emissions). It is also noted
that 98% of the
electricity it consumes is covered by Guarantees
of Origin for
Renewable Energy Sources (RES).
At the same time, Alpha Bank ensures
the positive footprint of
its operations, in accordance with the strictest
European and
international standards, as it is certified, since
2019, according
to ISO 14001 (Environmental Management
System) and since
2021 according to ISO 14064 (Greenhouse
Gas Emissions
Management System). At the same time, every
year it
prepares and publishes an Environmental
Statement, in
accordance with the requirements of the
Eco-Management
and Audit Scheme (EMAS) of the European
Union.
In January 2023, Alpha Services and Holdings
was included
for the fifth consecutive year in the Bloomberg
Gender-
Equality Index (GEI). This index constitutes
the only source of
investment and qualitative information on gender
equality issues
globally and it represents 418 companies
from 11 sectors
across 45 countries. Furthermore, based on
the updated
assessment of the Carbon Disclosure Project
(CDP), significant
progress has also been made in matters of
environmental
transparency. Specifically, following an evaluation by the CDP,
the Bank presented an overall improved
performance in 2022,
receiving a
“
B
”
rating. Additionally, Alpha Services and Holdings
is among the listed companies included
in the ATHEX ESG
Index, which commenced trading on August
2, 2021, aiming to
help investors identify Greek companies
that present a strong
ESG performance.
Finally,
Α
lpha Bank has achieved the top performance
in the
field of Corporate Governance in recent
report
of the
sustainability stock index
“
Financial Times Stock
Exchange4Good (FTSE4Good) Index Series
”
, standing out
globally as one of the banks that they score so
high in that area.
The Group achieved the highest score,
both in the general
category of Governance as well as in
the individual categories
of Corporate Governance, Anti-
Corruption and Risk
Management. At the same time, the
Index confirmed the high
score of the Group in the implementation of ESG
criteria,
categorizing it 48% higher than the average of
companies
operating in the financial industry.
Other
Share and Shareholder Structure
of Alpha
Services and Holdings S.A.
Alpha Services and Holdings S.A. (
“
former Alpha Bank S.A.
”
)
has been listed on the Athens Exchange
since 1925 and is
consistently classed as one of the largest
companies in terms of
market capitalization. At the end of December
2022, the
capitalization of Alpha Services and Holdings
S.A. stood at Euro
2,348 million and represented 4.89% and
26.94% 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 7.71%.
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, the FTSE4Good Emerging
Index and the
MSCI Global Standard.
The share
’
s daily trading volume for 2022 amounted
to an
average of 8,341,881 shares per session,
decreased by 11%
versus the previous year, with an average daily value of
transactions of Euro 8,684,108.
Share information for
Alpha
Services and Holdings
S.A.
2022
2021
Closing Price (period end, in Euro)
1.00
1.08
Highest Price (period, in Euro)
1.43
1.35
Lowest price (period, in Euro)
0.73
0.72
Market Cap (period end, in Euro billion)
2.3
2.5
Average daily trading volume
8,341,881
9,385,487
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
31
ANNUAL FINANCIAL REPORT
Average daily value of transactions
(in Euro)
8,684,108
9,932,558
On 31.12.2022, the Alpha Services and Holdings
S.A. share
capital stood at Euro 680,980,257.4 divided
into
2,348,207,784 common, registered, dematerialized
shares
with voting rights, of a nominal value of Euro
0.29 each, which
are listed for trading on the Athens Exchange
(ATHEX), of
which 211,138,299 are owned by the Hellenic Financial
Stability Fund (i.e. 9% of the share capital).
On 31.12.2022, at Group level, treasury shares
were held
by
the Subsidiary Alpha Finance Investment
Services S.A.
Transactions on the parent company
’
s shares are carried out
in the context of market making.
The shares in circulation on 31.12.2022
were held by
approximately 109,000 Individual and
Institutional Investors.
The breakdown of the Alpha Services and
Holdings
Shareholders on 31.12.2022 was, for descriptive
(non-
regulatory) purposes, as follows:
ORDINARY GENERAL MEETING OF THE
YEAR
2022
On 22.7.2022 the Ordinary General Meeting
of the year 2022
was held and resolved, inter alia, as
follows:
•
Approval of the Annual Separate and
Consolidated
Financial Statements of the financial year
2021
(1.1.2021-31.12.2021), together with the relevant
reports of the Board of Directors which
are accompanied
by the Statutory Certified Auditors’ Report.
•
Non-distribution of dividend to the Shareholders
of the
Company for the financial year 2021, since
no
distributable profits exist as per article 159 of
Law
4548/2018.
•
Approval of the netting-off of an amount of Euro
6,228,890,791.27 of the Retained Earnings/(Losses)
against the Statutory Reserve for the amount
•
of Euro 420,425,146.18 and an amount of
Euro
5,808,465,645.09 from the Special Reserve of
article 31
of Law 4548/2018 with the aim to:
-
simplify the capital structure and
-
facilitate the possible future distribution of
dividends to the Company’s Shareholders, in
accordance with the most recent Strategic
Plan.
•
Election of a new Board of Directors and appointment
of
Independent Non-Executive Members.
Reduction in kind of the share capital by
decreasing the nominal
value of each common share issued by the
Company by the
amount of Euro 0.01 and the payment of
the amount of the
share capital reduction in kind by distributing
to the
Shareholders of the Company shares issued
by the company
under the corporate name Galaxy Mezz Ltd
(the
“
Galaxy
Mezz
”
), with a value corresponding to
the value of the reduction
of share capital, i.e. 86,941,158 common shares
issued by
Galaxy Mezz, each common, registered
share of a nominal
value of Euro 0.27, at a ratio of 1 share of
Galaxy Mezz for
every 27 shares of the Company already held.
NUMBER OF BRANCHES
As at 31.12.2022 the Group was operating
with 417 Branches,
out of which 270 were established in Greece
and 147 were
established abroad.
APPLICATION OF PAR. 3, ARTICLE 97 OF
LAW 4548/2018
In application of par. 3, article 97 of Law 4548/2018:
a)
Ms. E.R.
Hardwick, Independent Non-Executive Member
of
the
Board of
Directors, did
not participate
in
a meeting
of the
Board
of
Directors
of
Alpha
Services
and
Holdings
S.A.
regarding
the
selection
of
a
recruitment
firm
to
carry
out
the
succession
planning
of
the
Board
of
Directors
to
avoid
a
potential conflict of interest.
b)
Messrs. V.E. Psaltis, CΕΟ, and S.N. Filaretos, Executive
Member of the Board of Directors, did not
participate in a meeting
of the Board of Directors of Alpha Services
and Holdings S.A.
regarding the amendment of the Group’s Savings
Plan for Senior
Executives, as they are included among
the Beneficiaries - Insured
Members, to avoid conflict of interest.
c)
Ms. E.R. Hardwick, Independent Non-Executive
Member of the
Board of Directors, did not participate in a meeting
of the Board of
Directors of Alpha Services and Holdings
S.A. regarding her
participation in the Board of Directors of Luminor
Bank AS to avoid
conflict of interest.
d)
Ms. C.G. Dittmeier, Independent Non-Executive Member of
the
Board of Directors, did not participate
in a meeting of the Board of
Directors of Alpha Services and Holdings
S.A. regarding the
establishment of a stipend for her as the
competent Member in
charge of overseeing ESG issues in
the Board of Directors to avoid
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
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
32
ANNUAL FINANCIAL REPORT
course of business, conducted according
to market conditions
and are authorized by corresponding
management personnel.
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:
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
33
ANNUAL FINANCIAL REPORT
31.12.2022
Assets
Loans and advances to customers
3,911
Liabilities
Due to customers
5.058
Employee defined benefit obligations
213
Debt securities in issue and other
borrowed funds
3,622
Total
8,893
Letters of guarantee
and approved limits
382
From 1 January to
31.12.2022
Income
Interest and similar income
68
Fee and commission income
6
Gains less losses on financial
transactions
1
Other income
124
Total
199
Expenses
Interest and similar income
61
Fees paid to key management and
close
family members
7,387
Total
7.448
B. Τ
he outstanding balances of Alpha
Services and Holdings S.A.
with the Group companies and the corresponding
results are as
follows:
Name
Receivables
Liabilities
Income
Expenses
Letters of
guarantee
and other
guarantees
Banks
1
Alpha Bank S.A.
1,014,999
2,196
52,036
14.296
Asset Management
1
Alpha Asset Management Α.Ε.Δ.Α.Κ.
15
Insurance
1
Alpha Insurance Agents S.A.
4
6
2
Alphalife A.A.E.Z.
2,390
7,478
Investment Banking
1
Alpha Finance A.E.P.Ε.Υ.
26
Real Estate and
hotel
1
Alpha Real Estate Management and
Investments S.A.
10
30
2
Alpha Investment Property Attikis
S.A.
2
8
3
APE Fixed Assets S.A.
7
22
4
Alpha Investment Property Neas
Kifissias S.A.
4
13
5
Alpha Investment Property Kallirois
S.A
3
9
BOARD OF DIRECTOR’S
ANNUAL MANAGEMENT REPORT
AS AT 31.12.2022
34
ANNUAL FINANCIAL REPORT
Name
Receivables
Liabilities
Income
Expenses
Letters of
guarantee
and other
guarantees
6
Alpha Investment Property Levadias
S.A.
6
20
7
Alpha Investment Property Neas
Erythraias S.A
2
7
8
Alpha Investments Property Kallitheas
S.A
6
18
9
Alpha Investment Property Irakleiou
S.A.
3
6
10
AEP Industrial Property S.M.S.A.
8
24
11
AIP Attica Residential Assets I S.M.S.A.
3
11
12
AIP Thessaloniki Residential Assets
S.M.S.A.
2
8
13
AIP Cretan Residential Assets S.M.S.A
2
6
14
AIP Aegean Residential Assets S.M.S.A.
2
7
15
AIP Ionion Residential Assets S.M.S.A.
2
6
16
AIP Commercial Assets City Centres
S.M.S.A.
5
17
17
AIP Thessaloniki Commercial Assets
S.M.S.A.
2
6
18
AIP Commercial Assets Rog S.M.S.A.
2
7
19
AIP Attica Retail Assets I S.M.S.A.
2
8
20
AIP Attica Retail Assets II S.M.S.A.
2
6
21
AIP Attica Residential Assets II S.M.S.A.
3
9
22
AIP Retail Assets Rog S.M.S.A.
2
7
23
AIP COMMERCIAL ASSETS ΙΙ S.M.S.A
2
3
24
AIP ATTICA RESIDENTIAL
ASSETS IV S.M.S.A.
2
3
25
STARTREK S.M.S.A.
2
4
26
SKYLINE ASSETS SINGLE MEMBER
S.A.
6
5
27
ATHENS COMMERCIAL
ASSETS I
2
1
28
ATHENS COMMERCIAL
ASSETS II
2
1
SPEs and Holding
1
Alpha Holdings Single Member S.A.
10
36
Other companies
1
Kafe Alpha S.A.
5
6
2
Alpha Supporting Services S.A.
10
3
Emporiki Management S.A
4
6
4
Alpha Bank Notification Services
S.A
2
6
b.
Associate
(Amounts in thousand
of Euro)
Name
Assets
Liabilities
Income
Expenses
Letters of
guarantee
and other
guarantees
1
Nexi Payments Hellas S.A.
4
4
2
ALPHA INVESTMENT PROPERTY
ELEONA S.A.
15
47
c.
Joint ventures
(Amounts in thousand
of Euro)
Name
Assets
Liabilities
Income
Expenses
Letters of
guarantee and
other
guarantees
1
APE Commercial Property S.A.
2
7
2
APE INVESTMENT PROPERTY
S.A.
62
83
3
ALPHA INVESTMENT PROPERTY
COMMERCIAL STORES S.A.
5
9
Total
1,017,608
2,237
59,990
14,296
NON FINANCIAL REPORT
35
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).
The Report includes the following sections:
•
Business Model
•
Codes and Policies
•
Sustainability Approach (including potential
risks
and management)
•
Environment
•
Social and Employee Matters, including diversity
•
Human Rights
•
Anti-Corruption and Bribery
•
Supply Chain
•
Responsible Investments and Financing
•
ESG Performance Ratings
•
EU Taxonomy Disclosure Requirements
Data Collection Process
Data have been collected by the Group or
relevant
external sources. Detailed information and
additional
performance indicators for Alpha Services and
Holdings
and its Group, are presented in the Alpha
Services and
Holdings Sustainability Report 2022. 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.
The process of corporate reporting is an
integral part of
the Internal Control System (ICS) of the
Group which is
described in detail in the Corporate Governance
Statement.
More specifically, the data collection process for the
reporting of non-financial information follows
the basic
principles of
the corporate reporting process
featuring
standard controls such as the identification
of
roles/responsibilities, information systems,
management review and
approvals, etc. Finally, in the context of increasing the reliability of
the data of the NFR, Alpha Services and Holdings
subjects selected
data of its NFR to external independent assurance.
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 to develop and place
high-quality services and
products on the Market. It also works
with its Stakeholders to identify
their requirements in a timely manner, to ensure its responsible
operation and to support 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 to improve its clients’ access
to finance, offers
products and services that benefit society
and the environment, and
supports its clients in their transition, and actively
contributes to
society, by supporting its clients in their transition to more
sustainable business models.
The organization and operation of Alpha
Services and Holdings
Group is governed by best banking and business
practices, which
are supported by certifications with recognized
international
standards (ISO 9001 Quality Management
System, ISO 20000
Information Technology Services Management System, ISO 22301
Business Continuity Management System,
ISO 27001 Information
Security Management System, ISO 14001
Environmental
Management System and ISO 14064
Greenhouse Gas Emissions
Management System) in critical areas of operation.
The certified
management systems (ISO) implemented by
the Group aim to
enable it to better respond to the ever-changing
business
environment and to the needs of Customers,
in full alignment with
current legislative and regulatory requirements.
In that context, Alpha
Bank, commencing 2022 is developing, an
Environmental Statement
in accordance with the EU Eco-Management and
Audit Scheme
(EMAS) which has been submitted to
the Ministry of Environment
and Energy.
In 2022, the Group strengthened its existing
Cybersecurity and
Information Security Management System,
by integrating ISO 27017
(Information Security controls for cloud
services System) and ISO
27018
NON FINANCIAL REPORT
36
ANNUAL FINANCIAL REPORT
(Protection of personally identifiable information
in public
clouds System), as well as ISO 27701
(Privacy
Information management).Additionally, in 2022 in the
context of ESG (Environmental, Social
& Governance)
initiatives, Alpha Bank was the first bank
in Greece to
verify its Organizational Resilience framework
with the
international standard ISO 22316 (Organizational
Resilience). Also the Bank obtained
ISO 45001
(Occupational Health and Safety) certification,
further
enhancing the Group’s alignment with international
standards and best practices.
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 of the
Group Intranet and/ or
internet page. Once a new policy or an
updated policy is published, a
corresponding circular is also uploaded on
the Group’s intranet.
NON FINANCIAL REPORT
37
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
•
Alpha Services and Holdings-
Suitability and
Nomination
Policy for the Members of the Board of
Directors
•
Alpha
Bank S.A.-
Suitability and
Nomination Policy
for
the
Members
of
the
Board
of
Directors
and
Key
Function Holders
•
Diversity Policy
•
Induction and Training Policy for the Members of
the
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 Services and
Holdings and its Group
•
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” Transactions
•
Anti-Money Laundering and Combating the
Financing of Terrorism (AML/CFT) Policy
•
Group Business Continuity Management Policy
•
Outsourcing Policy
Governance:
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 2022, the
collective evaluation of the Members of the
Board of Directors and its
Committees, for the year 2021, was conducted
by Nestor Advisors
Limited, a London-based corporate governance consulting
firm, with
the participation of the Corporate Governance,
Sustainability and
Nominations Committee. The Individual Evaluation
of the Members
of the Board of Directors for the year 2021
was conducted, in 2022,
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,
Sustainability and
Nominations Committee.
During 2022, the Group ESG governance
model, that was
established in 2021 to ensure effective management
of Sustainability
issues, was further enhanced, at the Management
and Operational
level, while the oversight and steering provided
by the Board of
Directors and its Committees, ensured
that the Bank achieved a
significant acceleration in the development
and implementation of its
Sustainability strategy.
The Board of Directors and its Committees
have oversight of all
issues with the Corporate Governance,Sustainability
and
Nominations Committee having overall
ownership of the
Sustainability agenda.
The Risk Management Committee, the
Corporate Governance
Sustainability and Nominations Committee
and the Audit Committee,
are informed, on a regular basis, by
the Group ESG coordinator, the
Chief Risk Officer, the General Manager of Wholesale Banking and
the Chief
of Corporate Center, on issues related to Sustainability and
Climate
Risk. Consequently, the Chairman of each Committee endorsed
for
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approval by the BoD, specific items that are
being discussed and
the BoD proceeds to the final approval.
During 2022, the Corporate Governance,
Sustainability &
Nominations Committee, reviewed progress
of the bank’s ESG
Action Plan 10 times and provided challenge
and feedback to
management, leading to increased allocation of
resources to the
Governance & Sustainability Division and
the establishment of
an ESG Action Plan to accelerate the
implementation of the
Climate Risk Management
and Sustainable Finance Framework. In
addition, the CGSNC
provided feedback on the Group’s Sustainability
Disclosures and
guided their redesign in order to align
with a new GRI-based1
Materiality Assessment as well as to begin
incorporating TCFD
guidelines.
Additionally, during 2022, the Corporate Governance
Sustainability and Nominations Committee
agenda included the
following:
•
ESG workplan and the projects related
to this
•
ESG Benchmarking vs. Peers and
Investors
•
The Non- Financial and the Sustainability
Report 2021,
including the materiality analysis (also
reviewed by the
Audit Committee)
•
Development of ESG Dashboard with ESG
related metrics
•
The Sustainable Finance Framework
•
The involvement of key Business lines
in Sustainable
finance
•
Key recent developments in the market and
Regulatory
areas
Concurrently, the Risk Management Committee reviewed
progress in the development of the Bank’s
Climate Risk
Management Framework, the risk materiality assessment
methodology, the ESG Action plan, the Sustainable Finance
Framework, as well as progress in meeting
the
1
GRI: Global Reporting Initiative
– an industry body which defines
best
practice standards for ESG disclosures
requirements of the ECB on the Management
of Climate &
Environmental Risks. The committee also
reviewed Supervisory
requirements in detail and provided feedback
to Management, which
also supported the establishment of
the Βank’s new Climate & ESG
Risk team in the CRO area, in October
2022.
At the Executive Management level, a key part
of the ESG
Governance structure is the Group Sustainability
Committee, which
oversees ESG topics, steers the Group’s ESG
strategy and oversees
its implementation, as well as supporting
the Board of Directors in
their oversight of Climate & ESG Risks and
Sustainability in general.
The Group Sustainability Committee’s agenda
covered a range of
topics, including the design and rollout of
the Climate Risk
Management, ESG training, Strategy & Target setting, as well as
progress of the Bank’s ESG Action Plan.
At the Operational level, an ESG Working Group has
been
established in order to implement key initiatives,
led by the Group
ESG Coordinator, who is also responsible for providing
direction to
subsidiaries and other units. The Bank’s Governance
and
Sustainability Division, drives the ESG agenda
and ensures internal
adoption of best practice across the Group.
During 2022, the Bank’s ESG capability was
further developed by the
establishment of expert teams with advanced
skills in specific areas,
such as
the Climate & ESG Risk Team
in the CRO area under the
newly assigned
Chief Risk Control Officer
and the nomination of a
Sustainability Strategy lead
in the Strategy and Investments
Division.
The Climate & ESG risk coordinates closely
with the Governance &
Sustainability Division for ESG and climate
related issues, as well as
with Supervisory Issues Management Division,
for the for risk-related
input to supervisory processes/submissions.
Among others, the
Climate Risk Team provides expert guidance for ESG integration in
the risk management framework, supports consistency
and adequacy
of risk input across risk types, reviews questionnaires
in the borrower
assessment process, designs assessment
methodologies (e.g. for
physical climate risk) and is responsible
for risk-
related aspects of
strategy-setting and business planning.
The Bank plans for other units to follow in
establishing specific ESG-
related roles, while equivalent Governance
structures are being
adopted across Group subsidiaries, in line
with local regulatory
standards and materiality
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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. This is supported
by the Group’s
“Corporate Responsibility Policy”.
During 2022, the company continued
to implement the ESG
Workplan that was initiated in 2021, aiming
to integrate
sustainability criteria in the Bank’s decision making
process
including strategy, risk management framework and lending
operations. The objective is to enhance
management of climate
and environmental risks, comply with
the EU Taxonomy timetable
and pursue the emerging opportunity of sustainable
finance. In
addition, the Company is focusing on
increasing awareness on ESG
and climate risks to its employees, customers
and markets, via
training plans and, targeted communication
and promotion, aiming to
leverage the power of its brand to the
wider sustainability transition
effort
Stakeholder Engagement-
Identification of Material Impact
Areas
Alpha Bank 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
Bank’s decisions and its operation. Following
a series of internal
management meetings and based on
the relevant laws and
international guidelines, the existing policies
and procedures, the
Group’s sustainability strategy and its daily operations
the Bank has
identified four different Stakeholder groups, specifically, (i) Investors
(as well as investment analysts and advisors),
(ii) Customers (iii)
Employees and Society and (iv) Official and
Regulatory Authorities. It
seeks to engage in an ongoing dialogue and
collaboration with these
Stakeholders, in order to understand and,
as far as possible, respond
to their expectations, needs, concerns and
requests.
Investors and Analysts are provided
with full and prompt information
via specific sections on the website,
together with the Financial
Statements, the Business Review, the Sustainability
Report as well
as direct meetings. Furthermore, Alpha Bank
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 Bank ensures effective communication
with
Employees, by establishing the role of Human
Resources Business
Partners that serve as a first point of contact
for employees and Visits
by Human Resources Unit Executives
to Bank Units and Branches.
Finally, the Bank is often involved in a dialogue and in consultations
with Official sector authorities, both locally 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, assess
and prioritize 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
accordance with the “GRI
3:
Material Topics 2021”. The materiality analysis consists of 6 steps:
1.
Understand the organization’s context
The Bank determined the scope and perimeter
of its financed
activities (financial products and services)
to be included in the
analysis based on the UNEPFI Principles
for Responsible Banking
(PRB) Impact Analysis “context module”
methodology.
2.
Identify actual and potential impacts
The purpose of this step is to identify “the
actual and potential
impacts on the economy, environment, and people, including
impacts on human rights, across the organization’s
activities and
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business relationships. Impacts can be
negative or positive,
long term or short term.
3.
Identify “in-house” and “financed” impacts
In order to identify in-house impacts across
its operations and
its supply chain, outputs from internal
management systems,
including certifications, anti-corruption
and compliance
management systems, occupational health
and safety
inspections, grievance mechanisms and
CSR initiatives, have
been reviewed. To identify the Bank’s financed impacts (i.e.
impacts from the Bank’s portfolio), a dedicated
portfolio
alignment analysis, in accordance with
the UNEP FI Principles
for Responsible Banking (PRB) Impact
Analysis, using the
Portfolio Impact Analysis Tool for Banks (version 3) has been
conducted.
4.
Assess the significance of the impacts
The assessment of impacts was based on a
qualitative analysis
by the Bank’s ESG Working Group, through a dedicated
electronic survey (e-survey) tool.
5.
Prioritize of the most significant impacts
The prioritization was based on the results
of an e-survey
assessment, via which the significance
of the impacts was
determined, and thresholds set to determine
which positive and
negative impacts will be material for the organization’s
strategy
and disclosures. The final list of material
impact areas was
debated by a dedicated working group,
comprised of executives
from Governance & Sustainability Division,
Strategy &
Investments, Digital, Transformation Office, Climate & ESG
Risk
and HR, was validated by a discussion at
the Group
Sustainability Committee and approved by
the Board of
Directors.
The material impact areas, whether potentially
positive or
negative, for 2023 identified and prioritized
are the following:
•
Finance
(Impacts created through specific
financial
products/services and operational initiatives
that improve
accessibility to the use of financial services).
•
Climate Stability
(impacts through specific financial
products/services that address climate change,
and
through energy reduction and efficiency initiatives
in the
Bank’s supply chain and operations).
•
Health, Safety and well-
being
(Impacts created through
specific financial products/services that affect
the ability of
stakeholders to live in a state of complete
physical, mental
and social well-being and stakeholders’ accessibility
to
quality essential healthcare services).
•
Circularity
(Impacts created through operational
activities
that affect the efficient use of limited, non- renewable
natural and renewable natural resources and/or
are
focused on waste management and
the ability to manage
waste).
•
Employment
(impacts created through specific financial
products/services and operational activities
that improve
stakeholders’ accessibility to productive
work in conditions of
freedom, equity, security and human dignity).
•
Biodiversity
(air, soil, waterbodies, species and habitats).
(Impacts created through financial products/services
to
certain sectors and operational activities
that create air
pollutants (e.g. NOx, SOx, PM, VOCs), that affect
the
composition of soil and its ability to deliver ecosystem
services, the quality and quantity of surface
water and
groundwater, the ability to maintain species and/or the ability
to protect, restore and promote sustainable
ecosystems and
habitats).
•
Gender Equality
(impacts created through operational
activities and initiatives that improve stakeholders’
ability to
live free from gender inequality).
•
Age Discrimination
(impacts created through specific
financial products/services and operational
activities that
improve stakeholders’ ability to live free
from ageism).
•
Culture and Heritage
(impacts created through specific
financial products/services and CSR initiatives
that improve
stakeholders’ ability to access and participate
in cultural life,
to enjoy the arts and to share in scientific advancement
and
its benefits).
•
Data Privacy
(impacts of operational activities that affect
stakeholders’ accessibility to the right of personal
privacy
(Issues of non-compliance))
6.Risk “Taxonomy”
To obtain a holistic view of the ESG impact including both
materiality directions, the Bank ran an internal
exercise and
determined the following risks that are
related to the matters that
have been defined by Law 4548/208 and could
negatively affect
the organization’s operations:
•
Physical damage and disruption
•
Conduct Risk
•
ICT & Information Security
•
Financial Crime risk
•
Fraud Risk
•
Execution, Delivery & Process Management
•
Outsourcing Risk
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.
Alpha Services and Holdings’ ESG strategy
is being updated,
in the context of the ESG workplan that is
being
implemented, with the ultimate objective
to effectively
manage any ESG related issues and improve
its
environmental and social impact. As such,
the following
metrics reflect Alpha Services and Holdings’
ambition to:
•
To support a net zero carbon and nature positive economy
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•
Foster Healthy economies that support
Society
•
Safeguard a robust Corporate Governance
It should be noted that further information
on the ESG
Commitments and targets will be presented
in the Sustainability
Report 2022 published separately.
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Matters according to Law
4548/2018 and GEMI
Circular 62784/2017
Sustainability Themes as in Alpha
Services and Holdings’ S.A.
materiality analysis
Key Metrics
Reference
Environment
Climate Stability
Biodiversity
Circularity
Physical Damage & Disruption
•
New financing arrangements for renewable
energy projects throughout the
year (total
amount in Euro).
•
Amount of paper recycled throughout
the year
(total amount in tons).
•
Electricity consumption throughout
the year (in
kWh).
Section Environment -
Performance in 2021 and
2022 of this Non Financial
Report
Social and employee
matters
Gender Equality
Age Discrimination
Finance
Health, Safety and Well-
being
Employment
Conduct Risk
ICT & Information Security
•
Women Employees as of 31 December
(%)
•
Percentage of women in the Board of
Directors as
of 31 December 2022 (%).
•
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
disabilities
(PwD) as of 31 December (%).
•
Percentage of monetary transactions
made
through digital networks throughout
the year
(%).
•
Social Contribution throughout the
year (in Euro).
Section Social and
employee matters -
Performance in 2021 and
2022 of this Non Financial
Report
Respect of human
rights
Conduct Risk
ICT & Information Security
•
Convictions against the Senior
Management for
any incidents of human rights violations
throughout the year (number of
incidents).
•
Personal Data breach incidents (number
of
incidents notified to the Personal Data
Protection Authorities).
Section Human rights -
Performance in 2021 and
2022 of this Non Financial
Report
Anti-corruption and
bribery
Financial Crime Risk
Fraud Risk
•
Convictions against the Senior
Management
for
any corruption offences throughout
the year
(number of incidents).
Section Anti-corruption and
bribery - Performance in 2021
and 2022 of this Non
Financial Report
Supply chain
Execution, Delivery & Process
Management
•
Percentage of payments to domestic
suppliers
(%)
Section Supply chain
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
Theoretically 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), to offer environmentally
responsible
investments, and to 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
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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,
employee
transportation etc.).
•
Increased environmental footprint from
operations (e.g.
paper consumption, water consumption,
insufficient
management of hazardous waste, failure
to adopt circular
economy principles).
•
Increased reputational risk exposure for
the Bank due to
financing customers that do not meet certain
environmental
standards and their activities have negative
effects on the
environment.
Alpha Services and Holdings’ Management
Raising awareness on environmental
issues and protecting the
environment are at the core of our sustainability
approach. 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. Moreover, the Bank conducted
a
materiality assessment analysis and identified
the sectors most
sensitive to climate-related risks The materiality
assessment
covered all key risk aspects (i.e. Credit
Risk / Operational Risk /
Market Risk / Liquidity Risk / Reputational Risk
and Business /
Strategic Risk). In this vein, the Bank conducted
a transition risk
assessment exercise in its Non- Financial Corporate
(NFC)
portfolio based on the Climate Policy Relevant
Sectors (CPRS)
perimeter, to identify its exposure per sector and the allocation
of
portfolio to potentially high transition risk categories.
The Bank is
currently in the process to assess the
materiality of physical risk,
that is primarily location driven, based on sensitivity
and
exposure analysis to derive vulnerability
to physical risk factors.
Regarding Operational Risk, the Bank introduced
several
enhancements to better manage, monitor
and mitigate ESG-
related risks, effectively acknowledging that
there are potentially
material ESG factors that could drive operational
risk in the
future. This is mostly
based on a conservative forward-looking
view (i.e. future ESG-related losses
may
be greater compared to historical ones) as
well as on the fact
that such events may have material
reputational impact in the
future, due to the shifting expectations of
the Customers and the
society as a whole regarding ESG issues.
Regarding legal risk,
the Bank is in the process of introducing
enhancements to better
identify, manage, mitigate and monitor legal risk driven by ESG-
related factors. Emphasis
•
is placed on ESG-related legal risk due to customer
and
third-party controversial activities (through enhancements
on the obligor assessment process) as
well as due to
internal processes that are being established
to prevent
greenwashing going forward (through the
introduction of
internal controls regarding the identification
and the tagging
of sustainable finance exposuresTurning to market
risk,
based on the preliminary assessment of
the Bank’s bond
portfolio following the Climate Policy Relevant
Sectors
(CPRS) methodology, seems that there is limited potential
effect from climate related and other ESG factors.
In terms
of liquidity risk materiality, there seems to be no material
effect from climate related and other ESG factors.
Reputational risk is generally considered
to arise
as a result
of the manifestation of other risk types
(i.e. a second-order
impact), while it could also give rise
to other risk types
subsequently (e.g. liquidity outflows, following
a
•
reputational impact). Business & Strategic
risk is considered
to be currently materially affected by ESG
factors. ).
* The Theoretically Potential Risks
have been evaluated in the context of the
Materiality Assessments and those
deemed relevant have been incorporated
in the Materiality
Matrix
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More information on climate related and
environmental risks can
be found in the “Environmental-
Social and Governance (ESG)
Risks” section of the Board of Directors’
Annual Management
Report 2022.
Following the recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD), the
Bank assesses the
impending 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.
Performance in 2021 and 2022
Indicators
Alpha Bank S.A.
Alpha Services and Holdings
Group
Year
2021
2022
2021
2022
New financing arrangements for renewable
energy projects
1
throughout the year (total amount
in Euro)
161,265,146
613,387,000
161,265,146
635,659,000
Amount of paper recycled throughout
the year
2
(total amount in tons)
710
803
726
1,066
Electricity consumption throughout
the year (in kWh)
3
46,837,158
40,910,074
81,012,853
4
53,220,859
1
This KP 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 during the year and not
necessarily the
amounts disbursed. This KPI is
applicable only to Alpha Bank
S.A, Alpha Bank Romania,
Alpha Bank Cyprus and Alpha Bank
London.
2
Amount of paper recycled (total amount
in tons) as verified by the logistic
partner. Recycled
paper includes cut and uncut
- mashed paper bank documents.
This KPI is applicable to the following
Group Companies: Alpha Bank
S.A. (main subsidiary Bank), Alpha
Bank Romania, Alpha Bank
Cyprus, Alpha Real
Estate Bulgaria, Alpha Real Estate
Services Srl, Alpha Credit Acquisition
Company Ltd (ACAC), Alpha Leasing
Romania, Alpha Real Estate
Services LLC,
ABC Factors, Alpha Finance Investment
Services, Alpha Leasing, Alpha
Insurance Brokers Srl, Alpha Asset
Management, Alpha Astika Akinita.
3
Alpha Services and Holdings Group
calculates electricity consumption
in all buildings, offices & branches.
The total amount of electricity
consumption for
2022 is based on measurements
taken at buildings, branches (network),
empty properties & other
facilities of the Bank as well as
the Group Companies
that are co-located in these buildings
in Greece’’. In order to calculate the
electricity consumption, the following
principles were applied (where
applicable
& feasible):
-
The Group Companies are included
(e.g. co-housing in the same
Buildings), as well as common areas,
empty spaces, parking spaces
and secondary areas
(e.g., due to building ownership or
contractual agreements, etc.).
-
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.
-
Empty properties that the Bank owns
or is responsible for the premises,
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
is
applicable
to
the
following
Group
Companies:
Alpha
Bank
S.A
(main
subsidiary
Bank),
Alpha
Bank
London,
Alpha
Bank
Romania,
Alpha
Bank
Cyprus, Alpha Real
Estate Services
SRL, Alpha
Credit Acquisition
Company Ltd
(ACAC), Alpha
Leasing Romania,
Alpha Real
Estate Services
LLC, Alpha
Finance
Investment
Services,
Alpha
Leasing,
Alpha
Asset
Management,
Alpha
Astika
Akinita,
Alpha
Supporting
Services,
Alpha
Ventures,
Alpha
Life
Insurance Company.
4
The data disclosed for 2021 and
included in the NFR 2022, have been
restated compared to the relevant
disclosure for 2021 and included
in the NFR 2021, in
order to be consistent with the electricity
consumption calculation followed
in 2022.
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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. More
information on the
Bank’s operational environmental footprint and
certifications, can
be found in Alpha Services and Holdings Sustainability
Report
2022.
SOCIAL AND EMPLOYEE MATTERS
Theoretically 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.
Violation of social and employee standards by
the Bank leading to
increased reputational risk exposure.
Alpha Services and Holdings’ Management
Employee Matters:
Alpha Bank’s Employees play a pivotal role
to the Group’s
growth and the achievement of its business
targets as they
depend on their performance and 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
professional development on the basis of
merit and equitable treatment, offers fair remuneration
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.
In order to increase the engagement, productivity
and commitment
of employees, multiple initiatives have been
launched in the last
few years. The first priority was to safeguard
that employee issues
and concerns will be timely communicated
and addressed. To do
this, the role of Human Resources Business
Partners (HRBPs)
was introduced in 2021, and was further
enhanced during 2022.
HRBPs act as ‘people advocates’ and serve
as a first point of
contact for employees to discuss and help
resolve professional
issues of concern.
* The Theoretically Potential Risks
have been evaluated in the context of the
Materiality Assessments and those
deemed relevant have been incorporated in
the Materiality
Matrix
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*
Performance in 2021 and 2022*
Indicators
Alpha Bank S.A.
Alpha Services and Holdings
Group
Year
2021
2022
2021
2022
Women Employees as of 31 December
(%)
56%
56%
62%
61%
Percentage of women in the Board of
Directors as of 31 December
(%)
17%
31%
17%
22%
Employee Training (hours
of training throughout the year per
Employee)
24
26
28
33
Number of fatalities throughout the
year
1
(number of Employees)
-
-
-
-
Number of injuries throughout the
year
1
(number of Employees)
4
4
6
4
Percentage of branches accessible
(ramp or easily accessible)
by people with
disabilities (PwD) as of 31 December
2
(%)
67%
74%
76%
81%
Percentage of monetary transactions
made through digital networks
3
throughout the year
3
(%)
94%
95%
93%
95%
Social Contribution throughout the
year
4
(in Euro)
2,653,650
2,173,757
2,819,758
2,308,486
To further strengthen HR communication with all employees,
especially those who work remotely or are
located outside of
Athens, and improve employee experience
and engagement, a
new communication platform was launched
in Q2 2022
(#talk2us), through which employee can
book appointments with
the respective HRBPs.
As a means to promote collaboration and
networking, employee
groups with common interests or characteristics,
the
“Communities of Change”, were inaugurated
in 2021 to facilitate:
•
Learning from the unique experiences of employees
capitalizing on their diverse professional
backgrounds.
•
Distributing best practices among Units in
order to achieve
the goal of shaping the next day for Alpha
Bank.
•
Nurturing cross-functional alliances for employees
from
different areas and promote collaboration.
•
Establishing Alpha Bank as an employer of
choice and
introducing practices that enhance our employee
value
proposition.
In 2022, the revamped learning brand of
Alpha Bank,
ACE #together we grow, was enriched with new content
consisting of e- Learnings, classroom trainings
and webinars,
in
cooperation with consultants selected for
their functional expertise
and leading learning practices. What is
more, new learning
Academies were launched, based
on in-depth Training Needs
Analysis with relevant stakeholders,
in view of further accelerating
the establishment of a growth culture
in the
Bank. Finally, we
have initiated our partnership with two global
online learning platforms, offering our employees
access to
thousands of curated courses on a multitude
of topics.
For Alpha Bank, the integration of diversity
and inclusion practices
in our operating culture and, of course,
in all
aspects of our
corporate and social activity is of paramount
importance. To this
end, Alpha Bank is the first Greek bank to
be included in the
Bloomberg Gender Equality Index (GEI)
and to firmly remain there
for 4 consecutive years, while a few
months ago, we were the first
Bank in Greece to adopt the most modern
framework against
bullying and harassment at the workplace
in March 2022.
*
Any KPs related to Employees
apply to all the regular employees.
1
Excludes incidents caused by pathological
causes and relates to incidents during
working hours.
2
This KPI is applicable only to Alpha
Bank S.A. (main subsidiary
Bank), Alpha Bank Romania,
Alpha Bank Cyprus and Alpha
Bank London.
3
Alpha Bank’s and Bank’s
abroad digital networks: ATMs,
APSs, myAlpha Web, myAlpha
Phone, myAlpha Mobile.
4
This amount in euro 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.
In this context, a framework of interventions
has been developed
in the past two years, not only with respect
to providing equal
opportunities for professional development,
equal performance
evaluation and rewards, but most importantly, a framework for
personal development for women throughout
their life cycle. A
key part of these interventions has been
the practice of
mentoring, placing women in the drivers’ seat,
through the role of
mentor for new joiners and young colleagues,
both male and
female.
Examples of the aforementioned empowerment
initiatives
are
three mentoring programs that evolved
during 2021-22, namely
“Trading Alpha Brains” (TAB), “SheForHe”, “Bankers and
Daughters” and the “Grow Aware Academy”.
These actions
are addressed not only to Alpha Bank employees
and their
families, but also to women who have left
the Bank.
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’ performance. 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
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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.
Social Matters:
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 10 Branches and
51 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.
More information on Alpha
Services and Holdings’ initiatives in support of
the Society,
during 2022, can be found in the Sustainability
Report 2022.
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.
HUMAN RIGHTS
Theoretically 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.
Violation of human rights by the Bank leading
to increased
reputational risk exposure
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.
Corporate information is classified and protected,
according to
the Group Cybersecurity and Information
Security Framework,
which sets out the information security principles,
rules and
procedures. The Framework is regularly updated
to meet the
increased requirements arising from the
regulatory framework,
the operational and technological environment,
as well as
* The Theoretically Potential Risks
have been evaluated in the context of the
Materiality Assessments and those
deemed relevant have been incorporated in
the Materiality
Matrix
extraordinary conditions such as those
imposed by the
Covid-19 pandemic on Bank operations and
Customer
service.
The Cybersecurity and Information Security
Division, under
the supervision of the Group Information
Security Officer,
manages all Cybersecurity issues at Group
level. In 2020,
the Division completed its three-year Strategic Plan
(2018-
2020), which was based on the formal Cybersecurity
Maturity
Assessment process. The main target of
the Plan was to
reorganize Cybersecurity at organizational,
procedural
and technical levels. The successful completion
of the
program has set the foundation for continuously
improving
Cybersecurity efficiency and effectiveness, in full
alignment
with the business objectives of the Bank.
The new Strategic Plan (2021-2023) is based
on a more granular
assessment model and aims to further develop
critical
Cybersecurity operations, enhancing significant
activities and
developing necessary skills.
Alpha Bank applies the General Data
Protection
Regulation(Regulation (EU) 2016/679 of
the European Parliament
and of the Council), more commonly known as
GDPR, which
concerns the protection of Individuals with
regard to the
processing of Personal Data.
Fully respecting the rights and freedoms
of Data Subjects, the
Bank collects, records, uses, notifies and,
in general, processes
personal data of Individuals in the context
of
its business activity,
in full compliance with applicable laws,
to guarantee their
protection. It has also appointed
a Group Data Protection Officer,
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who informs the Management and the Audit
Committee of
the Board of Directors about the Group’s level of compliance
with the applicable legislation.
To inform Individuals about the processing of Personal Data
carried out in each case by the competent Units
of the Bank
or by external third parties processing data
on its behalf, the
Bank has prepared the document entitled
“Notification on the
Processing of Personal Data”, which is
provided upon
collection of their Personal Data. This document
is posted at
a central point on the Bank’s website and serves as
a set
point of information for all relevant details
that Individuals
need to know as regards personal data processing,
such as
the purpose of processing, the sources
and recipients of
data, the storage period, their rights and
how to exercise
them and the contact persons at the
Bank’s competent
Services.
In addition to the above general information,
Natural Persons
are also provided with specific information on
personal data
processing, also for products and services provided
via
alternative Digital Networks in the context
of the Bank’s
digital transformation.
Furthermore, the Bank applies a set of coordinated
actions in
order to further establish personal data
protection. These
include, but are not limited to:
Review of the Register of Processing
Activities (RoPA), kept by
the Bank and Group Entities, which includes
all operations, that
involves personal data processing and update
of the Record of
Processing Activities with the addition of
the new processing flows
and the update/ modification of the existing
ones in the relative
GRC Platform – (Operational Risk, Cyber
Security) RoPA module
in accordance with the instructions of
the Group Data Protection
Officer. Ongoing Process for Group Entities.
Assessing the impact on Personal Data processing
flows of
potentially high risk for the freedoms and
rights of Natural Persons
and development of action plans for applying
technical and
organizational measures in order to
mitigate risks.
Developing the appropriate infrastructure
for collecting and
efficiently managing consent to data processing,
as well as for
withdrawing consent.
Update of the Employees’ Privacy Notice
in accordance with the
requirements arising from the General Data
Protection
Regulation. Ongoing process for Group Entities.
Adoption of Key Risk Indicators (KRIs)
for monitoring the
Organization’s level of compliance with the GDPR
and definition
of Key Performance Indicators (KPIs) for assessing
the
effectiveness of the Personal Data Protection
Framework.
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Performance in 2021 and 2022
Indicators
Alpha Bank S.A.
Alpha Services and Holdings
Group
Year
2021
2022
2021
2022
Convictions against the Senior
Management for any incidents
of human
rights violations throughout the year
1
(numbers of incidents)
-
-
-
-
Personal Data breach incidents (number
of incidents) notified to the
Personal Data Protection Authorities
2
1
1
3
2
3
1
As Senior Management are defined
the members of the Board of Directors
and the General Managers.
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, Alpha Life, Alpha Ventures,
Alpha Supporting Services, Alpha
Real Estate Bulgaria, Alpha
Bank Cyprus, Alpha
Credit Acquisition Company Ltd (ACAC),
Alpha Bank Romania S.A., Alpha
Real Estate Services SRL, Alpha
Bank London, Alpha Real Estate
Services LLC,
Alpha Leasing Romania.
2
This indicator has been renamed
in the NFR 2022, compared to
NFR 2021, to clearly reflect the
fact that both customers and
employees’ data breach
incidents are being monitored and
disclosed respectively.
3
The 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,
Alpha Life, Alpha Ventures,
Alpha Supporting Services,
Alpha Real Estate Bulgaria,
Alpha Bank Cyprus, Alpha Credit
Acquisition Company Ltd (ACAC),
Alpha Bank Romania S.A., Alpha
Bank London, Alpha Real
Estate Services LLC, Alpha Leasing
Romania.
•
Training of Divisions and Group Entities regarding
issues
related to the implementation of the General
Data Protection
Regulation.
On a Group level, two (2) incidents have
been notified to the
Local Data Protection Authorities. For these
incidents corrective
actions have been immediately taken
in order to mitigate
potential risks for the affected data subjects.
Moreover, the Group Entities proceeded to actions
to
further
improve and strengthen the existing
technical and organizational
measures in order to avoid the recurrence of
such incidents.
Human rights issues are addressed
through the Human
Resources Business Partners, as explained
above. Similarly,
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 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.
ANTI-CORRUPTION AND BRIBERY
Theoretically 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 the Company.
•
Legal actions / fines against the Company.
•
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.
Increased reputational risk exposure due
to corruption and bribery
incidents occurring within the Bank
.
* The Theoretically Potential Risks
have been evaluated in the context of the
Materiality Assessments and those
deemed relevant have been incorporated in
the Materiality
Matrix
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Alpha Services and Holdings’ Management
In line with its firm and unwavering position
against corruption,
bribery and fraud, Alpha Bank has issued
a Group Anti Bribery
and Corruption Policy and established
relevant control
mechanisms in order to mitigate the
relevant risks. Those
issues were included in the 2022 Compliance
Training
Program, in Alpha Services and Holdings
Group Employees.
The Bank conducts internal audits for compliance
with the
regulatory framework and has put in place specialized
control
and reporting systems and works closely
with the competent
Regulatory Authorities to combat money laundering
and financial crime. Additionally, 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.
Specifically, the “Control and Risk Culture in Branch Network”
training program that was performed during
the fourth quarter of
2022, addressed to all Branch Managers,
enhanced the
awareness on Risk Compliance and Ethics.
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 2022, two (2) reports
were submitted via the
whistleblowing channels. Following the examination
of the
relevant Committee, there were no major
findings.
Performance in 2021 and 2022
Indicators
Alpha Bank S.A.
Alpha Services and Holdings
Group
Year
2021
2022
2021
2022
Convictions against the Senior
Management for any corruption
offences throughout the year (numbers
of incidents)
1
-
-
--
0
1
As Senior Management are defined
the members of the Board of Directors
and the General Managers.
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,
Alpha Life, Alpha Ventures,
Alpha Supporting Services,
Alpha Real Estate Bulgaria, Alpha
Bank Cyprus, Alpha Credit
Acquisition Company Ltd (ACAC),
Alpha Bank Romania S.A., Alpha
Bank London, Alpha Real
Estate Services LLC, Alpha Leasing
Romania.
SUPPLY CHAIN
Theoretically 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.).
•
Increased reputational risk exposure due
to supply chain
issues occurring within the Bank or its associated
third
parties.
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.
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.
* The Theoretically Potential Risks
have been evaluated in the context of the
Materiality Assessments and those
deemed relevant have been incorporated
in the Materiality
Matrix
The Bank has also established a Group
Outsourcing Policy,
which sets specific evaluation 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
service provider is periodically evaluated
by the relevant
Divisions of the Bank, coordinated by
Alpha Bank Outsourcing
Functional Area. 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
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risk, confidentiality risk, personal data management
risk,
business continuity risk, regulatory/legal
and tax compliance
risk.
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
have
been presented and approved by the Competent
Structures
of the Bank during 2022 (including ESG criteria).
In addition, it should be mentioned
that the Group
Procurement Policy was revised (Dec’22),
incorporating
guidelines on sustainable procurement
and ESG practices.
During the same period, the Supplier
Management Policy was
adopted, which defines among others the
evaluation method and
measurement of the vendors performance.
In parallel, the Supplier Code of Conduct
(Labor-Human Rights,
Health & Safety, Environmental Responsibility, Integrity-Business
Ethics)
was recently issued. It’s acceptance and
compliance with
its principles and values is a prerequisite
for signing contracts and
assignments (if the vendor doesn’t apply a similar
code).
Performance in 2021 and 2022
Indicators
Alpha Bank S.A.
Alpha Services and Holdings
Group
Year
2021
2022
2021
2022
Percentage of payments to domestic
suppliers1 (%)
90%
87%
86
2
%
85%
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 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 Supporting Services, Alpha Real
Estate Bulgaria, Alpha Bank
Cyprus, Alpha
Credit Acquisition Company Ltd (ACAC),
Alpha Bank Romania S.A., Alpha
Bank London, Alpha Leasing Romania,
Alpha Astika Akinita, Alpha Insurance
Brokers SRL, Alpha Real Estate
Services SRL.
2
The data disclosed for 2021 and
included in the NFR 2022, have been
restated compared to the relevant
disclosure for 2021 and included
in the NFR 2021, in
order to be consistent with the payments
to domestic suppliers’ calculation
followed in 2022.
Finally, Alpha Services and Holdings seeks to support local
communities and create added value
for the local economies. In
2022, Alpha Services and Holdings Group cooperated
primarily
with local suppliers, whenever possible.
RESPONSIBLE INVESTMENTS AND FINANCING
Alpha Bank developed and is currently operationalising
a
Sustainable Finance Framework to support
its lending activities
as well as other funding instruments with clear
environmental
and social credentials in alignment with the
EU Taxonomy
regulation and with the principles established
by the
International Capital Market Association. The
Framework
identifies green themes and activities as
well as social themes
and activities eligible for sustainable financing.
The Framework
presents the decision and classification process
that Alpha Bank
implements to classify its financial products and
services as
sustainable. The sustainable financing criteria
are set on use of
proceeds, to finance (or refinance) environmental
and/or social
projects and general corporate purposes with
either, activity,
business-
mix conditionality or built-in key performance
indicators linked to sustainability performance
targets (SPT’s).
Alpha Bank confirms its commitment to the
EU Recovery and
Resilience Facility financing by including the
activities related to
the Green Transition Pillar as sustainable.
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
Initiative (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,
Alpha Services
and Holdings has already submitted
two self-
assessment reports,
while in 2022, a new dedicated portfolio alignment
analysis has
been conducted, in accordance with the
UNEP FI Principles for
Responsible Banking (PRB) Impact Analysis,
using the Portfolio
Impact Analysis Tool for Banks (version 3). Positive and negative
impacts that the Bank creates through its
institutional and
consumer banking portfolios, were assessed
and mapped against
the impact areas and topics of the revised
Impact Radar (June
2022).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).
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
NON FINANCIAL REPORT
52
ANNUAL FINANCIAL REPORT
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 2022, 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. Specifically, the Group does
not
finance the following activities:
•
The production of or trade in any product or activity
deemed
illegal under host country (i.e. national)
laws or regulations
or international conventions and agreements,
or subject to
international phase out
or bans, such as PCBs, ozone
depleting substances, trade in wildlife etc.
•
Production or trade in weapons and
munitions.
•
Production or trade in alcoholic beverages
(excluding beer
and wine), Production or trade in Tobacco, Gambling,
Casinos and equivalent enterprises. The funding
of these
activities is permissible on a combined basis
up to a 5% of
the total loan portfolio.
•
Production or trade in radioactive materials.
This does not
apply to the purchase of medical equipment,
quality control
(measurement) equipment and any equipment
where the
radioactive source is considered to be trivial
and/or
adequately shielded in accordance with
international
practices.
•
Forced evictions.
•
New investments in thermal coal mining
or coal-fired
electricity generation capacity.
•
Upstream oil exploration - extraction and production.
•
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.
•
Activities involving force-feeding of ducks and geese.
•
The keeping of animals for the primary
purpose of fur
production or any activities involving fur production.
•
The manufacture, placing on the market
and use of asbestos
fibres, and of articles and mixtures containing
these fibres
added intentionally. This does not apply to purchase and use
of bonded asbestos cement sheeting where
the asbestos
content is less than 20%.
•
The export of mercury and mercury compounds,
and the
manufacture, export and import of a
large range of mercury-
added products.
•
Activities prohibited by host country legislation
or
international conventions relating to the protection
of
biodiversity resources or cultural heritage.
•
Drift net fishing in the marine environment using
nets in
excess of 2.5 km in length.
•
Shipment of oil or other hazardous substances
in vessels,
which do not comply with IMO (International
Maritime
Organization) requirements.
•
Trade in goods without required export or import
licenses or
other evidence of authorization of transit
from the relevant
countries of export, import and, if applicable,
transit.
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 2022, there were no cases of non-approval
of credits due to
issues which occurred during the assessment
of environmental
and social risks.
Having said that, the Bank is dedicated not
only to not finance
polluting projects but also to actively fight climate
change by its
activities and operations. In 2022, Alpha
Bank introduced for the
first time, impact investment products. Through
the “Reforest
Action”, which is highly relevant for Greece
due to the wildfire
outbreaks for consecutive years, almost
thirty thousand trees
have
been planted, which translates
to 4.5 thousand tons of CO2
stored and the creation of ninety thousand natural
shelters for wild
animals. Additionally, the above-
mentioned action created the
need to cover about thirty thousand hours
of work. The Reforest
Action is particularly important for Greece
not only for the
environment but also for the residents of
the affected areas by the
wildfires, since the reforestation prevents severe
floods.
Alpha Asset Management
Alpha Asset Management M.F.M.C. acknowledges ESG
NON FINANCIAL REPORT
53
ANNUAL FINANCIAL REPORT
(Environmental, Social, Governance)
issues as key non-
financial parameters that may affect long-term
returns on
investments and investment portfolios.
Along with traditional
financials, the company takes ESG factors
into consideration
during the investment process.
Alpha Asset Management has developed
a credible
methodology to incorporate sustainability perspectives
in
investment decisions, active ownership and business
culture for
long-term value creation and positive contribution
to society. The
company’s
Environmental,
Social and Governance (ESG) Policy
represents the guiding
principles that the company applies to ensure
that information
on ESG risks and opportunities is appropriately
incorporated into
the investment management process. Alpha
Asset Management
acknowledges the responsibility it has as an
asset management
company to address ESG considerations.
It recognizes that
ESG risks and opportunities can have material
effects on the
financial performance of the securities and
assets in which it
invests.
In 2022 Alpha Asset Management significantly
enhanced its
ESG incorporation process, both in terms
of its active ownership
activities as well as the integration of ESG
in portfolio
construction. The company introduced a
new Active Ownership
& Voting Policy, which addresses how it executes its
shareholder rights attached to voting shares
in general
meetings. In addition, the company entered
into cooperation
with a leading consultant who specialises
in providing corporate
governance and proxy voting solutions. More
specifically, the
consultant provides research, advice and
recommendations on
how to vote in general meetings, based on
internationally
recognized best practice guidelines. During
the year, the
company exercised its voting rights in
29 annual shareholder
meetings. Regarding the General Assembly
agenda items for
which the consultant proposed to vote against
the investee
companies’ management proposals, Alpha
Asset Management
engaged in constructive dialogue with the
investee companies in
order to source additional information about
those controversial
topics and any potential improvement action
plans that the
management has established.
In addition, the ESG Investment committee,
in its capacity as the
competent body that the company has established
for
implementing the responsible investment policy, has approved
the incorporation of additional ESG filters,
factors and criteria in
the portfolio construction process, which
are due to be implemented at the beginning of
2023.
Furthermore, during this year, the company has created an
ESG
dedicated role. These enhancements aim
at further
strengthening the sustainability profile of
the company’s funds.
Moreover, the company prepared the required pre- contractual
and website disclosures for its article 8
financial products, i.e.,
funds that promote environmental and/or social
characteristics,
in compliance with the EU Sustainable
Finance Disclosure
Regulation (SFDR) level II requirements
which is into force since
January 1, 2023.
As part of the company’s commitment to incorporate
ESG criteria
into their investment process, Alpha Asset
Management became
a signatory of the United Nations-
backed Principles for
Responsible Investment (PRI) in December
2018.
In the 2021 PRI Assessment report, Alpha
Asset Management
was awarded with a score of 3 stars for its
Investment &
Stewardship Policy (in a numerical grading
system ranging from 1
to 5), in line with the median of its global
peers, where 1 indicates
a responsible investment behaviour at
the lower end of what is
expected from signatories. The score demonstrates
the
commitment of Alpha Asset Management
to the 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.
NON FINANCIAL REPORT
54
ANNUAL FINANCIAL REPORT
ESG Ratings
Alpha Services and Holdings
Performance
Year
2018
2019
2020
2021
2022
MSCI ESG Rating (scale CCC-AAA)
BBB
A
AA
AA
A
2
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
E 1
S: 2
G: 6
December
2021
E 1
S: 3
G: 3
December
2022
Vigeo Eiris Best Emerging Market
Performers
ü
ü
ü
ü
Climate Change CDP
B
C
C
B
-
B
Bloomberg Gender Equality Index
ü
(Index 2019)
ü
(Index 2020)
ü
(Index 2021)
ü
(Index 2022)
ü
(Index 2023)
1
The ISS rating is a comparative rating,
which fluctuates due to changes
in the market, rather than
the sustainability performance
of the company.
2
The MSCI rating for 2022, has been
downgraded due to methodological
changes that resulted in the inclusion
of the Corporate Behavior
Theme in Alpha
Bank's (Alpha's) Governance assessment.
EU TAXONOMY DISCLOSURE REQUIREMENTS
i.
The Regulation and reporting obligations
for credit
institutions
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
safeguards3; 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 recommended technical screening criteria
for the four
remaining environmental objectives were
issued within the first
half of 2022, awaiting approval.
3
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.
NON FINANCIAL REPORT
55
ANNUAL FINANCIAL REPORT
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 social safeguards.
Eligibility compliance at first and alignment
with the EU
Taxonomy Regulation as the next step, is a reporting obligation
for financial and non-financial corporations.
Alpha Services and
Holdings 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.
ii.
Scope of financial assets in the eligibility
calculations
The information presented follows the requirements
described
in Article 7 and Article 10 of the Delegated
Regulation (EU)
2021/2178.
The financial assets are reported in proportion
to the Bank’s
Total Assets, measured at 31 December 2022 at gross carrying
amount. The financial assets subject to the
EU Taxonomy
eligibility calculation cover loans and advances, debt
securities,
listed and non-listed equity holdings.
The following categories of exposures have been
excluded from
the calculation of the KPIs as necessary:
•
exposures to central governments, central banks,
and
supranational issuers (excluded from both
the numerator
and denominator of KPIs);
•
exposures in derivatives excluded from the
numerator of
KPIs;
•
exposure in trading portfolio securities excluded
from the
numerator;
•
exposures to entities that are not obliged
to publish non-
financial information pursuant to Article 19a or
Article 29a of
Directive (EU) 2013/34 excluded from the
numerator of KPIs.
iii.
Analysis of EU Taxonomy eligibility
The Taxonomy eligibility analysis shows the proportion of the
Bank’s assets financed and invested in taxonomy-eligible
economic activities as a proportion of
total covered assets.
The eligibility analysis on corporate financing
transactions was
mainly based on the identification of
the NACE code associated
with each lending entity and its subsequent
mapping to the eligible
NACE codes published in the EU Taxonomy Compass. This
analysis demanded a more detailed approach
for specific NACE
code categories
to ascertain that the economic activity related
to the financing was
included in the Taxonomy eligible economic activities. The same
process was applied for the listed and unlisted
equity exposures.
The eligibility analysis on debt instruments
separated the
corporate from the sovereign issuers and
proceeded with
the
identification of the NACE code associated
with each corporate
debt issuer and its subsequent mapping
to the eligible NACE
codes published in the EU Taxonomy Compass.
Based on the results of the analysis of
the data available for the
year 2022 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.
NON FINANCIAL REPORT
56
ANNUAL FINANCIAL REPORT
EXPLANATORY
REPORT OF THE BOARD
OF DIRECTOR’S OF
ALPHA SERVICES
AND HOLDINGS S.A. FOR THE
YEAR 2022
57
ANNUAL FINANCIAL REPORT
Explanatory
Report
of
the
Board
of
Directors
of
Alpha
Services
and
Holdings
S.A.
for
the
Year
2022
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
2022 contains detailed information, pursuant to
the
provision of article 4
par. 7 of
Law 3556/2007, the
reference date being 31.12.2022, in accordance
with
the order in which they
are written in the provision in
question.
In particular:
a.
On 31.12.2022 the share
capital of the Company
stood at the total amount
of Euro 680,980,257.36,
divided
into 2,348,207,784 common, registered,
dematerialized shares with
voting rights, of a
nominal
value of
Euro 0.29
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, 211,138,299
have been subscribed
by the Hellenic Financial
Stability Fund, pursuant to
Law 3864/2010, as in force
and 2,137,069,485 have
been subscribed by
other
Investors. The 2,137,069,485 shares that
have been
subscribed by 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. It is noted
that, following the amendment of Law
3864/2010 by
Law 4941/2022, the Hellenic
Financial Stability Fund
exercises without limitation the voting rights
corresponding to the common shares
which it
undertakes in any way, including the
case of a
capital
support pursuant to article
7, in accordance with the
provisions of article 7a
par. 1 of
Law 3864/2010.
Furthermore, the Hellenic Financial
Stability Fund also
possesses all the other rights stipulated
by Law
3864/2010, as each time in force.
It is further noted
that, pursuant to the resolution of
26.10.2022 of the
Board of Directors of the
Company, in accordance
with article 113
par. 3 of
Law 4548/2018, in the
context of the third 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 increased by the
amount of Euro 230,990.51
by issuing and granting to
the Beneficiaries/ Employees
of the Company and its
Affiliated Companies 796,519 common, registered,
dematerialized shares of the
Company with voting
rights, of a nominal
value of Euro 0.29
each.
Following the above share
capital increase, the share
capital of the Company
amounts to the total amount of
Euro 680,980,257.36 divided into
2,348,207,784
common, registered, dematerialized shares
with
voting rights, of a
nominal value of Euro
0.29 each.
b.
The Articles of
Incorporation of the Company
contain
no restrictions on the transfer of
its
shares, save as
otherwise provided for in the
law.
c.
According to the
Company’s records, on
31.12.2022,
“REGGEBORGH
INVEST B.V.”
held common
shares
representing
5.635%
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.
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
EXPLANATORY
REPORT OF THE BOARD
OF DIRECTOR’S OF
ALPHA SERVICES
AND HOLDINGS S.A. FOR THE
YEAR 2022
58
ANNUAL FINANCIAL REPORT
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.
i.
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.
j.
The Company does
not hold any of its
own shares.
k.
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.
The Company has
entered into no agreement
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 14,
2023
Athens, March 14, 2023
THE CHAIRMAN
OF THE BOARD OF DIRECTORS
THE CHIEF
EXECUTIVEOFFICER
VASILEIOS T. RAPANOS
ID No ΑΙ 666242
VASSILIOS E. PSALTIS
ID No ΑΙ 666591
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
59
ANNUAL FINANCIAL REPORT
Corporate Governance Statement for
the year 2022
A.
INTRODUCTION
Pursuant to article 152 par. 1 and article 153 par. 3 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 2022.
The reference
date of the Corporate Governance Statement
is
31.12.2022.
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.
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 with reference
to article 17 of Law
4706/2020, adopted the
Hellenic Corporate Governance
Code
of the Hellenic Corporate Governance
Council (the
“Code”).
The Company adheres to 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 (the “CGSNC”) 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, and 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 issues of non-compliance with
the Hellenic Corporate Governance Code in the
context of the
“
comply or explain
”
principle
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
designated, 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. Furthermore,
the responsibilities of
the Senior Independent Member are covered
by the Chair of the
Board of Directors and the Chair of the
CGSNC.
In 2022, seven meetings of the Non-Executive
Members of the
Board of Directors were convened, well above
the minimum
requirement. In addition, it should be noted
that all four 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 in the
execution of 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
2022
During 2022, 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 Committee, Corporate
Governance,
Sustainability and Nominations Committee)
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 Suitability and Nomination Process
for the
Members of the Board of Directors,
-
the Policy for the Succession Planning of
Senior
Executives and Key Function Holders,
-
the Remuneration Policy for Alpha Services
and
Holdings and its Group, along with
its Annexes,
in order for them to be fully aligned with
the current regulatory
framework and with the most recent best practices
of corporate
governance.
Further to the above, the Company drafted
the Policy and Process
for the Succession Planning of Non-Executive
and Independent Non-
Executive Members of the Board of Directors,
which was discussed
and approved by the Board of Directors of
the Company at the
meeting of January 2023.
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
60
ANNUAL FINANCIAL REPORT
4.
Corporate Governance at Group Level
During 2022, 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 Corporate 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.
5.
2023 Priorities
The main Corporate Governance priorities
for 2023 include
but are not limited to those presented below:
•
Further enhancement of diversification
in the Board of
Directors and in the Management.
•
Further enhancement of Environmental,
Social and
Governance (ESG) skills and knowledge
(climate and
environmental) in the Board of Directors.
•
Review of the Company’s Corporate Governance
documents.
•
Provision of further specialized training for
the Members
of the Board of Directors.
•
Update of the framework in relation to the
corporate
governance practices of the Subsidiaries.
•
Approval of new policies following the
developments in the field of corporate
governance.
•
Implementation of the recently updated
Succession Policy.
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
capital 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.
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 and 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, providing oversight
on the adequacy and
effectiveness 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
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
61
ANNUAL FINANCIAL REPORT
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 RMU.
b.
Regularly, 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
RMU and the
Management as well as on the basis of the
findings and
observations of 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 and Law
4706/2020. 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. A relevant assessment
for the
period 2020-2022 is in progress.
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 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.
The General Meeting of Shareholders shall
be convened by the
Board of Directors, or otherwise as stipulated
by the applicable
legislation, at the Company’s registered office or
in the district of
another municipality within the prefecture
of the registered office
or another contiguous municipality
to the registered office or in the
registered office of the Athens Exchange
in which the Company’s
shares are listed for trading, at least once
in the course of the
fiscal year at the latest by the tenth calendar
day of the ninth
month following the end of the fiscal year
(Ordinary General
Meeting) or on an ad hoc basis.
The General Meeting shall be presided over
provisionally by the
Chair of the Board of Directors and he/she
shall name provisional
secretaries and ballot-collectors, until the list of Shareholders
with
a right to participate in the General Meeting
has been ratified and
the regular Presidium, i.e. the permanent
Chair as well as the
permanent secretaries and the ballot-collectors,
is elected by the
General Meeting.
Persons having the Shareholder capacity
on the record date, as
defined by the applicable legislation, are
entitled to participate in
the General Meeting. Shareholders must
timely and properly
abide by the provisions of the law and the
relevant invitation to the
General Meeting. In any other case,
their participation will be
allowed only upon permission from the
General Meeting.
Shareholders participate in the General
Meeting either in person
or by proxy. Minors, persons under judicial guardianship and legal
entities shall be represented in accordance
with the applicable
legislation.
The appointment and revoking or replacement
of representatives
is effected in writing (via private or public document)
or, upon a
resolution by the Board of Directors, via electronic
mail and/or
other electronic means of communication,
in accordance with the
instructions included in the Invitation to the
General Meeting.
Following a resolution of the Board of
Directors and pursuant to
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
62
ANNUAL FINANCIAL REPORT
the applicable legislation, the proceedings of
the General
Meeting may take place via teleconference.
Following a resolution of the Board of
Directors, it may be
resolved that Shareholders may participate
in the General
Meeting via an absentee ballot, i.e. by mail
or by electronic
means, prior to the General Meeting, in accordance
with
the applicable legislation and with the
instructions included
in the invitation to the General Meeting.
The Members of the Board of Directors and
the auditors
of the Company may attend the General
Meeting. Upon
permission granted by the Chair of the
General Meeting,
the presence of other persons not having
the
Shareholder capacity may be allowed.
During 2022 one General Meeting of Shareholders
was
held.
Ordinary General Meeting of Shareholders
on 22.7.2022
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
63
ANNUAL FINANCIAL REPORT
Voting results and resolutions
All the items of the agenda were approved by
the Ordinary General Meeting of
Shareholders. The
resolutions approved and the valid votes are
presented below:
Item
Agenda
% Valid Votes
1
Approval of the Annual Separate
and Consolidated Financial
Statements of the financial
year 2021 (1.1.2021 -
31.12.2021), together with the
relevant reports
of the Board of Directors which
are accompanied by
the Statutory
Certified Auditors’ Report.
99.84%
2
Approval of the netting-off
of the Retained Earnings
/ (Losses) against the Statutory
Reserve and the Special Reserve
of
article 31 of Law 4548/2018.
100.00%
3
Approval, as per article 108
of Law 4548/2018, of the overall
management for the financial
year 2021 (1.1.2021 -
31.12.2021) and discharge of the
Statutory Certified Auditors
for the financial year 2021, in
accordance with article 117
of
Law 4548/2018.
99.80%
4
Election of Statutory Certified
Auditors for the financial
year 2022 (1.1.2022 - 31.12.2022)
and approval of their
remuneration.
100.00%
5
Approval of the Members
of the Board of Directors’
remuneration for
the financial year 2021 (1.1.2021
- 31.12.2021).
100.00%
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 2022 (1.1.2022
- 31.12.2022).
99.85%
7
Deliberation and advisory vote
on the Remuneration Report
for the year 2021, in accordance
with article 112 of
Law
4548/2018.
100.00%
8
Submission of the Activity Report
of the Audit Committee for
the year 2021, in accordance
with article 44 of
Law 4449/2017.
Non-Voting Item
9
Submission of the Report of the
Independent Non-Executive
Members, as per the provisions
of Law 4706/2020.
Non-Voting Item
10
Announcement on the election of a
Member of the Board of
Directors in replacement
of another who resigned.
Non-Voting Item
11
Election of a new Board of Directors
(itemized ballot) and appointment
of Independent Non-Executive
Members.
11.1
Vasileios T.
Rapanos
100.00%
11.2
Vassilios E. Psaltis
99.83%
11.3
Spyros N. Filaretos
99.82%
11.4
Efthimios O. Vidalis
100.00%
11.5
Elli M. Andriopoulou as an Independent
Non-Executive Member
of the Board of Directors
99.83%
11.6
Aspasia F. Palimeri
as an Independent Non-Executive
Member of the Board of
Directors
99.83%
11.7
Dimitris C. Tsitsiragos
as an Independent Non-Executive
Member of the Board of Directors
99.83%
11.8
Jean L. Cheval as an Independent
Non-Executive Member
of the Board of Directors
99.83%
11.9
Carolyn G. Dittmeier as an
Independent Non-Executive
Member of the Board of Directors
99.83%
11.10
Richard R. Gildea as an Independent
Non-Executive Member
of the Board of Directors
99.83%
11.11
Elanor R. Hardwick as an Independent
Non-Executive Member
of the Board of Directors
99.83%
11.12
Shahzad A. Shahbaz as an Independent
Non-Executive Member
of the Board of Directors
100.00%
11.13
Johannes Herman Frederik G. Umbgrove,
in accordance with Law 3864/2010
(as representative and
upon instruction of
the HFSF)
100.00%
12
Determination of the type of the
Audit Committee, its term
of office, the number and the qualifications
of its Members
as per article 44 par.
1 case b) of Law 4449/2017.
100.00%
13
Reduction in kind of the share
capital of the Company
by decreasing the nominal
value of each common share
issued
by
the Company by the amount
of Euro 0.01 pursuant to article
31 par.
1 of Law 4548/2018
in conjunction with the provisions
of article 17 of Law 4548/2018, in
order to distribute to the
Company’s Shareholders
shares issued by a Cypriot
Subsidiary
of the Company under the corporate
name Galaxy Mezz Ltd
held by the Company,
with a value corresponding
to the value
of the reduction of the share capital
of the Company.
Respective amendment
of article 5 of the Company’s
Articles of
Incorporation and granting
of relevant authorizations.
Approval and authorization
to the Board of Directors
to distribute
any fractional balances of the
shares issued by Galaxy
Mezz Ltd pursuant
to the provisions of article
7 of Repository Law
4569/2018.
100.00%
14
Publication to the Ordinary
General Meeting of the
Shareholders of the Company,
according to article 97 par.
1 (b) of
Law 4548/2018, of any cases
of conflict of interest
of the fiscal year 2021.
Non-Voting item
15
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.
99.52%
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
64
ANNUAL FINANCIAL REPORT
The Resolutions adopted at the Ordinary
General Meeting of
Shareholders held on 22.7.2022 have been
posted on the
Company’s website (https:// www.alphaholdings.gr/en/investor-
relations/general-
meetings).
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 them 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
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 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, while also
facilitating their voting
recommendations on governance matters
in view of the upcoming
General Meetings of Shareholders.
Following these meetings, the Company
enhanced the information
provided in the Institutional Shareholder
Services (ISS) database.
As a result, the Company’s ISS rating during 2022
regarding
governance has improved from 6 (December
2021) to 3 (December
2022) (1 being the best score).
3.
Shareholder Structure
Alpha Services and Holdings S.A.’s shareholder
base, on
31.12.2022, includes approximately 109,000 investors.
The breakdown of Alpha Services and
Holdings S.A.’s
Shareholders on 31.12.2022 was, for descriptive
(non-
regulatory) purposes, as follows:
Alpha Services and Holdings S.A.’s Shareholders
excluding the
Hellenic Financial Stability Fund (“HFSF”) hold
2,137,069,485
common, registered, dematerialized shares
with voting rights of
a nominal value of Euro 0.29 each. In addition,
the HFSF holds
211,138,299 shares.
E.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
The Company has adopted and integrated
the Corporate
Responsibility Policy, as part of its strategy for sustainable
development and commitment to operating
responsibly as well as
meeting best practice standards in
its activities.
The Company is committed to operating
responsibly and with a
long-term view of sustainable value creation
for its Shareholders
and other Stakeholders, taking due account of
the economic,
social and environmental parameters of
its activities, both in
Greece and in the other countries where
it operates. To this
end, the Company actively communicates,
engages and
cooperates with all its Stakeholders.
In order to enhance social responsibility and
integrate it into
the Group’s principles and values, the Company
implements
internationally-recognized best practice guidelines
and
principles on sustainable development, including
the
Organization for Economic Co-operation and
Development
(OECD) Guidelines for Multinational Enterprises
on
Responsible Business Conduct, the Core
Conventions of
the International
Labour
Organization (ILO)
and
the
Universal Declaration
of Human
Rights (UDHR),
as
well as
complying with all legal and regulatory obligations.
The Company’s organization and operation
follow the best
banking and business practices and are governed
by the
principles of integrity, 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 risks
undertaken, to the compliance with the
legal and regulatory
framework as in force and to transparency
with the provision of
full, accurate and truthful information to the
Company’s
Stakeholders.
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
65
ANNUAL FINANCIAL REPORT
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
thoroughly and responsibly. 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 aims to actively contribute
to the protection of the
environment and to the conservation of natural
resources by
managing the direct and indirect environmental
impacts of its
activities.
The Company responsibly implements several
policies with
regard to the protection and promotion of
its Human Resources,
as described in the Non-Financial Report.
The Company’s activities are strongly connected
to society and
the citizens it consists of. It therefore, seeks
to support them, with
priority given to culture, education, health
and the protection of
the environment, while emphasizing the principle
of inclusivity in
all these areas.
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 value 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.
As part of the development of its Sustainability
Strategy and
based on the relevant laws, international guidelines
and the
Group’s policies, the Company has identified
four primary
Stakeholder groups, specifically, (i) Investors (as well as
investment analysts and advisors), (ii) Customers,
(iii) Employees and Society and (iv) Official and
Regulatory
Authorities. Accordingly, the Company seeks to engage in an
ongoing dialogue and collaboration with
these Stakeholders, in
order to understand and address their expectations,
needs and concerns in the most appropriate
way possible.
Investors and Analysts are provided
with full and prompt
information via specific sections on the
website, together with
the Financial Statements, the Business Review, the
Sustainability Report as well as direct engagements.
Furthermore, the Company emphasizes
ensuring its Customers’
satisfaction and providing them with 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
dialogue and consultations with the Official Sector 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.
During 2022, the Company continued to
implement the ESG
Workplan that was initiated in 2021, aiming
to integrate
sustainability criteria in the Bank’s decision-making process
as
regards strategy, the Risk Management Framework and lending
operations. The objective is to enhance the
management of
climate and environmental risks, to comply
with the EU Taxonomy
timetable and to pursue the emerging opportunity
of sustainable
finance.
In addition, the Company focuses on increasing
the awareness on
ESG and climate risks of its Employees,
Customers and markets,
via training plans, targeted communication and
promotion, aiming to
leverage the power of its brand in the
wider sustainability transition
effort.
In the scope of its own operations, the Bank
implements
international standards and protocols
in order to reduce its carbon
footprint (including Scope 1,2 and 3 emissions),
to promote
environmental protection and to mitigate
climate change.
Finally, the Group ESG Governance model, which was developed
in 2021 to ensure the effective management
of Sustainability
issues, was further enhanced by the establishment
of expert
teams with advanced skills in specific areas,
such as the
Climate
and ESG Risk Team
and the
Sustainability Strategy lead
in
the Strategy and Investments Division.
Other Units will follow in
mapping specific roles, while equivalent governance
structures
will be adopted across
the Group Subsidiaries
, in line with the
local regulatory standards and materiality.
It is noted that central to the ESG Governance
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.
The Board of
Directors and its Committees have oversight
of all ESG issues
and the refocused CGSNC 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, a Group ESG Coordinator role has been established to
lead sustainability-related initiatives throughout
the Company
and a cross-functional ESG Working Group has
been set up to
implement them.
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
66
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.
Alpha Services and Holdings, periodically, tries to identify,
assess and prioritize 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
accordance with the revised “GRI 3: Material
Topics 2021”.
Following this process, the impact topics
that have been
identified and prioritized for 2022 are mentioned
below:
•
Finance
•
Gender Equality
•
Age Discrimination
•
Employment
•
Health, Safety and Well-being
•
Culture and Heritage
•
Climate Stability
•
Biodiversity (air, soil, waterbodies, species, habitats)
•
Circularity (resource intensity, waste)
•
Data Privacy
More information on the Company’s management
approach
regarding the material issues can be found
in the Non- Financial
Report for 2022.
Detailed information on the current materiality
analysis process will
be included in the Sustainability Report for
the year 2022.
The Non-Financial Information reports are prepared
in accordance
with the Non-Financial Reporting Directive,
the respective Greek Law
4548/2018 and the Core option of the
internationally-recognized
Global Reporting Initiative (GRI) Sustainability
Reporting Standards
(GRI Standards).
In addition, the reports also take into consideration
the principles of the Accountability 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
Sustainability Accounting Standards Board
(SASB) framework and
the Guide of Disclosure of Non-Financial
Information of the Athens
Stock Exchange for listed companies, while
the Financial Services
Sector 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
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
Remuneration
Corp
Nomin
Com
CEO
/
Executi
oordinator
m
b
ESG WORKING
GROUP
Operations
Communications
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
67
ANNUAL FINANCIAL REPORT
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”).
The Independent Non-Executive Members
are not less than 50%
of the total number of its Members. 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 respective 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.
The meetings of the Board of Directors are
convened upon the
invitation of the Chair of the Board of Directors
or at the request of
at least two Members.
The Board of Directors may validly meet by videoconference
or
teleconference, in respect of some or all
of its Members.
In this event, the invitation to the Members
of the Board of
Directors includes the necessary information
for their participation
in the meeting.
The Board of Directors achieves a quorum
and convenes validly
when at least half of its Members plus one are
present or
represented. In any case, the number of
Members personally
present either physically, by videoconference or by teleconference
may never be less than six.
At the Board of Directors’ meetings where
the drafting of Financial
Statements of the Company is discussed or
the daily agenda of
which includes items, for the approval of
which a decision by the
General Meeting, by special quorum and a
majority, is set forth, in
accordance with Law 4548/2018, a quorum
of the Board of
Directors is achieved if at least two Independent
Non-Executive
Members are present. In case
of unjustified absence of an
Independent Member at two, at least, consecutive
meetings of the
Board of Directors, such Member is considered
to have resigned.
Such resignation is ascertained by a decision
of the Board of
Directors, which proceeds with the replacement
of the Member.
The resolutions of the Board of Directors shall
be passed
by
absolute majority of the Members present
or duly represented,
unless otherwise stipulated by the Company’s
Articles of
Incorporation or the law and subject
to the provisions of Law
3864/2010, as in force, on the HFSF’s special veto
rights. In case
there is no unanimous decision, the views of
the minority shall be
recorded in the Minutes.
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 proper 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).
Board of Directors Composition 2022
During 2022, the following changes
took place with regard to
the composition of the Board of Directors
and its Committees
:
The Board of Directors, at its meeting of
December 2021, proceeded
with the election of Ms. E.M. Andriopoulou,
in replacement of Mr.
A.Ch. Theodoridis, who resigned on 17.6.2021,
as Non-Executive
Member of the Board of Directors, with
effect as of 1.1.2022. 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 of January
2022 approved the
selection of Egon Zehnder as the recruitment
firm to carry out the
project for its succession planning.
The Board of Directors at its meeting of April
2022 approved the new
Organizational Structure and Chart of Alpha
Services and Holdings
S.A., in line with the new strategy, as well as the new composition
of
the Executive Committee, effective as of 20.5.2022.
The Ordinary General Meeting of 22.7.2022,
following a relevant
proposal by the Board of Directors and
a respective recommendation
by the Corporate Governance, Sustainability
and Nominations
Committee, resolved to elect the following
thirteen Members of the
Board of Directors with a four-year
tenure:
1
Vasileios T.
Rapanos
2
Vassilios E. Psaltis
3
Spyros N. Filaretos
4
Efthimios O. Vidalis
5
Elli M. Andriopoulou
6
Aspasia F.
Palimeri
7
Dimitris C. Tsitsiragos
8
Jean L. Cheval
9
Carolyn G. Dittmeier
10
Richard R. Gildea
11
Elanor R. Hardwick
12
Shahzad A. Shahbaz
13
Johannes Herman Frederik G. Umbgrove,
in accordance with Law 3864/2010 (as
representative and upon instruction of the HFSF)
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
68
ANNUAL FINANCIAL REPORT
The above proposal comprised the re-election of
twelve
Members of the Board of Directors as well as
the election of one
new Member (Ms. Aspasia F. Palimeri), all on an individual basis
(itemized ballot).
The proposal of the above Board Members
has been assessed
and reviewed by the Corporate Governance,
Sustainability and
Nominations Committee, in line with the current
applicable
regulatory and legislative framework,
the Hellenic Corporate
Governance Code, which the Company has
adopted and
implements, the Suitability and Nomination
Policy for the
Members of the Board of Directors of
the Company, the Diversity
Policy of the Company, high standards of corporate governance
and best practices, so that the Board of Directors
can establish
that the proposed nominees are suitable both
on an individual
basis and collectively.
In particular, the Corporate Governance, Sustainability and
Nominations Committee assessed and
reviewed the candidate
Members of the Board individually as
well as collectively,
considering:
•
the evaluation of the collective and individual
capabilities of
the Board of Directors, in relation to
the substantial
contribution to the activities of the Board
and its Committees
of each of the Members of the Board nominated
for re-
election, the very high percentage of their
attendance, their
independence of mind and their commitment
to their role,
•
the skills, experience and knowledge, along
with the
qualifications of the Members of the Board of
Directors as
well as their CVs, which are available on
the Company’s
website https://www.alphaholdings.gr/en/corporate-
governance/administrative-structure/board-of-directors
,
•
the other professional commitments of
the Members of the
Board of Directors, as made available on
the Company’s
website https://www.alphaholdings.gr/en/
corporate-
governance,
•
the provisions of the applicable regulatory
and legislative
framework, the approved Suitability and
Nomination Policy
for the Members of the Board of Directors
of the Company,
the Diversity Policy of the Company, the Hellenic Corporate
Governance Code, determining that:
•
the level of gender diversity shall be above
the
minimum legal requirements (i.e. 30.77%, surpassing
the 25% legal requirement, rounded
to the previous
integer, pursuant to article 3 of Law 4706/2020),
•
there is a significantly higher than set by
applicable
law
number of proposed Independent Non-Executive
Members, ensuring a high level of independence
on the
Board and its Committees (8 out of 13,
i.e. 61.54%),
•
the suitability criteria set out in the current
regulatory
framework and the Company’s Suitability and
Nomination Policy for the Members of the
Board of
Directors are met.
More specifically, the Corporate Governance, Sustainability
and Nominations Committee determined
that eachMember of
the Board of Directors is adequately qualified,
in terms of
knowledge and skills, including academic
and professional
qualifications, his/her experience and background,
to perform
the duties assigned to him/
her, as well as pursuant to the
requirements of their position. Furthermore,
it ascertained for
each proposed Board Member his/her honesty
and integrity,
his/her good reputation, the sufficiency of time
to be allocated in
discharging his/her duties as well as the
absence of any conflict
in relation to his/her election.
In addition, the Corporate Governance, Sustainability
and
Nominations Committee evaluated and ratified
the collective
suitability of the Board of Directors, the
fact that its composition
reflects the knowledge, skills and experience
required to
perform its duties and the fact that the Members
of the Board of
Directors have the necessary skills to present
their views as well
as the fact that the Board of Directors collectively
has adequate
knowledge in all of the areas that the Company
is active.
Independent
Non-Executive
Members
The Board of Directors, following a relevant
recommendation by the
Corporate Governance, Sustainability and
Nominations Committee
and a respective evaluation, proposed
the appointment by the
General Meeting of the following Members, who
fulfill the
independence criteria set by the regulatory
and legislative
framework, and, particularly, article 9 of Law 4706/2020:
Elli M. Andriopoulou
Aspasia F.
Palimeri
Dimitris C. Tsitsiragos
Jean L. Cheval
Carolyn G. Dittmeier
Richard R. Gildea
Elanor R. Hardwick
Shahzad A. Shahbaz
It is noted that, apart from the above eight
Members that were
appointed as Independent Non-Executive
Members, Mr. V.T.
Rapanos also fulfills the independence criteria
set by the regulatory
and legislative framework, and, particularly, article 9 of Law
4706/2020.
Following the resolution of the Ordinary
General Meeting of
Shareholders dated 22.7.2022, the new Board
of Directors was
constituted into a body as per the provisions
of article 77(3) of Law
4548/2018 and article 9 of the Company’s Articles
of Incorporation
and decided on the delegation of its authorities.
Further to the above, following the
resolution of the OrdinaryGeneral
Meeting of Shareholders dated 22.7.2022,
the Board of Directors
took cognizance of the determination of
the type of the Audit
Committee, its term of office, the number and
the qualifications of its
Members as per article 44 par. 1 case b) of Law 4449/2017
and in
particular of the following:
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
69
ANNUAL FINANCIAL REPORT
•
the Audit Committee remained a Committee
of the Board
of Directors, consisting of five of its Members
and, in
particular, of three Independent Non-Executive Members,
according to the provisions of article 9 par. 1 and 2 of Law
4706/2020, and two Non-Executive Members;
•
the term of office of the Committee Members appointed
by
the Board of Directors in accordance with
article 44 par. 1
case c) of Law 4449/2017 shall follow their
term of office as
Members of the Board of Directors, i.e. their
tenure shall be
quadrennial and may be extended until the
termination of the
deadline for the convocation of the next Ordinary
General
Meeting and until the respective resolution has
been
adopted;
•
the Members of the Committee were appointed
by the
Board of Directors, in accordance with article
44 par. 1 case
c) of Law 4449/2017, as in force, and
the Audit Committee
Charter and satisfy the criteria/qualifications
set out
in article 44 of Law 4449/2017 as well as
in the Audit
Committee Charter.
The Board of Directors, at its meeting dated
22.7.2022, taking
into consideration the recommendation of
the Corporate
Governance, Sustainability and Nominations
Committee
in respect of the composition of the Audit
Committee and
confirming that the persons hereinafter
meet all the criteria of
the respective legal and regulatory framework,
including those
of article 44 (1) of Law 4449/2017, and have
a proven
excellent track record of knowledge of the
banking and
financial sector in general and sufficient knowledge
in the field
in which the Company operates, and that
their participation in
the Audit Committee shall ensure the proper
exercise of the
responsibilities of the said Committee, stipulated
by the Law
and by the regulatory framework, appointed
the Members of
the Audit Committee. In accordance with
the provisions of
article 44 (1e) of Law 4449/2017, as in
force, the Chair of the
Audit Committee was appointed by its Members
at the meeting
of the Committee. Further to the above,
the Board of Directors
resolved on the composition of the
remainder of the
Committees of the Board of Directors and
appointed the
Chairs and the Members thereof, following
the respective
recommendation of the Corporate Governance,
Sustainability
and Nominations Committee.
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 thanone 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). It is noted that 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 Secretariat and Governance
Policies Unit
supports the functionality of the Board of
Directors, its
Committees and its Members and, among others,
coordinates
the 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.
CVs of the Members of the Board of Directors
The CVs of the Members of the Board of Directors
are presented
below and are also available on the Company’s
website
(
https://www.alphaholdings.gr/en/corporate-
governance/administrative-structure/board-of-directors/
members-
cvs
).
Chair
Vasileios T.
Rapanos
Non-Executive
Member
Member of the Board of Directors since
May 2014
Nationality
: Hellenic
Born in Kos, Greece, in 1947.
Experience
: 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 Bank of Greece and of the Hellenic
Bank Association
(2009-2012).
Other positions of note
: 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.
In October 2021 he
was re-elected as Chairman of the Board of Directors of
the
Hellenic Bank Association.
Education:
B.A., Athens School of Economics
and Business
(1975), Master’s in Economics, Lakehead
University, Canada (1977),
PhD, Queen’s University, Canada
Number of Alpha Services and Holdings shares
owned on
31.12.2022
: -
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
70
ANNUAL FINANCIAL REPORT
CEO
Vassilios E. Psaltis
Executive Member
Member of the Board of Directors since
November 2018 and Chief Executive
Officer since January 2019
Nationality
: Hellenic
Born in Athens, Greece, in 1968.
Experience:
He held various senior management
positions at ABN
AMRO Bank’s Financial Institutions Group
in London and at
Emporiki Bank wherein he 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.
Other positions of note
: In 2019 he was elected member of
the
Institut International d’ Études Bancaires
(IIEB).
He has been a Member of the Board of Directors
and of the
Executive Committee of the Hellenic Federation
of Enterprises
(SEV) since July 2021.
Education
:
PhD
in
Banking,
MA
in
Business
and
Banking,
University of St. Gallen, Switzerland
Number of Alpha Services and Holdings shares
owned on
31.12.2022: 806.
% of the share capital: 0.00003.
Spyros N. Filaretos
Executive Member
Member of the Board of Directors since
2005
Nationality:
Hellenic
Born in Athens, Greece, in 1958.
Experience:
He joined Alpha 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 General Manager – Growth and
Innovation.
Education
:
BA
in
Economics,
University
of
Manchester,
and
MPhil
in
Development
Economics
and
International
Development, University of Sussex.
Number
of
Alpha
Services
and
Holdings
shares
owned
on
31.12.2022: -
Efthimios O. Vidalis
Non-Executive
Member
Member of the Board of Directors since
May
2014
Membership of Board Committees:
Member of the Audit
Committee
and
of
the
Corporate Governance,
Sustainability
and Nominations
Committee
Nationality:
Hellenic
Born in Washington, U.S.A., in 1954.
Experience:
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,
where
he
served
as
Chairman from 2008 to 2016.
Other positions of note:
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.
and
of
Fairfield-
Maxwell
Ltd
(U.S.A.)
as
well
as
a
non-executive
independent
member of Eurolife FFH Insurance Group
Holdings S.A.
Education: BA
in Government,
Harvard University,
MBA,
Harvard
Graduate School of Business Administration
Number
of
Alpha
Services
and
Holdings
shares
owned
on
31.12.2022:
-
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
71
ANNUAL FINANCIAL REPORT
Elli M. Andriopoulou
Independent
Non-Executive
Member
Member
of
the
Board
of
Directors
since
January
2022
Membership of Board Committees:
Member of the Audit
Committee and of the Corporate Governance,
Sustainability
and Nominations Committee
Nationality:
Hellenic
Born in Athens, Greece, in 1975.
Experience:
She commenced her career at Citibank NA, Athens,
Greece
(1997-1999)
and
then
worked
as
a
consultant
(2000-
2003) at Mercer Management
Consulting (currently Oliver Wyman),
U.S.A. Afterwards, she re-
joined
Citibank International
Plc, Athens,
Greece (2004-
2012),
where
she
held
various
positions,
including
those
of
Sales
Development
Manager,
Branch
Expansion
Project
Manager,
Strategy and
Development Manager,
Customer Interaction
Unit
Head, Customer Advocacy
and Segment Management Head
as
well as Marketing Director.
Subsequently,
she served
as Co-Chief Operating
Officer (2013)
at
the Stavros
Niarchos Foundation,
as Chief
Operating Officer
(2014-2015) of the Stavros Niarchos
Foundation Cultural Center
(SNFCC) and as SNFCC Grant Manager
(2016-2020).
Other positions of
note: Since 2020,
she has been
Chairwoman
and Managing Director of the SNFCC.
Education:
BA in Psychology, American College of Greece
(Deree College), MBA, Kellogg School of
Management,
Northwestern University, U.S.A.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Aspasia F. Palimeri
Independent
Non-Executive Member
Member
of
the
Board
of
Directors
since
July 2022
Membership of Board Committees:
Member of the Risk
Management Committee and of the Remuneration
Committee
Nationality:
Hellenic
Born in Athens, Greece, in 1973
.
Experience:
She commenced her career at Citibank
NA, Athens,
Greece (1995-1996) and Eurobank Cards S.A.,
Athens, Greece
(1996-1998). After acquiring her MBA, she
joined McKinsey &
Company, Athens, Greece, where she worked as an Associate
Consultant (2000-2001) and as
a Junior Engagement Manager
(2001-2002), supporting strategic projects
for leading Greek banks
and corporates. Subsequently, she re-joined Eurobank Cards S.A.
as the Group Product Manager for Loans
(2002-2005) and as the
company’s Marketing Manager (2005-2010). She
also served as
the Cards Business Manager at Marfin
Egnatia Bank, Athens,
Greece (2010-2013) and as the Deposit and
Investment Products
Senior Director at Piraeus Bank, Athens,
Greece (2013-2016).
From 2016 to May 2022, she was the
Country Manager for Greece,
Cyprus and Malta at Mastercard, being responsible
for the market
share growth and the strategic development
of these markets.
Other positions of note:
Since 2021, she has been a
member of the
Board of Directors of the Foundation for
Economic & Industrial
Research (IOBE).
Education:
BA in Accounting and Finance,
American College of
Greece (Deree College) (1995), MBA in
Finance and Marketing,
Columbia Business School, New York, U.S.A. (2000)
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Dimitris C. Tsitsiragos
Independent
Non-Executive
Member
Member
of
the
Board
of
Directors
since
July 2020
Membership of Board Committees:
Member of the Risk
Management Committee and of the Remuneration
Committee
Nationality
: Hellenic
Born in Athens, Greece, in 1963.
Experience:
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., U.S.A. (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 served
as a
Senior Advisor, Emerging Markets at Pacific Investment
Management Company (PIMCO) in London,
UK (2018-2022).
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.
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
72
ANNUAL FINANCIAL REPORT
Other positions of note
: He currently sits on the Board of
Directors of Titan Cement International.
Education:
BA in Economics, Rutgers University, MBA, George
Washington University, World Bank Group Executive
Development Program, Harvard Business School
Number of Alpha Services and Holdings shares
owned
on 31.12.2022: -
Jean L. Cheval
Independent
Non-Executive
Member
Member of
the
Board of
Directors since
June 2018
Membership of Board Committees
:
Chair of the Risk Management Committee and
Member of the
Audit Committee
Nationality
: French
Born in Vannes, France, in 1949.
Experience:
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 and
CEO
of the Banque Audi France (2002-2005). 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.
Other positions of note:
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.
Education:
Engineering, École Centrale des
Arts et
Manufactures, DES (Diplôme d’Études
Spécialisées) in
Economics (1974), University of Paris I,
DEA (Diplôme d’
Études Approfondies) in Statistics and
in Applied
Mathematics, University of Paris VI
Number of Alpha Services and Holdings shares
owned
on 31.12.2022: -
Carolyn G. Dittmeier
Independent Non-Executive Member
Member of the Board of Directors since
January
2017
Membership of Board Committees
: Chair of the Audit
Committee and Member of the Corporate
Governance,
Sustainability and Nominations Committee
Nationality:
Italian and US
Born in Salem, Massachusetts, U.S.A., in
1956.
Experience
: 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).
Other positions of note
: 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).
Education:
BSc in Economics, Wharton School,
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).
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Richard R. Gildea
Independent
Non-Executive
Membe
r
Member
of
the
Board
of
Directors
since
July
2016
Membership of Board Committees:
Chair of the Remuneration
Committee and Member of the Risk
Management Committee
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
73
ANNUAL FINANCIAL REPORT
Nationality: British
Born in Winthrop, Massachusetts, U.S.A.,
in 1952.
Experience:
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.
Other positions of note:
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.
Education:
BA in History, University of Massachusetts (1974),
MA in International Economics, European
Affairs, Johns
Hopkins University School of Advanced
International Studies
(1984)
Number of Alpha Services and Holdings shares
owned
on 31.12.2022: -
Elanor R. Hardwick
Independent
Non-Executive
Member
Member
of
the
Board
of
Directors
since
July
2020
Membership of Board Committees:
Chair of the Corporate
Governance, Sustainability and Nominations
Committee and
Member of the Risk Management Committee
Nationality
: British Born in
the UK, in 1973.
Experience:
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). She served as a non-executive
member of the
Board of Directors of Itiviti Group AB (July 2020-May
2021).
Other positions of note:
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 is an external
member of the Audit Committee of the
University of Cambridge
as of January 2021, a member of the Advisory
Board of
Concirrus as of May 2021 and a member of
the
Supervisory Council of Luminor Group as
of April 2022.
Education: MA (Cantab), University of Cambridge,
MBA, Harvard
Business School.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Shahzad A. Shahbaz
Independent Non-Executive Member
Member of the Board of Directors since
May
2014
Membership of Board Committees:
Member of the Corporate
Governance, Sustainability and Nominations
Committee
Nationality: British
Born in Lahore, Pakistan, in 1960.
Experience:
He has worked at various banks and
investments
firms, since 1981, including the Bank of America
(1981-2006),
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).
Other
positions
of
note:
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.
Education:
BA in Economics, Oberlin College,
Ohio, U.S.A.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Jan A. Vanhevel
Independent Non-Executive Member
Member of the Board of Directors from
April
2016 to July 2022
Membership of Board Committees:
Chair of the Risk
Management Committee and Member of
the Audit Committee
until 21.7.2022
Nationality:
Belgian Born in
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
74
ANNUAL FINANCIAL REPORT
Belgium, in 1948.
Experience:
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.
Other positions of note
: Board member of a private industrial
multinational company and of a private
equity company.
Education:
Law, University of Leuven (1971), Financial
Management, Vlekho (Flemish School of
Higher Education in
Economics), Brussels (1978), Advanced
Management, INSEAD
(The Business School for the World), Fontainebleau
Number of Alpha Services and Holdings shares
owned on
21.7.2022: -
Johannes Herman Frederik G.
Umbgrove
Non-Executive Member
(pursuant to the
provisions of Law 3864/2010)
Member of the Board of Directors since
April 2018
Membership of Board Committees:
Member of the Audit
Committee, of the Risk Management
Committee, of the Remuneration Committee
and of the Corporate
Governance, Sustainability and
Nominations Committee
Nationality:
Dutch
Born in Vught, the Netherlands, in 1961.
Experience:
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 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.
Other positions of note:
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.
Additionally, he is a director of the Parel van Baarn Foundation
and a member of the Management Committee
of the Aston
Martin Owners Club.
Education:
LL.M. in Trade Law (1985), Leiden University, MBA,
INSEAD (The Business School for the
World), Fontainebleau
(1991), IN-BOARD Non-Executive Directors Program,
INSEAD.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Eirini E. Tzanakaki
Secretary of the Board of Directors since
December 2021
Head of the Corporate Secretariat and
Governance Policies Unit
Nationality
: Hellenic
Born in Chania, Greece, in 1971.
Experience
: 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 the Secretariat
of the Board of Directors
in May 2020 as an Assistant Manager of
the Division.
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.
Education
: BSc in Mathematics, University of Crete,
MBA, Cyprus
International Institute of Management, MSc
in Finance and
Banking, Athens University of Economics
and Business
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
75
ANNUAL FINANCIAL REPORT
3.
Professional commitments of the Members of the Board of
Directors
Position
Principal external 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 Alpha Bank Cultural Foundation
•
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
•
Member of the BoD of the
Citizens Movement for an Open Society
(Non-profit organization)
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
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
•
Independent 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
Elli M. Andriopoulou
Chairwoman and Managing
Director of the Stavros Niarchos Foundation
Cultural Center (SNFCC)
Aspasia F. Palimeri
Member of the BoD of the
Foundation for Economic & Industrial
Research (IOBE)
Dimitris C. Tsitsiragos
Member of the BoD of
Titan Cement International, Cyprus
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
•
Member of the Board of Statutory
Auditors of the University of
Bologna
Foundation
•
Consultant at Ferrero SA
Richard R. Gildea
•
Member of the Board of
Advisors at the Johns Hopkins
University School of
Advanced International Studies
•
Member of Chatham House-Royal Institute
of International Affairs, London
•
Member of Alumni Association-Robert
Bosch
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
•
Member of the Supervisory
Council of Luminor Group
•
External Member of the Audit
Committee of the University
of Cambridge
Shahzad A. Shahbaz
•
Group Chief Investment Officer of Al
Mirqab Holding Co
•
Member of the BoD of
El Corte Inglés S.A.
•
Member of the BoD of Seafox
Non-Executive Member (pursuant to the
provisions of Law 3864/2010)
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
76
ANNUAL FINANCIAL REPORT
Johannes Herman Frederik G.
Umbgrove
•
Chairman of the Supervisory
Board of Demir Halk Bank
N.V.,
The Netherlands
•
Member of the Supervisory
Board of Lloyds Bank GmbH,
Germany
•
Member of the Management
Committee of the Aston
Martin Owners Club
•
Director of the Parel van Baarn Foundation
4.
Profile of the Board of Directors and Committee Membership for the year 2022
Gender
Age
Tenure
(in
years)
Term
ends
Audit
Committee
Risk
Management
Committee
Remuneration
Committee
Corporate
Governance,
Sustainability
and
Nominations
Committee
Chair (Non-Executive Member)
Vasileios T.
Rapanos
M
75
8
2026
Executive Members
Vassilios E. Psaltis
M
54
4
2026
Spyros N. Filaretos
M
64
17
2026
Non-Executive
Member
Efthimios O. Vidalis
M
68
8
2026
M
M
Independent Non-Executive
Members
Elli M. Andriopoulou
F
47
1
2026
M
(as of 22.7.2022)
M
(as of 22.7.2022)
Aspasia F.
Palimeri (as of
22.7.2022)
F
49
5 months
2026
M
(as of 22.7.2022)
M
(as of 22.7.2022)
Dimitris C. Tsitsiragos
M
59
2
2026
M
M
Jean L. Cheval
M
73
4
2026
M
(as of 22.7.2022)
C
(as of 22.7.2022)
M
(until 22.7.2022)
M
(until 22.7.2022)
Carolyn G. Dittmeier
F
66
5
2026
C
M
Richard R. Gildea
M
70
6
2026
M
C
Elanor R. Hardwick
F
49
2
2026
M
(until 22.7.2022)
M
(as of 22.7.2022)
C
Shahzad A. Shahbaz
M
62
8
2026
M
Jan A. Vanhevel
(until
21.7.2022)
M
74
5
2026
M
(until 21.7.2022)
C
(until 21.7.2022)
Non-Executive Member pursuant
to the provisions of Law 3864/2010
Johannes Herman Frederik
G. Umbgrove
M
61
4
2026
M
M
M
M
M: Male / F: Gemale /C: Chair / M: Member
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
77
ANNUAL FINANCIAL REPORT
5.
Board and Committees attendance
In 2022, the Board of Directors convened
18 times. The average
participation rate of the Members of
the Board of Directors in the
meetings stood at 96%.
Two strategy offsite meetings took place during 2022 with the
participation of all the Members of the Board
of Directors
(100% attendance).
The CGSNC 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.alphaholdings.gr/en/corporate-governance/
administrative-structure/board-of-directors
).
6.
2022 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
18
16
12
11
12
Chair (Non-Executive Member)
Vasileios T.
Rapanos
94%
C
Executive Members
Vassilios E. Psaltis
100%
M
Spyros N. Filaretos
100%
M
Non-Executive
Member
Efthimios O. Vidalis
89%
M
94%
M
92%
M
Independent Non-Executive Members
Elli M. Andriopoulou
100%
M
100%
M
(as of 22.7.2022)
100%
M
(as of 22.7.2022)
Aspasia F. Palimeri
(as of 22.7.2022)
100%
M
100%
M
(as of 22.7.2022)
100%
M
(as of 22.7.2022)
Dimitris C. Tsitsiragos
94%
M
92%
M
100%
M
Jean L. Cheval
94%
M
100%
M
(as of 22.7.2022)
100%
C
(as of 22.7.2022)
M
(until 22.7.2022)
100%
M
(until 22.7.2022)
Carolyn G. Dittmeier
94%
M
100%
C
100%
M
Richard R. Gildea
89%
M
100%
M
100%
C
Elanor R. Hardwick
94%
M
100%
M
(until 22.7.2022)
100%
M
(as of 22.7.2022)
100%
C
Shahzad A. Shahbaz
89%
M
75%
M
Jan A. Vanhevel (until
21.7.2022)
100%
M
100%
M
(until 21.7.2022)
100%
C
(until 21.7.2022)
Non-Executive Member pursuant
to the provisions of Law 3864/2010
Johannes Herman Frederik G.
Umbgrove
100%
M
100%
M
100%
M
100%
M
100%
M
C: Chair / M: Member
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
78
ANNUAL FINANCIAL REPORT
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 out 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 is supplemented by the “Suitability
and Nomination
Process for the Members of the Board of
Directors”, which
provides for the specific process to be followed
mainly by the
CGSNC to which accountability is attributed
in this Policy.
The Policy complies with the legislative and
regulatory framework in
force, including the ESMA/EBA “Guidelines on
the assessment of
the suitability of members of the management
body and key
function holders” (hereinafter the “
ESMA/EBA Guidelines
”) and 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”)
taking
into account
Law 3864/2010 (hereinafter the “HFSF
Law”), as in force. The
objectives of the Policy are to:
•
Set general principles that provide guidance
to the CGSNC
and its Chair on selecting, vetting and proposing
candidates to
the Board of Directors as well as on
the replacement and
renewal of the Members of the Board of
Directors.
•
Set criteria, including diversity criteria,
for the selection and
suitability assessment of the 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
of the collective suitability of the Board of
Directors.
•
Establish a transparent, effective and time-efficient
suitability and nomination process.
The Policy and its implementation are 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
thereto 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 of Shareholders.
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 CGSNC
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 propose candidates
which it deems 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 the
other Directors/ Members, 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/her ability to commit
sufficient time to
perform his/her duties.
Further to the above, where any Members of
the Board of
Directors do not fulfill 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 CGSNC, within the aforementioned
context, shall consider
the suitability of the Members of the Board of
Directors on a
periodic basis, utilizing Board Review assessments
and any
other pertinent information available.
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, have no impediments according
to
the relevant legislation and be able to devote
sufficient time to
the Board of Directors. All nominees must submit
a declaration
that they meet the relevant requirements.
The Suitability and Nomination Policy for
the Members of the
Board of Directors is posted on the Company’s website
https://www.alphaholdings.gr/en/corporate-governance.
8.
External Evaluation of the Board of Directors
With the support of the CGSNC, the Board
of Directors annually
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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 2021,
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
2021 was conducted by the Chair of the
Board of Directors.
The main highlights of the collective evaluation
for the year 2021
are the following:
-
As Nestor Advisors has undertaken this collective
evaluation,
they were able to ascertain that the overall
collective score
confirms a continuous improvement of
the effectiveness of the
Board since the commencement of the
governance reform in
2019.
-
Most areas covered showed a higher average
score than that
of the previous external evaluation undertaken
in 2021.
The key recommendation was that the
time devoted to strategic
discussions at the Board level should be
further enhanced.
As regards the Individual Evaluation of
the Members of the Board
of Directors for the year 2021, the main highlights
were the
following:
-
The Board performed its functions effectively.
-
The Board worked with the Management
in a productive and
constructive manner to deal with challenging
events, such as
the pandemic and its consequences as well as
the ambitious
strategic plans of the Company and
their implementation.
9.
Assessment of the Board Members
’
collective
suitability based on the ESMA/EBA Guidelines
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 ESMA/EBA “Guidelines on the assessment
of the suitability
of members of the management body and key
function holders”
(the “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 ESMA/EBA Guidelines.
The Chair of the
Board of Directors completed the Collective
Suitability Matrix of
the 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, basic knowledge and past
experience, as suggested by the said
Guidelines.
Based on the Collective Suitability Matrix,
the Board of
Directors would benefit from diverse candidates,
further Greek
market expertise, experience in IT, Digital and accounting/
auditing 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.
that sets out 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
ESMA/EBA
“Guidelines on the assessment of the suitability
of members of
the management body and key function holders”
(the
“ESMA/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
fulfill their
responsibilities on an ongoing or ad hoc basis;
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•
provide for relevant general and as appropriate
individually-tailored training programs.
The Policy is approved by the Board of
Directors and is 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;
•
Wholesale and Retail Banking;
•
Wealth Management and Treasury;
•
External Statutory Audit;
•
Capital Adequacy, Financial and Accounting Services;
•
ESG, Sustainability and Non-Financial
Information;
•
Information Technology and Security;
•
Human Resources;
•
International Network;
•
Digitalization;
•
Transformation;
•
Strategic Planning.
During 2022 and in accordance with the
Induction and Training
Policy for the Members of the Board of
Directors, an Induction
Program for the new Members of the Board of
Directors, Ms.
E.M. Andriopoulou and Ms. A.F. Palimeri, took place. In the
context of this Induction Program, the
new Members also
met
with the Chair of the Board of Directors,
the CEO, General
Managers, Executive General Managers,
the Secretary of the
Board of Directors
and the Statutory Certified Auditor.
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 abovementioned
or on other
topics concerning the financial sector and
the Company.
In particular, for the year 2022, all the Members of the
Board of
Directors were offered informative sessions on
the following
subjects:
•
Greek Economy
•
The digitization of the Greek state - Achievements
and
lessons learnt
•
Net Zero Greece
•
Crypto Assets and Decentralized Finance
•
Human Resources.
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.
All set processes and procedures aim at
ensuring that the
transactions are in the interest of the Company
and at arm’s-
length terms. 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 six-month basis, the Compliance
Division reports to the Audit
Committee and informs the Board of Directors
regarding the
outcome of the relevant review conducted
and conformity with the
aforementioned policies and procedures.
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, including making
recommendations to the Board of Directors,
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. The
composition of each Committee is proposed
to the Board of
Directors by the CGSNC 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, on the preparation
of draft resolutions to
be approved by the Board of Directors and
on the submission of
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relevant briefings, reports, key information and
recommendations to the Board. The Committees
report regularly
to the Board of Directors concerning their
work.
Audit Committee
The Committee has been established and
operates in
accordance with all applicable laws and
regulations. The
determination of the type of the Audit Committee,
its term of
office, the number and the qualifications of
its Members as
per
article 44 par. 1 case b) of Law 4449/2017 were resolved upon
by
the Ordinary General Meeting of 22.7.2022.
The Audit Committee
currently constitutes a Committee of the
Board of Directors and its
Members were appointed by a resolution of
the Board of Directors
of 22.7.2022.
Chair :
Carolyn G. Dittmeier
Number of Members
(including the chair)
5
Number of meetings in 2022
16
Average participation rate of
the members:
99%(based on the
Committee’s composition on
31.12.2022
The Committee convenes generally on
a monthly basis,
adding
meetings on an as-needed basis. It may
invite any Member of the
Management or Executive as well as external
auditors to attend
its meetings. The Head of Internal Audit
and the Head of
Compliance are regular attendees of the
Committee meetings and
have unhindered access to the Chair and
to the Members.
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 Certified Auditors’ Report, where
applicable,
and the Board of Directors’ Annual Management
Report,
prior to their submission to the Board of
Directors for
approval.
•
Informs the Board of Directors of the outcome
of the statutory
audit and explains how the statutory audit
contributed to the
integrity of financial reporting and what
the role of the Audit
Committee was in that process.
•
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
ESG
procedures) of the Company and the Group,
based on
reports by the Internal Audit Unit, on findings of
the
external auditors, the supervisors and the
tax authorities as
well as on management information, as appropriate.
•
Assists the Board of Directors in ensuring
the independent,
objective and effective conduct of internal and external
audits.
•
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 followed
for the selection of
the Statutory Certified Auditors of the
Company and makes
recommendations to the Board of Directors
on the appointment or dismissal, rotation,
tenure and
remuneration of the Statutory Certified
Auditors, according to
the relevant regulatory and legal provisions.
•
Monitors the independence and performance
of the Statutory
Certified Auditors in accordance with
the applicable laws, a
responsibility 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 2022 the main activities of the
Committee were, among
others, the following:
The Committee:
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•
Was informed of the quarterly Activity Reports of
the Internal
Audit Unit and the Compliance Unit, based
on the annual
plans previously endorsed by the Committee.
•
Reviewed the organization, independence and
capacity of
the Internal Audit Unit and the Compliance
Unit.
•
Submitted to the Board of Directors for
approval the updated
fees of Deloitte Certified Public Accountants
S.A. for the audit
of the Financial Statements of Alpha Services
and Holdings
S.A. and its Group for the year 2021.
•
Reviewed the annual Financial Statements’ preparation
for
Alpha Services and Holdings S.A. and
the Group for the year
2021 as well as the First Quarter Financial
Statements of the
Alpha Services and Holdings S.A. Group
for the year 2022,
the semi-annual Financial Statements
for Alpha Services and
Holdings S.A. and the Group for the year 2022
and the Third
Quarter Financial Statements of the Alpha Services
and
Holdings S.A. Group for the year 2022, as
well as the
relevant Press Releases prior to their submission
to the
Board of Directors for approval.
•
Monitored
the
impact of
the
Russia-Ukraine
conflict on
the
operations
and
on the
Financial Statements
of
the
Company and the Group.
•
Performed the oversight of the Statutory
Certified Auditors’
(Deloitte) activity and performance and reviewed
the
Statutory Certified Auditors’ Audit Plan
for the year 2022.
•
Reviewed the Statutory Certified Auditors’ Audit
Report
according to article 10 of Regulation (EU)
No 537/2014 as
well as the Additional Report according to
article 11 of
Regulation (EU) No 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 Services
to
the Company and the Group.
•
Monitored the procedure followed for
the drafting of the
Non-Financial Report and the Sustainability
Report for the
year 2021 and reviewed the relevant Limited
Assurance
Reports by an External Auditor.
•
Reviewed its Charter and resolved to submit
it to the Board
of Directors for approval.
•
Discussed the Succession Planning - Emergency
Fills of the
Head of Internal Audit.
•
Was updated on the Supervisory Dialogue meeting
in view
of the draft Supervisory Review and
Evaluation Process
(SREP) Decision of 2022.
•
Was informed of the progress of the On-Site Inspection
(OSI) on the Business Model and Profitability
as well as of
the OSI on Liquidity.
•
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:
•
Reviewed the Annual Activity Reports for 2021
and the Semi-
Annual Activity Reports for 2022 prepared by
the Audit
Committees of the Subsidiaries of Alpha
Services and
Holdings S.A.
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 Board
of Directors
of 22.7.2022.
The Committee convenes at least once a
month and may invite any
Member of the Group’s Management or Executive
to attend its
meetings. The Chief Risk Officer (CRO) is a
regular attendee of the
Committee meetings and has unhindered
access to the Chair and
the Members. The CRO, while administratively
reporting to the Chief
Executive Officer (CEO), shall report functionally
to the Board of
Directors through the Committee.
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.
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•
•
Reviews and recommends annually to
the Board of
Directors for approval the Group’s Risk Appetite
Framework
(RAF) and statement, considering also
ESG risks, i.e. the
risks of any negative financial impact
to the Company
stemming from the current or prospective
impacts ofESG
factors on its counterparties, such as climate-related
risks,
and ensuring alignment with the Group’s strategic
objectives
and capital allocation. The RAF 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.
•
Collaborates with other Board Committees
in relation to
ESG issues.
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 is 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/committees).
During 2022 the main activities of the Committee
were,
among others, the following:
The Committee endorsed:
•
The updated Risk and Capital Strategy
(RCS)/RAF for 2022
and resolved to propose their approval
to the Board of
Directors.
•
The Recovery Plan Framework for 2022
which was
submitted to the Board of Directors for approval.
•
The annual Risk Management Report as well
as the relevant
Assessment Report for the year 2022, which
were submitted to
the Bank of Greece.
•
The updated NPEs Reduction Plan of 2022
and resolved to
submit it to the Board of Directors for approval.
•
The Group Internal Capital Adequacy
Assessment Process
(ICAAP) Report for 2022 and the concluding
Group Capital
Adequacy Statement (CAS) for 2022, along
with the Group
Internal Liquidity Adequacy Assessment
Process
(ILAAP) Report for 2022 and the concluding
Group Liquidity
Adequacy Statement (LAS) for 2022 and proposed
to the Board
of Directors the approval and submission
thereof to the Single
Supervisory Mechanism (SSM).
•
The updated exposure limits to the Hellenic
Republic and
resolved to submit them to the Board of Directors
for approval.
•
The updated ICAAP Framework and resolved
to submit it to the
Board of Directors for approval.
•
The Pillar III Disclosures Report for the First
Half of 2022 and
resolved to submit it to the Board of Directors
for approval.
•
The 2022 Data Collection on Financial and
Macro
Projections and resolved to submit it to
the Board of
Directors for approval.
•
The submission to the SSM of the Advanced
Data Collection
with regard to the ECB 2022 Climate Risk Stress
Test.
•
The proposed Climate Risk Stress Test Governance
Framework and resolved to submit it to the
Board of
Directors for approval.
•
Its Charter and resolved to submit it
to the Board of
Directors for approval.
•
The
updated
Group
Recovery
Plan
(2022)
and
the
updated
Recovery
Plan
Framework and
Manual
(2022) 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 2021;
•
the draft version of the SREP Letter
for 2022 and the
respective action plan.
The Committee was informed of:
•
the updated RCS/RAF for 2023;
•
the NPEs Plan evolution and the quarterly performance
on
NPEs targets;
•
the impact of the Russia-Ukraine conflict on
the Monthly Risk
Management Reports of the Company;
•
the outcome of the Supervisory Dialogue
for 2022;
•
the Contingency Funding Plan (CFP);
•
the SSM and the Single Resolution Board
(SRB) Agendas
for 2022, on a monthly basis;
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•
the monthly evolution of the Capital Ratios,
the Net Stable
Funding Ratio (NSFR) and the Liquidity
Coverage Ratio
(LCR);
•
the quarterly Wholesale and Retail asset classes;
•
the enhancements on the Business Plan
formulation
process;
•
the SSM’s feedback on the Group Recovery Plan
2021;
•
the SRB’s Joint Decision 2021 on the resolution
plan and
the Minimum Requirement for own funds and
Eligible
Liabilities (MREL);
•
the response to the SSM’s letter regarding Leveraged
Transactions;
•
the Resolvability Budget for 2022-2023;
•
the progress of the On-Site Inspection
(OSI) on the
Business Model and Profitability;
•
the progress of the OSI on Liquidity;
•
the progress of the Off-Site Inspection on Credit;
•
the 2022 ECB Climate Risk Stress Test;
•
the Sustainable Finance Framework;
•
the Succession Planning - Emergency Fills
of the General
Manager – Chief Risk Officer and
•
reviewed and discussed the ESG and climate
risk.
Regarding the Subsidiaries, the Risk Management
Committee:
•
Reviewed
the
Annual
Activity
Reports
for
2021
and
the
Semi-Annual
Activity
Reports
for
2022
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
appointed by a resolution of the Board of Directors
of
22.7.2022.
(Based on the composition of the Remuneration Committee
on 31.12.2022)
The Committee convenes at least quarterly
per year and may
invite any Member of the Management or
Executive to attend its
meetings. The Head of Human Resources
is a regular attendee
of the Committee meetings.
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 its Subsidiaries (the “Group”), taking
into account
Environmental, Social and Governance
(ESG) risks that affect
the business environment in the short,
medium or long term.
•
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,
including that such remuneration policies are
gender-neutral according to the relevant
legislative and
regulatory provisions, support the equal
treatment of Staff,
promote inclusiveness and respect diversity
in general.
•
Recommends to the Non-Executive Members
the remuneration
of the Members of the Board of Directors.
Is responsible for the preparation of decisions
on
remuneration to be taken by the Non-Executive
Members, in
particular regarding the remuneration of
the Executive
Members of the Board of Directors as well as
of other
identified Staff (i.e. Staff whose professional activities
have a
material impact on the Institution’s risk
profile).
•
Reviews and advises on fixed salaries, benefits
and total
Average participation rate of the Members 100%
(based
on the Committee’s composition on 31.12.2022)
compensation within the Company.
•
Reviews the variable remuneration schemes
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
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
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 must have sufficient professional experience
in risk
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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.
alphaholdings.gr/en/corporate-governance/commitees).
During 2022 the main activities of the
Committee were,
among others, the following:
The Committee:
•
Reviewed and proposed to the Board of
Directors the
approval of:
-
its Charter;
-
the annual remuneration amounts of the
Chairs and
the Members of the Remuneration Committee
and the
CGSNC;
-
the Alpha Bank Group Employees Institution
for
Occupational Retirement Provision (IORP);
-
the
treatment
of
stock
options
with
respect
to
the
Stock
Options
Plan,
following
the
determination
of
the new share nominal value.
•
Resolved to propose to the Board of Directors
the
introduction of a stipend for the Member
of the Board of
Directors in charge of overseeing ESG
issues.
•
Endorsed, as part of the material to be submitted
to
the Ordinary General Meeting of Shareholders,
the
Remuneration Report for the year 2021 as
per Law
4548/2018.Reviewed the Remuneration
Policy for
Alpha Services and Holdings and its Group
as well
as the Group Benefits and Corporate Expenses
Policy and Executive Members of the
Board of
Directors.
•
Endorsed and recommended to the Board of
Directors the
approval of the amendment of the Regulation
on the Awarding
of Stock Options Rights to Employees of the
Company and its
Affiliated Companies.
•
Resolved to recommend to the Board of
Directors the
approval of the allocation of Stock Options
to Material Risk
Takers, excluding the Senior Managers under the Bonus Ban
Perimeter.
•
Reviewed the list of Material Risk Takers for 2021.
•
Took cognizance of the Fairness Opinion prepared
by
“KPMG Advisors Single Member S.A.” pertaining
to
the amendment of the Group Savings Plan
for Senior
Executives.
•
Finalized the remuneration amounts of
the Members of the
Board of Directors for
the financial year 2022.
•
Took cognizance of the Expenses Policy for the Non-
Executive Members of the Board of Directors.
•
Monitored the amendments of the HFSF Law
on Senior
Management
remuneration.
•
Reviewed and submitted its Annual Activity
Report to the
Board of Directors for information.
Regarding the Subsidiaries, the Remuneration
Committee
reviewed:
•
the Annual Activity Reports of the Remuneration
Committees
of Alpha Bank London Ltd, Alpha Bank
Romania S.A. and
Alpha Astika Akinita S.A. for the year 2021.
•
the annual remuneration amounts of the
Non-Executive
Members of the Boards of Directors of Alpha
Bank Cyprus
Ltd and Alpha Bank Romania S.A.
for the year 2022 as well
as of Alpha Bank London Ltd as of January 1,
2023 and
recommended the approval thereof to the
Board of
Directors.
Corporate Governance, Sustainability 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 Board of Directors of 22.7.2022.
(Based on the composition of the Corporate Governance,
Sustainability and Nominations Committee on 31.12.2022)
The Committee convenes at least quarterly
per year and may
invite any Member of the Management or
Executive to attend its
meetings.
The main responsibilities of the CGSNC
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; 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
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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 Corporate
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 approval by
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, 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.
•
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 the
Members, which support the effective discharge
of their
responsibilities.
•
Reviews, at least semi-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 the sustainability reporting to Stakeholders,
in
coordination with the Audit Committee.
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 the 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/en/corporate-
governance/commitees).
During 2022 the main activities of the
Committee were, among
others, the following:
The Committee:
•
Identified and recommended for approval
by the Board of
Directors candidates to fill vacancies in the
Board of Directors;
in particular, it recommended to the Board of Directors
the
election of Ms. A.F. Palimeri as an Independent Non-
Executive Member of the Board of Directors
at the Ordinary
General Meeting of Shareholders.
•
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 Suitability and Nomination Process
for the Members of
the Board of Directors,
-
the Corporate Governance Statement
for the year 2021.
•
Was updated on the progress of the implementation of
the
Corporate Governance Action Plan of the
Company.
•
Reviewed and endorsed the new Organizational
Structure
and Chart as well as the respective Press Release
and
recommended the approval thereof by
the Board of
Directors.
•
Endorsed the new composition of the
Executive
Committee of the Company, effective as of 20.5.2022, and
recommended the approval thereof to the
Board of
Directors.
•
Recommended to the Board of Directors
the content of the
Draft Invitation and the Draft Resolutions of
the Ordinary
General Meeting of Shareholders of 22.7.2022.
•
Proposed to the Board of Directors the composition
of the
Board of Directors’ Committees, subject
to the election of the
new Board of Directors at the Ordinary
General Meeting of
Shareholders of 22.7.2022.
•
Received an update on the Succession Planning
for the
Non-Executive Members of the Board of Directors.
•
Was updated regularly on Environmental, Social and
Governance (ESG) issues.
•
Reviewed the Sustainability Report and
recommended the
approval thereof by the Board of Directors.
•
Discussed the Succession Planning - Emergency
Fills of
Senior Executives and Key Function Holders.
•
Reviewed and approved the Collective
Board Evaluation
Questionnaire and the Individual Self-Evaluation
Questionnaire prepared by Nestor Advisors,
in the context of
the evaluation of the Board of Directors by
the said firm.
•
Took cognizance of the Board Evaluation Report for the year
CORPORATE GOVERNANCE
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ANNUAL FINANCIAL REPORT
2021, drafted by Nestor Advisors, in the context
of the
evaluation of the Board of Directors by
the said firm.
•
Was informed of the Individual Evaluation of the Members of
the Board
of Directors
for the
year 2021,
performed by
the
Chair
of
the
Board
of
Directors.Was
informed
of
the
attendance of the Members at the Board of Directors’ and at
the Committees’ meetings for the year 2021 and for the First
Half of 2022.
•
Reviewed and submitted its Annual Activity
Report to the
Board of Directors for information.
Regarding the Subsidiaries, the CGSNC:
•
Reviewed the 2021 Annual and the 2022 Semi-
Annual
Activity Reports of the Subsidiaries’ Nomination
Committees and Boards of Directors.
•
Was informed of the new composition of the Board of
Directors of AlphaLife Insurance Company
S.A.
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, the business plan and the annual
Budget of the Company and the Group
for submission to
and approval by the Board of Directors
as well as the
annual and interim 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 versus the Budget and
ensures
that corrective measures are taken.
•
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 Unit 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 Company’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 20.5.2022 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
I.M. Emiris
General Manager of Wholesale
Banking
I.S. Passas
General Manager of Retail Banking
N. R. Chryssanthopoulos
General Manager -
Chief of Corporate Center
S.A. Oprescu
General Manager of International
Network
A.C. Sakellariou
General Manager - Chief
Transformation Officer
S.N. Mytilinaios
General Manager - Chief Operating
Officer
F.G. Melissa
General Manager - Chief
Human
Resources Officer
G.V. Michalopoulos
General Manager - Wealth
Management and Treasury
Chair
Vassilios E. Psaltis – CEO
He was born in Athens in 1968 and holds
a PhD in Banking and
an 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 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 has been 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 since November 2018 and
Chief Executive
Officer since January 2019.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: 806
% of the share capital: 0.00003
Member
Spyros N. Filaretos - General Manager – Growth and
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Innovation
He was born in Athens in 1958. He holds a
BA in Economics from
the University of Manchester and a MPhil
in Development
Economics and International Development
from 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). He has been a Member of the
Board of Directors
since 2005. As
of December 2020 he is General Manager –
Growth and
Innovation.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
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 (CRO).
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
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 portfolio
transactions. On 2.1.2019 he was appointed
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
31.12.2022: 591
% of the share capital: 0.00003 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 and on
19.11.2019 he was appointed General Manager of Wholesale
Banking.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: 27,026
% of the share capital: 0.00115
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 and an MBA from 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 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 and on 19.11.2019 he was appointed General Manager
of Retail Banking.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: 454
% of the share capital: 0.00002
Member
Nicholas R. Chryssanthopoulos - General
Manager –
Chief of Corporate Center
He was born in Athens in 1975. He holds a
degree in Philosophy,
Politics and Economics from Oxford University. He has worked
in
the Alpha Bank Group since 2000 in the areas
of Investment
Banking, Corporate Development and Strategic
Planning and has
also served as Advisor to the Secretary
General of the Ministry of
Finance on banking matters. From 2016
to 2019, he served as a
CORPORATE GOVERNANCE
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ANNUAL FINANCIAL REPORT
Senior Manager in Alpha Bank’s Strategic Planning
Unit, in charge
of Group M&A and business planning. On
14.1.2019 he was
appointed Executive General Manager and
on 20.5.2022 he was
appointed General Manager – Chief of
Corporate Center (CCC).
Number of Alpha Services and Holdings shares
owned on
31.12.2022: 15,301
% of the share capital: 0.00065
Member
Sergiu – Bogdan A. Oprescu - General Manager of
International Network
He was born in 1963. He holds an 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
program 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.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Member
Anastasia Ch. Sakellariou - General Manager – Chief
Transformation Officer
She was born in 1973. She holds postgraduate
degrees in
International Banking from the University of
Reading and in
International Studies from the University
of Warwick. She joined the
Bank with 25 years of experience in
international
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 (CTO).
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
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 was
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 (COO).
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Member
Fragiski G. Melissa - General Manager – Chief Human
Resources Officer (CHRO)
She was born in 1968. She studied Psychology
at the National
and Kapodistrian University of Athens and holds
postgraduate
degrees in Industrial/Organizational Studies
from the Columbia
University and in Social Studies from
the New School for Social
Research. She brings 25 years of
experience in human resources; for eight years
she was Head of
Human Resources for Vodafone in Greece and Romania and
before that she was Regional Human
Resource Director for
Southeastern Europe for Colgate Palmolive.
Earlier in her career,
she was leading the human resources
function at Makro Cash &
Carry in Greece and was Senior Manager at
KPMG. On
20.5.2022 she was appointed General
Manager – Chief Human
Resources Officer (CHRO).
Number of Alpha Services and Holdings shares
owned on
31.12.2022: -
Member
Georgios V.
Michalopoulos - General Manager – Wealth
Management and Treasury
He was born in Athens in 1973. He studied
Mathematics
at the
National and Kapodistrian University of Athens
and holds an
MBA in Business Administration and Finance
from City University
Business School. He joined Alpha Bank
in 1994 and worked in
the Treasury functions in Athens and London. He has served
as
Group Treasurer and Manager of
the Planning and Trading and Financial Markets Divisions.
He has
been a Member of the Board of Directors of various
Group
Companies in the banking, finance and insurance
sectors in Greece
and abroad for a number of years. On 4.5.2016
he was appointed
Executive General Manager and on 20.5.2022
he was appointed
General Manager – Wealth Management and Treasury.
Number of Alpha Services and Holdings shares
owned on
31.12.2022: 5,000
% of the share capital: 0.00021
H.
DESCRIPTION OF THE DIVERSITY POLICY APPLIED
CORPORATE GOVERNANCE
STATEMENT
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ANNUAL FINANCIAL REPORT
TO THE MEMBERS OF THE BOARD OF DIRECTORS
AND EMPLOYEES
The Diversity Policy is a document of
Alpha Services and
Holdings S.A. which sets out the principles
and the
approach for the achievement of diversity
in both the Board of
Directors and the Employees, in accordance
with the legislative
and regulatory framework in force,
including the relevant Joint
ESMA/EBA “Guidelines on the assessment of
the suitability of
members of the management body and key
function holders”, as
well as with European best practices in corporate
governance.
Diversity is defined as the situation in
which the characteristics
of the Members of the Board of Directors and
of the 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 among the 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 the 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.
•
Ensure that, when setting diversity objectives,
the
Company considers diversity benchmarking
results
published by competent authorities, the European
Banking Authority (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 CGSNC, which
may propose relevant
amendments to the Board of Directors.
1.
Board of Directors
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
distinctions 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/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 Directors and in
CORPORATE GOVERNANCE
STATE
MENT FOR THE YEAR 2022
91
ANNUAL FINANCIAL REPORT
identifying suitable candidates for appointment,
the CGSNC,
without prejudice to the provisions
of Law 3864/2010, as in force, concerning
the representative
of the Hellenic Financial Stability Fund
(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.
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 fulfill 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
fulfill 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
(Based on the Board of Directors composition
on 31.12.2022)
Educational Profiles of the Members of the Board of
Directors.
(Based on the Board of
Directors composition on 31.12.2022)
Gender Diversity
Age Range
(Based on the Board of Directors compostion on 31.12.2022)
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.
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
92
ANNUAL FINANCIAL REPORT
When setting diversity objectives, the
Company considers
diversity benchmarking results, published
by competent
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. It respects and defends
the diversity of all Employees
in general, promoting inclusiveness and equal
treatment.
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 minimize 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 31.12.2022 (data
for Alpha Services and Holdings S.A.
and Alpha Bank S.A.)
Gender
Age Breakdown as of
31.12.2022
Percentage(%)
26-40
41-50
51+
Total
Male
23
160
155
338
61.68%
Female
11
97
102
210
38.32%
Total
34
257
257
548
100.00%
Percentage (%)
6%
47%
47%
100%
Educational level
Breakdown
as of
31.12.2022
Percentage
Postgraduate Studies (Master’s,
PhD)
296
54.01%
Tertiary
Education (graduates of Universities
or
Technological
Education Institutes)
140
25.55%
High School (Lyceum)
graduates
112
20.44%
Total
548
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 2022 the highest percentage, i.e. 54%.
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
93
ANNUAL FINANCIAL REPORT
I. REMUNERATION
Remuneration of the Non-Executive Members2
of the Board of Directors for
the year 2022
Total Members’
remuneration
Audit
Committee
Risk Management
Committee
Remuneration
Committee
Corporate
Governance,
Sustainability and
Nominations
Committee
Chair of the Board
Vasileios T.
Rapanos
259,000.00
-
-
-
-
Members of the Board
Efthimios O. Vidalis
98,843.75
M
-
-
M
Elli M. Andriopoulou
77,019.15
M
(as of 22.7.2022)
-
-
M
(as of 22.7.2022)
Aspasia F.
Palimeri
(as of 22.7.2022)
44,188.51
-
M
(as of 22.7.2022)
M
(as of 22.7.2022)
-
Dimitris C. Tsitsiragos
98,843.75
-
M
M
-
Jean L. Cheval
114,090.72
M
(as of 22.7.2022)
C
(as of 22.7.2022) M
(until 22.7.2022)
M
(until 22.7.2022)
-
Carolyn G. Dittmeier
135,843.75
C
-
-
M
In charge of
overseeing ESG
issues
Richard R. Gildea
125,687.50
-
M
NPL Expert
C
-
Elanor R. Hardwick
113,687.50
M
(until 22.7.2022)
M
(as of 22.7.2022)
-
C
Shahzad A. Shahbaz
73,843.75
-
-
-
M
Jan A. Vanhevel
(until 21.7.2022)
78,166.67
M
(until 21.7.2022)
C
(until 21.7.2022)
-
-
Johannes Herman Frederik
G. Umbgrove
113,687.50
M
M
M
M
Total
1,332,902.55
M
M
M
M
C: Chair / M: Member / -: The
Member does not participate in the Committee
2
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 provisions of the applicable legislative
and regulatory framework
.
CORPORATE GOVERNANCE
STATEMENT
FOR THE YEAR 2022
94
ANNUAL FINANCIAL REPORT
In particular, as regards the remuneration amounts, 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 until
31.3.2022 and to Euro 15,625 annually
as of 1.4.2022. 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 until
31.3.2022 and to Euro 31,250 annually
as of 1.4.2022. The
lump sum remuneration for the Member
in charge of
overseeing ESG issues should amount to
Euro
12,000 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 annually
until 31.3.2022 and to Euro 15,625 annually as
of 1.4.2022.
The lump sum remuneration for the Chair
of the
Remuneration Committee of the Board of
Directors should
amount to Euro 25,000 annually until 31.3.2022
and to Euro
31,250 annually as of 1.4.2022.
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
abovementioned Committees, may he/she
be paid for
participation in both.
I.
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 Alpha
Bank S.A.
The Remuneration Report is and will
remain available
on the
Company’s website for a time period of ten years,
as stipulated
by Law, through the link
https://www.alphaholdings.gr/en/corporate-
governance/remuneration-
report-holdings.
Athens, March 14, 2023
THE CHAIRMAN
OF THE BOARD OF DIRECTORS
THE CHIEF
EXECUTIVE OFFICER
VASILEIOS T.RAPANOS
ID No ΑΙ 666242
VASSILIOS E. PSALTIS
ID
No ΑΙ 666591
Consolidated
Financial
Statements
as at 31.12.202
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
The attached notes (pages 104-350)
form an integral part of these
consolidated financial statements
98
ANNUAL FINANCIAL REPORT
Consolidated
Income
Statement
(Amounts in thousands
of Euro)
From 1 January to
Note
31.12.2022
31.12.2021
as restated
Interest and similar income
1.887.616
1.887.539
Interest expense and similar
charges
(564.570)
(511.643)
Net interest income
2
1.323.046
1.375.896
Of which:net interest income
based on the effective
interest rate
1.365.402
1.431.992
Fee and commission income
478.097
466.808
Commission expense
(82.038)
(71.224)
Net fee and commission income
3
396.059
395.584
Dividend income
4
2.882
1.825
Gains less losses on derecognition
of financial assets measured
at amortised cost
6
(3.560)
(2.247.871)
Gains less losses on financial transactions
5
470.796
218.089
Other income
7
93.015
23.617
Staff costs
8
(376.093)
(406.746)
Expenses for separation
schemes
-
(97.701)
General administrative
expenses
9
(447.728)
(475.401)
Depreciation and amortization
22, 23, 24
(156.522)
(157.055)
Other expenses
10
(101.871)
(132.116)
Profit / (loss) before impairment
losses, provisions to cover
credit risk and related expenses
1.200.024
(1.501.879)
Impairment losses, provisions
to cover credit risk
and related expenses
11
(558.888)
(1.433.013)
Share of profit/(loss) of associates
and joint ventures
21
3.048
6.167
Profit/(loss) before income
tax
644.184
(2.928.725)
Income tax
13
(263.598)
55.795
Profit/(loss) after income
tax, from continuing operations
380.586
(2.872.930)
Net Profit/(loss) after income
tax, from discontinued
operations
17.438
(33.144)
Profit/(loss) for the year
398.024
(2.906.074)
Profit/(loss) attributable to:
Equity holders of the Company
397.717
(2.906.160)
From continuing operations
380.279
(2.873.016)
from discontinued operations
17.438
(33.144)
Non-controlling interests
307
86
Earnings/(losses) per share
Basic (€ per share)
14
0,1694
(1,5046)
Basic from continuing operations
(€ per share)
14
0,1620
(1,4875)
Basic from discontinued operations
(€ per share)
14
0,0074
(0,0172)
Diluted (€ per share)
14
0,1692
(1,5040)
Diluted from continuing
operations (€ per share)
14
0,1618
(1,4868)
Diluted from discontinued
operations (€ per share)
14
0,0074
(0,0172)
*
Certain figures
of the previous
year have
been restated
as described
in note 50.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
The attached notes (pages 104-350)
form an integral part of these
consolidated financial statements
99
ANNUAL FINANCIAL REPORT
Consolidated Statement of Comprehensive Income
(Amounts in thousands
of Euro)
From 1 January to
Note
31.12.2022
31.12.2021
as restated
Profit/(loss) for the year,
recognized in the Income
Statement
398.024
(2.906.074)
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
(160.133)
(237.923)
Net change in cash flow hedge
reserve
(14.188)
20.785
Foreign currency translation
net of investment hedges
of foreign operations
596
(1.627)
Income tax
13
43.121
56.550
Items that may be reclassified
to the Income Statement
from continuing operations
(130.604)
(162.215)
Items that may be reclassified
to the Income Statement
from discontinued
operations
(15.127)
1.753
Items that will not be reclassified
to the Income Statement
Net change in actuarial gains/(losses)
of defined benefit obligations
31
6.635
3.480
Gains/(losses) from investments
in equity securities measured
at fair value
through other
comprehensive income
(16.132)
13.834
Income tax
13
1.883
(5.081)
Items that will not be reclassified
to the Income Statement
from continuing operations
(7.614)
12.233
Other comprehensive income,
after income tax
(153.345)
(148.229)
Total comprehensive
income for the year
244.679
(3.054.303)
Total comprehensive
income for the year attributable
to:
Equity holders of the Company
244.372
(3.054.378)
-from continuing operations
242.061
(3.021.234)
-from discontinued operations
2.311
(33.144)
Non controlling interests
307
75
*
Certain figures
of the previous
year have
been restated
as described
in note 50.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
The attached notes (pages 104-350)
form an integral part of these
consolidated financial statements
100
ANNUAL FINANCIAL REPORT
Consolidated
Balance
Sheet
(Amounts in thousands
of Euro)
Note
31.12.2022
31.12.2021
as restated
ASSETS
Cash and balances with central banks
15
12.894.774
11.803.344
Due from banks
16
1.368.135
2.964.056
Trading securities
17
4.261
4.826
Derivative financial assets
18
2.142.196
941.609
Loans and advances to customers
19
38.747.816
36.860.414
Investment securities
20
- Measured at fair value through
other comprehensive income
20a
1.806.445
6.634.120
- Measured at amortized cost
20b
11.336.249
3.752.748
- Measured at fair value through
profit or loss
20c
327.506
253.346
Investments in associates and
joint ventures
21
98.665
68.267
Investment property
22
244.903
425.432
Property, plant and
equipment
23
529.225
737.813
Goodwill and other intangible assets
24
474.683
478.183
Deferred tax assets
25
5.232.364
5.427.516
Other assets
26
1.294.955
1.572.797
76.502.177
71.924.471
Assets classified as held for sale
48
1.516.514
1.431.485
Total Assets
78.018.691
73.355.956
LIABILITIES
Due to banks
27
14.344.851
13.983.656
Derivative financial liabilities
18
2.305.318
1.288.405
Due to customers
28
50.245.924
46.969.626
Debt securities in issue and other borrowed
funds
29
2.922.979
2.593.003
Liabilities for current income tax and
other taxes
30
22.926
59.584
Deferred tax liabilities
25
23.487
23.011
Employee defined benefit obligations
31
23.881
29.448
Other liabilities
32
920.097
888.030
Provisions
33
921.111
834.029
71.730.574
66.668.792
Liabilities related to assets classified as
held for sale
48
10.661
607.657
Total Liabilities
71.741.235
67.276.449
EQUITY
Equity attributable to holders
of the Company
Share capital
34
680.980
703.794
Share premium
35
5.259.115
5.257.622
Special Reserve from Share Capital
Decrease
35
296.424
6.104.890
Reserves
36
(273.048)
320.671
Amounts directly recognized in
equity and associated with assets
classified as held for sale
15.127
Retained earnings
37
296.911
(6.366.258)
Less: Treasury shares
34
(1.296)
6.259.086
6.035.846
Non-controlling interests
18.370
29.432
Hybrid securities
38
14.229
Total Equity
6.277.456
6.079.507
Total Liabilities and
Equity
78.018.691
73.355.956
*
Certain figures
of the previous
year have
been restated
as described
in note 50.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
The attached notes (pages 104-350)
form an integral part of these
consolidated financial statements
101
ANNUAL FINANCIAL REPORT
Consolidated
Statement
of
Changes
in
Equity
(Amounts in thousands
of Euro)
Note
Share
capital
Treasur
y shares
Share
Premium as
restated
Special
Reserve
from Share
Capital
Decrease as
restated
Reserves
Amounts
directly
recognized in
equity and
associated with
assets classified
as held for sale
Retained
Earnings
Total
Non-
controlling
interests
Hybrid
Securities
Total
Balance 1.1.2021
463.110
-
4.696.139
6.104.890
492.791
-
(3.431.502)
8.325.428
29.382
14.699
8.369.509
Changes for the period
1.1 -
31.12.2021
Profit/(loss) for the period, after
income tax
(2.906.160)
(2.906.160)
86
(2.906.074)
Other comprehensive income
for the year, after
income tax
(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
related 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
8
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
5.257.622
6.104.890
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 STATEMENTS
AS AT
31.12.2022
The attached notes (pages 104-350)
form an integral part of these
consolidated financial statements
102
ANNUAL FINANCIAL REPORT
(Amounts in thousands
of Euro)
Note
Share
capital
Treasur
y shares
Share
Premium
Special
Reserve
from Share
Capital
Decrease
Reserves
Amounts
directly
recognized
in
equity and
associated with
assets classified
as held for sale
Retained
Earnings
Total
Non-
controlling
interests
Hybrid
securities
Total
Balance 1.1.2022
703.794
-
5.257.622
6.104.890
320.671
15.127
(6.366.258)
6.035.846
29.432
14.229
6.079.507
Changes for the period
1.1 -
31.12.2022
Profit/(loss) for the period, after
income tax
397.717
397.717
307
398.024
Other comprehensive income for
the year, after
income tax
0
(130.604)
(15.127)
(7.614)
(153.345)
-
(153.345)
Total comprehensive
income for
the year
-
-
(130.604)
(15.127)
390.103
244.372
307
-
244.679
Share capital increase through
options exercise
660
1.493
(1.597)
105
661
661
Off setting of Net Profit with
Reserves
(5.808.466)
(420.425)
6.228.891
-
-
Share capital decrease through
distribution in kind
(23.474)
(23.474)
(23.474)
Transfer
(51.444)
51.444
-
-
(Acquisitions) / Disposals / Share
capital increase and other
changes of ownership interests
in subsidiaries
-
(8.338)
(8.338)
Sales and purchases of treasury
shares
(1.296)
(1.296)
(1.296)
Valuation reserve of employee
stock option program
8
2.014
2.014
2.014
Divided distribution
-
(3.031)
(3.031)
Appropriation of reserves
8.101
(8.101)
-
-
(Purchases), (redemption)/sales
of hybrid securities, after income
tax
(14.229)
(14.229)
Expenses for share capital
increase
(179)
(179)
(179)
Other
236
906
1.142
1.142
Balance 31.12.2022
680.980
(1.296)
5.259.115
296.424
(273.048)
-
296.911
6.259.086
18.370
-
6.277.456
*
Certain figures
of the previous
year have
been restated
as described
in note 50.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
The attached notes (pages 104-350)
form an integral part of these
consolidated financial statements
103
ANNUAL FINANCIAL REPORT
Consolidated
Statement
of
Cash
Flows
(Amounts in thousands
of Euro)
From 1 January to
Note
31.12.2022
31.12.2021
as restated
Cash flows from continuing operating
activities
Profit/(loss) before income tax,
from continuing operations
644.184
(2.928.725)
Adjustments of profit/(loss) before
income tax for:
Depreciation, impairment, write-offs
and net result from disposal of property,
plant and equipment
130.266
145.522
Amortization, impairment, write-offs
of intangible assets
90.019
119.103
Impairment losses on financial assets, related
expenses and other provisions
684.330
1.696.772
Gains less losses on derecognition of financial assets measured
at amortised cost
3.560
2.247.871
Fair value (gains)/losses on financial assets
measured at fair value through
profit or loss
(194.045)
(61.760)
(Gains)/losses from investing activities
(243.704)
(251.234)
(Gains)/losses from financing activities
(52.773)
50.129
Share of (profit)/loss of associates and joint ventures
(3.048)
(6.167)
1.058.789
1.011.511
Net (increase)/decrease in assets relating
to continuing operating activities:
Due from banks
951.082
223.548
Trading securities and derivative
financial instruments
14.077
14.641
Loans and advances to customers
(2.343.461)
(1.993.618)
Other assets
(239.122)
(13.811)
Net increase/(decrease) in liabilities relating
to continuing operating activities:
Due to banks
361.195
884.548
Due to customers
3.276.298
3.650.275
Other liabilities
(20.271)
(58.322)
Net cash flows from continuing operating
activities before income tax
3.058.587
3.718.772
Income tax paid
(57.695)
(58.242)
Net cash flows from continuing operating
activities
3.000.892
3.660.530
Net cash flows from discontinued operating
activities
(791)
31.177
Cash flows from continuing investing
activities
Proceeds from disposals of subsidiaries
214.820
116.888
Dividends received
2.882
1.825
Investments in associates and joint
ventures
2.137
Acquisitions of investment property,
property, plant
and equipment and intangible assets
22,23,24
(140.212)
(160.660)
Disposals of investment property,
property, plant
and equipment and intangible assets
28.632
20.948
Interest received from investment
securities
190.322
209.743
Purchases of Greek Government Treasury
Bills
(1.326.691)
(1.237.405)
Proceeds from disposal and redemption of Greek
Government Treasury
Bills
1.189.316
1.305.359
Purchases of investment securities (excluding
Greek Government Treasury
Bills)
(4.495.117)
(3.996.826)
Disposals/maturities of investment securities
(excluding Greek Government
Treasury Bills)
1.447.740
2.984.759
Net cash flows from continuing investing
activities
(2.886.171)
(755.369)
Net cash flows from discontinued investing
activities
(90.731)
(13.175)
Cash flows from continuing financing activities
Share Capital Increase
660
800.684
Share Capital Increase expenses
(179)
(40.327)
Proceeds from issue of debt securities and other borrowed
funds
841.557
1.385.681
Dividend payments
(371.118)
(20.877)
Repayments of debt securities in issue and other borrowed
funds
(87.690)
(41.972)
(Purchases),(Redemption)/ Sales of hybrid securities
(14.299)
Payments of lease liabilities
(33.115)
(35.637)
Dividend payments
(3.031)
Net cash flows from continuing financing
activities
332.785
2.047.552
Net cash flows from discontinued financing
activities
(10.081)
(7.061)
Effect of foreign exchange
changes on cash and cash equivalents
(915)
(3.837)
Net increase/(decrease) in cash flows
446.591
4.948.876
Changes in cash equivalent from discontinued
operations
(101.603)
10941
Cash and cash equivalents at the beginning of the period
12.869.100
7.920.224
Cash and cash equivalents at the end of the period
13.315.691
12.869.100
*
Certain figures
of the previous
year have
been restated
as described
in note 50.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
104
ANNUAL FINANCIAL
REPORT
The amounts 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 Services
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 anonyme
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 22.7.2022 is four years and is extended
until the end of the period within which
the next Ordinary General Meeting must be convened and until
the relevant decision is taken.
The composition of the Board of Directors as at December
31, 2022 is as follows:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
105
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise
indicated
.
.
.
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
31.12.2022
106
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise
indicated
The composition of the Executive Committee as of 31.12.2022 is as follows:
CHAIRMAN
Vassilios E. Psaltis, Chief Executive Officer
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)
Ioannis Μ. Emiris, General Manager - Wholesale Banking
Isidoros S. Passas, General Manager Retail Banking
Nikolaos R. Chrisanthopoulos, General Manager - Chief of Corporate
Center
Sergiu-Bogdan A. Oprescu, General Manager International Network
Anastasia X. Sakellariou, General Manager - Chief Transformation
Officer
Stefanos Ν. Mytilinaios, General Manager - Chief Operating
Officer)
Fragkiski G. Melissa, General Manager - Chief Human Resources
Officer
Georgios V. Michalopoulos General Manager – Wealth Management & Treasury
There has been no change in the composition of the Executive
Committee from 31.12.2022 and
until the publication date of the financial statements.
The share of the company “Alpha Services and Holdings Societe Anonyme
(Ex “Alpha Bank
S.A.) is listed in the Athens Stock Exchange since 1925 and is constantly
included among the
companies with the higher market capitalization. Additionally,
the Company’s share is included
in a series of 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 2022 were
2,348,207,784 ordinary, registered,
voting, dematerialized shares with a face value of each equal
to € 0.29, of which 211,138,299
shares are held by the Hellenic Financial Stability
Funds (“HFSF”) (9% of share capital).
During the year 2022, the average daily volume of the share per session was
€ 8,684.
The present financial statements have been approved by
the board of directors on 14th March
2023.
Commission Delegated Regulation (EU) 2019/815,
as amended by Regulation (EU) 2020/1989
introduces the obligation for issuers of securities traded on a regulated
EU market to prepare the
annual financial report in HTML format, in accordance with the
European Single Electronic
Format. For the year ended 31.12.2022 the consolidated financial statements,
included in the
annual financial report, have been marked with XBRL
tags (XBRL ‘tags’), according to the ESEF
Taxonomy (ESEF Taxonomy), using the Inline XBRL (“iXBRL”
specifications).
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
107
ANNUAL FINANCIAL
REPORT
The amounts 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
31.12.2022 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 31.12.2021, 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 1.1.2022,
regarding which further analysis is
provided in note 1.1.2.
b.the amendment in the definition of operating segments
as mentioned in note 42.
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 31.12.2022 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
The growth momentum during 2022 reflects the resilience of the Greek economy against adverse external
developments, following the war in Ukraine, supply chain disruptions and inflationary pressures. According to the
latest data from ELSTAT,
the real GDP increased by 5.9%. Economic growth was driven primarily by private
consumption, which grew by 7.8% in 2022,
contributing 5.3 points to the annual GDP growth rate, supported by high propensity to consume in the post -
pandemic era, the accumulation of savings during the pandemic and the remarkable rise in employment.
Investments registered an annual increase of 11.7%, in 2022, strengthening their momentum and contributing to
the change in GDP by 1.5 percentage points. The contribution of inventories was also positive (including statistical
differences, 1.9 p.p).
On the contrary, net exports (-2.5 p.p.) and public consumption (-0.3 p.p.) had a negative contribution. Exports of
goods and services rose cumulatively in 2022 by 4.9%, with goods increasing by 0.4% and services by
9.9%,
respectively, reflecting strong
performance of tourism. Imports of goods and services, however, rose more
strongly (10.2%) compared to corresponding exports in 2022, with imports of goods increasing by 11.2% and
imports of services registering a rise of 7.2%.
Inflation, based on the Harmonized Index of Consumer Prices (HICP), remained on an upward trajectory in the
first two months of 2022, accelerating after the outbreak of the war,
while decelerating in the last quarter of the
year.
The HICP increased by an average of 9.3% in 2022, compared to an increase of 0.6% in 2021, primarily due
to rising
global energy prices - given that Greece is a net energy importer -, disruptions in supply chains and
shortages in raw materials. In 2023, harmonized inflation is expected to be 4.5% according to the European
Commission (European Economic Forecast, Winter,
February 2023) and 5% according to the Ministry of Finance
(State Budget 2023).
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
108
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
GDP growth is expected to slow in 2023, due to the adverse effects of inflationary pressures on the purchasing
power of European citizens and thus on private consumption and exports of services. The implementation of
investments under the Recovery and Resilience Fund (Euro 7 billion) and the Public Investment Program (Euro 8.3
billion) and the strong rise in
Foreign Direct Investment (FDI), however,
are estimated to maintain the rate of
change of GDP positive in 2023. The European Commission (European Economic Forecast, Winter, February 2023)
and the Organization for Economic Cooperation and Development (OECD 2023 Economic Survey of Greece,
January 2023) predict an increase in GDP by 1.2% and 1.1% for 2023, while the State Budget 2023 by 1.8%
respectively.
It is noted, however,
that the high degree of uncertainty prevailing in the international environment may
adversely affect the Greek economy in the short term. The main uncertainty factors are as follows:
●
External demand and tourism revenues, in relation to the course of the global economy and the purchasing
power of European households: The outlook for the global economy has worsened compared to previous
estimates. The increased
cost of production, mainly due to problems in the supply chain and energy
appreciation, has burdened the financials of companies and its inevitable transfer to consumers has limited
the purchasing power of households. Therefore, a significant risk for the Greek economy in the next year is
the eventual weakening of external demand primarily for services, that is, for the Greek tourism product and
secondarily for goods.
●
Geopolitical developments and inflationary pressures: The continuation and outcome of the war in Ukraine
can undoubtedly affect the European economies, since the conflict in the territories of the European
continent, as well as the energy dependence on Russia, have led to a sharp increase in the prices of energy. It
is noted, however,
that concerns about
Europe’s energy
sufficiency for this winter have eased. Τhe high filling
rate of natural gas storage tanks
in Europe, the initiatives taken at European level to reduce natural gas
consumption and the relatively mild weather conditions have contributed to this.
●
A sharp increase in interest rates and consequently in the cost of borrowing for households and businesses,
which could potentially delay the implementation of investment plans.
●
Risks arising from the speed of absorption of the funds of the
Recovery and Resilience fund and the
implementation of the program, as well as from possible delays in the implementation of reforms.
Liquidity
Regarding the liquidity levels of the Group, it is noted that there was no adverse change in terms of the Banks’
ability to draw liquidity from the Eurosystem Mechanisms and from money markets (with or without collateral)
nor restrictions on the use of the Group’s cash reserves as a result of the war between Russia and Ukraine or the
pandemic. The Board of Directors of the European Central Bank decided on a series of increases in its intervention
interest rates, from the second half of 2022 onwards, in order to ensure a timely return of inflation to the
medium-term target of 2%. Additionally in October 2022 it decided to modify the terms of TLTRO III, with the aim
of being compatible with the wider monetary policy normalization process, by strengthening the transmission of
its relevant decisions to the interbank market and, by extension, to the real economy.
This is expected to put
downward pressure on inflation, helping to restore price stability over the medium term. The
Bank made use of the TLTRO III program of the European Central Bank and ensured long-term liquidity.
In this
context, the total financing from the European Central Bank on 31.12.2022 amounts to € 12.8 billion (note 27). In
February 2023, the Bank, in the context of optimizing the Group’s liquidity management, and having sufficient
reserves, decided to prepay € 2 billion of the European Central Bank’s TLTRO
-III program, following the relevant
modification of its terms. The Bank, continuing to implement the strategy of achieving the MREL targets in a
sustainable manner, while improving its financial profile and diversifying its funding sources, in September and
December 2021 issued senior bonds, amounting to € 500
million and € 400 million with a duration of six years and
six months and two years respectively. Additionally,
in October and December 2022 the Bank
completed the
issuance of senior bonds of € 400 million and € 450 million with
a term of three and four years and six months
respectively. The second one replaced the December 2021 issuance. Also significant liquidity was drawn from the
issuances of Tier 2 and AT1 bonds referred below in the capital adequacy section.
Finally, 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. In addition, private sector deposits increased by € 3.3 billion. As a
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
109
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
result
of the above, the liquidity ratios (liquidity coverage ratio and net stable funding ratio) exceed the
supervisory limits that have been set. Moreover, considering the conditions that form the current economic
environment, stress test exercises
are carried out regularly (at least monthly) for liquidity purposes, in order to
assess possible outflows (contractual or potential). The Group completes successfully 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 31.12.2022, the Common Equity Tier I of the Group stands at 13.2%, while the Total Capital Adequacy Ratio at
16.2%. 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 million, with a 10.25-year maturity while, on 8.2.2023, Alpha Services and
Holdings issued a
perpetual Additional Tier I bond amounting to € 400 million.
Taking into consideration the results of internal capital
adequacy assessment process (ICAAP), 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 up to 2025
The Group has as a basis of its strategic plan specific actions aimed at its sustainable development and
profitability (note 52). The following initiatives govern the above strategic plan:
●
The development of assets, with a particular focus on business loans, within the framework of the expected
recovery of the Greek economy and the prospects developed through the resources of the Recovery and
Resilience Fund (RRF), with corresponding reinforcement of net interest income and commission income.
●
The initiatives to reduce Non-Performing Exposures (NPEs), which mainly include organic NPE management
actions that aim at a significant reduction of NPEs, and which will lead to a parallel significant reduction of
credit risk costs, but also of operating expenses related to NPEs management.
●
Efficiency enhancement initiatives, with the aim of achieving excellent operational performance and reducing
operating costs in all activities.
●
Initiatives to increase income from fees and commissions, through low capital intensive operations, such as
Wealth Management products and services and the sale of Bancassurance products.
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 actions taken to enhance efficiency and profitability,
●
the fact that any impact on the Group’s financial result from inflation and increase in base rates is expected to
be positive as it is estimated that the higher performance of operating income, as a result of the balance
sheet structure, will exceed the expected increases in operating expenses,
●
the expected positive growth rate of the Greek Economy despite the adverse effects caused by inflationary
pressures mainly in terms of energy prices and additionally the implementation of the National Recovery and
Resilience Plan, within the framework of the EU’s “Next Generation EU” program, through which Greece is
expected to receive a total of € 30.5 billion by 2026,”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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
110
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
1.1.2 Adoption of new standards and of amendments to standards
The following are the amendments to standards applied from
1.1.2022:
Amendment to the International Financial Reporting Standard 3
“Business Combinations”: Reference to
the Conceptual Framework (Regulation 2021/1080/28.6.2021).
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 above amendment had no impact on the financial
statements of the Group.
Amendment to International Accounting Standard 16
“Property, plant and equipment”: Proceeds before
intended use (Regulation 2021/1080/28.6.2021).
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 above amendment had no impact on the financial
statements of the Group.
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).
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 above amendment had no impact on the financial
statements of the Group.
Annual Improvements
– cycle 2018-2020 (Regulation 2021/1080/28.6.2021). 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 had no impact on the financial statements of
the Group.
In addition, the European Union has adopted IFRS 17 as well
as the following amendments to standards
which are effective for annual periods beginning after 1.1.2022
and have not been early adopted by 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 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);
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The amounts are presented in thousands
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●
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 under a project for the implementation
of IFRS 17 in its subsidiary entity Alpha
Life.
Management has assessed
which contracts are in scope of IFRS 17. In
this context, it was assessed whether
the
contracts expose the insurance company
to significant insurance risk, thus
included in scope of IFRS 17 as
insurance contracts.
Contracts not bearing significant insurance
risk will be reclassified retrospectively
to investment contracts measured
in accordance with IFRS9.
Key decisions taken with regards to classification
and measurement of insurance
contracts are the following :
●
Separating components from an insurance
contract
The Group identified that insurance
contracts within the standard
include an investment component,
the amount of
surrender value, that will not be separated
from the host insurance contract and
will be recognized as non-distinct
investment component.
●
Level of aggregation
Every portfolio of insurance contracts comprises
contracts that are exposed to similar risks
and managed together.
In each portfolio, three groups of contracts shall
be distinguished upon
initial recognition:
●
onerous contracts,
●
contracts with no significant possibility of
becoming subsequently onerous,
and
●
other contracts.
The Group has finalized the assessment of
the level of aggregation of insurance
contracts within IFRS 17 scope
and the process of defining the level of aggregation,
as well as the method for establishing
the level of profitability
of each contract. The same group
includes contracts issued less than
one year apart (annual cohort).
The annual
cohort of insurance contracts is determined
based on the calendar year i.e. 1.1-31.12.
●
Measurement
For the measurement of insurance contracts,
variable fee approach
will be used. On initial recognition, the value
of
a group of insurance contracts issued
corresponds to the sum of the following
items:
a.fulfillment cash flows that include:
i.
future cash flows estimated as at the effective
date of the contract that are within
the boundary of the
insurance contract,
ii.
an adjustment to reflect the time value of
money and the financial risks related
to the future cash flows, to
the extent that the financial risks are not
included in the estimates of the future cash
flows, and
iii.
a risk adjustment for non-financial risk.
b.the contractual service margin (unearned
profit that will be recognized as
insurance contract services are
provided in the future).
●
Contract boundary
Since insurance contracts do not offer
additional coverage, the
contract boundary is determined as their contractual
term.
●
Fulfillment cash flows
The cash inflows and outflows taken into consideration
in measurement are these that will arise
as the contract is
fulfilled, i.e., premiums, payments to a policyholder,
insurance acquisition cash flows, administration
costs etc.
Since the measurement is performed
on a group of contracts level, the expenses
that fall within the scope of IFRS
17, the allocation method of expenses
based on their nature, the parameters and
assumptions to be incorporated
into the actuarial models have been
determined.
●
Discount rate
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The amounts are presented in thousands
of Euro unless otherwise indicated
The discount rate applied to the estimates
of the future cash flows will be a risk-free rate,
in particular the risk-free
yield curve as determined by ΕΙΟPA.
●
Risk adjustment for non-financial risk
Risks covered are insurance risk and other
non-financial risks such as risk of early termination
due to non-payment
and expenses risk.
The method to be applied for the determination
of the risk adjustment is the method of Cost
of Capital. The Group
has elected not to disaggregate the
change in the risk adjustment for non-financial risk,
i.e., it will include the entire
change as part of the insurance
service result.
●
Contractual service margin
The contractual service margin is determined
on initial recognition of a group
of insurance contracts at an amount
that, at that date, is equal and contrary to
the estimated future cash flows. Subsequently,
the amount of contractual
service margin is re-estimated to take account
notably, for all contracts,
the change in the interest of the Group
in
the fair value of assets, the effect of the
new contracts, if any, the re-estimation
of the fulfilment cash flows and the
amount recognized as insurance
income for insurance services provided
in the period.
The carrying amount of a group of insurance
contracts at the end of each reporting
period shall be the sum of:
1.
The liability for remaining coverage
(fulfillment cash flows related to future
service allocated and the
contractual
service margin) and
2.
The liability for incurred claims (fulfillment
cash flows related to past service)
To recognise the amount of the contractual
service margin for the time elapsed
to be recognised in profit or loss,
coverage units will be defined, in order
for the contractual service margin
to be allocated at the end of the period
equally to each coverage unit provided
during the current period and
expected to be provided in the future.
The methodology for the determination
of coverage units has been
determined by considering for each contract
the
quantity of the benefits provided and
its expected coverage period, in particular by
taking into consideration the
fund value.
Impact from the application of the new standard
The entity will apply IFRS 17 on 1.1.2023
retrospectively. In accordance with IFRS 17
insurance contracts are
presented in the balance sheet
separately from reinsurance contracts. In addition,
insurance and reinsurance
contracts assets are presented
separately from insurance and
reinsurance contracts liabilities. All rights and
obligations that derive from insurance
contracts are recognized on
a net basis. As a result, account balances
such
as receivables from insurance contracts
and deferred acquisition costs are
no longer separately presented.
The recognition of income relating
to the insurance service during the
coverage period will be slower in comparison
to the recognition under IFRS 4 in accordance
with which insurance income is recognized
when premiums are
received.
Expenses related to the provision of services
are recognized in profit or
loss as insurance service expenses
on an
accrued basis. In addition, amounts that an
insurance contract requires the entity
to repay to a policyholder
regardless of whether an insured
event has occurred are defined as non-distinct
investment components and
excluded from insurance service expenses.
Based on the above, a significant decrease
in revenue and expenses
arising from insurance contracts including
non distinct investments components
is expected compared to the
current recognition practice.
With regards to the groups of reinsurance
contracts, it is noted that the respective revenue
and expenses will be
presented as a single amount in a separate
line “Net expenses of reinsurance
contracts”.
Following the implementation of
the new standard, the Group estimates
that equity as at 1.1.2022 will increase
approximately by an amount of up to €
25 million (before tax) in total, due to the
change of the measurement of
insurance contracts, as well as to
the (retrospective) reclassification
of contracts not in scope of IFRS 17. Equity
as
at 1.1.2023, respectively, is expected
to decrease approximately by a
total amount of up to € 10 million (before
tax)
in total.
It is noted that the estimated impact of IFRS
17 may be amended upon
the finanisation of the implementation
project.
Amendment to International Financial reporting
Standard 17
: “Insurance Contracts”: Initial Application
of IFRS 17
and IFRS 9 – Comparative information (Regulation
2022/1491/8.9.2022).
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 adoption of the above amendment
is expected to have no impact on the financial statements
of the Group.
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:
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The amounts are presented in thousands
of Euro unless otherwise indicated
●
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 from
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 Group 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
(Regulation 2022/1392/11.8.2022).
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.
In addition, the International Accounting
Standards Board has
issued the following standards and
amendments to
standards 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 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
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FINANCIAL STATEMENTS
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The amounts are presented in thousands
of Euro unless otherwise indicated
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 16
“Leases”: Lease liability in a sale
and leaseback.
Effective for annual periods beginning
on or after 1.1.2024.
On 22 September 2022, the International
Accounting Standards
Board amended IFRS 16 in order to clarify that, in
a sale and leaseback transaction, the seller-lessee
shall determine “lease payments”
or “revised lease payments” in
a way that he would not recognize
any amount of the gain or loss that relates to the right
of use retained by the
seller-lessee. In addition, in case of partial or
full termination of a lease, the seller-lessee
is not prevented from
recognizing in profit or loss any gain or loss
resulting from this termination.
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 1.1.2024.
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 the International Accounting
Standard 1
“Presentation of Financial Statements”: Non-current
liabilities with covenants.
Effective for annual periods beginning
on or after 1.1.2024.
On 31.10.2022, the International Accounting
Standards Board (IASB) issued
an amendment to IAS 1 with which
it
provided clarifications regarding the
classification as current or non-current
of a liability that an entity has the right to
defer for at least 12 months and which is subject
to compliance with covenants. In addition,
the amendment
extended the effective date of the
amendment to IAS 1 “Classification
of liabilities as current or non-current” issued
in 2020 by one year.
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.
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 31.12.2022
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.
CONSOLIDATED
FINANCIAL STATEMENTS
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ANNUAL FINANCIAL
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The amounts are presented in thousands
of Euro unless otherwise indicated
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.
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
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ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 obtained 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.
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.
Within the fourth quarter of 2022, the Executive Committee
has decided to modify the operational
segments following the organizational and operational
changes resulting from the implementation of the
Transformation Program.
Based on the above, and given the Group’s administrative
structure and activities, the following operating
segments have been determined:
●
Retail
●
Wholesale
●
Wealth Management & Treasury
●
International
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
117
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
●
Non Performing Assets
●
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.
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 due from banks are those that upon initial
recognition mature within three months.
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
118
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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:
●
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:
●
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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
119
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
●
those that do not meet the criteria to be classified into one of the above categories
●
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
-
Βusiness 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.
●
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:
a.
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.
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.
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 classification in the above business models is carried
out at the level of the individual business
units/companies based on the framework set at the group level
and after an assessment of the way
financial instruments are managed by the business units/companies.
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 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.
b)Sales made close to the maturity of the financial assets so that the proceeds
from the sales approximate the
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
120
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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, up to 5 sales
per month within the above size limit are considered infrequent.
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 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
121
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 and IFRS
9 requirements are met. In this
case the reclassification is applied prospectively from the first
reporting period following the change in the
business model. Changes in the business model of the Group that lead
to the reclassification of financial
assets 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 of the previous
year the Bank approved a significant change in
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 led, on 1.1.2022, to the reclassification
of those securities
from the securities portfolio measured
at fair value through other comprehensive income to the
securities portfolio measured at amortized cost. Within
2022, corresponding changes were noted in the
operating model for the management of the bonds of the subsidiary
company Alpha Bank Cyprus,
resulting in the reclassification of the relative bonds
within the year (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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
122
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 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 1.2.27 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
123
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
(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
-
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
124
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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.
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 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.
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,
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
125
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
●
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.
It is noted that the Group uses FX swaps in order 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 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 actual results of the hedge are within a range of 80%-125%.
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 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:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
126
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
-
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, mainly cross currency
interest rate swaps and foreign
exchange swaps, to hedge foreign exchange risks arising from
investment in foreign operations.
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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
127
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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:
●
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 EURIBOR 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 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 or a combination of two of them in
cases required by the special characteristics of
the property or in cases that special conditions prevail
such as for example an energy crisis:
●
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
128
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 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 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.
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
129
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
carrying amount is recognized in profit or loss.
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 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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
130
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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.
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.
In case of a sale and leaseback transaction of an
asset in which the conditions for the transfer of control
of the asset to the buyer are met, the right-of-use asset is measured
at initial recognition based on the
portion of the asset’s previous book
value retained by the Group. Therefore,
only the amount related to
the rights that have been transferred to the buyer-lessor is recognized
in profit or loss.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
131
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 insurance 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.
.
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 methodology 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
132
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 has adopted the default definition provided
by EBA Guidelines (GL/2016/07).
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.
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. In the case of
corporate exposures, the credit risk rating is also taken into account, separately,
as a criterion for determining
the significant increase in credit risk.
●
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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
133
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
●
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:
i.the contractual cash flows and
ii.the cash flows that the Group expects to receive
●
For undrawn loan commitments, a credit loss is the present value of the difference between:
i.the contractual cash flows that are due if the holder of the loan commitment draws down the loan; and
ii.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 thataffect
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; 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 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
134
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 paid as
part of synthetic securitization transactions and expenses of those
transactions. 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, reimbursement
and expenses of synthetic
securitization transactions 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 impairment 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 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 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 Group.
c)Significant increase in credit risk
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
135
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 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.
●
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 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 balance 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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
136
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
-
Significant unfavorable changes in foreign exchang
e
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.
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.
An impairment loss recognised in prior periods shall be reversed in case
of a change in the estimates for
the determination of the recoverable amount. The increased carrying
amount of the asset attributable to
the reversal of an impairment loss shall not exceed the carrying
amount that would have been
determined had no impairment loss been recognised.
An impairment loss recognised for goodwill shall
not be reversed.
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
137
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
138
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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.
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:
when the Group can no longer withdraw the offer of those benefits; and
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 of the parent company of the Group 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 recorded 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 capital 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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
139
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 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 customers” or
“Due from banks”. 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 “Due to
customers” or “Due to banks” 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.
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
31.12.2022
140
ANNUAL FINANCIAL
REPORT
The amounts 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 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 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
141
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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.
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 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.
1.2.30
.
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
142
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
category includes Hellenic Financial Stability Fund and its subsidiaries
because, in the context of the Law
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
.
Earnings per share
Basic earnings per share are calculated by dividing profit or
loss attributable to ordinary equity holders of
the parent company of the Group by the weighted average
number of ordinary shares outstanding during
the period.
Diluted earnings per share are calculated using the same method
as the calculation of basic earnings per
share, however, both the nominator and the denominator are adjusted
for the effects of all dilutive
potential ordinary shares.
1.2.32
.
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 which
have a significant impact on the amounts recognized in the financial
statements. Those judgements
relate to the following:
Business Model Assessment (notes 1.2.5, 20)
The Group, on the initial recognition of a debt financial asset, exercises
judgment in order to determine
the business model in which it would be classified, taking into account the
way of evaluating its
performance, the risks associated with it as well as
the expected frequency and value of sales. Also, on
a quarterly basis, it exercises judgment in order to reassess the business models,
taking into account the
sales that have been made as well as any changes in the management
operating model of the assets.
Based on this assessment, it decides whether it should define
new business models or proceed with the
reclassification of financial assets to another business model. As explained
in note 20, in the fourth
quarter of 2021, the way that the Bank manages its
portfolio of long-term securities was amended
following a decision of the Executive Committee. A corresponding
change occurred within 2022 for the
subsidiary company Alpha Bank Cyprus. These changes prompted
a reassessment of the classification
of the portfolio of long-term securities in accordance
with the reclassification requirements of IFRS 9.
Under IFRS 9, the Group is required to reclassify financial assets
if the Group changes its business
model for managing those financial assets. IFRS 9
explains that such changes are expected to be
infrequent, determined by an entity’s senior management as
a result of external or internal changes
significant to the entity’s operations, demonstrable
to external parties and will occur only when an entity
either begins or ceases to perform an activity that is
significant to its operations. Management has judged
that the significant changes in the Group’s activities explained in note
20, which were agreed with the
supervisory body, met the conditions in IFRS 9 to require
reclassification of the measurement of the
assets from fair value through other comprehensive income to
amortised cost.
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
143
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 in loans with ESG (Environmental, Social, Governance) criteria, the change in credit spread based on
the satisfaction of those ESG criteria relates to the change in credit risk and/or change in profit margin.
The application of different judgments could affect the amount of financial
assets measured at fair value
through profit or loss.
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 (EAD) by
financial instrument category,
the probability of default (PD), the estimated expected credit loss at the time
of default (LGD) as well as the choice of appropriate parameters and economic forecasts used in them,
●
the choice of the parameters 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 and of the relevant results 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)
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 in which
any previous experience from corresponding transactions is
also considered, 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
not) and the singing of agreements
with investors as well as of
any conditions included in them. In addition, current
economic conditions are
taken into account which may affect the time of completion of sales
transactions. In the event that the
sale is not completed within one year from the classification of
the non- current assets or disposal group
as held for sale, judgment is exercised in order to assess whether
the cause of the delay is outside the
Group’s control as well as whether the Group continues to
be committed to the program for their disposal
and the sale is considered likely to occur. In particular with
regard to the Sky transaction, the sale of the
assets included in the scope
of the transaction was not completed until 31.12.2022, that is within 12
months from the date of
classification of the assets
as a disposal group held for sale. On 31.12.2022, the approval
of the investor
by the Central Bank of Cyprus, which is required for the completion
of the sale, was pending, while it is
also noted that negotiations are ongoing between the Group
and the investor regarding the final
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
144
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
perimeter of the transaction and the structure of the final
consideration. Since both counterparties remain
committed to their agreement to complete the sale and the pending approval
from the Central Bank of
Cyprus is expected soon to be received, the assets of the transaction
remained classified as a disposal
group held for sale. It is noted, however, that future developments in
the negotiations with the
counterparty may change the final impact of the transaction
on the financial statements.
Assessment of control of special purpose entities (note 40)
The Group in the context of its actions for liquidity and its strategies for
management of 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 relating to
the carrying amount of assets and liabilities at the end of the reporting
period
are presented below. Final amounts in the next periods may
be significantly different from those
recognised in the financial statements.
Fair value of assets and liabilities (notes 22, 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 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
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, assumptions and estimates
for the future,
●
the determination of the expected cash flows and the flows from the liquidation of collaterals for financial
instruments,
●
the determination of the adjustments to the expected credit loss balance to incorporate recent developments
and data that cannot be estimated through the models for the calculation of the parameters of expected
credit loss 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 and 22)
The Group, at each reporting date, assesses for impairment 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. It is noted that especially
in cases where the sale of these items is
imminent, the estimated price of the transaction based
on the offers received for the perimeter of the
items to be transferred is taken into account in the impairment exercise
in conjunction with the decisions
of the Management for the completion of the transaction
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
145
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
estimate of the possible outflow required to settle the present obligation.
This estimate is determined by
Management after taking into account experience from relevant transactions,
the degree of complexity of
each case, the actions taken to settle it 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,
-
the improvement in operational efficiency and reduction of operating costs,
-
interest income increase through asset development, with a particular focus on business loans and
-
the increase in income from fees and commissions
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. 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 Law 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
146
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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.
INCOME STATEMENT
2.Net interest income
From 1 January to
31.12.2022
31.12.2021
Interest and similar
income
Due from banks
51,743
2,470
Loans and advances
to customers measured
at amortized cost
1,354,995
1,333,211
Loans and advances
to customers measured
at fair value through profit or
loss
13,097
8,403
Trading securities
(Note 17)
140
(97)
Investment securities
measured at fair value through
other comprehensive income
(note 20a)
27,879
59,523
Investment securities
measured at fair value through
profit or loss (note 20c)
1,258
964
Investment securities
measured at amortized cost
(note 20b)
116,962
40,566
Derivative financial
instruments
233,071
176,587
Finance lease receivables
(Note 19)
12,463
13,479
Negative interest from interest
bearing liabilities
70,073
251,178
Other
5,935
1,255
Total
1,887,616
1,887,539
Interest expense
and similar charges
Due to banks
(14,602)
(9,326)
Due to customers
(89,377)
(57,652)
Debt securities in issue
and other borrowed funds
(97,245)
(60,279)
Lease liabilities (Note
32)
(2,120)
(177,216)
Derivative financial
instruments
(263,917)
(2,562)
Negative interest from interest
bearing assets
(44,045)
(142,827)
Other
(53,264)
(61,781)
Total
(564,570)
(511,643)
Net interest income
1,323,046
1,375,896
During 2022, net interest income decreased compared to 2021,
mainly due to the derecognition of loans
included in the non- performing loans sale transactions, which were completed
(Galaxy, Cosmos and
Orbit perimeters), the increase of borrowing costs
from new bond issuances within 2021, the increase of
borrowing costs from the ECB and the increase in the cost of
deposits.
Additionally, during 2021, income of € 31,568 had been recognized
for the program TLTRO III, relating to
the period from 24.6.2020 to 31.12.2020, recognized retrospectively as the
Bank met the eligibility
criteria that resulting in bearing a higher negative interest rate ( -1%).
The following table presents interest income and interest expense calculated
using the effective interest
rate method, by financial asset category.
From 1 January to
31.12.2022
31.12.2021
Financial assets measured
at amortised cost
1,465,737
1,330,434
Financial assets measured
at fair value through other
comprehensive income
27,879
59,523
Financial assets measured
at fair value through profit
or loss
14,495
9,270
Financial liabilities
measured at amortised
cost
(142,709)
32,765
Total
1,365,402
1,431,992
.
3.Net fee and commission income and other income
Net fee and commission income
and other income
.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
147
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
From 1 January to
31.12.2022
31.12.2021 as
restated
Loans
71,915
58,830
Letters of guarantee
47,229
40,996
Imports-exports
6,238
6,003
Credit cards
70,574
87,732
Transactions
55,826
46,136
Mutual funds
56,073
65,141
Advisory fees and securities transaction
fees
2,898
5,259
Brokerage services
7,969
8,021
Foreign exchange fees
24,234
19,543
Insurance brokerage
21,767
27,533
Other
31,336
30,390
Total
396,059
395,584
.
Net fee and commission income for 2022 has been affected
by the increase in the commission fee from
loans, mainly deriving from agent commissions for bonds and syndicated
loans, commission fees related
to fund transfer transactions, FX trading and letters of guarantee. Fee
and commission income are
partially offset by reduced credit cards commissions due to
carve-out of merchant acquiring business to
Nexi Payments Hellas S.A., the commission fees from mutual
funds due to market conditions and
insurance brokerage services, as during 2021 the Group received
a commission fee of € 10 mil. from
AXA Mediterranean Holding S.A., parent entity of AXA Insurance
S.A., due to the early termination of a
bankassurance agreement, following the disposal of the latter
to Generali.
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 31.12.2022
Retail
Customers
Medium &
Large
Businesses
Asset
Management
& Treasury
International
Activities
Non-Performing
Exposures
Other /
Elimination
Center
Group
Fee and commission
income
Loans
4,090
63,182
351
1,118
4,295
73,036
Letters of guarantee
2,259
38,816
805
1,858
3,491
47,229
Imports-exports
1,447
4,014
274
503
6,238
Credit cards
102,655
19,882
60
15,885
753
139,235
Transactions
29,929
7,988
2,210
15,074
625
1
55,827
Mutual funds
55,951
122
56,073
Advisory fees and securities
transaction fees
1,378
1,067
343
110
2,898
Brokerage services
9,566
201
9,767
Foreign exchange fees
17,260
4,265
1,485
948
277
24,235
Insurance brokerage
18,410
3,357
21,767
Other
8,865
3,083
15,086
14,168
185
405
41,792
Total
184,915
142,608
86,581
53,348
10,129
516
478,097
Other Income
Other
3,346
2,506
84
700
2,733
10,160
19,529
Total
3,346
2,506
84
700
2,733
10,160
19,529
.
Certain figures of the previous year have been restated as described in
note 50.
From 1 January to 31.12.2021
as restated
Retail
Customers
Medium
& Large
Businesses
Asset
Management
& Treasury
International
Activities
Non-Performing
Exposures
Other /
Elimination
Center
Group
Fee and commission
income
Loans
5,108
48,957
823
802
4,276
59,966
Letters of guarantee
2,072
32,891
566
1,801
3,667
40,997
Imports-exports
1,322
3,857
234
590
6,003
Credit cards
101,462
36,901
149
12,055
1,474
152,041
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
148
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Transactions
22,900
7,465
1,642
13,457
671
46,135
Mutual funds
64,419
722
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
3,763
1,101
697
270
19,543
Insurance brokerage
24,474
3,060
27,534
Other
6,871
2,325
11,259
13,354
290
293
34,392
Total
177,921
137,312
93,340
46,704
11,238
293
466,808
Other income
Other
3,019
1,493
46
363
8,889
1,859
15,669
Total
3,019
1,493
46
363
8,889
1,859
15,669
.
“Other income” of the Income Statement includes additional income,
not presented in the above table
since they do not fall within the scope of IFRS 15, such as income
from insurance activities, income from
insurance claims and income from operating lease rentals.
Operating segments’ analysis for 2021 has been modified compared to
published figures due to a
change in the definition of operating segments in 2022.
4.Dividend income
From 1 January to
31.12.2022
31.12.2021
Equity securities of trading portfolio
21
Equity securities of investing portfolio
measured at fair value through
other Comprehensive Income (note
20)
2,413
1,707
Equity securities measured at fair
value through profit or loss
469
97
Total
2,882
1,825
.
5.Gains less losses on financial transactions
.
From 1 January to
31.12.2022
31.12.2021
Foreign exchange differences
30,417
30,448
Trading securities:
- Bonds
2,999
623
- Equity securities
133
330
Financial assets measured
at fair value through
profit or loss
- Loans
(10,005)
(61,385)
- Equity securities
2,455
5,720
- Bonds
2,992
5,394
- Other securities
(25,187)
7,745
Financial assets measured
at fair value through
other comprehensive
income
- Bonds and treasury bills
9,999
142,211
Impairments / Sale of investments
312,966
102,335
Derivative financial instruments
156,732
14,313
Other financial instruments
(12,705)
(29,645)
Total
470,796
218,089
.
“Gains less losses on financial transactions” for the year 2022 has been
mainly affected by the following:
●
Losses of € 25,187 included in “other securities” measured at fair value through profit or loss, mainly derived
from the fair valuation adjustments within the year.
●
Losses of € 10,005 included in “Loans” of Financial Assets measured at Fair Value Through Profit or Loss
mainly derived from a change in the measurement of loans and the derecognition of loans within the year.
●
Gains of € 9,999 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 € 199 and gains from other corporate bonds amounting to € 9,800.
●
Gains of € 297,941 included in “Impairments / Sale of investments” relates to the sale of 90.01% of shares of
Alpha Payment Services S.A. (Note 48).
●
Gains of € 156,732 included in “Derivative financial instruments” relating to the valuation of derivatives
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
149
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
included in the trading portfolio, including an amount of € 11,999 relating to the Credit Valuation Adjustment
for transactions with Greek State.
“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 Attica II
S.A.
●
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 S.A.
●
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 S.A.
6.Gains less losses on derecognition of financial assets measured at amortised cost
The tables below present gains less losses for the year 2022 and 2021
from derecognition of financial
assets measured at amortised cost as well as their carrying
amount before derecognition.
.
From 1 January to 31.12.2022
Carrying Amount
(Losses)
from
derecognition
Gains
from
derecognition
Gains less
losses
from derecognition
Early
repayments
- Loans and advances
to customers
1,694,090
(2,929)
4,529
1,599
Sales
- Loans and advances
to customers
137,666
(4,698)
1,243
(3,455)
- Securities
360,195
(3,486)
(3,486)
Substantial modifications
- Loans and advances
to customers
1,036,693
(4,948)
6,730
1,782
Total
3,228,644
(16,061)
12,502
(3,560)
.
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)
.
“Early repayments” include the gain and loss deriving from the transfer
of unamortized balance of
capitalized commissions and expenses of loans that have been early
repaid.
“Sales” include the following:
a)
Loans sold during the years 2022 and 2021, the greatest part of which related to portfolios classified as
Assets held for sale in the context of the Shipping, Light and Orbit transactions (note 48) during 2022 and
in the context of the Galaxy and Cosmos transactions during 2021.
b)
Securities from sales within the approved limits, from securities measured at amortized cost portfolio and
mainly relate to Greek state bonds.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
150
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
“Substantial modifications” include the the carrying
amount of loans that were derecognized during the
years 2022 and 2021 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
31.12.2022
31.12.2021
Insurance
activities
55,973
(18,482
)
Operating lease
income
14,242
12,489
Sale of fixed assets
5,448
8,787
Other
17,352
20,823
Total
93,015
23,617
Operating lease income for the year includes an amount of
€ 1,658 (31.12.2021: € 1,316) relating to
income from subleases. “Other income from insurance activities”
for 2022 includes a reversal of
insurance provisions which resulted from the Liabillities
Adequacy Test (LAT) of the Group subsidiary
insurance company AlphaLife Insurance Company S.A., amounting to
€ 24.6 mil. (2021 additional
provision € 13.9 mil.), which resulted from an increase in interest rates.
Additionally, the increase in other income from insurance activities
has been positively affected by the
increase in insurance fees and other income by € 22.1 mil.
and the change in mathematical reserves
(other than those that occurred from the Liabillities Adequacy Test)
amounting to € 14.4 mil.
“Other” includes an amount of € 1 mil., relating to indemnities due to
fire damage on Alpha Bank’s main
building.
Income from insurance activities is analyzed as follows:
.
From 1 January to
31.12.2022
31.12.2021
Insurance
Activities
Premiums and other
related income
181,093
159,003
Less:
-
Commissions
(837)
(1,089)
- Claims paid
and technical provisions
(124,283)
(176,396)
Total
55,973
(18,482)
.
8.Staff costs and expenses for separation
schemes
a.
Staff
costs
.
From 1
January to
31.12.2022
31.12.2021
Wages
and salaries
276,811
299,462
Social
security
contributions
60,130
66,542
Employee defined benefit obligation of the Group (note 31)
121
192
Employee
indemnity provision
due
to
retirement based
on
Law
2112/1920 (note
31)
4,355
9,306
Other
charges
34,676
31,244
Total
376,093
406,746
.
The total number of Group’s employees
as at 31.12.2022 was 8,460
(31.12.2021: 8,939) out of which 5,947
(31.12.2021:5,931) are employed
in Greece and 2,513 (31.12.2021: 3,008)
are employed abroad.
During 2022 wages and salaries as well as social security contributions
decreased compared to 2021,
mainly as a result of the reduction in the number of personnel
following the completion of the employee
separation scheme in 2021, the reduction of social security contributions
due to decrease in the
respective rates as well as the sale of the former subsidiary company
Cepal Holdings at 18.6.2021.
Wages and salaries” and “Social security contributions” include costs
relating to staff incentive schemes
as a reward on the Group’s employees’ performance.
The terms of the existing incentive programs are as
follows:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
151
ANNUAL FINANCIAL
REPORT
The amounts 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 € 15,775 (31.12.2021: € 12,139),
relating to these programs.
Awarding
of stock
options rights
The Annual General Meeting of shareholders of the Company
of 31.7.2020 approved a five year Stock
Option plan which provides the right to acquire newly
– issued shares of the Company by awarding of
stock options rights to management and employees
of the Group. 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.
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. 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 approved the Plan’s
Regulation. Αt the Board of Directors meetings of 16.12.2021
and 21.7.2022 awarded Stock Options
Rights under the Performance Incentive Program for the fiscal
years 2020 and 2021.
Within the first year from the date the option right is awarded,
beneficiaries may exercise 60% of their
total option rights while for options awarded up until
31.12.2021 and for each one of the following three
years they may exercise 13.3% of those while, for options awarded
in July 2022, for each one of the
following four years they may exercise 10% of those option rights. 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 than retirement or inability to work) the right to purchase
shares ceases. It is noted that under the
Performance Incentive Program for the year 2020, 3,612,094 options
rights were awarded 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 pursuant to 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 15 January 2022 and ends on 15 January
2024.
Respectively based on the postponement periods of each Program,
the Exercise Periods were defined
as follows
Balance
1.1.2021
4,146,394
Changes for
the
period
1.1
–
31.12.2021
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 exercise price for the aforementioned stock options rights amounted
to € 0.30, while the price of the
Company’s share at the time when options were exercised on
January 2021 amounted to € 0.77.
Balance
1.1.2022
6,802,236
Changes for
the
period
1.1
–
31.12.2022
Options Rights awarded during the
year
1,402,545
Options Rights
exercised during the
year
(2,226,687)
Options Rights expired
during the
year
(151,316)
Balance
31.12.2022
5,826,778
The exercise price of stock options rights is equal to the nominal
value of the Company’s share.
Therefore, due to the decrease in the nominal value of the share
by € 0.01 following a decision of the
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
152
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Annual General Meeting of Shareholders of 22.7.2022, from 9.8.2022
the exercise price of all active
option rights decreased from € 0.30 to € 0.29.
The weighted average exercise price for option rights that were execised
or expired within 2022
amounted to € 0.296 and € 0.297 respectively. The price of the Company’s
share at the time of
exercising the οptions rights on January 2022 and September 2022
amounted to € 0.68 and € 0.86
respectively.
At 31.12.2022 the exercise price for active option rights amounted
to € 0.29 (31.12.2021: € 0,30), while
the weighted average lifespan of active option rights was 14.3 months
(31.12.2021: 19.5 months).
From the disposal of the above stock options, an amount of
€ 2,014, for 2022, was recognized as a credit
to the equity reserve and debit to the caption “Staff
costs” of the Income Statement (31.12.2021: €
3,083).
Determination
of
Fair
Value
of
Stock
Option Rights
For the Stock option 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 as at
31.12.2021, which is the date of issue,
and the exercise price.
For the Stock option rights awarded on 29.7.2022 with an exercise date
of September 2022, the fair
value was determined as the difference between the share price
on 29.7.2022, which is the date of issue,
and the exercise price.
For the rest of Stock option rights 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 year 2020
Options,
under the
Performance
m
Incentive
Program for the year 2021
Average weighted value
0.79
0.60
Expected volatility %
58.20%
58.40%
Expected duration
(in
years)
2
2.5
Weighted average
share price
1.077
0.865
Exercise price
0.3
0.3
Expected
dividends
Risk
free interest rate %
(0.48%)
1.15%
The weighted average fair value of the rights granted during
2022 under the Performance Incentive
Program for the year 2021 amounted to € 322 (31.12.2021:
€ 1,665).
Due to the decrease in the nominal value of the share by
€ 0.01 following a decision of the Annual
General meeting of Shareholders of 22.7.2022, from
9.8.2022 the exercise price of all active option rights
decreased from € 0.3 to € 0.29, resulting in an increase in the fair
value of all active options rights as at
31.12.2022. The added fair value of rights options, which was recognized
by crediting equity reserves,
amounted to € 61.
The incremental weighted fair value of the options was calculated
as the difference between the fair
values of the options rights measured with the old and the
new exercise price on the modification date,
using the same methodology and parameters, as stated above.
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 multiemployer plan. The Bank has obtained legal opinions that indicate that it has no
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
153
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
f)
The Bank, in cooperation with insurance company, has created a savings plan. The plan’s
effective date is 1
January 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.
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 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.
Employee defined
benefit obligations
The analysis of Defined Benefit Plans is disclosed in Note 31
9.General Administrative expenses
From 1
January to
31.12.2022
31.12.2021
as restated
Lease expenses
380
302
Maintenance of
EDP
equipment
31,130
23,821
EDP
expenses
23,407
24,143
Marketing
and advertising
expenses
25,239
22,663
Telecommunications
and
postage
10,046
15,736
Third party fees
61,139
77,903
Contribution to the Deposit /
Investment Coverage Scheme and
to the
Resolution Scheme
62,966
59,989
Consultants’ fees relating to financial information
9,737
8,789
Insurance
3,287
10,460
Electricity
14,261
11,090
Building and equipment maintenance
8,538
7,804
Security of buildings-money transfers
15,580
14,170
Cleaning
4,248
4,694
Consumables
3,312
2,385
Commission for the amount of Deferred tax Asset guaranteed by
the Greek State
4,726
5,086
Taxes and
Duties (VAT,
real estate
tax etc,)
90,870
91,685
Other
78,862
94,681
Total
447,728
475,401
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
154
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
General administrative expenses of 2022 have been decreased, compared
to 2021, mainly due to the
sale of former subsidiary Cepal Holdings S.A. at 18.6.2021
as well as the sale of the merchant acquiring
business. 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 other provisions “provides the
obligation for 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
as at 31.12.2014 (26%). The amount of
the commission for the year 2021 amounts to € 4,726. “Lease expenses” include
expenses for short-term
leases, low value leases and variable lease payments which are
not included in lease liabilities.
10.Other expenses
From 1
January to
31.12.2022
31.12.2021
Losses from disposals/write-off/impairment
on plant, property and equipment, intangible assets
and right-of use assets
70,122
116,742
Other Provisions
25,257
11,352
Other
6,492
4,022
Total
101,871
132,116
“Losses from disposals/write-off/impairments on plant,
property and equipment, intangible assets and
rights of use assets” as at 31.12.2022 includes an impairment
amount of € 68,855 related to the
impairment loss recognized by taking into account the offers received
on certain perimeters on real
estate properties (including the impairmnents recognized prior
to their reclassification in assets held for
sale) in the context of the transactions (Skyline, Startrek και
Sky), that are part of the Group’s strategic
plan. The above were partially offset by gains of € 8,625 related
to a reversal of impairment on right of
use assets
due to adjustment of their value as a consequence of modification
of the duration of lease
contracts.
In the previous year an amount of € 41,729 is included, relating
to the recognition of impairment loss on
intangible assets relating to customer relationships from
the merchant acquiring business of Diners in
2015, as well as the acquired deposit base of Citibank in 2014
and other software.
Certain figures
of the previous year have
been restated
as described
in note 50.
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 2022 amounted to
€ 558,888 (31.12.2021: € 1,433,013) and include all items
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 Group 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 and relate to the period after 18 June 2021, the date at which
the Group transferred 80% of the
subsidiary.
.
From 1 January to
31.12.2022
31.12.2021
Impairment losses on loans
481,419
1,401,139
Impairment losses on advances to customers
(3,209)
7,503
Provisions to cover credit risk on letters of
guarantee, letters of credit and undrawn loan commitments (note 33)
(2,196)
(49,731)
(Gains)/Losses from modifications of contractual
terms of loans and advances to customers
17,682
17,764
Recoveries
(17,215)
(20,245)
Loans servicing fees
64,396
52,422
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
155
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Impairment losses on other assets
529
2,544
Commission expenses for credit protection
19,850
588
Total
561,256
1,411,984
.
Taking into consideration the developments regarding the sale
transactions for non performing loans’
portfolios included in the NPE Business plan, as those are
described in note 48 “Assets Held for Sale”
the estimation of expected credit losses has been adjusted, in order
to take into account the scenario of
sale with 100% probability, for the following projects:
●
Portfolio of non performing corporate loans (projects “Solar” and “Hermes”)
●
Portfolio of non-performing Finance leases of Alpha Leasing SA (project
“Leasing”)
●
Portfolio of non-performing shipping loans, for which the sale transaction was completed within July 2022.
●
Portfolio of non-performing retail loans (project “Light”), for which the sale transaction was completed within
November 2022 and
●
Portfolio of non-performing loans in Cyprus (project “Sky”)
The impact of the aforementioned incorporation of the scenario of sale
with 100% probability on the
impairment losses on loans for the current period amounted to
€ 273 mil.
In the context of inflationary pressures and the increase in borrowing
costs for households and
businesses, as well as the general uncertainty that
exists in the economic environment, the Group
recognized additional provisions for retail nonperforming
exposures classified at Stage 3.
On 29.6.2022, the Bank completed the second synthetic securitization
transaction on a portfolio of
performing loans to small and medium sized and large
enterprises (Tokyo) amounting to € 0.63. With this
transaction the Bank receives protection against the credit risk
of junior tranche through a credit
protection/financial guarantee agreement with the European Investment
Fund.
The Bank pays a commission every quarter on the
junior tranche, as it is shaped after loan repayments
and compensation payments 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 for the aforementioned portfolio. The claim
for compensation is recognized in income
statement when its collection is in substance certain. In addition
to with the guarantee agreement, the
European Investment Fund has a Counter-Guarantee agreement with the European
Investment Bank
based on which, part of the Bank’s cost of commissions for the
guarantee is covered by the European
Investment Bank under the condition that The Bank, within 24 months
proceeds to financing enterprises
in the context of the Pan-European Guarantee Fund.
For the current year the total commission expense for the financial
guarantee relating to the
abovementioned transaction, as
well as the Aurora synthetic securitization transaction that
was
completed within 2021, amounts to € 20 mil. It is noted that the current
year amount includes the
expenses of the Tokyo transaction. Finally, it is
noted that at the year end the conditions for the
recognition of receivable were not met.
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 ECLs are recognized i.e. loans
categorized under IFRS 9 staging as stage 2 or3 or loans Purchased
or originated credit-impaired
(POCI).
.
From 1 January to
31.12.2022
31.12.2021
Net carrying amount
before the modification
3,275,123
5,332,168
Net gain or (loss) due
to the modification
(19,272)
(10,606)
.
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 losses at the end of the year.
.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
156
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
From 1 January to
31.12.2022
31.12.2021
Carrying amount
before allowance for expected
credit losses at the end of
the year
2,049,778
1,886,308
.
12.Impairment losses and provisions to cover credit risk on other financial instruments
From 1
January to
31.12.2022
31.12.2021
Impairment losses of debt securities and other securities measured at amortized cost
(3,973)
5,327
Impairment losses of debt securities and other securities
measured at fair value
through other comprehensive
income
1,578
15,593
Impairment losses on due from banks
27
109
Total
(2,368)
21,029
The reversal of expected credit losses on debt securities and other securities
measured at amortized
cost during 2022 is mainly due to the upgrade of the creditworthiness
rating of Greek systemic banks.
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.
13.Income tax
In accordance with article 120 of Law4799 “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 (L 150), 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 (L 150), through the amendment of article
2 of Law4335/2015, and other urgent
provisions”, the income tax rate for legal entities is reduced
by 2%, from 24% 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%.
For the subsidiaries and branches operating in other
countries, the applicable nominal tax rates for the
year 2022 are as follows, with no changes compared to the
tax rates of year 2021:
Cyprus
12.5
Bulgaria
10
Serbia
15
Romania
16
Luxembourg
24.94
Albania
15
Jersey
10
United Kingdom
19
Ireland
12.5
.
The income tax in the Income Statement is analysed as
follows:
.
From 1 January to
31.12.2022
31.12.2021
Current tax
21,627
47,673
Deferred tax
241,971
(103,468)
Total
263,598
(55,795)
.
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
31.12.2022
31.12.2021
Debit difference of Law4046/2012
44,555
44,555
Debit difference of Law4465/2017
9,650
(540,249)
Write-offs, depreciation,
impairment of plant,
property and equipment
and leases
(28,302)
(57,472)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
157
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Loans
141,829
422,972
Valuation of loans due to
hedging
(3,350)
(322)
Defined benefit obligation
and insurance funds
(61)
2,834
Valuation of derivative
financial instruments
61,790
40,952
Valuation of liabilities
to credit institutions and
other borrowed funds
due to fair value hedge
45,319
5,172
Valuation/Impairment of
investments
(13,182)
7,610
Valuation/Impairment of
debt securities and
other securities
(51,995)
(57,364)
Tax losses carried forward
199
3,642
Other temporary differences
35,519
24,202
Total
241,971
(103,468)
.
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 during the first three fiscal years.
Based on Circular 1073/31.3.2015 of
Independent Authority for Public Revenue, the deferral
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 bad debts).
A reconciliation between the effective and nominal tax rate is
provided below:
.
From 1 January to
31.12.2022
31.12.2021
%
%
Profit/(Loss) before income
tax
644,184
(2,928,725)
Income tax (nominal
tax rate)
28.81
185,620
20.51
(600,623)
Increase/(Decrease)
due to:
Non-taxable income
(0.59)
(3,827)
0.37
(10,853)
Non-deductible
expenses
2.78
17,908
(0.46)
13,366
Adjustment in tax rates
for the estimation of deferred
tax
0.36
(10,453)
Offsetting of prior year losses
(0.61)
(3,902)
Non-recognition of deferred
tax for tax losses carried
forward
2.14
13,812
(10.08)
295,260
Non-recognition of deferred
tax for temporary differences
of the current year
2.55
16,397
(8.74)
255,854
Other tax differences
5.84
37,590
(0.06)
1,654
Income tax (effective tax
rate)
40.92
263,598
1.91
(55,795)
.
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.
The caption “Other tax differences” mainly includes
the following:
●
an amount of € 22 million which concerns the reversal of a deferred tax claim of Alpha Leasing company, in
the context of the company’s dissolution plan in accordance with the provisions of article 16 of Law 2515/97
and Law 4601/2019.
●
an amount of € 9.18 million concerns accounting differences of the previous year that were settled by
submitting the income statement of Alpha Bank and Alpha Services and Holdings.
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 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% to 24% 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
31.12.2022
31.12.2021
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
158
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
(165,265)
40,783
(124,482)
(238,152)
63,290
(174,862)
Net change in cash flow hedge reserve
(14,188)
4,115
(10,073)
20,785
(6,028)
14,757
Currency translation
differences from financial
statements
and net investment
hedging
of foreign
operations
(10,168)
(1,008)
(11,176)
319
(676)
(357)
(189,621)
43,890
(145,731)
(217,048)
56,586
(160,462)
Amounts that will not
be reclassified to the
Income
Statement
Net change in actuarial gains/(losses)
of defined
benefit obligations
6,635
(1,916)
4,719
3,480
(1,198)
2,282
Gains/(Losses)
from equity securities measured at
fair value through other comprehensive
income
(16,132)
3,799
(12,333)
13,834
(3,883)
9,951
(9,497)
1,883
(7,614)
17,314
(5,081)
12,233
Total
(199,118)
45,773
(153,345)
(199,734)
51,505
(148,229)
.
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 treasury shares held, during
the period.
It is noted that in January 2022, 1,430,168 stock options rights
were exercised which resulted in the
issuance of 1,430,168 ordinary, registered, voting shares with
nominal value of Euro 0.30 each. The
share capital of the Company increased by € 429 and the share premium
increased by € 1,042. In
September 2022, 796,519 options rights were exercised which resulted
in
the issuance of 796,519
ordinary, registered, voting shares with nominal value of Euro
0.29 each. The share capital of the
Company increased by € 231 and the share premium
increased by € 450.
.
From 1 January
to
31.12.2022
31.12.2021
Profit/(Loss) attributable
to equity holders of
the Company
397,717
(2,906,160)
Weighted average number
of outstanding ordinary
shares
2,347,406,796
1,931,471,968
Basic earnings /(losses) per
share (in €)
0.1694
(1.5046)
.
From 1 January to
31.12.2022
31.12.2021
Profit / (Loss) from continued
operations attributable to equity
holders of the Company
380,279
(2,873,016)
Weighted average number of outstanding
ordinary shares
2,347,406,796
1,931,471,968
Basic earnings /(losses) per share
(in €)
0.1620
(1.4875)
.
From 1 January to
31.12.2022
31.12.2021
Profit / (Loss) from discontinued
operations attributable to
equity holders of the Company
17,438
(33,144)
Weighted average number of outstanding
ordinary shares
2,347,406,796
1,931,471,968
Basic earnings /(losses) per share
(in €)
0.0074
(0.0172)
.
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 Group companies
(note 8).
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
159
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
For the calculation of the diluted earnings per share, it is
assumed that the stock 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 awarded 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
31.12.2022
31.12.2021
Profit/(Loss) attributable to equity holders of the Company
397,717
(2,906,160)
Weighted average number of
outstanding ordinary shares
2,347,406,796
1,931,471,968
Adjustment for options
3,314,955
870,098
Weighted average number of outstanding ordinary shares for
diluted earnings per share
2,350,721,751
1,932,342,066
Diluted earnings /(losses) per
share (in
€)
0.1692
(1.5040)
From 1
January to
31.12.2022
31.12.2021
Profit/(Loss) from continued operations attributable to equity holders of the
Company
380,279
(2,873,016)
Weighted average number of
outstanding ordinary shares
2,347,406,796
1,931,471,968
Adjustment for options
3,314,955
870,098
Weighted average number of outstanding ordinary shares for
diluted earnings per share
2,350,721,751
1,932,342,066
Diluted earnings /(losses) per
share (in
€)
0.1618
(1.4868)
.
From 1
January to
31.12.2022
31.12.2021
Profit/(Loss) from discontinued operations attributable to equity holders of the
Company
17,438
(33,144)
Weighted average number of
outstanding ordinary shares
2,347,406,796
1,931,471,968
Adjustment for options
3,314,955
870,098
Weighted average number of outstanding ordinary shares for
diluted earnings per share
2,350,721,751
1,932,342,066
Diluted earnings /(losses) per
share (in
€)
0.0074
(0.0172)
.
ASSETS
15.Cash and balances with Central Banks
.
31.12.2022
31.12.2021
Cash
462,437
394,820
Cheques receivables
6,379
4,816
Balances with Central Banks
12,425,958
11,403,708
12,894,774
11,803,344
Less: Deposits pledged
to Central Banks
(237,210)
(268,527)
Total
12,657,564
11,534,817
.
Based on ECB instructions, for the period from 1.1.2022 through
13.9.2022 cash reserves in the Bank of
Greece are subject to an interest equal to the Main Refinancing Operataions
Rate (MRO), for the amount
corresponding to the minimum reserves and as well
as for the amount corresponding to six times the
balance of the mandatotry minimum reserves. The remaining amount
of cash reserves bears interest at
the Deposit Facility Rate.
On 8.9.2022, ECB’s Board decided to suspend the application of
the two-tier system by setting the above
minimum reserves multiplier to zero, effective from
14.9.2022.
On 27.10.2022, ECB’s board decided to set the rate of the mandatory
minimum reserves to the Deposit
Facility Rate, effective 21 December 2022.
Cash and cash equivalents
(as presented in the Consolidated Statement of Cash Flows)
.
31.12.2022
31.12.2021
Cash and balances with
central banks
12,657,564
11,534,817
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
160
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Securities purchased under
agreements to resell
(Reverse Repos)
783,238
Short-term placements with
other banks
658,127
551,045
Total
13,315,691
12,869,100
.
.
16.Due from banks
.
31.12.2022
31.12.2021
Placements with other
banks
1,044,577
1,136,126
Guarantees for derivative
securities coverage
and repurchase agreements
(note 39)
356,764
1,077,895
Securities purchased under
agreements to resell
(Reverse Repos)
783,238
Loans to credit institutions
36,965
36,965
Less:
Allowance for expected
credit losses (note 43,1)
(70,171)
(70,168)
Total
1,368,135
2,964,056
..
.
The decrease is mainly due to the maturity of the reverse repos
agreements, as well as to the decrease
in the guarantees for derivative securities coverage and repurchase
agreements, which is a result of the
increase in interest rates and the consequent change
in the valuations of the derivative transactions for
which the Group exchanges cash as collateral with counterparty
financial institutions.
17.Trading securities
The
following
table
presents
an
anaalysis
of
the
carrying
amount
of
trading
portfolio
per
type
of
security:
31.12.2022
31.12.2021
Bonds:
Greek Government
338
3,819
Other:
91
Equity Shares:
Listed
3,832
1,007
Total
4,261
4,826
.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
161
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
18.Derivative financial instruments (assets and liabilities)
31.12.2022
Contractual
Nominal Amount
Fair Value
Assets
Liabilities
Derivatives held for trading
purposes
a. Foreign exchange derivatives
Foreign exchange forwards
324,870
8,743
7,926
Foreign exchange swaps
1,392,913
18,429
5,982
Cross currency swaps
544,379
17,742
10,986
Currency options
4,295
5
5
Currency options embedded in customer
products
1,543
2
Total non-listed
2,268,000
44,921
24,899
b. Interest rate derivatives
Interest rate swaps
30,002,024
1,971,368
2,013,663
Interest rate options (caps and floors)
3,016,582
41,285
41,945
Total non-listed
33,018,606
2,012,653
2,055,608
futures
1,300
49
Total listed
1,300
49
-
c. Commodity derivatives
Commodity swaps
15,052
640
342
Total non-listed
15,052
640
342
d. Index derivatives
Index swaps
38,668
1,307
1,307
OTC options
256,364
8,976
9,615
Total non-listed
295,032
10,283
10,922
futures
4,791
20
107
Total listed
4,791
20
107
e. Other derivatives
GDP linked security
643,105
643
Total listed
643,105
643
-
Derivatives for fair value
hedging
a. Foreign exchange derivatives
Foreign exchange swaps
238,740
1,649
8,669
Cross currency swaps
220,126
3,799
1,963
Total non-listed
458,866
5,448
10,632
b. Interest rate derivatives
Interest rate swaps
3,972,635
67,539
202,808
Total non-listed
3,972,635
67,539
202,808
Grand Total
40,677,387
2,142,196
2,305,318
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 € 371,915 as at
31.12.2022 (31.12.2021: € 1,066,172). The respective
fair value of derivatives with credit institutions
amounted to € 541,578 as at 31.12.2022 (31.12.2021:€ 966,009).
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
162
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Cross currency swaps
432,322
18,930
4,180
Currency options
9,361
109
35
Currency options embedded in customer
products
2,518
12
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
Total non-listed
15,655
301
-
d. Index derivatives
Index swaps
40,668
1,027
1,027
OTC options
29,764
639
Total non-listed
70,432
1,027
1,666
futures
146
1
Total listed
146
-
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
903
Cross currency swaps
96,035
1,465
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
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 related IFRS 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 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).
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
163
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The Group has identified the following sources which may lead to
hedging ineffectiveness:
●
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 risk rating
counterparties.
●
Difference in timing of cash flows of hedged items and hedging instruments.
Duration, nominal amount, interest rate and currency rate of hedging instruments
of 31.12.2022 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%)
Senior Preferred Bond issued
by Alpha Bank Nominal amount
€ 1,350 million.
Nominal amount of the derivative
1,350,000
Average fixed interest
1.59%
Risk category
Duration > 5 years
Interest rate risk
Greek Government Bonds
Nominal amount of € 1,593
million.
Nominal amount of the derivative
1,034,600
Average fixed interest
2.15%
Loans of nominal amount
of € 240 million.
Nominal amount of the derivative
238,035
Average fixed interest
2.37%
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 Bank Alpha Services
and Holdings
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 million
Nominal amount of the derivative
1,203,800
Average fixed interest
(0.05%)
Greek Government Bond
Nominal amount of € 50
million
Nominal amount of the derivative
46,300
Average fixed interest
0.07%
Senior Preferred Bond issued
by Alpha Bank nominal
amount of € 500 million
Nominal amount of the derivative
500,000
Average fixed interest rate
(0.27%)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
164
ANNUAL FINANCIAL
REPORT
The amounts 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
2022
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 2022
Ineffectiveness
recognised in the
income statement for
2022
Line item in the Income
statement that included
hedge ineffectiveness
Assets
Liabilities
Interest rate risk
Greek Government
Bonds with nominal
value
€ 1,593 million at
AC
Interest rate
swap
55,762
Derivatives
55,908
1,322
Gains less losses on
financial
transactions
Corporate Loan
11,776
11,776
308
Senior Bond
issues
78,246
(70,796)
(795)
Bond issuesTier II
89,498
(82,648)
(1,867)
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)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
165
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The amounts related to balance sheet items designated
as hedged items are analyzed as follows:
2022
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
hedgeditem used for
calculating the hedge
effectiveness
Assets
Liabilities
Assets
Liabilities
Interest rate risk
Greek Government Bonds
with nominal value
€ 1.593 million
1,787,991
(54,586)
Investment securities
measured at amortized cost
(54,586)
Corporate Loan
228,532
(11,468)
Loans and advances to
customers
(11,468)
Senior Bond issues
1,262,753
(76,840)
Debt securitiesandother
borrowed funds
70,001
Bond issuesTier II
918,072
(83,941)
80,781
The amount of € 1,787,991 of Greek state bonds at amortized cost includes
an amount of € 243,446 from
hedging instruments that expired within 2022.
It is noted that the amount of € 65 of value decrease for fixed
interest rate retail loans as at 31.12.2021,
which was a hedge adjustment that expired during
2021, was transferred to the 2022 period results.
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
hedgeditem used for
calculating the hedge
effectiveness
Assets
Liabilities
Assets
Liabilities
Interest rate risk
Greek Government Bonds
with nominal value € 923
million
1,192,362
(111,607)
Investment securities
measured at amortized cost
(121,476)
Greek Government Bonds
with 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)
Debt securities and other
borrowed funds
14,091
Fixed rate retail loans
200,148
148
Loans and advances to
customers
(1,110)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
166
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
b.
Cash flow hedges
In case of 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 flows are determined so that the hypothetical
derivative has a value equal to
zero at inception.
For the hedging of foreign currency risk from loans issued at foreign currency,
the component of the
hypothetical derivative in foreign currency simulates the cashflows
of the hedged element while the
cashflows of the component in Euro 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.
No other sources of ineffectiveness were identified during the year.
At 31.12.2022 the following cashflow hedge relationships
are in effect:
Risk Category
Duration 1 - 5 years
Interest rate risk
Loans with floating rate
at the amount of € 350
million
Nominal amount of the
derivative
350,000
Average fixed interest
rate
0,02%
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
167
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The balance sheet and the income statement amounts relating to the amortization
of the reserve in the
current period that was formed at the date of termination of the
cashflow hedge for term deposits during
the previous period are analyzed as follows:
2022
Hedging
Relationship
Derivative
Type
Carrying
Amount
Change in fair value of
hedged item used for
calculating the hedge
effectiveness in 2022
Change in fair
value of hedged
item recognized in
cash flow hedging
reserve in 2022
Change in fair
value of hedged
item recognized in
profit or loss
hedging reserve in
2022
Income
statement line
affected by the
reclassification
Ineffectiveness
recognised in the
income statement
in 2022
Income statement line
affected by the
ineffective part of the
hedging
Amounts reclassified
from cash flow
hedging reserve to
the income
statement in 2022
from terminated
hedging
relationships
Income
statement line
affected by the
terminated
hedging
relationships
Assets
Liabilities
Interest rate
risk
Loans with
floating rate at
the amount of
€ 350 million
Interest Rate
Swap
35,064
(35,078)
(34,973)
(105)
Net interest
income
(105)
Gains less losses on
financial
transactions
Net interest
income
Team deposits
and renewals
(20,785)
The amounts that have been recognized in the cashflow hedge reserve
at 31.12.2022 are analyzed as
follows:
31.12.2022
Line item in the balance sheet
where the hedged item is
included
Cash flow hedging reserve (before
tax) for active hedging
relationships
Cash flow hedging reserve (before
tax) for terminated hedging
relationships
Cash flow hedging reserve
(before tax))
Interest rate risk
Loans with floating rate at the
amount of € 350 million
Due to customers
(34,973)
(34,973)
Term deposits and renewals
(273,460)
(273,460)
As of 31.12.2021 there were no cashflow hedging relationships
in effect. At the same date an amount of €
14,748 before taxes was reclassified from the cashflow hedge reserve
to interest from deposits and as a
result the negative cashflow hedge reserve amounted to € 294,245
before taxes.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
168
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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:
●
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.
●
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 31.12.2022 are summarized
as follows:
Currency
Nominal amount in Euro
Investment in Alpha
Bank London
Duration < 1 year
FX Swaps - EUR/GBP
GBP
56,759
Exchange rate GBP/EUR
0.89
Investment in subsidiaries
(RON)
Duration < 1 year
Fx swaps & Cross Currency
Interest Rate Swaps
RON
410,627
Exchange rate RON/EUR
4.95
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
31.12.2022
169
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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:
31.12.2022
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
2022
Change in the fair value of
the hedging instrument
recognized in the reserve for
the year 2022
Change in the fair value of
the hedging instrument
recognized in the income
statement in the year 2022
FX Swaps - EUR/GBP
1,649
Derivatives
3,067
3,067
Fx swaps & Cross
Currency Interest Rate
Swaps
3,799
10,631
340
340
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
Derivative
1,451
1,451
The amounts related to hedged items as of 31.12.2022 and
31.12.2021 are analyzed as follows:
31.12.2022
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
(3,067)
(13,335)
Investment in subsidiaries (RON)
(340)
(32,692)
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)
.
19.Loans and advances to customers
.
31.12.2022
31.12.2021
Loans measured at amortised cost
38,877,422
37,890,744
Leasing
243,477
612,077
Less: Allowance
for
expected credit losses
(1,095,368)
(2,077,358)
Total
38,025,531
36,425,463
Advances to customers measured at amortised cost
225,403
235,255
Advances to customers measured at fair value through profit or loss
182,691
40,000
Loans
measured at
fair
value through
profit
or
loss
314,191
159,696
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
170
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Loans and
advances to
customers
38,747,816
36,860,414
.
Finance leases derive mainly from the activities of the subsidiary
Alpha Leasing S.A.
As at 31.12.2022, “Advances to customers measured at
amortised cost” include accumulated
impairments amounting to € 40,800 (31.12.2021: € 49,987).
Advances to customers measured at amortised cost include an
amount of deferred consideration of €
91,935 (31.12.2021:€ 105,426) relating to the transfer of the portfolio
of secured non-performing loans
and other receivables (Neptune transaction).
Additionally, “Advances to customers measured at
fair value through profit or loss” includes a contingent
consideration resulting from the above transaction
of fair value amount of € 40,000 31.12.2022
(31.12.2021: € 40,000), as well as amount as an amount of € 19,911
and € 122,778 of the deferred and
contingent consideration resulting from the sale of 90,01% of
«Nexi Greece Payment S.A.» shares in the
context of the curve out of the merchant acquiring
business (note 48).
The following tables, present an analysis of loans per type and category.
Loans
measured
at
amortised
cost
31.12.2022
31.12.2021
Individuals
Mortgages
-
Non-securitized
6,719,743
6,700,109
-
Securitized
2,629,573
2,793,296
Consumer:
-
Non-securitized
895,339
878,303
-
Securitized
710,517
886,371
Credit cards:
-
Non-securitized
395,974
406,162
-
Securitized
545,100
533,555
Other
1,425
1,367
Total loans to
individuals
11,897,671
12,199,163
Corporate:
Corporate loans:
-
Non-securitized
19,236,553
17,146,882
-
Securitized
1,657,853
2,481,162
Leasing:
-
Non-securitized
86,088
381,550
-
Securitized
157,389
230,527
Factoring
723,642
581,049
Senior
securitization
notes
5,361,703
5,482,488
Total
corporate loans
27,223,228
26,303,658
Total
39,120,899
38,502,821
Less: Allowance
for
expected credit losses
(1,095,368)
(2,077,358)
Total loans measured
at amortised cost
38,025,531
36,425,463
In “Advances to customers measured at amortized cost” the Group has
recognized the senior notes held
by the Group, of Galaxy and Cosmos transactions completed in
2021, in the context of non-performing
loans reduction. It is noted that as a result of Galaxy transaction, as
detailed disclosed in the Financial
Statements as of 31.12.2021, the Group recognized
a loss of € 2,238,989, included in “Gains/(losses) on
derecognition of financial assets measured at amortised
cost” of the corresponding period.
In the context of the reassessment of the hold to collect business model
of loans and advances to
customers, past sales are considered.
Considering that:
-
the majority of the Group’s sales are in accordance with the Group’s business model as they concern sales
of nonperforming loans due to the credit rating deterioration of the debtor and
-
individual sales of loans are not considered material both individually and in aggregate, the Group has
assessed that the “hold to collect” business
model is not affected.
In addition, the Group holds a portfolio of corporate, consumer
loans, credit cards and lease receivables
that have been securitized through special purpose entities controlled
by it. As per the contractual terms
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
171
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
and the structure of the transactions (eg provision of guarantees
and/or credit assistance or own
ownership of bonds issued by special purpose entities) it
is evident that the Group retains in all cases the
risks and rewards arising from the securitized portfolios.
Mortgage loans as at 31.12.2022 include loans amounting to €
3,154,105 (31.12.2021: € 3,420,371)
which have been used as collateral in the Covered Bond Issuance Program
I, Covered Bond Issuance
Program II of the Bank and the Direct Issuance Covered
Bond Program of Alpha Bank Romania.
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 31.12.2022
amounted to € 1,060,422 (31.12.2021:
€ 1,336,953) and is included in the balance of loans measured at
amortized cost. For this category of
loans the accumulated expected credit loss allowance as
at 31.12.2022 amounts to € 2,435 (31.12.2021
€ 1,977).
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 € 234,295 as at
31.12.2022 (31.12.2021: € 367,947) and is included in the balance
of loans measured at amortized cost.
For the above loans the accumulated allowance for expected credit losses
recognized as at 31.12.2022
amounts to € 1,260 (31.12.2021 € 1,393).
On 30.6.2022, the Group also proceeded with the classification in the “Assets
held for sale” of the
following portfolios:
-
Non-performing leasing portfolio (Leasing project)
-
Collateralized corporate loans (Solar project)
-
Collateralized loans and/or advances to large and small medium-sized enterprises (Hermes project)
-
Portfolio of non-performing retail credit loans without collateral (Project Light), for which the sale
transaction was completed within November 2022.
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
1.1.2021
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
Changes for the year 1.1 - 31.12.2022
Impairment losses for the year
461,486
Transfer
of
allowance
for
expected
credit losses
to
Assets
held
for
sale
(1,176,104)
Derecognition due to substantial modifications in loans’ contractual terms
(1,585)
Change in present value of the impairment losses
9,790
Foreign
exchange
differences
2,205
Disposal of impaired loans
(89)
Loans written-off during the year
(280,596)
Other movements
2,903
Balance
31.12.2022
1,095,368
.
“Impairment losses” presented in the table above, do not include impairment
losses of € 19,933 related to
impairment losses for loans classified as held for sale during the
period as well as the fair value
adjustment of the contractual balance of loans which were impaired
at their acquisition or origination
(POCI), which is does not affect the accumulated impairments
as it is included in the carrying amount of
the loans before impairments. In line “Transfer of allowance for
expected credit losses to Assets held for
sale”, the amount of € 1,176,104 mainly relates to the Solar, Hermes,
Light, Leasing and Shipping non-
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
172
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
performing loans portfolios sale transactions.
Finance lease receivable is analyzed by duration as follows:
31.12.2022
31.12.2021
Up to
1 year
92,607
324,130
From 1
year to
5 years
141,450
188,633
Over 5
years
38,643
151,489
272,700
664,252
Non accrued
finance lease
income
(29,223)
(52,175)
Total
243,477
612,077
.
The net amount of finance lease receivables are analyzed as follows,
based on their duration:
31.12.2022
31.12.2021
Up to
1 year
83,412
313,159
From 1
year to
5 years
125,368
164,227
Over 5
years
34,697
134,691
Total
243,477
612,077
.
Loans
measured
at
fair
value
through
profit
or
loss
31.12.2022
31.12.2021
Corporate:
Corporate
loans
-
Non-securitized
311,838
157,135
-
Securitized
Galaxy and
Cosmos securitization
bonds
2,353
2,561
Total
corporate loans
314,191
159,696
Total loans to customers
measured at fair value
through profit or loss
314,191
159,696
The above balances as of 31.12.2022 include syndicated loans with Fair
Value of € 214,992 that are
measured at fair value through profit or loss since they are designated
as “hold to sale” financial
instruments.
As at 31.3.2022, the Group classified a portfolio of
non-performing shipping loans (“Shipping”) under
“Assets Held for sale”. The portfolio sold within July 2022. During the
first quarter of 2022, the Group
proceeded to certain loan transfers in the category
of “Assets Held for sale”, that related mainly to loans
measured at fair value through profit and loss (note 48).
In the context of the Cosmos and Galaxy transactions, the mezzanine,
and junior notes, which were
retained by the Bank (5%), were recognized in “Loans and
advances measured at fair value through
profit and loss”.
20.Investment securities
.
31.12.2022
31.12.2021
Investment Securities measured at fair value through other comprehensive income
1,806,445
6,634,120
Investment Securities measured
at fair value through profit or loss
327,506
253,347
Investment Securities measured at amortized cost
11,336,249
3,752,747
Total
13,470,200
10,640,214
.
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
.
31.12.2022
31.12.2021
Greek Government:
- Bonds
308,947
2,149,708
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
173
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
- Treasury
bills
835,047
698,753
Other Sovereign:
- Bonds
345,899
1,670,701
- Treasury
bills
82,695
Other issuers:
- Listed Bonds
278,955
1,968,60
-Non listed bonds
1,848
4,820
Equity
securities
-
Listed
13,459
23,425
-
Non
listed
22,290
35,408
Total
1,806,445
6,634,120
.
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,
Following the above, the Bank’s Executive Committee decided
to limit its exposure in securities
measured at fair value through other comprehensive income
to the minimum levels required to cover the
Bank’s financial products management sector, and subsequently the
Asset Liability Management
Committee decided to reclassify bonds from the portfolio of
securities valued at fair value through other
results that are directly recognized in equity in the category
held for the purpose of collecting principal
and interest, which is also in line with the Bank’s Strategic
Plan.
The above decision was assessed as meeting the
criteria of changing the business model in accordance
with the provisions of the IFRS 9 and therefore from
1.1.2022 the relevant investment portfolio with a fair
value of € 4.16
billion was reclassified to the portfolio of investment securities
measured at amortized
cost adjusted by the amount of cumulative profits before tax of
€ 6.98 million that had been recognized in
equity
As at 31.12.2022 the fair value of the reclassified portfolio
amounted to € 3,328 million, while the portfolio
valuation reserve of the securities measured at fair value through other
comprehensive income would
have been adjusted with a loss of € 318 million after tax from 1.1.2022
if the reclassification had not
taken place.
In March 2022 and there after:
-
The significant change in the structure of the Balance Sheet of Alpha Bank Cyprus as a result of the
decision to dispose a portfolio of Non-Performing Exposures (NPEs) and Real Estate Assets of the Bank
and
-
The supervisory expectations, as reflected in the Supervisory Evaluation (SREP) regarding the business
models that could have an impact on the supervisory capital and the Capital Adequacy Ratio of Alpha
Bank Cyprus, the Executive Committee of which took the decision to limit the exposure in securities that
were measured at fair value through other comprehensive income, and subsequently the Asset Liability
Management Committee decided to reclassify bonds from the portfolio of securities valued at fair value
through other comprehensive income are recorded directly in equity in the category held for the purpose
of collecting principal and interest.
The above decision was assessed as meeting the
criteria of changing the business model in accordance
with the provisions of the IFRS 9 and therefore from
1.4.2022 the relevant investment portfolio with a fair
value of € 291 million was reclassified to the portfolio
of investment securities valued at amortized cost
adjusted by the amount of cumulative losses of € 5.3 million
that had been recognized in equity.
As at 31.12.2022 the fair value of the reclassified portfolio
amounted to € 248 million, while the portfolio
valuation reserve of the securities valued at fair value through other
results would have been adjusted
with a loss of € 20 million from 1.4.2022 if the reclassification had not taken
place.
As a result of the change in the business model, the purchase
of bonds of The Bank from its subsidiaries,
after the reclassification of 1.1.2022, were included in
the portfolio of securities measured at amortized
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
174
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
cost, while in the subsidiary itself were included in the portfolio
of securities measured at fair value
through other comprehensive income.
On a Group level these securities were reclassified the portfolio
of investment securities valued at
amortized cost as the Bank’s classification had prevailed.
The fair value of the portfolio amounted as at
31.12.2022 to € 122.4 million and the revaluation reserve of securities
measured at fair value through
other comprehensive income would have been adjusted with a loss
of € 6.4 after taxes.
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 31.12.2022 and as of
31.12.2021.
.
Fair Value
31.12.2022
Dividend income
from
1.1 έως
31.12.2022
Fair Value
31.12.2021
Dividend income
from
1.1. έως
31.12.2021
Investments in financial industry entities
7,004
1,702
6,068
1,327
Investments in private equity
11,334
25,980
Shares acquired through debt
swap agreements
3,458
4,650
Long term equity holdings
13,953
711
22,135
380
Total
35,749
2,413
58,833
1,707
.
The fair value in investments in financial industry entities increased
by approximately 15% in 2022
compared to the previous year, due to the share capital increase
of a particular company. The decrease
in the total fair value in 2022, compared to
the previous year, is mainly due to the liquidation of part of the
private equity investments and certain
long term investment shares.
Specifically, within 2022: a) The fair value of Group private
equity investments decreased by € 8,687,
mainly due to capital returns from the existing investments, b) sales
for liquidity purposes of long term
investments in CosmoOne and Byte Computer of shares
of total fair value of € 7,660 at derecognition
date was completed with no income statement impact.
The Group received a dividend of € 196 in 2022
from Byte Computers while no dividend was received from CosmoOne
and c) the fair value of shares
received in exchange for debt forgiveness in the context
of debt restructuring, decreased by € 1,192
in
2022, due to a decrease in the fair value of KEKROPS S.A. compared
to the previous year.
There were no sales of equity shares measured at fair
value through other comprehensive income in
2021.
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 MAE and Reoco Cosmos MAE. The
investment in these companies amounted to € 193 at 31.12.2021 were
reclassified to the portfolio of
securities measured at fair value through other comprehensive income.
b.
Securities
measured
at
amortized
cost
.
31.12.2022
31.12.2021
Greek Government:
- Bonds
5,458,911
3,088,893
Other
Governments:
- Bonds
3,292,913
428,957
Other
issuers
-
Listed
2,581,567
234,898
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
175
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
- Non-Listed
2,858
Total
11,336,249
3,752,748
.
For the above securities valued at amortized cost has been recognized
accumulated impairment losses
due to credit risk amount to € 28,087 (31.12.2021: € 15,371). The
carrying amount before impairments
amounts to € 11,364,336 (31.12.2021€ 3,768,119).
c.Securities
measured
at
fair
value
through
profit
or loss
.
31.12.2022
31.12.2021
Other issuers:
-
Listed
11,397
36,332
-
Non
listed
2,191
3,009
Equities:
-
Listed
6,774
6,598
-
Non
listed
43,725
32,439
Other variable yield
securities
263,419
174,968
Total
327,506
253,346
.
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.
.
21.Investments in associates and joint ventures
.
31.12.2022
31.12.2021
Opening Balances
68,267
30,716
New associates/ joint ventures
33,015
Classification of
Cepal Holding
Societe Anonyme
29,764
(Returns)/ Share
Capital Increases
(2,137)
46
Reversal of impairment/ (impairment)
of joint venture
(3,529)
1,574
Share of
profits/(losses) and other comprehensive
income
3,049
6,167
Total
98,665
68,267
.
Line “New associates/ joint ventures” includes the 9.99% participation in
Nexi Hellas S.A. which was held
by the Group in the context of the merchant acquiring business transfer
agreement of the Bank in
Greece, as analyzed in note 48. Participation
in Nexi Hellas S.A. is classified in investments in
associates as the Bank still participates in the company’s Board of
Directors taking part in decisions
concerning its core activities.
The associates and joint ventures of the Group are as follows:
.
Name
Country
Group’s
ownership
interest %
31.12.2022
31.12.2021
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
176
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
20.00
Nexi Payments Greece S.A.
Greece
9.99
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 Α.Ε.
Greece
72.20
72.20
Alpha ΤΑΝΕΟ A.K.E.S.
Greece
51.00
51.00
Rosequeens
Properties Ltd*
Cyprus
33.33
33.33
Panarae Saturn LP
Jersey
61.58
61.58
Alpha Investment
Property Commercial
Stores
S.A.
Greece
70.00
70.00
.
The Group’s share in equity and profit/(losses) of each associate
and joint venture is set out below:
.
Group’s
share on
equity
From 1 January to
31.12.2022
31.12.2021
a. Associates
AEDEP
Thessalias and
Stereas Ellados
75
73
A.L.C
Novelle
Investments
Ltd
374
3,367
Olganos
S.A.
Bank
Information
Systems
S.A.
616
343
Nexi Payments
Greece
S.A.
33,900
Propindex Α.E.D.A
78
78
Alpha
Investment
Property
Elaionas
S.A
(1,322)
(252)
Cepal Holdings
S.A.*
36,961
32,593
Perigenis Commercial
Property S.A.
15,188
15,230
Total
(a)
85,870
51,432
b. Joint
ventures
APE
Commercial Property
Α.Ε.
3,175
3,917
Alpha ΤΑΝΕΟ
A.K.E.S.
3,661
7,029
Rosequeens Properties Ltd*
(13)
Panarae Saturn LP
1,497
1,431
Alpha
Investment
Property
Commercial
Stores
S.A.
4,462
4,471
Total
(b)
12,795
16,835
Total
(a+b)
98,665
68,267
.
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 43.87% 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/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.
Within 2022 the Group acquired bonds issued by the special purpose
enterprise Iside SPV SRL, which
was established for servicing entities’ financing. As the company’s
main activity is related to its issued
bonds, and for which the decisions taken are joint with the other lender, the Group
has joint control over
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
177
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
the company. As the Group 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
as well as the carrying amount of
the Group’s participation in the companies and of the loans and receivables
that are 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.,
Nexi Hellas S.A. and Perigenis Commercial Property S.A. are considered
as significant.
It is noted that Nexi Hellas S.A. which was evaluated for the year
2022 as a significant associate was
reclassified to associates as at 30.6.2022, the date on which the Group lost
the control of the company
as a result of the sale of 51% of the share
capital of Alpha Payment MAE, which was renamed
to Nexi
Hellas S.A. as described in note 48. Nexi Hellas S.A. operates in
the merchant acquiring business.
Alpha Investment Property Elaionas S.A. has as main activity the
construction of buildings and the
general exploitation of real estate.
Cepal Hellas has as main activity the Bank’s NPL servicing
business.
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.
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. Nexi
Hellas S.A. and Perigenis Commercial Property S.A. which are
accounted under the equity method, are
presented below.
Alpha Investment Property
Elaionas S.A.
Condensed Statement of Total
Comprehensive Income
.
31.12.2022
31.12.2021
Interest and similar
expenses
(1,765)
(1,840)
Other
expenses
(427)
(399)
Profit/(losses) before
income tax
(2,192)
(2,239)
Income tax
Profit/(losses) for the year
(2,192)
(2,239)
Other comprehensive
income
Other comprehensive income for
the year after income
tax
(2,192)
(2,239)
Amount
attributed to
the
participation of
the
Group
to
profits/(losses) of
the
associate
(1,096)
(1,116)
.
No dividends have been received from the entity within the years
2022 and 2021.
Condensed
Balance
Sheet
.
31.12.2022
31.12.2021
ASSETS
Other current
assets
1,888
4,211
Total current
assets
1,888
4,211
Non-current
assets
105,228
105,069
Short-term liabilities
1,510
1,472
Total Short-term
liabilities
1,510
1,472
Long-term financial liabilities
108,249
108,322
Total long-term
liabilities
108,249
108,322
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
178
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Total equity
(2,643)
(514)
Group
participation
50%
50%
Equity
shareholding
(1,322
)
(257)
Carrying amount of participation
(1,322
)
(252)
Loan that is
part of
the net
investment
55,613
55,652
Net investment
54,291
55,400
.
Cepal Holdings S.A.
Condensed Statement of Total Comprehensive
Income
.
31.12.2022
31.12.2021
Interest and similar income
2
Interest and similar
expenses
(4,677)
(4,903)
Commission
expense
(13)
(5)
Gains less
losses on
financial transactions
18
(21)
Other
income
188,981
169,001
Staff costs
(44,521)
General
Administrative
Expenses
(75,267)
(77,917)
Depreciation
(28,957)
(26,988)
Profit/(losses) before
income tax
35,564
59,169
Income tax
(8,445)
(10,218)
Profit/(losses) for the year
27,119
48,951
Other comprehensive
income
Total
comprehensive income after
income tax
27,119
48,951
Amount
attributed to
the
participation of
the
Group
to
profits/(losses) of
the
associate
4,368
2,829
.
No dividend was received in 2022.
The amount corresponding to the profits of the associate Cepal
Holdings SA. for 2021 concerns the
period from 18.6.2021 to 31.12.2021.
Condensed
Balance
Sheet
.
31.12.2022
31.12.2021
Assets
Other current
assets
42,495
58,118
Total current
assets
42,495
58,118
Non current
assets
315,486
281,425
Other short term liabilities
71,491
27,470
Total short term
liabilities
71,491
27,470
Other long term liabilities
53,435
96,753
Total long term liabilities
53,435
96,753
Provisions
2,148
6,075
Total
Equity
230,907
209,245
Group participation
(%)
20%
20%
Equity
shareholding
46,181
41,849
Carrying amount of participation
36,961
32,593
.
Perigenis
Commercial
Property
S.A.
Condensed Statement of Total Comprehensive
Income
.
31.12.2022
31.12.2021
Interest and similar
expenses
(4)
(3)
Other
income
52
General
Administrative
Expenses
(261)
(195)
Depreciation
(210)
(192)
Profit/(losses) before
income tax
(423)
(390)
Income tax
Profit/(losses) for the year
(423)
(390)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
179
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Other comprehensive
income:
Total
comprehensive income after
income tax
(423)
(390)
Amount
attributed to
the
participation of
the
Group
to
profits/(losses) of
the
associate
(135)
(133)
.
No dividend was received in 2022.
Condensed
Balance
Sheet
.
31.12.2022
31.12.2021
Assets
Other current
assets
26,144
34,055
Total current
assets
26,144
34,055
Non-current
assets
21,157
13,992
Other short-term liabilities
102
422
Total short term
liabilities
102
422
Total
Equity
47,200
47,626
Group participation
(%)
31.97%
31.97%
Equity
shareholding
15,090
15,240
Carrying amount of participation
15,188
15,230
.
Nexi
Payments
Greece
S.A.
Condensed Statement of Total Comprehensive
Income
.
31.12.2022
Commission
Income
63,316
Other
income
7
Commission
expense
(39,651)
Acquisition Costs
(8,949)
Staff costs
(1,281)
General Administrative
Expenses
(6,840)
Other expenses
(1,917)
Profit/(losses) before
income tax
4,685
Income tax
-
Profit/(losses) for the year
4,685
Other comprehensive income:
-
Total
comprehensive income after
income tax
4,685
Amount
attributed to
the
participation of
the
Group
to
profits/(losses) of
the
associate
492
.
The amount corresponding to the profits of the associate Nexi
Hellas SA. concerns the period from
29.7.2022 to 31.12.2022. No dividend was received in 2022.
Condensed
Balance
Sheet
.
31.12.2022
Assets
Cash
9,071
Other current
assets
184,213
Total current
assets
193,284
Non-current
assets
298,798
Short-term liabilities
157,730
Total Short-term
liabilities
157,730
Long-term financial liabilities
17,224
Total long-term
liabilities
17,224
Total equity
317,127
Group participation
(%)
9.99%
Acquisition
cost
32,908
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
180
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Carrying amount of participation
33,900
.
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.
With the exception of Group’s participation in Olganos which is
fully impaired and the Group has ceased
recognizing its participation to losses amounting to € 627 as at 31.12.2022,
there are no other cases
where the Group has seized such recognition of losses.
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 in connection
with the minimum required share capital and equity and
the ability to distribute dividends.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
181
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
22.Investment property
.
Land – Buildings
Rights-of-use on
Land and
Buildings
Total
Balance
1.1.2021
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)
Disposal of
subsidiaries
(30,218)
(30,218)
Depreciation charge for
the year
(9,346)
(6,510)
(15,856)
(Impairment)/Reversal of 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)
1.1.2022 - 31.12.2022
Net book
value 1.1.2022
420,066
5,366
425,432
Additions
37,614
37,614
Additions from
expenses capitalization
700
700
Additions
from
companies consolidated
for
the
first
time
in
the
year
2,123
2,123
Reclassification to
"Property,
Plant
and
Equipment"
1,569
1,569
Reclassification to
"Assets held
for
sale"
(185,170)
(185,170)
Disposals/Write-offs/Terminations
(21,770)
4
(21,766)
Depreciation charge for
the year
(7,950)
(718)
(8,668)
(Impairment)/Reversal of Impairment for the year
(7,021)
(7,021)
Foreign Exchange
differences
90
90
Net book value
31.12.2022
240,251
4,652
244,903
Balance
31.12.2022
Acquisition Cost
271,501
7,662
279,163
Accumulated depreciation and
impairment losses
(31,250)
(3,010)
(34,260)
.
The fair value of investments in land and buildings as at 31.12.2022
amounts to € 261,303 (31.12.2021:
€ 430,169).
In 2022 an impairment loss amounting
to € 7,021 (31.12.2021: € 57,296),
was recognized, in order for the carrying
amount of investment property not to exceed
the recoverable amount as at 31.12.2022.
The recoverable amount
was estimated by certified valuers, as
the fair value less cost to sell. The
impairment amount was recognized in
“Other Expenses” in the Income Statement.
The recoverable amount of investment
property, which was impaired
during the current year, amounted
to € 17,300 (31.12.2021: € 112,507).
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 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. The capitalization
rate used ranges between
6.5% and 8%.
In 2022, the Group transferred investment property of € 172 mil.
to Assets Held for Sale, in the context of
the Sky and Skyline transactions as described in detail in
note 48.
The recoverable amount 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:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
182
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
.
31.12.2022
31.12.2021
-
Up
to
1
year
8,301
8,792
-
From
1
year
to
5
years
14,609
15,173
-
Over 5
years
2,478
482
Total
25,388
24,447
.
Future income from finance leases is disclosed in note 19.
Income from operating leases for 2022 amounts to € 14,283 (31.12.2021:
€ 12,489) and are included in
“Other income”.
23.Property plant and equipment
.
.
Land and
Buildings
Equipment
Rights-of-
use
on
fixed
assets
Total
Balance
1.1.2021
Acquisition
Cost
840,090
523,764
172,178
1,536,032
Accumulated depreciation and impairment losses
(245,729)
(430,7)
(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)
1.1.2022 -
31.12.2022
Net book value
1.1.2022
568,068
79,863
89,882
737,813
Additions
2,963
13,033
14,844
30,840
Disposals/Write-offs/Terminations/Reassessments
(1,288)
(201)
(121)
(1,610)
Reclassification to
"Property,
Plant
and Equipment"
77
(77)
-
Reclassification
to "Other
Assets
(3,024)
(3,024)
Reclassification to "Assets
held for
sale"
(167,736)
(167,736)
Foreign Exchange
differences
(325)
(12)
(291)
(628)
Depreciation charge for the
year
(12,991)
(18,718)
(26,806)
(58,515)
Impairment losses for the year
(7,993)
78
(7,915)
Net Book value
31.12.2022
377,751
73,966
77,508
529,225
Balance
31.12.2022
Acquisition
Cost
673,678
515,814
181,391
1,370,883
Accumulated depreciation and impairment losses
(295,927)
(441,848)
(103,883)
(841,658)
.
In the current year, an impairment of € 7,993 (31.12.2021: €
94) for land and buildings was recognized,
related to properties within the Skyline transaction perimeter,
before their classification to Assets held for
sale, after taking into consideration the offers received. The recoverable
amount of land and buildings
which were impaired in 2022, amounted to € 52,500 (31.12.2021:
€ 2,084). For the purpose of the
impairment exercise of property, the estimation of the recoverable
amount was based on the value in
use, which incorporates the value of the fixed asset and all
the improvements realized as necessary to
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
183
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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.
In 2022, the Group transferred property plant and equipment
with a carrying amount of € 167,736 to
“Assets Held for Sale” in the context of Project Skyline,
as described in note 48.
Additionally, in 2022 the Group transferred assets
with a carrying amount of € 3,024 to “Other Assets”,
mainly related to branches of the Bank’s network that the
Bank ceased to use for operational purposes in
the context of the merger of branches.
24.Goodwill and other intangible assets
.
Goodwill
Software
Other
intangible
Total
Balance
1.1.2021
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)
Depreciation charge for
the year
(74,635)
(2,657)
(77,292)
(Impairment)/Reversal of Impairment 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)
1.1.2022 - 31.12.2022
Net book
value 1.1.2022
-
478,142
41
478,183
Additions
86,602
86,602
Transfers
660
300
960
Foreign Exchange differences
(13)
(13)
Disposals/Write-offs
(1,030)
(1,030)
Depreciation charge for
the year
(89,224)
(115)
(89,339)
Impairment losses for the
year
(680)
(680)
Net Book
value 31.12.2022
-
474,457
226
474,683
Balance
31.12.2022
Acquisition
Cost
990,650
126,488
1,117,138
Accumulated depreciation
and impairment
losses
(516,193)
(126,262)
(642,455)
.
Software additions of the year relate mainly to purchase of licenses and software
applications of the
Bank.
Software programs additions of the year includes an amount of
€ 10,280 (31.12.2021: € 11,110) which
concern to internally produced computer applications. The depreciation charge
for the year
corresponding to these applications amounted to € 728 (31.12.2021:
€ 2,545).
In 2022 an impairment loss on intangible assets of
€ 680 (31.12.2021: € 52,545) was recognized in
“Other expenses”.
The amount of impairments in 2021 amounting to € 52,545 is analyzed
as follows: a) an amount of €
41,811 relates to intangible assets recognized in prior
years for the customer relationships obtained as a
result of the transaction and the acquisition of Citi’s Wealth Management
and the Citi/ Diners credit card
clientele, impairments on software, the use of which was terminated within
2021 following a relevant
decision to replace them with other existing systems and impairments on
software which, in the context
of the transformation program were deemed to no longer
address the new operational needs, and b) an
amount of € 10,734 relates to the Group software supported the
operations of Alpha Bank Albania, that
was classified as Discontinued operations.
The goodwill impairments in 2021 relate to the goodwill
impairment of the real estate company Acarta
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
184
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Construct Srl due to adjustment of the temporary fair
values that were recognized for the acquisition of
said company with regards to the acquisition date as, within December
2021, the valuation of assets,
liabilities and evaluation of contingent liabilities was
completed and they have been classified in “Gains
less losses on financial transactions”.
25.Deferred tax assets and liabilities
.
31.12.2022
31.12.2021
Assets
5,232,364
5,427,516
Liabilities
(23,487)
(23,011)
Total
5,208,877
5,404,505
.
Deferred tax assets and liabilities are analyzed as follows:
.
1.1 - 31.12.2022
Balance
1.1.2022
Recognised
in
Foreign
exchange
differences
Balance
31.12.2022
Income
Statement
Equity
Debit difference
of Law
4046/2012 (Note
13)
891,097
(44,555)
846,542
Debit difference
of Law
4465/2017 (Note
13)
2,944,394
(9,650)
2,934,744
Write-offs, depreciation and impairment of fixed assets and
leases
48,982
28,302
77,284
Loan portfolio
1,042,865
(141,829)
901,036
Α
Valuation
of
loans due
to
hedging
(24)
3,350
3,326
Employee defined
benefit and
insurance funds
7,269
61
(1,916)
5,414
Valuation of derivatives financial instruments /
Valuation cash
flow hedge
reserve
114,167
(61,790)
4,115
56,492
Valuation
of
liabilities to
credit institutions
and
other
borrowed
funds
due
to
fair
value
hedge
(16,792)
(45,319)
(62,111)
Valuation/impairment of investments
137,235
13,182
150,417
Valuation/impairment of debt securities and other
securities
114,600
51,995
44,582
211,177
Tax
losses carried
forward
7,744
(199)
7,545
Other temporary
differences
128,519
(35,519)
570
93,570
Currency translation differences
from financial
statements
and
net
investment
hedging
of
foreign
operations
(15,551)
(1,008)
(16,559)
Total
5,404,505
(241,971)
45,773
570
5,208,877
.
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
1,465,837
(422,972)
1,042,865
Α 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
185
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
149,714
(24,202)
(3,561)
3,441
3,127
128,519
Currency
translation
differences from financial
statements and net
investment hedging of
foreign operations
(14,875)
(676)
(15,551)
Total
5,246,525
103,468
51,505
(3,561)
3,441
3,127
5,404,505
.
In accordance with article 125 of Law 4831/2021 “Legal Council
of the State (NSK) and situation of its
officials and employees and other provisions”, article 27 of Law 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 compared 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 these 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 transferred 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, i.e. 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 € 82.7 mil. as at
31.12.2022 (31.12.2021: :€ 119.8 mil), on the unamortised balance
of debit difference.
As of 31.12.2022, the amount of deferred tax assets which are in the scope
of Law 4465/2017 and
include the amount of the debit difference of Law 4046/2012 (PSI), amount
to € 2.7 bil. (31.12.2021: €
2.9 bil.).
As at 31.12.2022, the Group has not recognized deferred tax asset
related to tax losses amounting to €
643,797, of which an amount of € 486,805 concerns Alpha Services
and Holdings S.A. and which
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 31.12.2022
deriving from relevant tax losses are
presented in the following table by year of maturity.
.
Expiration
year for setting
off tax losses
Deferred tax
assets
2023
34,585
2024
17,789
2025
20,388
2026
298,951
2027
271,767
2028
238
2029
78
Total
643,797
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
186
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
.
Moreover, the Group as at 31.12.2022 has not recognized
deferred tax assets on temporary differences
of amount € 32,507. The year for the reversal of the above
temporary differences cannot be reliably
determined.
The non recognized deferred tax assets on temporary differences as
at 31.12.2021 amounted to €
282,264 deriving mainly from the valuation of the 44%
of the Galaxy and Cosmos 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. An amount of € 257,262 of the
aforementioned non recognized deferred tax assets was reclassified
as tax losses, as the
aforementioned notes were used as a contribution in
kind in the share capital increase, by the Company
to Galaxy Mezz Ltd.
26. Other assets
.
31.12.2022
31.12.2021
Tax
advances and withholding taxes
234,624
263,823
Deposit and
Investment Guarantee Fund
429,856
634,048
Property obtained from auctions and other property
held for sale
284,430
393,233
Prepaid expenses
24,699
26,693
Accrued
income
32,434
6,630
Other
288,912
248,370
Total
1,294,955
1,572,797
.
“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:
i.
the amount of the contribution to the Investment Cover Scheme and
ii.
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.
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” the above difference is included in, a
distinct group of assets. Each of asset included in this group belongs to
the participated Credit
Institutions based on their participation rate.
On 2.12.2022 the “Deposit and Investment Guarantee Fund” paid to
the Bank the first of three equal
installments of the Additional Deposit Cover Scheme in
application of amendment of Law 4370/2016 in
accordance with the provisions of
Law 4972/2022, each amounting to € 196,818. The carrying amount
of the Bank’s participation to the
Deposit Cover Scheme as at 31.12.2022 amounted to €
395,114.
“Tax advances
and withholding
taxes” is presented,
net of provisions
amounted to €
64,763 in
year 2022
(31.12.2021€ 64,763).
Within 2022 the Group transferred assets
with a carrying amount of €
106,442 from “Other Assets” to “Assets
Held
for Sale” in the context of the Skyline and
Startrek projects.
The fair value of the assets has been estimated based on the
methods described 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%.
“Accrued income” includes a contract asset amounting to €
4,857 (31.12.2021: € 0) and derives from the
performance bonus for the sale of insurance products based
on the relevant agreement.
LIABILITIES
27.Due to Banks
.
31.12.2022
31.12.2021
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
187
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Deposits:
-
Current accounts
133,010
208,056
- Term
deposits:
Central Banks
12,806,994
12,862,803
Other credit institutions
171,288
80,592
Cash collateral for
derivative margin account and repurchase agreements
729,466
22,022
Securities sold under
agreement to
resell (Repos)
32,070
308,014
Borrowing
funds
466,787
497,602
Deposits on
demand:
- Other credit institutions
5,236
4,567
Total
14,344,851
13,983,656
.
Total funding through TLTRO III program as of 31.12.2022
amounts to € 12.8 bil. and the recognize
income for the year amounts to € 55,609, which was calculated with
an interest rate of -1% until
24.6.2022, the expiration date of the additional special
interest period, as the Bank met the eligibility
criteria set by ECB. From 24.6.2022 and for the entire
duration of the program the interest rate was
initially determined as the average ECB deposit facility
from the beginning and for the duration of the
program.
Following the announcement of the ECB dated 27.10.2022 the calculation
for the last period has been
amended. In specific, for the period from 24.6.2022 until
22.11.2022 the interest rate is calculated as the
average interest rate of the deposit acceptance facility
rate from the commencement of each transaction
up until 22.11.2022, while from 23.11.2022 until the expiration date
the calculation is based on the
average deposit acceptance facility rate.
Increase in cash collateral for derivative margin account and repurchase
agreements, derives from the
increase in interest rates and the subsequent change in the
derivatives transactions valuations with
counter parties– financial institutions with which the collateral
is exchanged.
“Borrowing funds” relates to the liabilities of the Bank to the
European Investment Bank.
28.Due to customers
.
.
31.12.2022
31.12.2021
Deposits:
- Current
account
24,511,965
22,022,946
- Saving
accounts
15,767,148
14,959,750
- Term
deposits
9,790,559
9,792,024
Deposits on demand
48,116
42,906
50,117,788
46,817,626
Cheques
payable
128,136
152,000
Total
50,245,924
46,969,626
.
As of 31.12.2022 Due to customers increased by
€ 3,276,298 compared to 31.12.2021.
29.Debt securities in issue and other borrowed funds
i.
Covered
bonds*
Changes in covered bonds are summarized as below:
.
Balance 1.1.2022
710,042
Changes for the year1.1
- 31.12.2022
Maturities/Repayments
(14,765)
Accrued Interests
15,023
Foreign Exchange differences
(42)
Balance 31.12.2022
710,258
The following table presents detailed information for the covered Bonds
issues:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
188
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
a.
Held
by
the
Group
.
Issuer
Currency
Interest Rate
Maturity
Nominal
Value
31.12.2022
31.12.2021
Alpha Bank S.A.
Euro
3m Εuribor+0.50%, minimum 0%
23.1.2025
1,000,000
1,000,000
Alpha Bank S.A.
Euro
3m Εuribor+0.50%, minimum 0%
23.1.2025
1,000,000
1,000,000
Alpha Bank S.A.
Euro
3m Εuribor+0.35%, minimum 0%
23.1.2023
200,000
Alpha Bank S.A.
Euro
2.50%
5.2.2023
1,000
1,000
Total
2,001,000
2,201,000
.
On 26.4.2022 own covered bonds with a nominal value of € 200 mil.
and maturity 23.1.2023, with a
floating rate 3m Εuribor+0,35% and minimum rate 0%, were fully
repaid.
In addition, in the context of Covered Bonds Program II the Bank
decided to extend the maturity of the
two covered bond held by the Bank amounting to € 1 billion each, with floating
interest rate 3m Εuribor
+0.50% and minimum rate 0%, from 23.1.2023 to 23.1.2025, and effective
as of 5.7.2022
b.
Held by
third parties
.
Issuer
Currency
Interest Rate
Maturity
Nominal
Value
31.12.2022
31.12.2021
Alpha Bank S.A.
Euro
2.5%
5.2.2023
499,000
499,000
Alpha Bank Romania S.A.
Euro
6m
Εuribor+1.5%
16.5.2024
200,000
200,000
Total
699,000
699,000
.
Details related to the published information in connection with the issuance
of covered bonds, in
accordance with art 16 of Law 4920/15.4.2022, have been uploaded
to Bank’s internet site in the
following links:
https://www.alpha.gr/el/omilos/enimerosi-ependuton/pistotikoi-titloi/programma-ekdoseon-kalumenon-
omologion-i/taktikes-
anafores-pros-ependutes
https://www.alpha.gr/el/omilos/enimerosi-ependuton/pistotikoi-titloi/programma-ekdoseon-kalumenon-
omologion-ii
*
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.
ii.
Common bond
loans
In the context of the Euro Medium Term Note Program amounting
to € 15 billion, the Bank issued on
23.9.2021 preferred senior note with a nominal value of € 500 million
and maturity date 23.3.2028, with
redeemed option on 23.3.2027 and with an initially fixed annual interest
rate of 2.5% 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 within the framework of the above Program, the
Bank proceeded to a new issue of
preferred senior note with a nominal value of € 400 million and maturity
date 14.2.2024, with redeemed
option 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%. On 15.12.2022 the Bank proceed
to partial repayment of the said issue
amounting to € 368,77 million
On 1.11.2022 within the framework of the above Program, the Bank
proceeded to a new issue of
preferred senior note with a nominal value of € 400 million and maturity
date 1.11.2025, with redeemed
option on 1.11.2024 and with an initially fixed annual interest rate
of 7.0% 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 4.145%.
On 16.12.2022 within the framework of the above Program, the
Bank proceeded to a new issue of
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
189
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
preferred senior note with a nominal value of € 450 million and maturity
date 16.6.2027, with redeemed
option on 16.6.2026 and with an initially fixed annual interest rate
of 7.5% 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 5.084%.
On 20.6.2022 the two common bond loans held
by third parties amounting to € 1,35 million and € 0.35
million respectively and a fixed interest rate of 2.5%
were expired.
.
Balance
1.1.2022
884,203
Changes for the year 1.1
- 31.12.2022
New issues
841,557
Maturities/Repayments
(395,793)
Hedging adjustments
(70,000)
Financial
gains/losses
32,757
Accrued
interest
1,924
Balance
31.12.2022
1,294,648
.
Detailed information for the issuances of common bond loans is
presented in the following tables:
a.
Held
by
the
Group
.
Issuer
Currency
Interest Rate
Maturity
Nominal
Value
31.12.2022
31.12.2021
Alpha Bank S.A.
Euro
2.50%
23.3.2028
5,000
5,000
Alpha Bank S.A.
Euro
7.5%
16.6.2027
8,000
Total
13,000
5,000
.
b.
Held by
third parties
.
Issuer
Currency
Interest Rate
Maturity
Nominal
Value
31.12.2022
31.12.2021
Alpha Bank S.A.
Euro
2.50%
20.6.2022
350
Alpha Bank S.A.
Euro
2.50%
20.6.2022
1,345
Alpha Bank S.A.
Euro
2.50%
23.3.2028
495,000
495,000
Alpha Bank S.A.
Euro
3.00%
14.2.2024
31,227
400,000
Alpha Bank S.A.
Euro
7.00%
1.11.2025
400,000
Alpha Bank S.A.
Euro
7.50%
16.6.2027
442,000
Total
1,368,227
896,695
.
iii.
Liabilities
from
the
securitization
of
loans
and
receivables
Liabilities arising from the securitization of consumer, corporate loans
and credit cards are not included in
“Debt securities in issue”, as the corresponding securities of a
nominal amount € 1,441,800 (31.12.2021:
€ 1.441.800), are held by the Group.
Detailed information for the above liabilities are presented in
the following table:
a.
Held
by
the
Group
.
Issuer
Currency
Interest Rate
Maturity
Nominal
Value
31.12.2022
31.12.2021
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
294,200
Pisti
2010-1
Plc
LDN
-
Class
B
Euro
1m Euribor,
minimum 0%
24.2.2026
172,800
172,800
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,
minimum 0%
3.1.2039
213,700
213,700
Total
1,441,800
1,441,800
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
190
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
.
iv.
Liabilities
from
the
securitization
of
non-performing
loans
On 28.6.2021, the Bank carried out securitization transaction
of an NPE portfolio managed by Cepal, the
amount of which may vary on a continuous basis depending on
whether specific eligibility criteria
are
met. 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 entirely by the Bank. The
nominal value of the bond, amounts to €
6,106,385 as at 31.12.2022 (31.12.2021: € 6,914,844). As the bond
is held by the Bank, the liability 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
31.12.2022
31.12.2021
Gemini Cοre Securitisation DAC
Euro
3m Euribor +0.4%, minimum
0%
27.6.2050
6,106,385
6,914,844
Total
6,106,385
6,914,844
.
v.Subordinated debt
(Lower
Tier
II,
Upper
Tier
II)
In the context of the Euro Medium Term Note Program of € 15 billion,
Alpha Bank S.A. issued on
13.2.2020, prior to the hive-
down, a subordinated debt at a nominal value of
€ 500 million and maturity
date 13.2.2030, with redeemed option in five years and with a fixed
annual interest rate of 4.25% until
13.2.2025, adjusted to a new interest rate effective from the date
of adjustment until maturity and which
is determined on the basis of the five-year swap rate plus a margin of
4.504%.
On 11.3.2021 Alpha Bank S.A., prior to the hive-down, proceeded to a
new issue of subordinated debt
with nominal value of € 500 million and maturity date
11.6.2031, with redeemed option right between 5
and 5.25 years and an initially fixed annual interest rate of 5.5% until
11.6.2026, adjusted to a new
interest rate effective from the date of cancellation
until maturity, which is determined on the basis of the
five-year swap rate plus a margin of 5.823%.
On 27.4.2022 the subordinated note with a nominal value of € 0.65 million,
with no maturity date and a
floating interest of 3m Euribor +1.5% was fully redeemed.
.
Balance 1.1.2022
998,758
Changes for
the year 1.1
- 31.12.2022
Maturities/Repayments
(48,250)
Hedging
adjustments
(80,780)
Accrued interest
48,345
Balance
31.12.2022
918,073
.
Detailed information for the above issuances are presented in
the following table:
a.
Held
by
the
Group
.
Issuer
Currency
Interest Rate
Maturity
Nominal
Value
31.12.2022
31.12.2021
Alpha Services and Holdings S.A.
Euro
4.25%
13.2.2030
14,200
14,200
Alpha Services and Holdings S.A.
Euro
5.50%
11.6.2031
10,000
10,000
Total
24,200
24,200
b.
Held by
third parties
.
Issuer
Currency
Interest Rate
Maturity
Nominal
Value
31.12.2022
31.12.2021
Alpha Services and Holdings S.A.
Euro
3m
Euribor+1.5%
indefinite
650
Alpha Services and Holdings S.A.
Euro
4.25%
13.2.2030
485,800
485,800
Alpha Services and Holdings S.A.
Euro
5.50%
11.6.2031
490,000
490,000
Total
975,800
976,450
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
191
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
.
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
1.1.2022
Cash flows
Non-Cash flows
New
issues
Maturities
Repayments
Accrued
interest
Foreign
exchange
differences
Change of
Fair
Value
Other
31.12.2022
Senior debt
securities(ii)
884,203
445,764
32,757
(70,000)
1,924
1,294,648
Subordinated
loans (v)
998,758
(48,250)
48,345
(80,780)
918,073
Liabilities from the securitization of
other loans (i)
710,042
(14,765)
15,023
(42)
710,258
.
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 (v)
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
.
The above cash flows are included in the net cash
flows from financing activities in the cash flow
statement of the year.
30.Liabilities for current income tax and other taxes
31.12.2022
31.12.2021
Income tax
5,789
37,335
Other taxes
17,137
22,249
Total
22,926
59,584
.
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
31.12.2022
31.12.2021
Alpha Services and Holdings S.A. employee's indemnity
provision due to retirement in accordance with Law
2112/1920
16
30
Alpha Bank employee's indemnity provision
due to retirement in accordance with Law 2112/1920
16,542
19,040
Savings program guarantee
329
512
Plans for Diners (pension and health care)
5,500
8,250
Greek Group companies’ employees indemnity
provision due to retirement in accordance with Law 2112/1920
840
1,017
Other provision for retirement benefits
654
599
Total Liabilities
23,881
29,448
Income Statement Expense/
(Income) From 1 January to
31.12.2022
31.12.2021
Alpha Services and Holdings S.A. employee's indemnity
provision due to retirement in accordance with Law
2112/1920
96
1,790
Total of debt securities in issue and other borrowed funds as at 31.12.2022
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
192
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Alpha Bank employee's indemnity provision
due to retirement in accordance with Law 2112/1920
3,221
4,733
Savings program guarantee
26
134
Plans for Diners (pension and health care)
95
58
Greek Group companies’ employees indemnity
provision due to retirement in accordance with Law 2112/1920
306
2,189
Other provision for retirement benefits
732
594
Total Liabilities
4,476
9,498
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.
Defined benefit obligation indemnity was calculated taking into account
the related decision of the IFRS
Interpretations Committee (IFRIC Committee) issued in May
2021. In effect 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 amounts recognized in the balance sheet are
as follows:
31.12.2022
31.12.20201
Alpha Bank S.A.
Alpha Services and
Holdings
Alpha Bank S.A.
Alpha Services and
Holdings
Present value of defined obligations
16,542
16
19,040
30
Liability
16,542
16
19,040
30
The amounts recognized in the income statement are as follows:
From 1 January to
31.12.2022
31.12.2021
Alpha Bank S.A.
Alpha Services
and Holdings
Alpha Bank S.A.
Alpha Services
and Holdings
Current service cost
1,995
8
1,553
643
Net interest cost resulted from net asset/liability
115
17
7
Settlement/Curtailment/Termination
(gain)/loss
1,111
88
3,163
1,140
Total (included in staff costs)
3,221
96
4,733
1,790
The movement in the present value of defined benefit obligation is
as follows:
2022
2021
Alpha Bank S.A.
Alpha Services
and Holdings
Alpha Bank S.A.
Alpha Services
and Holdings
Opening Balance
19,040
30
-
24,725
Current service cost
1,995
8
1,553
643
Interest cost
115
17
7
Benefits paid
(2,388)
(91)
(10,039)
(1,355)
(Gain)/Loss
from
Settlement/Curtailment/Termination
1,111
88
3,163
1,140
Reclassification to voluntary separation scheme
provision
(434)
Hive Down
25,147
(25,147)
Actuarial
(gain)/loss-financial
assumptions
(3,537)
(4)
(407)
Actuarial
(gain)/loss-experience
adjustment
206
(15)
90
17
Transfer of staff provision to liabilities related
to assets held for
sale
(50)
Closing Balance
16,542
16
19,040
30
The amounts recognized directly in equity during the year are
analyzed as follows:
31.12.2022
31.12.2021
Alpha Bank S.A.
Alpha Services
and Holdings
Alpha Bank S.A.
Alpha Services
and Holdings
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
193
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Change in liability gain/(loss) due to changes in financial
and
demographic
assumptions
3,537
4
407
Change in liability gain/(loss) due to experience adjustments
(206)
15
(90)
(17)
Total actuarial gain/(loss) recognized
directly in Equity
3,331
19
317
(17)
The movement in the present value of defined benefit obligation is
as follows:
2022
2021
Alpha Bank S.A.
Alpha Services
and Holdings
Alpha Bank S.A.
Alpha Services
and Holdings
Opening Balance
19,040
30
-
24,725
Benefits paid
(2,388)
(91)
(10,039)
(1,355)
Loss/(Gain) recognized in Income Statement
3,221
96
4,733
1,790
Loss/(Gain) recognized in equity
(3,331)
(19)
(317)
17
Reclassification to voluntary separation scheme
provision
(434)
Hive down
25,147
(25,147)
Transfer of staff provision to liabilities related
to assets held for
sale
(50)
Closing Balance
16,542
16
19,040
30
The amount of € 434 in 2021 relates to the provision established
for employees who made use of the
long-term leave under the voluntary exit scheme of September 2021.
The amount of € 50 relates to the accrued liability of the Bank’s staff
transferred in the context of
merchant acquiring business.
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 upon retirement,
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 recognized in the balance
sheet are as follows:
31.12.2022
31.12.2021
Alpha Bank S.A
Alpha Bank S.A
Present value of defined obligations
329
512
Liability
329
512
The amounts recognized in the income statement
are as follows:
From 1 January to
31.12.2022
31.12.2021
Alpha Bank S.A.
Alpha Bank S.A.
Alpha Services
and Holdings
Current service cost
21
86
35
Net Interest cost resulted from net asset/liability
5
9
4
Total (Included in staff costs)
26
95
39
The movement in the present value of defined
obligation is as follows:
2022
2021
Alpha Bank S.A.
Alpha Bank S.A.
Alpha Services
and Holdings
Opening Balance
512
-
2,761
Current service cost
21
86
35
Interest cost
5
9
4
Actuarial
(gain)/loss-financial
assumptions
(282)
(210)
Actuarial
(gain)/loss-experience
adjustment
73
(2,173)
Hive Down
2,800
(2,800)
Closing Balance
329
512
-
The amounts recognized directly in equity
during the year are analyzed as
follows:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
194
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
31.12.2021
Alpha Bank S.A.
Alpha Bank S.A.
Change in liability gain/(loss) due to
changes in financial and demographic
Assumptions
282
210
Change in liability gain/(loss) due to
experience adjustments
(73)
2,173
Total actuarial gain/(loss)
recognized directly in
Equity
209
2,383
The movement in the defined obligation
liability is as follows:
2022
2021
Alpha Bank S.A.
Alpha Bank S.A.
Alpha Services and
Holdings
Opening Balance
512
-
2,761
Loss/(Gain) recognized in Income Statement
26
95
39
Loss/(Gain) recognized in equity
(209)
(2,383)
Hive down
2,800
(2,800)
Closing Balance
329
512
-
c.
Supplementary Pension Fund and Healthcare
of Diners
The Bank guarantees from 30.9.2014,
date of acquisition of Diners Club
Greece S.A., 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:
31.12.2022
31.12.2021
Alpha Bank S.A
Alpha Bank S.A
Present value of defined obligation
6,794
9,895
Fair value of plan assets
(1,294)
(1,645)
Liability
5,500
8,250
The assets of the scheme include only cash.
The amounts included in the income statement
are analyzed as follows:
From 1 January to
31.12.2022
31.12.2021
Alpha Bank S.A.
Alpha Bank S.A.
Alpha Services
and Holdings
Net interest cost resulted from
the net asset/liability
89
36
15
Expenses
6
1
6
Total (included in staff costs)
95
37
21
The amounts included in the income statement
are analyzed as follows:
2022
2021
Alpha Bank S.A.
Alpha Bank S.A.
Alpha Services
and Holdings
Opening Balance
9.895
-
10.943
Interest Cost
44
18
Benefits paid directly by the Bank
105
(9)
Benefits paid by the Plan
(13)
(270)
(73)
Actuarial
(gain)/loss-financial
assumptions
(345)
(810)
Actuarial
(gain)/loss-experience
adjustments
(2,926)
52
Hive Down impact
78
10,888
(10,888)
Closing Balance
6,794
9,895
-
The movement in the fair value of assets
for the plan is analyzed as follows:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
195
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
2022
2021
Alpha Bank S.A.
Alpha Bank S.A.
Alpha Services
and Holdings
Opening Balance
1,645
-
1,995
Expected return
8
3
Benefits paid
16
(270)
(73)
Expenses
(345)
(1)
(6)
Actuarial losses
(6)
(11)
Hive Down impact
(16)
1,919
(1,919)
Closing Balance
1,294
1,645
-
The amounts recognized directly in Equity
during the year are analyzed
as follows:
1.1 - 31.12.2022
1.1 - 31.12.2021
Alpha Bank S.A
Alpha Bank S.A
Change in liability due to financial
and demographic assumptions
- gains/(loss)
2,926
810
Change in liability due to experience
adjustments - gain/(loss)
(78)
(52)
Return on plan assets excluding
amounts included in income statement
- gain/(loss)
(16)
(11)
Total actuarial gain/(loss)
recognized in equity
2,832
747
The movement in the obligation/(asset)
is as follows:
2022
2021
Alpha Bank S.A.
Alpha Bank S.A.
Alpha Services
and Holdings
Opening Balance
8,250
-
8,948
Benefits paid directly by the Bank
(13)
(9)
(Gain)/loss recognized in Income Statement
95
37
21
(Gain)/loss recognized in Equity
(2,832)
(747)
Hive Down impact
8,969
(8,969)
Closing Balance
5,500
8,250
-
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:
31.12.2022
31.12.2021
Alpha Bank S.A.
Alpha Services
and Holdings
Alpha Bank S.A.
Alpha Services
and Holdings
Discount rate
3.75% - 3.84%
3.79%
0.61% - 1.09%
0.59%
Inflation rate
2.50%
2.50%
2.00%
2.00%
Return on plan assets
2.80%
2.00%
Future salary growth
2.60%
2.60%
2.00%
2.00%
Future pension growth
0.00%
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:
31.12.2022
31.12.2021
Alpha Bank S.A.
Alpha Services
and Holdings
Alpha Bank S.A.
Alpha Services
and Holdings
Bank employee's indemnity provision
due to
retirement in accordance with Law
2112/1920
7.4
8.4
8.0
5.2
Saving program guarantee
12.1
13.9
Plans for Diners (pension and health
care)
13.0
15.4
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
196
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The table below presents the sensitivity analysis
of the financial assumptions with regards
to the obligation of
the above programs:
% change
Percentage variation in liability
(%)
Increase in discount rate by 0.5%
(4.1)
Decrease in discount rate by
0.5%
4.3
Increase in future salary growth rate
by 0.5%
2.8
Decrease in future salary growth
rate by 0.5%
(2.5)
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
31.12.2022
31.12.2021
Indemnity of employees of greek
subsidiaries due to retirement in accordance
with Law 2112/1920
840
1,017
Other provision for retirement benefits
654
599
Total Liabilities
1,494
1,616
Income
Statement
Expenses From 1 January
to
31.12.2022
31.12.2021
Indemnity of employees of greek
subsidiaries due to retirement in accordance
with Law 2112/1920
306
2,189
Other provision for retirement benefits
732
594
Total
1,038
2,783
The amount of actuarial gain/losses
that was recognized in equity for the defined
benefit plans of the Group
companies’ amounts to € 245
gain for 2022 against € 48 gain for 2021.
For all the above mentioned plans,
no contributions are expected
to be paid during 2023.
32.Other Liabilities
.
31.12.2022
31.12.2021
Liabilities to third parties
62,583
53,504
Brokerage services
23,423
25,451
Deferred
income
17,483
7,766
Accrued expenses
126,096
92,852
Liabilities to
merchants for
the
use
of
credit cards
255,563
258,860
Leases liabilities
110,842
139,306
Other
324,107
310,291
Total
920,097
888,030
.
The Group’s lease liabilities mainly relate to the buildings
used by the Bank for its branches and its other
business units, off-site ATM’ and executives leased cars.
For the Bank, the duration of the lease agreements
in new premises is set at three years with the option
for some of them
to be extended unilaterally by the Bank, for an additional
period, taking into account
current conditions. 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 option for some of
them to be extended unilaterally 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
197
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
agreed period. The Bank’s policy is to renew these
contracts, as long as its intention is to stay in the
properties.
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.
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 2022 and have been implemented since
1.1.2023, however they do not have a
significant impact on the Bank accounts.
In addition, the Group has no sale and lease back agreements.
The following table includes the movement in lease liabilities,
with distinctive presentation of cash flows,
a presented in the Cash flows Statement from financing activities
and the non cash flow movements. The
Group recognized lease liabilities of
€ 110,842 as of 31.12.2022 and € 139,306 as of 31.12.2021
1.1.2022
Cash flows
Non-cash flows
31.12.2022
New leases
Other changes
Lease liabilities
139,306
(33,115)
9,585
(4,934)
110,842
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
.
33.Provisions
31.12.2022
31.12.2021
Insurance
provisions
753,277
672,304
Provisions to
cover credit
risk and other
provisions
167,834
161,725
Total
921,111
834,029
a. Insurance
provisions
31.12.2022
31.12.2021
Life
insurance
Mathematical reserves
744,619
668,188
Outstanding claim
reserves
8,658
4,116
Total
753,277
672,304
Change in mathematical reserves is mainly attributed to new
production of insurance contracts of the
subsidiary AlphaLife A.A.E.Z. The above is partially
offset with the reversal of insurance provisions based
on the Liability Adequacy Test (LAT) exercise.
The movement of insurance provisions is listed in the table below:
Balance
1.1.2021
522.768
Changes for the year 1.1 - 31.12.2021
New provisions
and increase of current
provisions
177,135
Provisons
utilized
(27,599)
Balance
31.12.2021
672,304
Changes for the year 1.1 - 31.12.2022
New provisions
and increase of current
provisions
125,400
Provisions used
(44,427)
Balance
31.12.2022
753,277
Insurance
Risk
The Group through the subsidiary AlphaLife A.A.E.Z. undertakes
insurance risk. Insurance risk is defined
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
198
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 redemptions, cancellations and
expenses arise from the change from the expected cancellations and redemptions
before maturity and
potential changes 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,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
examined.
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
redemptions 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 are monitored and recorded in accordance with
their importance 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
31.12.2022
199
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
b.
Provisions
to
cover
credit
risk
and
other
provisions
Provisions
for
pending legal
cases
Provisions
to
cover
credit risk
Other
provisions
Total
Balance
1.1.2021
31,548
91,482
57,831
180,862
Changes for the year 1.1
- 31.12.2021
Provisions/(Reversals)
6,753
(49,731)
102,301
59,322
Provisions used
(3,795)
(73,434)
(77,229)
Transfers/Reclassifications
-
Transfer
to
assets held
for
sale
(63)
(70)
(2,440)
(2,573)
Foreign exchange
differences
(4)
1,002
344
1,343
Balance
31.12.2021
34,439
42,683
84,603
161,725
Changes for the year
1.1 - 31.12.2022
Provisions/(Reversals)
12,810
(2,196)
37,130
47,744
Provisions used
(16,264)
(40,913)
(57,177)
Transfers/Reclassifications
1,160
179
14,104
15,443
Foreign exchange
differences
(17)
117
100
Balance
31.12.2022
32,129
40,783
94,923
167,835
As
at
31.12.2022
provisions
to
cover
credit
risk
relates
to
undrawn
loan
commitments
amounts
€
6,257
(31.12.2021:
€
5,909)
and
an
amount
of
€
34,526
(31.12.2021:
€
36,775)
relates
to
letters
of
guarantees
and
Letters
of
credits.
As
at
31.12.2022
the
balance
of
other
provisions
amounts
to
€
94,923
(31.12.2021:
€
84,603
and
relates
mainly
to:
•
an
amount
of
€
40,620
(31.12.2021:
€
47,489)
relates
to
the
voluntary
separation
schemes
out
of
which:
-
€
27,826
(31.12.2021
€
40,355)
relates
to
provision
of
voluntary
separation
scheme
launched
in
2021
-
€
3,594
(31.12.2021
€
5,592)
relates
to
the
anticipated
cost
of
employees
who
have
already
left
the
Bank
making
use
of
the
long
term
leave
in
the
context
of
the
separation
schemes
that
was
in
force
for
the
period
2016
and
onwards
-
€ 795
(31.12.2021: €
1,542) relates to
senior management compensation
scheme
-
€
9,200 relates
to voluntary
separation
scheme
of the
subsidiary company
Alpha Bank
Cyprus
•
an
amount
of
€
48,995
(31.12.2021:
€
4,750)
which
relates
to
provisions
for
the
possible
contractual
commitments
in
the
context
of
transactions,
•
an
amount
of
€
2,500
(31.12.2021:
€
0)
relates
to
the
provision
for
the
obligation
that
the
Bank
undertook
to
contribute
in
the
creation
of
a
fund
that
aims
to
subsidize
interest
on
performing
loans,
due
to
the
interest
rate
increase
in
2022.
EQUITY
34.Share Capital
Changes for
the period
from 1.1.
to 31.12.2022
Opening Balance
as
at
1.1.2022
Shares from Share
Capital Increase
through the rights
issue
Balance as
at
31.12.2022
Share Capital paid
as at 31.12.2022
Number of
ordinary registered
shares
2,345,981,097
2,226,687
2,348,207,784
680,980
The Company’s share capital as at 31.12.2022 amounts to € 680,980 (31.12.2021:
€ 703,794) divided
into 2,348,207,784 (31.12.2021: 2,345,981,097) ordinary, registered
shares with voting rights with a
nominal value of € 0.29 each (31.12.2021:€ 0.30)
In the context of Stock Options Plan through which stock options
rights could be granted to management
and personnel of the Company and the Group, in January 2022, 1,430,168
options rights vested and
exercised from the beneficiaries, in accordance with Performance Incentive
Program for the years of
2018, 2019 and 2020.
As a result of the above, 1,430,168 ordinary, registered, voting shares
with nominal value of € 0.30 were
issued in February and the Share Capital of the Company increased
by € 429.
Moreover, the Ordinary General Meeting of the Shareholders
on 22.7.2022 approved, among others, the
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
200
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
decrease of its share capital in kind, by decreasing the nominal
value of each ordinary share issued by
the Company by € 0.01 and by distributing to its Shareholders shares issued
by the subsidiary company
under the corporate name “Galaxy Cosmos Mezz Plc”
(initially named “Galaxy Mezz Ltd”), with a value
corresponding to the value of the share capital decrease,
i.e. 86,941,158 ordinary shares with
a nominal
value of € 0.27 each, which will be distributed to the Company’s shareholders
based on a ratio of 1 share
of Galaxy Cosmos Mezz Plc for every 27 shares of the Company.
As a result, share capital of the
Company decreased by € 23,474.
In September, in the context of Stock Options Plan through which stock
options rights could be granted
to management and personnel of the Company and the Group and in the
context of the Performance
Incentive Program for 2021, 796,519 stock options
rights vested and were exercised from the
beneficiaries,. As a result, in November, 796,519
ordinary, registered, voting shares with nominal value
of € 0.29 each were issued and the Share Capital of the Company
increased by € 231.
Based on the below, share capital within 2022 decreased in total
by € 22,814.
Treasury shares
As of 31.12.2022 the subsidiary company Alpha Finance performs
transactions with the shares o the
parent company Alpha Services and Holdings in the conext with a cost of
market making. As at
31.12.2022 the carrying amount of the treasury shares was
€ 1,296. Below are described the
transactions of treasury shares of the subsidiary of the Group.
Number of
shares
Value
Balance
1.1.2021
85,700
40
Purchases
1,363,600
1,133
Sales
(1,449,300)
(1,270)
Gains from
sales
97
Balance
31.12.2021
-
-
Purchases
3,604,557
3,709
Sales
(2,261,222)
(2,185)
Losses from
sales
(228)
Balance
31.12.2022
1,343,335
1,296
.
35.Share premium, Special Reserve from Share Capital Decrease
a.
Share premium
Balance as at 1.1.2022 as restated
5,257,622
Increase in share premium
through the stock options rights
exercise
1,493
Balance as at 31.12.2022
5,259,115
Share capital increase in January and September,
as described in note 34, resulting from the exercise of
stock options rights, led to an increase in share premium
by € 1,043 και € 450 respectively.
b.
Special Reserve from Share Capital Decrease
2022
2021 as
restated
Balance as at
1.1
6,104,890
6,104,890
Changes for the year 1.1 -
31.12
Offsetting of Retained earnings with Special Reserve from Share Capital Decrease of article 31 of Law
4548/ 2018
(5,808,466)
Balance as at 31.12
296,424
6,104,890
According to art 31 par.2 of Law 4548/2018, share capital decrease is
permitted for the formation of
special reserve. This special reserve can be used only for the purpose
of its capitalization or for
absorbing accumulated losses of the Company.
The Company, had established in previous years a special
reserve from share capital decrease
amounting to € 6,104,890,
which was included in “Share Premium” which for the
purpose of better
presentation is distinctively presented. In this context, the Ordinary General
Meeting of Alpha Services
and Holdings S.A. 22.7.2022 approved, inter alia, the offsetting of the Retained
Earning of € 6,228,891 in
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
201
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
priority order with a statutory reserve of € 420,425 and with the Special
Reserve of art 31 par. 2 of L.
4548/2018 of € 5.808.466.
36.Reserves
Reserves are analyzed as follows:
a.
Statutory
reserve
.
31.12.2022
31.12.2021
Statutory
reserve
79,114
542,910
.
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.
The decrease in the statutory reserve is mainly attributed
to the offsetting performed by the Company
with Retained Earnings as described in note 35
For the remaining companies of the Group the statutory reserve
is formed according to the local
regulations.
b.
Reserve
of
investment
securities
measured
at
fair
value
through
other
comprehensive
income
.
2022
2021
Opening Balance 1.1
48,932
228,123
Changes for the year 1.1
- 31.12
Valuation of debt securities measured at fair value through other comprehensive income, after income tax
(113,695)
(59,594)
Reclassification of reserves related to assets
held for
sale
(4,363)
Reclassification to income statement of reserve of debt securities measured at fair value through
other comprehensive income, after
income tax
(6,160)
(115,234)
Total
(119,855)
(179,191)
Balance
31.12
(70,923)
48,932
.
The movements for the year of the reserve for investment securities
measured at fair value through other
comprehensive income, that relate to the valuation of the investment
securities and the transfer of the
related reserve to Income Statement, amounts (before income
tax) to a credit amount of € 151,357 and a
debit amount of € 8,775 (1.1-31.12.2021: credit amount
of € 106,177 and debit amount of € 135,107,
respectively).
c.
Cash flow
hedge reserve
recognised directly
in Equity
.
2022
2021
Opening Balance 1.1
(208,912)
(223,670)
Changes for the
year 1.1 - 31.12
New hedges after
income tax
(24,831)
Change in
cash flow
hedge reserve after
income tax
14,758
14,758
Balance
31.12
(218,985)
(208,912)
.
d.
Exchange
differences
on
translating
and
hedging
the
net
investment
in
foreign
operations
.
2022
2021
Opening Balance 1.1
(65,031)
(53,911)
Changes for the year
1.1 - 31.12
Change of Foreign
Exchange differences on
translating and hedging the net
investment in foreign
operations
(412)
(356)
Reclassification of reserves related to assets
held for
sale
(10,764)
Balance
31.12
(65,443)
(65,031)
.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
202
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
e.
Share
of
other
comprehensive
income
of
associates
and
joint
ventures
.
2022
2021
Opening Balance 1.1
(311)
(311)
Changes for the year 1.1 -
31.12
Change in the share of
other comprehensive income of associates and joint ventures
Balance
31.12
(311)
(311)
.
.
f.
Reserve
valuation
for
stock
options
rights
to
employees
.
2022
2021
Opening Balance 1.1
3,083
1,667
Changes for the year
1.1 - 31.12
Exercise of
rights
(1,597)
(1,667)
Reserve valuation for stock options right
to employees
2,014
3,083
Balance
31.12
3,500
3,083
.
As of 31.12.2022, in the context of the Stock Options Plan
and the stock options rights awarded to the
management and employees of the Company and
the Group, as described in detail in note 8, a reserve
of € 2,014 was recognized, resulting from
the valuation of the said stock options rights, while within
the
year € 1,597 stock options were exercised. For the rights exercised, the
amount has been transferred to
the share premium account, while for the rights that have
not been exercised, the amount has been
transferred to the Retained Earnings.
.
Total reserves
(a+b+c+d+e+f)
273,048
230,671
.
g.
Reserves
related
to
Assets
held
for
sale
.
2022
2021
Opening Balance 1.1
15,127
-
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)
10,764
Reserve
of
portfolio
held
for
sale
(4,363)
4,363
Balance
31.12
-
15,127
.
37.Retained Earnings
Considering that for the year 2021 there are no distributable gains, the
General Meeting of the
Shareholders held on 22.7.2022 decided the non distribution of
dividend to the common shareholders of
the Company, as provided by art. 159 of Greek Law 4548/2018.
In addition, the extraordinary General Meeting of the Shareholders
at 22.7.2022, decided the offsetting of
the Retained Earnings amounted to € 6,228,891 losses as
at 31.12.2021 with the statutory reserve of €
420.425 and with the Special Reserve of art 31 par.
2 of L. 4548/2018 of € 5.808.466 with an aim to:
-
simplify the capital structure
-
facilitate the possible future dividend distribution to its Shareholders.
Considering the completion of the above offsetting Retained Earnings
amounts to € 296,911 as at
31.12.2022.
38.Hybrid Securities
On 18.2.22, the subsidiary company Alpha Group Jersey repaid
in full the remaining nominal value of
15.5 mil. of Series B CMS-Linked Series B CMS-Linked
Non-Cumulative Dividend Non-Voting Preferred
Securities (the “Hybrid Securities”), which was subordinated
guarantee by the Company, with no result
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
203
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
for the Group.
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 as well
as the possible outflow.
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 “Provisions”. As
of 31.12.2022 the amount of the provision stood at € 32,130 (31.12.2021:
€ 34,439).
For those cases, that according to their progress and the assessment
of the legal department as at 31
December 2022, a negative outcome is not probable or the
possible loss cannot be estimated reliably
due to the complexity of the cases and their duration, the Group has
not established a provision. As of
31.12.2022 the legal claims against the Group for the above cases
amount to € 90,566 (31.12.2021: €
242,417) και € 470,563 (31.12.2021: € 586,541), respectively.
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 Bank.
b.
Tax issues
According to art.65A of Law 4174/2013 from the year 2011 the statutory auditors
and auditing firms that
conduct mandatory audits of societe anonymes are required to
issue an annual tax compliance report
regarding the application of the tax provisions in certain tax areas.
Based on art.56 of Law 4410/3.8.2016
tax compliance reports are optional for the years from 1.1.2016
and thereon. Nevertheless, the intention
of the Bank and the companies included in its Group is to continue receiving
such tax compliance report.
Alpha Services and Holdings S.A.has been audited by the tax
authorities for the years up to and
including 2010 as well as for the year 2014. 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 from2011 up to an including 2021 the Company has received tax
compliance report, according to the article 82 of Law 2238/1994 and the article
65A of Law 4174/2013,
with no qualification. Tax audit in connection with the tax compliance
report of 2022 is in progress.
Alpha Bank has received a tax compliance report for its
first tax year from 1.7.2020 to 31.12.2021, with
no qualification. Tax audit in connection with the tax compliance
report of 2022 is in progress
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.
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 statutory auditor and they have received
an unqualified tax compliance report.
Therefore, the tax authorities may reaudit the tax books.
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.
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)
2020
2. Alpha Bank Cyprus Ltd
2017
3. Alpha Bank Romania S.A. (tax
audit for the years 2015-2019 completed
on 2022)
2019
4. Alpha Bank Albania SH.A. (the
company was transferred on 18.7.2022)
2016
Leasing Companies
1. Alpha Leasing S.A.** (tax audit
is in progress for the years 2014
- 2019)
2016
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
204
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
2. Alpha Leasing Romania IFN S.A.
2014
3. ABC Factors S.A.**
2016
Investment Banking
1. Alpha Finance A.E.P.E.Y.** / ***
2016
2. Alpha Ventures S.A.** / ***
2016
3. Alpha A.E. Ventures Capital
Management - AKES** / ***
2016
4. Emporiki Ventures Capital Developed
Markets Ltd
2018
5. Emporiki Ventures Capital Emerging
Markets Ltd
2018
Asset Management
1. Alpha Asset Management A.E.D.A.Κ.**
/ ***
2016
2. ABL Independent Financial Advisers
Ltd (voluntary settlement of tax
obligation)
2020
Insurance
1. Alpha Insurance Agents S.A.**
/ ***
2016
2. Alpha Insurance Brokers Srl
2006
3. Alphalife A.A.E.Z.** / *** (tax
audit is in progress for the year 2018)
2016
Real Estate and Hotel
1. Alpha Astika Akinita S.A.**
2016
2. Alpha Real Estate Management
and Investments S.A.
2016
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) */**
2016
7. AGI-RRE Participations 1 Srl
(commencement of operation 2010)
*
8. Stockfort Ltd (commencement
of operation 2010)
2018
9. Romfelt Real Estate SA
2015
10. AGI – RRE Zeus Srl (commencement
of operation 2012–
dissolve on 2022)
*
11. AGI – RRE Poseidon Srl (commencement
of operation 2012)
*
12. AGI – RRE Hera Srl (commencement
of operation 2012–
dissolve on 2022)
*
13. Alpha Real Estate Services
LLC (commencement of operation
2010)
2018
14. AGI – BRE Participations 2 E.O.O.D.
(commencement of operation
2012)
*
15. AGI – BRE Participations 2BG
E.O.O.D. (commencement of
operation 2012)
*
16. AGI – BRE Participations 4 E.O.O.D.
(commencement of operation
2012) (tax audit is in progress
for the years 2020-2021)
*
17. APE Fixed Assets A.E.** / ***
2016
18. SC Carmel Residential Srl
(commencement of operation 2013)
*
19. Alpha Investment Property
Neas Kifisias S.A. (commencement
of operation 2014)*
2016
20. Alpha Investment Property
Kalirois S.A. (commencement of
operation 2014)*
2016
21. AGI-Cypre Tochni Ltd (commencement
of operation 2014)
2018
22. AGI-Cypre Mazotos Ltd (commencement
of operation 2014)
2018
23. Alpha Investment Property
Livadias S.A. (commencement of
operation 2014)*
2016
24. Asmita Gardens Srl
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 2021
without any qualification whereas
the
years up to and including 2016
are considered as
closed in accordance
with the circular POL.1208/2017.
*** These companies have
been audited by
the tax authorities
up to and including 2009
in accordance with Law
3888/2010
which relates to voluntary
settlement for the unaudited
tax years.
Name
Year
25. Cubic Center Development
S.A. (commencement of operation
2010)
2020
26. Alpha Investment
Property Neas Erythreas
S.A. (commencement of operation
2015)
*
27. AGI – SRE Participations
1 DOO (commencement
of operation 2016)
*
28. Alpha Investment
Property Spaton A.E. (commencement
of operation 2017)
*
29. Alpha Investment
Property Kallitheas A.E. (commencement
of operation 2017
*
30. Kestrel Enterprise
E.O.O.D. (commencement
of operation 2013)
*****
31. Alpha Investment
Property Irakleiou A.E (commencement
of operation 2018)
*
32. AGI-Cypre Property
2 Ltd (commencement
of operation 2018)
2018
33. AGI-Cypre Property
4 Ltd (commencement
of operation 2018)
2018
34. AGI-Cypre Property
5 Ltd (commencement
of operation 2018)
2018
35. AGI-Cypre Property
6 Ltd (commencement
of operation 2018)
2018
36. AGI-Cypre Property
7 Ltd (commencement
of operation 2018)
2018
37. AGI-Cypre Property
8 Ltd (commencement
of operation 2018)
2018
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
205
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
38. AGI-Cypre Property
9 Ltd (commencement
of operation 2018)
2018
39. AGI-Cypre Property
12 Ltd (commencement
of operation 2018)
2018
40. AGI-Cypre Property
13 Ltd (commencement
of operation 2018)
2018
41. AGI-Cypre Property
14 Ltd (commencement
of operation 2018)
2018
42. AGI-Cypre Property
15 Ltd (commencement
of operation 2018)
2018
43. AGI-Cypre Property
16 Ltd (commencement
of operation 2018)
2018
44. AGI-Cypre Property
17 Ltd (commencement
of operation 2018)
2018
45. AGI-Cypre Property
18 Ltd (commencement
of operation 2018)
2018
46. AGI-Cypre Property
19 Ltd (commencement
of operation 2018)
2018
47. AGI-Cypre Property
20 Ltd (commencement
of operation 2018)
2018
48. AGI-Cypre RES Pafos Ltd
(commencement of
operation 2018)
2018
49. AGI-Cypre P&F Nicosia
Ltd (commencement
of operation 2018)
2018
50. ABC RE P2 Ltd (commencement
of operation 2018)
2018
51. ABC RE P3 Ltd (commencement
of operation 2018)
2018
52. ABC RE L2 Ltd (commencement
of operation 2018)
2018
53. ABC RE P4 Ltd (commencement
of operation 2018
– the company was transferred
on 28.2.2022)
*
54. AGI-Cypre RES Nicosia
Ltd (commencement
of operation 2018)
2018
55. AGI-Cypre P&F Limassol
Ltd (commencement
of operation 2018)
2018
56. AGI-Cypre Property
21 Ltd (commencement
of operation 2018)
2018
57. AGI-Cypre Property
22 Ltd (commencement
of operation 2018)
2018
58. AGI-Cypre Property
23 Ltd (commencement
of operation 2018)
2018
59. AGI-Cypre Property
24 Ltd (commencement
of operation 2018)
2018
60. ABC RE L3 Ltd (commencement
of operation 2018)
2018
61. ABC RE P&F Limassol
Ltd (commencement
of operation 2018)
2018
62. AGI-Cypre Property
25 Ltd (commencement
of operation 2019)
*
63. AGI-Cypre Property
26 Ltd (commencement
of operation 2019)
*
64. ABC RE COM Pafos Ltd
(commencement of
operation 2019)
*
65. ABC RE RES Larnaca
Ltd (commencement of operation
2019)
*
66. AGI-Cypre P&F Pafos Ltd
(commencement of
operation 2019)
*
67.
AGI-Cypre Property 27
Ltd (commencement of
operation 2019)
*
68. ABC RE L4 Ltd (commencement
of operation 2019)
*
69. ABC RE L5 Ltd (commencement
of operation 2019)
*
70. AGI-Cypre Property
28 Ltd (commencement
of operation 2019)
*
71. AGI-Cypre Property
29 Ltd (commencement
of operation 2019)
*
72. AGI-Cypre Property
30 Ltd (commencement
of operation 2019)
*
73. AGI-Cypre COM Pafos
Ltd (commencement
of operation 2019)
*
74. ΑΕP Industrial Assets
Μ.Α.Ε. (commencement of
operation 2019)
*
75. AGI-Cypre Property
31 Ltd (commencement
of operation 2019)
*
76. AGI-Cypre Property
32 Ltd (commencement
of operation 2019)
*
*
These companies have
not been audited by
the tax authorities since
commencement of their
operations.
*****
The companies became
part of the Group in 2017
through the bankruptcy process
and have not been tax
audited since then.
Name
Year
77. AGI-Cypre Property
33 Ltd (commencement
of operation 2019)
*
78. AGI-Cypre Property
34 Ltd (commencement
of operation 2019)
*
79. Alpha Group Real Estate
Ltd (commencement of
operation 2019)
*
80. ABC RE P&F Pafos Ltd
(commencement of
operation 2019)
*
81. ABC RE P&F Nicosia Ltd
(commencement of
operation 2019)
*
82. ABC RE RES Nicosia Ltd
(commencement of
operation 2019)
*
83. Fierton Ltd (commencement
of operation 2019 – the company
was transferred on
28.2.2022)
*
84. AIP residential Assets
Rog S.M.S.A (commencement
of operation 2019)
*
85. AIP Attica Residential
Assets I S.M.S.A. (commencement
of operation 2019)
*
86. AIP Thessaloniki Residential
Assets S.M.S.A. (commencement
of operation 2019)
*
87. AIP Cretan Residential
Assets S.M.S.A. (commencement
of operation 2019)
*
88. AIP Aegean Residential
Assets S.M.S.A. (commencement
of operation 2019)
*
89. AIP Ionian Residential
Assets S.M.S.A. (commencement
of operation 2019)
*
90. AIP Urban Cetres
Commercial Assets S.M.S.A. (commencement
of operation 2019)
*
91. AIP Thessaloniki Commercial
Assets S.M.S.A (commencement
of operation 2019)
*
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
206
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
92. AIP Commercial Assets
Rog S.M.S.A. (commencement
of operation 2019)
*
93. AIP Attica Retail Assets
I S.M.S.A. (commencement
of operation 2019)
*
94. AIP Attica Retail Assets
III S.M.S.A. ( (commencement
of operation
2019)
*
95. AIP Attica Residential
Assets II S.M.S.A. (commencement
of operation 2019)
*
96. AIP Retail Assets Rog
S.M.S.A. (commencement
of operation 2019)
*
97. AIP Land II S.M.S.A. (commencement
of operation 2019)
*
98. ABC RE P6 Ltd (commencement
of operation 2019)
*
99. AGI-Cypre Property
35 Ltd (commencement
of operation 2019)
*
100. AGI-Cypre P&F Larnaca
Ltd (commencement of
operation 2019)
*
101. AGI-Cypre Property
37 Ltd (commencement of
operation 2019)
*
102. AGI-Cypre RES Ammochostos
Ltd (commencement of operation
2019)
*
103. AGI-Cypre Property
38 Ltd (commencement of
operation 2019)
*
104. AGI-Cypre RES Larnaca
Ltd (commencement of
operation 2019)
*
105. ABC RE P7 Ltd (commencement
of operation 2019)
*
106. AGI-Cypre Property
42 Ltd (commencement of
operation 2019)
*
107. ABC RE P&F Larnaca
Ltd (commencement of
operation 2019)
*
108. Krigeo Holdings
Ltd (commencement of operation
2019)
*
109. AGI-Cypre Property
43 Ltd (commencement of
operation 2019)
*
110. AGI-Cypre Property
44 Ltd (commencement of
operation 2019)
*
111. AGI-Cypre Property
45 Ltd (commencement of
operation 2020)
*
112. AGI-Cypre Property
40 Ltd (commencement of
operation 2020)
*
113. ABC RE RES Ammochostos
Ltd (commencement of operat
ion 2020)
*
114. ABC RE RES Paphos
Ltd (commencement of
operation 2020)
*
115. Sapava Ltd (commencement
of operation 2020)
*
116. AGI-Cypre Property
46 Ltd (commencement of
operation 2020)
*
117. AGI-Cypre Proprety
47 Ltd (commencement of
operation 2020)
*
118. AGI-Cypre Proprety
48 Ltd (commencement of
operation 2020)
*
119. Alpha Credit Property
1 Ltd (commencement
of operation 2020)
*
120. Office Park 1 Srl (commencement
of operation 2020)
*
121. AGI-Cypre COM Nicosia
Ltd (commencement
of operation 2020)
*
122. AGI-Cypre Property
49 Ltd (commencement of
operation 2020)
*
123. AGI-Cypre Property
50 Ltd (commencement of
operation 2020)
*
124. AGI-Cypre COM Larnaca
Ltd (commencement of
operation 2020)
*
125. Acarta Construct
Srl
2014
126. AGI-Cypre Property
51 Ltd (commencement of
operation 2021)
*
127. AGI-Cypre Property
52 Ltd (commencement of
operation 2021)
*
*
These companies have
not been audited by
the tax authorities since
commencement of their
operations.
Name
Year
128. AGI-Cypre Property
53 Ltd (commencement of
operation 2021)
*
129. Alpha Credit Properties
Ltd (commencement of
operation 2021)
*
130. AGI-Cypre Property
54 Ltd (commencement of
operation 2021)
*
131. AGI-Cypre Property
55 Ltd (commencement of
operation 2021)
*
132. Engromest (commencement
of operation 2021)
*
133. AGI-Cypre Property
56 Ltd (commencement of
operation 2022)
*
134. AIP Urban Cetres ΙΙ S.M.S.A.
(commencement of
operation 2022)
*
135. AIP Attica Retail Assets
IV S.M.S.A. (commencement
of operation 2022)
*
136. Startrek Properties
Μ.Α.Ε. (commencement
of operation 2022)
*
137. Nigrinus Ltd (commencement
of operation 2022)
*
138. Skyline Properties
Μ.Α.Ε. (commencement of
operation 2022)
*
139. AIP Athens Urban Cetres
Ι S.M.S.A. (commencement
of operation 2022)
*
140. AIP Athens Urban Cetres
ΙΙ S.M.S.A. (commencement
of operation 2022)
*
Special purpose and
holding entities
1. Alpha Group Jersey
Ltd
****
2. Alpha Group Investments
Ltd (commencement of
operation 2006)
2018
3. Ionian Equity Participations
Ltd (commencement of
operation 2006)
2018
4. AGI – BRE Participations
1 Ltd (commencement of operation
2009)
2018
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
207
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
5. AGI – RRE Participations
1 Ltd (commencement
of operation 2009)
2018
6. Alpha Group Ltd (commencement
of operation 2012
– dissolve on 2.9.2022)
2012
7. Katanalotika Plc (voluntary
settlement of tax obligation)
2020
8. Epihiro Plc (voluntary
settlement of tax obligation)
2020
9. Irida
Plc (voluntary settlement
of tax obligation)
2020
10. Pisti 2010 - 1 Plc (voluntary
settlement of tax obligation)
2020
11. Alpha Shipping Finance
Ltd (voluntary settlement of
tax obligation)
2019
12. Alpha Quantum D.A.C.
(commencement of
operation 2019)
*
13. AGI – RRE Poseidon
Ltd (commencement of
operation 2012)
2018
14. AGI – RRE Hera Ltd
(commencement of operation
2012)
2018
15. Alpha Holdings S.M.S.A.
**
2016
16. AGI – BRE Participations
2 Ltd (commencement
of operation 2011)
2018
17. AGI – BRE Participations
3 Ltd (commencement
of operation 2011)
2018
18. AGI – BRE Participations
4 Ltd (commencement
of operation 2010)
2018
19. AGI – RRE Ares Ltd
(commencement of operation
2010)
2018
20. AGI – RRE Artemis Ltd
(commencement
of operation 2012)
2018
21. AGI – BRE Participations
5 Ltd (commencement
of operation 2012)
2018
22. AGI – RRE Cleopatra
Ltd (commencement of operation
2013)
2018
23. AGI – RRE Hermes Ltd
(commencement of
operation 2013)
2018
24. AGI – RRE Arsinoe
Ltd (commencement of
operation 2013)
2018
25. AGI – SRE Ariadni Ltd
(commencement of operation
2013)
2014
26. Zerelda Ltd (commencement
of operation 2012)
2018
27. AGI-Cypre Evagoras
Ltd (commencement of
operation 2014)
2018
28. AGI-Cypre Tersefanou
Ltd (commencement of
operation 2014)
2018
29. AGI-Cypre Ermis Ltd (commencement
of operation 2014)
2018
30. AGI – SRE Participations
1 Ltd (commencement
of operation 2016)
2018
31. Alpha Credit Acquisition
Company Ltd (commencement
of operation
2019)
2021
32. Alpha International
Holding Company S.A. (commencement
of operation 2019
– dissolve on 5.10.22)
*
33. Galaxy III Funding
D.A.C. (commencement of
operation 2020 – the company
was transferred on 2022)
*
34. Alpha International
Holdings S.M.S.A. (commencement
of operation 2020)
*
35. Gemini Core Securitisation
D.A.C. (commencement of
operation 2021)
*
36. SKY CAC Ltd (commencement
of operation 2021)
*
37. Galaxy Cosmos Mezz
Ltd (commencement of
operation 2022)
*
*
These companies have
not been audited by
the tax authorities since
commencement of their
operations.
****
These companies are
not subject to a tax audit.
Name
Year
Other Companies
1. Alpha Bank London
Nominees Ltd
****
2. Alpha Trustees Ltd
(commencement of operation
2002)
2018
3. Kafe Alpha S.A.** / ***
2016
4. Alpha Supporting
Services S.A.** / ***
2016
5. Real Car Rental S.A.** / ***
2016
6. Commercial Management
and Liquidation of Assets
-Liabilities S.A.** / ***
2016
7. Alpha Bank Notification
Services S.A. (Within 2022 a
partial tax audit for
the year 2021 was completed)
*
.
.
c.
Off balance sheet commitments
The Group, as part of its normal course
of business, enters into 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
208
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 can be utilized only if
certain requirements are fulfilled by
counterparties.
The outstanding balances are as
follows:
31.12.2022
31.12.2021
Letters of credit
45,960
30,022
Letters of guarantee
and other guarantees
4,605,197
3,467,990
Undrawn loan commitments
4,886,404
4,107,682
The Group measures the expected
credit losses for all the undrawn
loan commitments and letters of credit /
letters of guarantee, which are included
in “Provisions”.
Expected credit losses of the aforementioned
exposures as of 31.12.2022
amounts to € 40,783 (31.12.2021:
€
42,486) (note 43.1).
Alpha Bank S.A. has committed to contribute
in the share capital of the joint venture Alpha
TANEO AKES up to
the amount of
€ 19 (31.12.2021: € 19).
d.
Pledged assets
Pledged assets, as at 31.12.2022 and
31.12.2021 are analyzed as follows:
•
Cash and balances with Central Banks:
As at 31.12.2022
Cash and balances with Central Banks
of € 237,210 (31.12.2021: €
268,527) relating to the
Group’s obligation to maintain deposits
in Central Banks according to percentages
determined by the
respective country. The amount of reserved
funds that Alpha Bank S.A. has
to maintain to the Bank of
Greece on average for the period
from 21.12.2022 to 7.2.2023, amounts
to € 464,867 (31.12.2021: €
428,210).
*
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
2021 without any qualification
whereas the
years up to and including
2016 are considered as closed
in accordance with the circular
POL.1208/2017
***
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.
•
Due from Banks:
i.
Placements amounting to € 204,622
(31.12.2021: € 205,335) relate to guarantees
provided, mainly, on
behalf of the Greek Government.
ii.
Placements amounting to € 351,764
(31.12.2021: € 1,077,895) have been
provided as guarantee for
derivative and other repurchase
agreements (repos).
iii.
Placements amounting to € 266,060
(31.12.2021: € 105,070) have been
provided for Letter of Credit
or Guarantee Letters that the Bank issue
for facilitating customer imports.
iv.
Placements amounting to € 24,496
(31.12.2021: € 20,012) have been
provided to the Resolution Fund as
irrevocable payment commitment, as part
of the 2016 up to 2022
contribution. This commitment must be
fully covered by collateral exclusively
in cash, as decided by the Single Resolution
Board.
v.
Placements amounting to € 22,935
(31.12.2021: € 34,039) have been used
as collateral for the
issuance of bonds with nominal value
of € 2,700,000 (31.12.2021: €
2,900,000) out of which bonds
with
nominal value of € 2,000,000 (31.12.2021:
€ 2,200,000) held by the Bank, as
mentioned below under
“Loans and advances to customers”
•
Loans and advances to customers:
i.
Loans of € 5,818,822 (31.12.2020:
€ 5,285,333) have been pledged
to central banks for liquidity purposes.
ii.
Corporate loans,
finance lease receivables and credit cards
of carrying amount of € 1,180,756
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
209
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
(31.12.2021: € 1,226,422) have
been securitized for the issuance of Special Purpose
Entities’ corporate
bond of a nominal value of € 1,441,800
(31.12.2021: € 1,441,800) held by
the Bank.
iii.
Shipping loan of carrying amount of € 65,058
(31.12.2021: € 151,907), 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 as
of 31.12.2022 amounts to € 31,925
(31.12.2021: € 129,051).
v.
An amount of nominal value € 402 (31.12.2021:
€ 3,689) 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 € 3,154,105 (31.12.2021:
€ € 3,420,371) 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 € 2,700,000
(31.12.2021: €
2,900,000) out of which the Bank owns
€ 2,000,000 (31.12.2021: € 2,200,000)
and has been pledged to
Central Banks for liquidity purposes.
•
Investment securities:
i.
Bonds issued by the Greek Government with
a carrying amount of € 5,442,303
(31.12.2021: €
4,612,517) have been pledged
as collateral to the European Central
Bank for liquidity purposes.
ii.
Treasury Bills issued by the Greek government
with a carrying amount of €
259,477 (31.12.2021: €
681,004), have been pledged
as collateral to the European
Central Bank for liquidity purposes.
iii.
Bonds issued by Other governments with
a carrying amount of € 3,916,931
(31.12.2021: € 2,719,845
have been given as a collateral to Central
Banks for liquidity purposes
iv.
Securities issued by the European
Financial Stability Facility (EFSF) with
a carrying amount of €
188,431(31.12.2021:
€ 92,070), which has been
pledged to Central Banks with the purpose
to participate in main refinancing
operations.
v.
Bonds issued by the Greek government
with a carrying amount of € 33,604
(31.12.2021€ 295,838)
which have been pledged as
collateral as a collateral in the context of repo
agreements.
vi.
The Group has also put Greek treasury bills
with a carrying amount of € 396,126
(31.12.2021: € 0) as
collateral in the context of derivative transactions
with the Greek State.
vii.
Group has also put Greek treasury bills
with a carrying amount of € 986
(31.12.2021: € 0) as collateral
in the context of derivative transations with
customers.
viii.
a carrying amount € 1,097 (31.12.2021:
€ 0) of Greek treasury bills has been pledged
as collateral for
repo.
ix.
a carrying amount € 2,762 (31.12.2021:
€ 18,869) of other company bonds
has been pledged as collateral for
repo.
Additionally, the Group has obtained:
i.
Greek Government treasury bills of nominal
value of € 0 (31.12.2021:
€ 750,000) as collateral
for derivatives transactions with the
Greek State.
ii.
The Group has also received Greek bonds
of nominal value of € 6,000 (31.12.2021:
€ 0) and fair
value of € 5,281 collateral in the context of derivative
transactions with customers.
.
iii.
The Group has received bonds
with a nominal value of € 0 (31.12.2021
€ 734,536) and a fair value of € 0
(31.12.2021
€ 773,330) as collateral in the context of reverse
repos, which are not included
in its assets. Of these bonds,
an amount
of fair value of € 0 (31.12.2021: € 714,467)
has been pledged to Central Banks
for raising
liquidity and an amount of fair value
of € 0 (31.12.2021: € 11,065)
has been pledged as collateral in the
context of repo agreements.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
210
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
40.Group Consolidated Companies
The consolidated financial statements, apart from the parent company
Alpha Financial Services and
Holdings S.A., include the following entities:
.
Subsidiaries
Name
Country
Group’s ownership interest
%
31.12.2022
31.12.2021
Banks
1
Alpha Bank S.A.
Greece
100.00
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
Financing companies
1
Alpha Leasing Α.Ε.
Greece
100.00
100.00
2
Alpha Leasing Romania
IFN S.A.
Romania
100.00
100.00
3
ABC Factors Α.Ε.
Greece
100.00
100.00
Investment Banking
1
Alpha Finance A.E.Π.Ε.Υ.
Greece
100.00
100.00
2
Alpha Ventures A.E.
Greece
100.00
100.00
3
Alpha A.E. Ventures Capital
Management - AKES
Greece
100.00
100.00
4
Emporiki Ventures Capital
Developed Markets
Ltd
Cyprus
100.00
100.00
5
Emporiki Ventures Capital
Emerging Markets Ltd
Cyprus
100.00
100.00
Asset Management
1
Alpha Asset Management
Α.Ε.Δ.Α.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 AAEZ
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
100.00
93.17
5
Alpha Real Estate Services
Srl
Romania
93.17
93.17
6
Alpha Investment Property
Attikis A.E.
Greece
100.00
100.00
7
AGI-RRE Participations
1 Srl
Romania
100.00
100.00
8
Stockfort Ltd
Cyprus
100.00
100.00
9
Romfelt Real Estate S.A.
Romania
99.99
99.99
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
211
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Name
Country
Group’s ownership interest
%
31.12.2022
31.12.2021
10
AGI-RRE Zeus Srl
Romania
100.00
11
AGI-RRE Poseidon Srl
Romania
100.00
100.00
12
AGI-RRE Hera Srl
Romania
100.00
13
Alpha Real Estate Services
LLC
Cyprus
93.17
93.17
14
AGI-BRE Participations
2 E.O.O.D.
Bulgaria
100.00
100.00
15
AGI-BRE Participations
2BG E.O.O.D.
Bulgaria
100.00
100.00
16
AGI-BRE Participations
4 E.O.O.D.
Bulgaria
100.00
100.00
17
APE Fixed Assets Α.Ε.
Greece
72.20
72.20
18
Alpha Investment Property
Neas Kifissias A.E
Greece
100,00
100,00
19
Alpha Investment Property
Kallirois A.E.
Greece
100.00
100.00
20
AGI-Cypre Tochni Ltd
Cyprus
100.00
100.00
21
AGI-Cypre Mazotos Ltd
Cyprus
100.00
100.00
22
Alpha Investment Property
Livadias A.E.
Greece
100.00
100.00
23
Asmita Gardens Srl
Romania
100.00
100.00
24
Cubic Center Development
S.A.
Romania
100.00
100.00
25
Alpha Investment Property
Neas Erythreas A.E.
Greece
100.00
100.00
26
AGI-SRE Participations
1 D.O.O.
Serbia
100.00
100.00
27
2 Alpha Investment Property
Spaton A.E
Greece
100.00
100.00
28
Alpha Investment Property
Kallitheas A.E.
Greece
100.00
100.00
29
Kestrel Enterprise E.O.O.D.
Bulgaria
100.00
100.00
30
Alpha Investment Property
Irakleiou A.E
Greece
100.00
100.00
31
AGI-Cypre Property 2 Ltd
Cyprus
100.00
100.00
32
AGI-Cypre Property 4 Ltd
Cyprus
100.00
100.00
33
AGI-Cypre Property 5 Ltd
Cyprus
100.00
100.00
34
AGI-Cypre Property 6 Ltd
Cyprus
100.00
100.00
35
AGI-Cypre Property 8 Ltd
Cyprus
100.00
100.00
36
AGI-Cypre Property 7 Ltd
Cyprus
100.00
100.00
37
AGI-Cypre Property 9 Ltd
Cyprus
100.00
100.00
38
AGI-Cypre Property 12
Ltd
Cyprus
100.00
100.00
39
AGI-Cypre Property 13
Ltd
Cyprus
100.00
100.00
40
AGI-Cypre Property 14
Ltd
Cyprus
100.00
100.00
41
AGI-Cypre Property 15
Ltd
Cyprus
100.00
100.00
42
AGI-Cypre Property 16
Ltd
Cyprus
100.00
100.00
43
AGI-Cypre Property 17
Ltd
Cyprus
100.00
100.00
44
AGI-Cypre Property 18
Ltd
Cyprus
100.00
100.00
45
AGI-Cypre Property 19
Ltd
Cyprus
100.00
100.00
46
AGI-Cypre Property 20
Ltd
Cyprus
100.00
100.00
47
AGI-Cypre RES Pafos Ltd
Cyprus
100.00
100.00
48
AGI-Cypre P&F Nicosia
Ltd
Cyprus
100.00
100.00
49
ABC RE P2 Ltd
Cyprus
100.00
100.00
50
ABC RE P3 Ltd
Cyprus
100.00
100.00
51
ABC RE L2 Ltd
Cyprus
100.00
100.00
52
ABC RE P4 Ltd
Cyprus
100.00
53
AGI-Cypre RES Nicosia
Ltd
Cyprus
100.00
100.00
54
AGI-Cypre P&F Limassol Ltd
Cyprus
100.00
100.00
55
AGI-Cypre Property 21
Ltd
Cyprus
100.00
100.00
56
AGI-Cypre Property 22
Ltd
Cyprus
100.00
100.00
57
AGI-Cypre Property 23
Ltd
Cyprus
100.00
100.00
58
AGI-Cypre Property 24
Ltd
Cyprus
100.00
100.00
59
ABC RE L3 Ltd
Cyprus
100.00
100.00
60
ABC RE P&F Limassol Ltd
Cyprus
100.00
100.00
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
212
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Name
Country
Group’s ownership interest
%
31.12.2022
31.12.2021
61
AGI-Cypre Property 25
Ltd
Cyprus
100.00
100.00
62
AGI-Cypre Property 26
Ltd
Cyprus
100.00
100.00
63
ABC RE COM Pafos Ltd
Cyprus
100.00
100.00
64
ABC RE RES Larnaca
Ltd
Cyprus
100.00
100.00
65
AGI-Cypre P&F Pafos Ltd
Cyprus
100.00
100.00
66
AGI Cypre Property
27 Ltd
Cyprus
100.00
100.00
67
ABC RE L4 Ltd
Cyprus
100.00
100.00
68
ABC RE L5 Ltd
Cyprus
100.00
100.00
69
AGI-Cypre Property 28
Ltd
Cyprus
100.00
100.00
70
AGI-Cypre Property 29
Ltd
Cyprus
100.00
100.00
71
AGI-Cypre Property 30
Ltd
Cyprus
100.00
100.00
72
AGI-Cypre COM Pafos Ltd
Cyprus
100.00
100.00
73
AIP Industrial Assets
Athens S.M.S.A.
Greece
100.00
100.00
74
AGI-Cypre Property 31
Ltd
Cyprus
100.00
100.00
75
AGI-Cypre Property 32
Ltd
Cyprus
100.00
100.00
76
AGI-Cypre Property 33
Ltd
Cyprus
100.00
100.00
77
AGI-Cypre Property 34
Ltd
Cyprus
100.00
100.00
78
Alpha Group Real Estate
Ltd
Cyprus
100.00
100.00
79
ABC RE P&F Pafos Ltd
Cyprus
100.00
100.00
80
ABC RE P&F Nicosia Ltd
Cyprus
100.00
100.00
81
ABC RE RES Nicosia Ltd
Cyprus
100.00
100.00
82
Fierton Ltd
Cyprus
100.00
83
AIP Industrial Assets
Rog S.M.S.A.
Greece
100.00
100.00
84
AIP Attica Residential
Assets I S.M.S.A.
Greece
100.00
100.00
85
AIP Thessaloniki Residential
Assets S.M.S.A.
Greece
100.00
100.00
86
AIP Cretan Residential
Assets S.M.S.A.
Greece
100.00
100.00
87
AIP Aegean Residential
Assets S.M.S.A.
Greece
100.00
100.00
88
AIP Ionian Residential
Assets S.M.S.A.
Greece
100.00
100.00
89
AIP Commercial Assets
City Centres S.M.S.A.
Greece
100.00
100.00
90
AIP Thessaloniki Commercial
Assets S.M.S.A.
Greece
100.00
100.00
91
AIP Commercial Assets
Rog S.M.S.A.
Greece
100.00
100.00
92
AIP Attica Retail Assets
I S.M.S.A.
Greece
100.00
100.00
93
AIP Attica Retail Assets
III S.M.S.A.
Greece
100.00
100.00
94
AIP Attica Retail Assets
II S.M.S.A.
Greece
100.00
100.00
95
AIP Retail Assets Rog S.M.S.A.
Greece
100.00
100.00
96
AIP Land II S.M.S.A
Greece
100.00
100.00
97
ABC RE P6 Ltd
Cyprus
100.00
100.00
98
AGI-Cypre Property 35
Ltd
Cyprus
100.00
100.00
99
AGI-Cypre P&F Larnaca
Ltd
Cyprus
100.00
100.00
100
AGI-Cypre Property 37
Ltd
Cyprus
100.00
100.00
101
AGI-Cypre RES Ammochostos
Ltd
Cyprus
100.00
100.00
102
AGI-Cypre Property 38
Ltd
Cyprus
100.00
100.00
103
AGI-Cypre RES Larnaca
Ltd
Cyprus
100.00
100.00
104
ABC RE P7 Ltd
Cyprus
100.00
100.00
105
AGI-Cypre Property 42
Ltd
Cyprus
100.00
100.00
106
ABC RE P&F Larnaca
Ltd
Cyprus
100.00
100.00
107
Krigeo Holdings Ltd
Cyprus
100.00
100.00
108
AGI-Cypre Property 43
Ltd
Cyprus
100.00
100.00
109
AGI-Cypre Property 44
Ltd
Cyprus
100.00
100.00
110
AGI-Cypre Property 45
Ltd
Cyprus
100.00
100.00
111
AGI-Cypre Property 40
Ltd
Cyprus
100.00
100.00
112
ABC RE RES Ammochostos
Ltd
Cyprus
100.00
100.00
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
213
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Name
Country
Group’s ownership interest
%
31.12.2022
31.12.2021
113
ABC RE RES Paphos
Ltd
Cyprus
100.00
100.00
114
Sapava Ltd
Cyprus
100.00
100.00
115
AGI-Cypre Property 46
Ltd
Cyprus
100.00
100.00
116
AGI-Cypre Property 47
Ltd
Cyprus
100.00
100.00
117
AGI-Cypre Property 48
Ltd
Cyprus
100.00
100.00
118
Alpha Credit Property
1 Ltd
Cyprus
100.00
100.00
119
Office Park I SRL
Romania
100.00
100.00
120
AGI-Cypre COM Nicosia Ltd
Cyprus
100.00
100.00
121
AGI-Cypre Property 49
Ltd
Cyprus
100.00
100.00
122
AGI-Cypre Property 50
Ltd
Cyprus
100.00
100.00
123
AGI-Cypre COM Larnaca
Ltd
Cyprus
100.00
100.00
124
Acarta Construct Srl
Romania
100.00
100.00
125
AGI-Cypre Property 51
Ltd
Cyprus
100.00
100.00
126
AGI-Cypre Property 52
Ltd
Cyprus
100.00
100.00
127
AGI-Cypre Property 53
Ltd
Cyprus
100.00
100.00
128
Alpha Credit Properties
Ltd
Cyprus
100.00
100.00
129
AGI-Cypre Property 55
Ltd
Cyprus
100.00
100.00
130
AGI-Cypre Property 54
Ltd
Cyprus
100.00
100.00
131
Engromest
Romania
132
S.C. Carmel Residential
Srl
Romania
100.00
100.00
133
AGI-Cypre Property 56
Ltd
Cyprus
100.00
134
AIP Urban Cetres ΙΙ S.M.S.A.
Greece
100.00
135
AIP Attica Retail Assets
IV S.M.S.A.
Greece
100.00
136
Startrek Properties
Μ.Α.Ε.
Greece
100.00
137
Nigrinus Ltd
Greece
100.00
138
Skyline Properties
Μ.Α.Ε.
Greece
100.00
139
AIP Athens Urban Cetres
Ι S.M.S.A.
Greece
100.00
140
AIP Athens Urban Cetres
ΙΙ S.M.S.A.
Greece
100.00
Special purpose and
holding entities
1
Alpha Group Jersey Ltd
Jersey
100.00
2
Alpha Group Investments
Ltd
Cyprus
100.00
100.00
3
Ionian Equity Participations
Ltd
Cyprus
100.00
100.00
4
AGI-BRE Participations
1 Ltd
Cyprus
100.00
100.00
5
AGI-RRE Participations
1 Ltd
Cyprus
100.00
100.00
6
Alpha Group Ltd
Cyprus
100.00
7
Sky CAC Ltd
Cyprus
100.00
100.00
8
Katanalotika Plc
United Kingdom
9
Epihiro Plc
United Kingdom
10
Irida Plc
United Kingdom
11
Pisti 2010-1 Plc
United Kingdom
12
Alpha Shipping Finance
Ltd
United Kingdom
13
Alpha Quantum DAC
Ireland
14
AGI-RRE Poseidon Ltd
Cyprus
100.00
100.00
15
AGI-RRE Hera Ltd
Cyprus
100.00
100.00
16
Alpha Holdings S.M.S.A.
Greece
100.00
100.00
17
AGI-BRE Participations
2 Ltd
Cyprus
100.00
100.00
18
AGI-BRE Participations
3 Ltd
Cyprus
100.00
100.00
19
AGI-BRE Participations
4 Ltd
Cyprus
100.00
100.00
20
AGI-RRE Ares Ltd
Cyprus
100.00
100.00
21
AGI-RRE Artemis Ltd
Cyprus
100.00
100.00
22
AGI-BRE Participations
5 Ltd
Cyprus
100,00
100,00
Group’s ownership interest
%
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
214
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Name
Country
31.12.2022
31.12.2021
23
AGI-RRE Cleopatra
Ltd
Cyprus
100.00
100.00
24
AGI-RRE Hermes Ltd
Cyprus
100.00
100.00
25
AGI-RRE Arsinoe Ltd
Cyprus
100.00
100.00
26
AGI-SRE Ariadni Ltd
Cyprus
100.00
100.00
27
Zerelda Ltd
Cyprus
100.00
100.00
28
AGI-Cypre Evagoras Ltd
Cyprus
100.00
100.00
29
AGI-Cypre Tersefanou
Ltd
Cyprus
100.00
100.00
30
AGI-Cypre Ermis Ltd
Cyprus
100.00
100.00
31
AGI-SRE Participations
1 Ltd
Cyprus
100.00
100.00
32
Alpha Credit Acquisition
Company Ltd
Cyprus
100.00
100.00
33
Alpha International Holding
Company S.A.
Luxembourg
100.00
34
Alpha International Holdings
M.A.E.
Greece
100.00
100.00
35
Gemini Core Securitisation
Designated Activity
Company
Ireland
36
Galaxy ΙΙΙ Funding 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.Ε.
Greece
100.00
100.00
8
Alpha Payment Services
MAE
Greece
100.00
.
.
Joint ventures
Name
Country
Group’s ownership interest
%
31.12.2022
31.12.2021
1
APE Commercial Property
Α.Ε.
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
7
Iside spv Srl
Italy
.
Associates
Name
Country
Group’s ownership interest
%
31.12.2022
31.12.2021
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
Zero Energy Buildings
Energy Services S.A
Greece
43.87
49.00
8
Perigenis Commercial Assets
A.E.
Greece
32.00
32.00
9
Cepal Holdings A.E.
Greece
20.00
20.00
10
Aurora SME I DAC
Ireland
11
Nexi Payments Hellas S.A.
Greece
9.99
On 30.6.2022, the sale of 51% of Alpha Services and Payments
M.A.E. to Nexi was completed in the
context of the completion of the “Prometheus” transaction and the company
was renamed to Nexi
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
215
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Payments Hellas S.A. Additionally on 29.7.2022 a supplementary agreement
was signed between Alpha
Bank S.A. and Nexi for the sale of an additional 39.01% of Nexi Payments
Hellas stake holding. The
transfer of the shares was completed same date.
The 9.99% held by the Group, is presented in
“Investments in associates and joint ventures”.
The interest in Nexi Payments Hellas S.A. continues to be classified
as investment in associates since the
Group continues to exercise significant influence over the associate
as the Bank has representation to the
Board of Directors of the company and participates in the decision making
of the main operations.
During the year, the Bank obtained bonds issued by the SPV Iside
Spv Srl, which was established in
order to serve the financing activities of corporates. Since the
basic operations of the company is related
with the issued bonds and the respective decisions
are taken commonly with the other creditor, the Group
exercises common control.
Detailed information on corporate events for the companies included
in the consolidated financial
statements is set out in note 49.
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.
The following are noted with respect to Associates
and Joint Ventures:
APE Investment Property A.E. is the parent company of a group that includes
the subsidiaries Symet
S.A., Astakos Terminal S.A., Akarport S.A. and NA.VI.PE S.A.
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
In December 2022, the net asset values of the company Engromest,
acquired on 30.12.2021, were
finalized and no significant deviations arised when compared with the
preliminary values, as presented in
the below table:
Fair Value
31.12.2021
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
Group subsidiaries with no controlling
interest
The table as below provides information
in relation with the Group
subsidiaries with no controlling interest:
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
31.12.2022
31.12.2021
From 1 January to
From 1 January to
31.12.202
2
31.12.2021
31.12.2022
31.12.2021
31.12.2022
31.12.2021
1. APE Fixed Assets Α.Ε.
Greece
27.80
27.80
157
(78)
10,858
10,939
2. Alpha Astika Akinita A.E.
Greece
6.83
6.83
(479)
112
(10)
7,097
9,988
3. Alpha Real Estate Bulgaria
EOOD
Bulgaria
6.83
6.83
3
(1)
27
29
4. Chardash Trading EOOD
Bulgaria
0.00
6.83
79
(34)
(164)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
216
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
5. Alpha Bank Romania S.A.
Romania
0.08
0.08
(35)
17
(1)
153
340
6. Romfelt Real Estate S.A.
Romania
0.01
0.01
1
7. Alpha Real Estate Services Srl
Romania
6.83
6.83
(21)
8
113
99
8. Alpha Real Estate Services LLC
Cyprus
6.83
6.83
(11)
6
75
71
9. SSIF Alpha Finance Romania
S.A.
Romania
0.02
0.02
47
(13)
10. TH Top Hotels Srl
Romania
0.00
2.50
(3)
Total
(307)
27
-
(11)
18,370
21,290
The percentage of voting rights held by third
parties in subsidiaries does not
differ with their participation in their
share capital.
With respect to the above mentioned
subsidiaries, significant non controlling
interests as at 31.12.2022 exist in
Alpha Astika Akinita S.A. and in APE
Fixed Assets S.A.
A condensed set of financial information
of Alpha Astika Akinita 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.
APE Fixed Assets
A.E.
From 1 January to
From 1 January to
31.12.2022
31.12.2021
31.12.2022
31.12.2021
Total income
14,326
11,491
Total expenses
(8,534)
(9,421)
(324)
(324)
Profit/(loss) for the
year after income tax
4,520
1,743
(291)
(279)
Total comprehensive
income for the year, after income
tax
4,520
1,743
(291)
(279)
Condensed Balance Sheet
Alpha Astika Akinita
A.E.
APE Fixed Assets
A.E.
31.12.2022
31.12.2021
31.12.2022
31.12.2021
Total non-current assets
2,927
57,136
39,070
39,222
Total current assets
60,665
83,784
47
268
Total short-term liabilities
5,973
2,901
23
68
Total long-term liabilities
1,343
1,026
50
82
Total Equity
93,729
136,993
39,045
39,340
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
217
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Condensed Cash flow statement
Alpha Astika Akinita
A.E.
APE Fixed Assets
A.E.
From 1 January to
From 1 January to
31.12.2022
31.12.2021
31.12.2022
31.12.2021
Total inflows/(outflows)
from operating activities
5,067
2,202
(221)
(144)
Total inflows/(outflows)
from investing activities
17,240
(2,922)
(36)
Total inflows/(outflows)
from financing activities
(48,015)
(129)
4
Total inflows/(outflows)
for the year
(25,707)
(849)
(221)
(177)
Cash and cash equivalents
at the beginning of the
year
76,378
77,227
268
445
Cash and cash equivalents
at the end of the year
50,671
76,378
47
268
Subsidiary company Alpha Astika Akinita
A.E. on 9.9.2022 declared
the distribution of dividend amount to € 47,880
from which amount of € 3,031 regarded
Non-Controlling Interest. The payment
was completed within September
2022(31.12.2021: € 0).
Other companies did not pay any dividend
within 2022 and 2021.
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 € 9,817 mil (31.12.2021: € 10,276
mil) and € 8,813mil (31.12.2021
€ 9,082 mil) 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.
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 as of 31.12.2022 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.
The other securitization of loan portfolio
transactions that were in force as
of 31.12.2022 were established
by the
Group in previous years for liquidity purposes
through the issuance of notes
or other legal form of lending, except for
the securitization of non performing
loans transaction via the special purpose
entity Gemini Core Securitisation
Dac.
This entity was established for the purpose
of non performing loans management.
In 2022 the liquidation process of
special purpose entities Galaxy III Funding
DAC was commenced, following
the revocation of the securitization
of
non performing loans transaction
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
218
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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. As of 31.12.2022
and 31.12.2021 all the
following notes and other financial instruments
issued by the entities were held by the Group.
Company name
Nominal Value
31.12.2022
31.12.2021
Epihiro Plc
500,000
500,000
Pisti 2010-1 Plc
467,000
467,000
Irida Plc
474,800
474,800
Alpha Shipping Finance
Ltd
0
0
Galaxy III Funding DAC
946,538
Gemini Core Securitisation
DAC
6,106,385
6,914,843
Furthermore, as of 31.12.2022 the Group
had granted subordinated
loans amounting to € 36,925 (31.12.2021:
€
148,043) to the special purpose
entities for credit enhancement
purposes of the securitization transactions.
It is
noted that in connection with the Alpha
Shipping Finance Ltd the subordinated
loan consists the only form of lending
by the company as the senior part the
loan has been fully repaid
in prior year. Therefore under
these circumstance
the loan is preceded in the repayment
priority order.
In the context of the securitization transactions
for liquidity purposes and depending
on the eligibility criteria of each
securitized portfolio, the Group repurchases
securitized loans on a case-by-case
basis, without, however, having
a
relevant contractual obligation. In addition,
for the said securitization transactions
that are in a replenishment period,
the Group performs new securitizations
of loan portfolios by transferring them
these special purpose entities, in
order to meet specific quantitative criteria
related to the amount of bond
issues. The Group’s intention is to continue
the above practice. Except for the subordinated
loan of Alpha Shipping Finance Ltd,
where the Group is obliged,
if
necessary, to provide additional financing,
the Group has no contractual
obligation to grant additional financing
to
the companies
Regarding non-performing loan
transactions in the context of Gemini, 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 special purpose entity.
The Group, as of 31.12.2021, has granted
a
loan of € 50 mil. in order to provide liquidity
to the special purpose entity and has
no contractual obligation to provide
additional financing.
Changes of ownership interest
in subsidiaries which
did not result in loss of control
During 2022, Gorup’s participation
in the subsidiary Chardash Trading
EOOD changed from 93.17% to 100%,
while
in 2021 there was no change
in the shareholder structure of the Group’s
subsidiaries.
Loss of control in subsidiary
due to sale or liquidation
On 30.6.2022, the carve out of merchant acquiring
business from the Bank to the subsidiary
“Alpha Services and
Payments M.A.E” was completed, which
issued shares and, same day, the Bank
sold the 51% of its shareholding to
its subsidiary, as renamed to “Nexi Payment
Hellas S.A.”. As a result of the sale
of 51% of its shareholding to “Alpha
Services and Payments M.A.E”,
the Bank lost its control. The consideration
of the transaction above amounted
to €
172,2 million, out of which € 160,6
million in cash.
Total gain of the aforementioned transactions
amount to € 297.941, out of which
€ 161 million concerns the fair
valuation of the retained investment and
recognized in “Gain less losses on
financial transactions”. Within 2022
an
additional 39.01% was sold as described
in note 48.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
219
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
At the date of sale Assets and Liabilities of Alpha
Services and Payments M.A.E
are presented in the table below:
Assets
30.6.2022
Cash
-
Due from Banks
344,963
Total Current Assets
204,653
Non current Assets
294,088
Other current liabilities
191,530
Total Currents Liabilities
19,530
Long-term financial liabilities
-
Total long-term liabilities
-
On 18.7.2022, as part of project Riviera,
the sale of the shares of the Group’s
subsidiary Alpha Bank Albania, by
Alpha International Holdings to OTP Bank
Plc was completed with a consideration
of € 53,800, while a profit of €
19,886 was recognized on
“Net profit/(loss) for the period after tax from discontinued”
at 31.12.2022, from which
€
8,777 refer to recycling of translation reserve.
At the date of sale the Assets and Liabilities
of Alpha Bank Albania are presented
in the table below:
Assets
18.7.2022
Cash
92,877
Due from Banks
57,306
Total Current Assets
337,748
Non current Assets
95,700
Other current liabilities
12,693
Total Currents Liabilities
12,693
Long-term financial liabilities
375,369
Total long-term liabilities
375,369
On 28.2.2022, the sale of the total amounts
of shares of the Group’s company,
Fierton Ltd was completed for a
consideration of € 3,325 while a profit of €
251 recognized. The subsidiary had
no cash as at the date of the sale
On 28.2.2022, the sale of the total amounts
of shares of the Group’s company,
ABC RE P4 ltd was completed
for a
consideration of € 795 while a profit of €
5 recognized. The subsidiary had no
cash as at the date of the sale
On 2.9.2022, the liquidation of the Group’s
subsidiary company, Alpha Group Ltd, was
completed. The subsidiary
had no cash as at the date of the
liquidation
On 5.10.2022, the liquidation of the
Group’s subsidiary company, Alpha
International Holding Company
S.A, was
completed. The subsidiary had no
cash as at the date of the liquidation
On 25.11.2022, the liquidation of the Group’s
subsidiary, AGI - RRE ZEUS S.R.L. was
completed. The subsidiary
had no cash as at the date of the
liquidation.
On 25.11.2022, the liquidation of the Group’s
subsidiary, AGI AGI - RRE HERA S.R.L. was
completed. The
subsidiary had no cash as at the date
of the liquidation.
The Ordinary General Meeting of
the Shareholders of the Parent
Company on 22.7.2022 approved,
among others,
the decrease of its share capital in kind, by
decreasing the nominal value
of each ordinary share issued by Alpha
Holdings by € 0.01 and
by distributing to its Shareholders shares
issued by the subsidiary company
under the corporate name
“Galaxy
Cosmos Mezz
Plc” (initially named “Galaxy Mezz Ltd”),
with a value corresponding to the value
of the share capital
decrease, i.e. 86,941,158 common shares
with a nominal value of € 0.27 each,
which will be distributed to the
Company’s shareholders based
on a ratio of 1 share of Galaxy Cosmos Mezz Plc for every
27 shares of the
Company. The above process
was completed in October 2022
and as a result Galaxy Cosmos Mezz Plc seized
to
be a Group’s subsidiary
Exposure to non-consolidated structured
entities
The Group, through its subsidiary Alpha
Asset Management AEDAK,
manages 40 (31.12.2021:
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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
220
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 the total assets
of the mutual funds under
management but not controlled by the
Group
by category of investment. During the year
2022, the commission income
from the management fees of these
Mutual Funds amounted to € 31,256
(2021: € 31,379).
Total assets
31.12.2022
31.12.2021
Category of Mutual Funds
Bond Funds
610,024
669,910
Money Market Funds
35,884
39,009
Equity Funds
598,434
688,284
Balanced Funds
1,067,586
957,576
Total
2,311,928
2,354,779
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.The carrying amount of the investment
in mutual funds as at
31.12.2022 amounts to € 248,168
(31.12.2021: € 149,533). The change in the
fair value of the aforementioned
mutual funds during the year 2022
resulted in a gain of € 27,080 (year 2021:
gain of € 3,644).
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 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 as
of
31.12.2022 amounts to € 3,661
(31.12.2021: € 7,029) and has been
classified in “Investments 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 € 7,886 as at 31.12.2022
(31.12.2021:
€ 8,388). The Group’s commission income
for the management of the mutual fund for 2022
amounted to € 90
(2021: € 90). 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.
The Group maintains participation
in bonds of the special purpose entities
Orion Securitization DAC, Galaxy
II
Funding DAC, Galaxy IV Funding
DAC and Cosmos Securitization DAC
that were issued in the context of
the
respective non-performing loan securitization
transactions. It is noted that the Group
does not exercise control over
the activities of the above entities following
the sale of 51% of their mezzanine and
junior notes subordinated notes
to an investor in 2021. The 100% of the
senior
notes and the 5% of the junior subordinated
notes are retained to the Groupa and
are classified in the Loans and
Accounts Receivable portfolio. It is
clarified that as of 31.12.2021 the Group
held in the portfolio of securities
valued at fair value
through the profit or loss, the 44%
of mezzanine and junior subordinated
loans. These notes
were transferred during the current
year to the company Galaxy Mezz Ltd
(which was renamed to Galaxy Cosmos
Mezz Plc), which is no longer a subsidiary
of the Group.
The following table presents the carrying
amount of notes that the Group retained
in the context of the Galaxy
and
Cosmos transactions and the related results.
It is noted that the nominal value of
issued notes from the
aforementioned special purpose companies
at 31.12.2022 amounts
to € 11 bil. (31.12.2021:14 bil.).
Carrying
amount
31.12.2022
Profit or Loss 31.12.2022
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
-
612
(2.301)
Loans and Advances
to Customers measured
at
amortized cost
Notes issued by special
purpose entities
5,360,785
38,070
(23)
Loans and Advances
to Customers measured
at fair
value through profit
or loss
Notes issued by special
purpose entities
2,353
1,880
1,445
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
221
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Carrying
amount
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
carrying amount of € 110.2 mil., with a reference
date of 31.12.2022
(31.12.2021:
€ 112.4 mil.) to the special purpose entities
Orion Securitization DAC, Galaxy
II Funding DAC, Galaxy IV Funding
DAC and Cosmos Securitization DAC
for the purpose of financing their reserves.
The total results recognized by
the Group from the above loans in 2022
amounted to gain € 829 (2021:
€ 505). As of 31.12.2022 cash deposits of
the above entities with the Group amounts
to € 232.3 mil. (31.12.2021: €
270.7 mil.)
In connection with the Group’s commitments
resulting from this specific
securitization transactions,
it should be
noted that the transferred securitized portfolios
included letters of guarantee. In case
of forfeiture of any of them, the
payment to the third party (to whom letter
of guarantee addressed) is made
from special deposit accounts, with
reserved balances held by the
aforementioned special purpose
entities of the Group.
Moreover, the Group has committed to
issue letters of guarantee
for the above securitization companies up
to the
total
amount of € 205 mil., through
a relevant a loan facility limit, for which
a commission will be received. In
case of
forfeiture of any guarantee, the amount
paid becomes immediately due and
the capital amount is repaid through
the
securitization current accounts, while
the amount of interest and other
commissions is repaid through the reserves
of the securitization company
and in case these are not sufficient, it takes a
high order priority of payment and
is
repaid on the coupon payment dates
of the bonds.
It is noted that the Group has committed to provide
financing on behalf of the securitization
special purpose entities
for the acquisition of properties or shareholdings
(REOCOs) through the signing
of bond loan agreements. In the
event that a relevant loan is required
to be granted under these contracts,
this is transferred directly to the
securitization company, that hold the
securitized portfolio, with an
advance payment, which is held by the
securitization company in a relevant
reserve, of the consideration to the
Group. In the event that the consideration
is not paid in advance, the Group is not obliged
to proceed with the loan disbursement
and therefore the Group’s
exposure to credit risk from the above
transaction is zero. It is noted that the legal transfer
of said claims has
already taken place at the time of the securitization
in the form of a transfer of future claims under
the specific bond
loans. The above companies have
deposits with the Group of €
26.5 mil. as of 31.12.2022 (31.12.21 € 175). The
above carrying amounts of bonds,
loans and investments in shareholdings,
together with the aforementioned
commitments of the Group to provide
loans and guarantees, constitute the maximum
possible exposure of the
Group to the special purpose entities, established
in the context of the 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 mil., 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 € 15.6 mil. (2021:
€ 588) was recognized in the results. Also,
the Group is the collateral manager,
investing in eligible securities
according to specified criteria.
Within the year, the Group participated,
jointly with another lender, in the
financing of the special purpose
entity
Iside Spv Srl, which was established for the
purpose of financing a real
estate investment company
in the context of
the Italian Securitization Law.
Based on this law, the financing provided
to the special purpose entity is collateralized
with mortgages of the
ultimate debtor, while the repayment
of the financing reflects the repayment
schedule of the loan granted
by the
special purpose entity to the ultimate debtor.
As the company’s main
activity is related to its issued bonds,
and for
which the decisions taken are joint with
the other lender, the Group has joint control
over the special purpose entity.
The amount of said financing as of 31.12.2022
amounts to € 58.7 mil., while the total results
recognized in the
Group accounts from said financing amount
to gain € 818.
In addition, the Group has investments
in special purpose entities through
its participation in venture capital mutual
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
222
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
31.12.2022
31.12.2021
31.12.2022
31.12.2021
Category of structured
entity
Investment securities
- measured at fair value
through other comprehensive
income
Venture capital mutual
funds
7,360
11,383
259,759
319,432
Asset-
backed securities
706
886
194,588
231,395
Investment securities
- measured at fair value
through profit or
loss
Asset-
backed securities
8,637
10,357
28,500
28,500
Investments in associates
and joint ventures
Venture capital mutual
funds
1,589
1,907
2,581
3,708
The Group is committed to participate in additional
investments of the above
mutual funds up to the amount of €
10,150 (31.12.2021: € 4,367).
This commitment together with the carrying amount
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 2022 interest income
amounting
to € 390 (2021: € 256) and
no gains or losses (2021: profits € 0) 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.
41.Disclosures 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 31.12.2022 amounted to
€ 2,651,988, gains before tax amounted
to € 389.117 income taxes amounted to € (234,461), the number
of employees was 5,947and the
following companies are included:
.
Banks
1
Alpha Bank S.A
Holding companies
1
Alpha Services and Holdings SA
2
Alpha Holdings
M.A.E.
3
ALPHA International Holdings M.A.E.
Financing Companies
1
Alpha Leasing Α.Ε.
2
ABC Factors Α.Ε.
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 AAEZ
Real
Estate
and Hotel
1
Alpha Astika Akinita A.E
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
223
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
2
Alpha Real
Estate Management
and Investments
S.A.
3
Alpha Investment
Property Attikis
A.E.
4
APE Fixed Assets
A.E
5
Alpha Investment
Property Neas
Kifisias A.E
6
Alpha Investment
Property Kallirois
A.E.
7
Alpha Investment
Property Livadias
A.E.
8
Alpha Investment
Property Neas
Erythraias A.E.
9
Alpha Investment
Property Spaton
A.E.
10
Alpha
Investment Property
Kallitheas A.E
11
Alpha Investment
Property Irakleiou
A.E
12
AIP
Industrial Assets S.M.S.A.
13
AIP
Residential Assets
Rog
S.M.S.A.
14
AIP Attica Residential Assets I
S.M.S.A.
15
AIP Thessaloniki Residential
Assets S.M.S.A.
16
AIP Cretan
Residential Assets
S.M.S.A.
17
AIP Aegean
Residential Assets S.M.S.A.
18
AIP Ionian
Residential Assets S.M.S.A.
19
AIP Commercial Assets
City Centres S.M.S.A.
20
AIP Thessaloniki Commercial
Assets S.M.S.A.
21
AIP Commercial
Assets Rog
S.M.S.A
22
AIP Attica Retail
Assets I S.M.S.A.
23
AIP Attica Retail
Assets II S.M.S.A.
24
AIP Attica Residential Assets II
S.M.S.A.
25
AIP
Retail Assets
Rog S.M.S.A.
26
AIP Land II S.M.S.A.
27
AIP Attica Retail
Assets IV S.M.S.A.
28
Startrek Properties Μ.Α.Ε.
.
.
29
AIP
Urban Cetres
ΙΙ
S.M.S.A.
30
Skyline Properties
Μ.Α.Ε.
31
AIP Athens
Urban Cetres Ι
S.M.S.A.
32
AIP Attica Retail
Assets II S.M.S.A.
Other
1
Kafe Alpha A.E.
2
Alpha Supporting Services A.E.
3
Real Car
Rental Α.Ε.
4
Emporiki Management
A.E.
5
Alpha Bank Notification Services
A.E.
6
Alpha Payment Services M.A.E
.
United
Kingdom
Turnover in United Kingdom for the year ended 31.12.2022
amounted to € 26,746, profit before tax
amounted to € 4,949, income taxes amounted to €
(924), the number of employees was 66 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
€ 152,122, losses before tax amounted
to € (16,973), income taxes amounted to € (717), the number
of employees was 454and the following
companies are included:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
224
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
.
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
Alpha Real Estate Services LLC
3
AGI-Cypre Tochni Ltd
4
AGI-Cypre Mazotos
Ltd
5
AGI-Cypre Property 2 Ltd
6
AGI-Cypre Property 4 Ltd
7
AGI-Cypre Property 5 Ltd
8
AGI-Cypre Property 6 Ltd
9
AGI-Cypre Property 8 Ltd
10
AGI-Cypre Property 7 Ltd
11
AGI-Cypre Property 9 Ltd
12
AGI-Cypre Property
12 Ltd
13
AGI-Cypre Property
13 Ltd
14
AGI-Cypre Property
14 Ltd
15
AGI-Cypre Property
15 Ltd
16
AGI-Cypre Property
16 Ltd
17
AGI-Cypre Property
17 Ltd
18
AGI-Cypre Property
18 Ltd
19
AGI-Cypre Property
19 Ltd
20
AGI-Cypre Property
20 Ltd
21
AGI-Cypre Pafos
Ltd
22
AGI-Cypre P&F Nicosia Ltd
.
.
23
ABC RE
P2 Ltd
24
ABC RE
P3 Ltd
25
ABC RE
L2 Ltd
26
ABC RE
P4 Ltd
27
AGI-Cypre RES
Nicosia Ltd
28
AGI-Cypre P&F Limassol Ltd
29
AGI-Cypre Property
21 Ltd
30
AGI-Cypre Property
22 Ltd
31
AGI-Cypre Property
23 Ltd
32
AGI-Cypre Property
24 Ltd
33
ABC RE
L3 Ltd
34
ABC RE P&F
Limassol Ltd
35
AGI-Cypre Property
25 Ltd
36
AGI-Cypre Property
26 Ltd
37
ABC RE
COM Pafos
Ltd
38
ABC
RE RES
Larnaca Ltd
39
AGI-Cypre P&F Pafos
Ltd
40
AGI
Cypre Property
27
Ltd
41
ABC RE
L4 Ltd
42
ABC RE
L5 Ltd
43
AGI-Cypre Property
28 Ltd
44
AGI-Cypre Property
29 Ltd
45
AGI-Cypre Property
30 Ltd
46
AGI-Cypre COM Pafos
Ltd
47
AGI-Cypre Property
31 Ltd
48
AGI-Cypre Property
32 Ltd
49
AGI-Cypre Property
33 Ltd
50
AGI-Cypre Property
34 Ltd
51
Alpha Group
Real Estate
Ltd
52
ABC RE P&F
Pafos
Ltd
53
ABC RE P&F
Nicosia Ltd
54
ABC
RE RES
Nicosia Ltd
55
Fierton Ltd
56
ABC RE
P6 Ltd
57
AGI-Cypre Property
35 Ltd
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
225
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
58
AGI-Cypre P&F Larnaca Ltd
59
AGI-Cypre Property
37 Ltd
60
AGI-Cypre RES Ammochostos Ltd
61
AGI-Cypre Property
38 Ltd
62
AGI-Cypre RES
Larnaca Ltd
63
ABC RE
P7 Ltd
64
AGI-Cypre Property
42 Ltd
65
ABC RE P&F
Larnaca Ltd
66
Krigeo Holdings
Ltd
67
AGI-Cypre Property
40 Ltd
68
AGI-Cypre Property
43 Ltd
69
AGI-Cypre Property
44 Ltd
70
AGI-Cypre Property
45 Ltd
71
ABC RE
RES Ammochostos Ltd
72
ABC
RE
RES
Paphos Ltd
73
Sapava Ltd
74
AGI-Cypre Property
46 Ltd
75
AGI-Cypre Property
47 Ltd
76
AGI-Cypre Property
48 Ltd
77
Alpha Credit
Property 1
Ltd
78
AGI-Cypre COM Nicosia Ltd
79
AGI-Cypre Property
49 Ltd
80
AGI-Cypre Property
50 Ltd
81
AGI-Cypre COM Larnaca Ltd
82
AGI-Cypre Property
51 Ltd
83
AGI-Cypre Property
52 Ltd
84
AGI-Cypre Property
53 Ltd
85
Alpha Credit
Property Ltd
.
86
AGI-Cypre Property
55 Ltd
87
AGI-Cypre Property
54 Ltd
88
Sky Cac Ltd
89
Galaxy
Mezz
Ltd
90
AGI-Cypre Property
56 Ltd
91
Nigrinus 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
Poseidon
Ltd
7
AGI-RRE
Hera Ltd
8
AGI-BRE Participations
2 Ltd
9
AGI-BRE Participations
3 Ltd
10
AGI-BRE Participations
4 Ltd
11
AGI-RRE Ares
Ltd
12
AGI-RRE Artemis
Ltd
13
AGI-BRE Participations
5 Ltd
14
AGI-RRE Cleopatra Ltd
15
AGI-RRE Hermes
Ltd
16
AGI-Cypre Arsinoe Ltd
17
AGI-SRE Ariadni
Ltd
18
Zerelda
Ltd
19
AGI-Cypre Evagoras Ltd
20
AGI-Cypre Tersefanou
Ltd
21
AGI-Cypre Ermis Ltd
22
AGI-SRE Participations
1 Ltd
23
Alpha
Credit Acquisition
Company
Ltd
Other
1
Alpha Trustees
Ltd
.
Luxembourg
Turnover in Luxembourg for the year ended 31.12.2022 amounted
to € 0, losses before tax amounted to
€ (31), income taxes amounted to € (1) and the following company
is included:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
226
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
.
Special
purpose and
holding entities
1
Alpha International
Holding Company
S.A.
.
Romania
Turnover in Romania for the year ended 31.12.2022 amounted to
€ 233,454, profit before tax amounted
to € 29,070, income taxes amounted to € (4,530), the number
of employees was 1.990 and the following
companies are included:
.
Banks
1
Alpha Bank Romania S.A.
Financing Companies
1
Alpha Leasing Romania IFN 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
SC Carmel Residential Srl
8
Asmita Gardens Srl
9
Cubic Center Development S.A.
10
Office
Park
I Srl
11
Acarta Construct
Srl
12
Engromest
.
Serbia
Turnover in Serbia for the year ended 31.12.2022 amounted to € 42, losses before
tax amounted to €
(307) and the following company is included:
.
Real
Estate
and Hotel
1
AGI-SRE Participations 1 DOO
.
Albania
Turnover in Albania for the year ended 31.12.2022 amounted to
€ 9,499, losses before tax amounted to
€ (7,088), income taxes amounted to € (79) and the following company
is included
Banks
1
Alpha Bank Albania SH.A.
.
It is noted that, in the context of project Riviera, on 18.7.2022 the sale
of all shares held by the Group
subsidiary Alpha International Holdings S.A. in Alpha Bank
Albania to OTP Bank Plc was completed.
Bulgaria
Turnover in Bulgaria for the year ended 31.12.2022 amounted to €
521, losses before tax amounted to €
(1,302), number of employees 3 and the following companies are included:
.
Real
Estate
and Hotel
1
Alpha Real Estate Bulgaria
EOOD
2
Chardash Trading
EOOD
3
AGI-BRE Participations 2 EOOD
4
AGI-BRE Participations 2BG
EOOD
5
AGI-BRE Participations 4 EOOD
6
Kestrel Enterprise EOOD
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
227
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
.
Jersey
Turnover in “Jersey” for the year ended 31.12.2022 amounted € (16) και
losses before tax amounted to €
(146).
.
Special purpose
and holding
entities
1
Alpha Group
Jersey Ltd
.
Ireland
Turnover in “Ireland” for the year ended 31.12.2022 amounted
to € 0.
.
Special
purpose and
holding entities
1
Alpha Quantum
DAC
2
Galaxy
III
Funding Designated
Activity
Company
.
Neither the Company 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
2022 amounts to -0.53% (2021: -4,05%).
42.Segment Reporting
Α. Operating
Segments
In the third quarter of 2022, the Executive Committee, which is
the ultimate decision maker on the basis
of which segment performance
is targeted, monitored and assessed, decided to proceed
to the change
of the operating segments, through which it manages the Group’s activities, in
order to be consistent with
the organizational and operational changes that resulted
from the implementation of the Transformation
Program. The allocation of activities to the new operating segments
reflect a customer-
centric approach
with emphasis on client’s asset management operations, the operation
of the International Business
Network and the management of Non-Performing Exposures
based on a separate segment.
(Amounts in mil. Euro)
.
1.1 –
31.12.2022
Retail
Banking
Customers
Medium &
Large
Companies
Asset
Management
&
Treasury
International
Operations
Non-
Performing
Exposures
Other /
Elimination
Center
Group
Net interest income
437.2
517.1
94.0
173.5
108.
5
(7.3)
1,323.0
Net fee and commission
income
130.2
131.6
80.8
43.1
9.8
0.5
396.0
Other
income
200.4
159.0
167.9
20.7
(1.6)
19.9
566.3
Total income
767.8
807.7
342.7
237.3
116.
7
13.1
2,285.3
Of which income
between operating
segment
20.5
20.8
14.3
(5.0)
(19.
2)
(31.4)
-
Total expenses
(435.4)
(155.2)
(83.3)
(181.0)
(191.9
)
(35.4)
(1,082.2)
Impairment losses and
provisions to cover
credit
risk
and
other
related
expenses
(75.0)
(9.7)
5.7
(482.2)
(0.1)
(561.3)
Impairment losses on
other financial
instruments
0.8
3.7
(2.1)
2.4
Profit/(losses)
before
income
tax from continued
operations
258.2
642.8
263.1
59.9
(557.4)
(22.4)
644.2
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
228
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Income tax
(263.6)
Profit/(losses) after income
tax from continued
operations
380.6
Profit/(losses) after
income tax from
discontinued operations
17.4
17.4
Profit/(losses) after income
tax
398.0
Assets 31.12.2022
12,680.4
21,238.0
27,694.6
7,545.9
4,912.
9
3,946.9
78,018.7
Liabilities
31.12.2022
32,855.3
8,719.6
21,675.7
7,023.4
1,092.
0
375.2
71,741.2
Capital
expenditure
59.0
15.7
8.4
31.3
35.2
7.8
157.4
Depreciation and
Amortization
(74.5)
(26.7)
(13.0)
(19.2)
(13.3)
(9.8)
(156.5)
Investments in
associates and joint
ventures
98.7
98.7
.
The results of “Retail Banking customers” and “Medium
& Large Companies” have been impacted by an
income of € 297.9 mil. as a result of Prometheus transaction
(note 48).
Losses before income tax expense of the operating segment «Other/Elimination
Center» amounting in
total to € 22.4 mil. includes income from elimination between operating
segments of € 0.4 mil. and
expenses from other operations of € 22.8 mil. These unallocated
amounts refer to results from operations
that do not represent a separate operating segment.
(Amounts in mil. Euro)
.
1.1
–
31.12.2021
as
restated
Retail
Banking
Customers
Medium
&
Large
Companies
Asset
Management
&
Treasury
International
Operations
Non-
Performing
Exposures
Other /
Elimination
Center
Group
Net interest income
399.3
447.5
87.9
148.5
297.1
(4.4)
1,375.9
Net fee
and commission income
134.9
120.2
90.2
39.4
10.6
0.3
395.6
Other
income
15.2
21.8
142.2
18.3
(2.231.6)
35.9
(1,998.2)
Total income
549.4
589.5
320.3
206.2
(1.923.9)
31.8
(226.7)
Of which income between
operating segment
10.9
26.9
3.3
4.5
(26.9)
(18.7)
-
Total expenses (excluding
expenses
for
separation schemes
(467.8)
(179.6)
(112.5)
(168.4)
(219.9)
(23.1)
(1,171.3)
Impairment losses and provisions
to
cover
credit risk and
other related
expenses
(74.5)
54.8
(17.4)
(1.373.9)
(1.0)
(1,412.0)
Impairment losses on other
financial instruments
(1.2)
(19.8)
(21.0)
Expenses for
separation
schemes
(83.8)
(8.8)
(3.8)
(1.3)
(97.7)
Profit/(losses) before
income tax from
continued
operations
(77.9)
455.9
184.2
20.4
(3.519.0)
7.7
(2,928.7)
Income tax
55.7
Profit/(losses) after income tax
from continued
operations
(2,873.0)
Profit/(losses) after income
tax
from discontinued
operations
(33.1)
(33.1)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
229
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Profit/(losses) after
income tax
(2,906.1)
Assets 31.12.2021
13,379.2
18,523.3
24,872.4
7,734.5
5,889.7
2,956.9
73,356.0
Liabilities
31.12.2021
31,221.4
7,930.6
18,995.5
7,425.9
1,332.1
370.9
67,276.4
Capital
expenditure
67.2
17.5
7.9
9.9
32.8
7.7
143.0
Depreciation and
Amortization
(77.3)
(25.1)
(12.4)
(19.0)
(16.3)
(7.0)
(157.1)
Investments in associates
and joint ventures
68.3
68.3
.
Profit/(losses) before income tax of the operating segment named
“Other/Elimination Center” of a total
amount of € 7.7mil. include expenses from eliminations between
operating segments amounting in total
of € 0.7mil. and income from other operations of € 8.4 mil.
These unallocated amounts refer to results
from operations that do not represent a separate operating
segment.
i.
Retail Banking
customers
It includes all individuals (retail banking customers), self-employed professionals,
small and very small
companies operating in Greece. This Segment offers
all types of deposit products (current account,
saving accounts,term deposits etc.)debit and credit cards, loan facilities
(mortgages, consumer,
corporate loans, leasing products, letters of guarantee/letters of credit etc.).
It also offers insurance and
bancassurance products.
ii.
Medium & Large Companies
This segment includes all medium and large companies, including
shipping companies and companies
that cooperate with the Wholesale Banking and Investment Banking
Departments. This operating
segment is offering working capital facilities, corporate loans, leasing
products, factoring services, letters
of guarantee/letters of credit etc. It also offers investment banking
services, including financial advisory
services.
iii.
Asset Management & Treasury
In this segment asset management services offered through the
Private Banking units and the
subsidiaries Alpha Finance and Alpha Asset Management AEDAK
are included, as well as the income
related with the sale and management of mutual funds.
This operating segment also includes the management of
institutional customers and cash management
activities in the interbank market (foreign exchange, bonds, futures,
IRS, interbank
investments/placements, etc.).
iv.
International
Operations
Includes all products and services provided by the
Group through its international network in Cyprus,
Romania and United Kingdom.
v.
Non performing exposures
Includes the management of non performing assets within the Group, as well
as any company
established for the purpose of managing these financial and related
fixed assets. It also includes the
investments and shares obtained from loan repossession.
vi.
Other
/
Elimination
Center
This segment includes operations of the Group, which are not related
with banking activities such as
investment companies, venture capital companies and real estate
companies. In addition, this segment
includes a) the Notes of the Galaxy and Cosmos securitization transactions
held by the Group and b)
intersegment eliminations.
Income and expenses per segment also include intersegment
transactions. All transactions are
conducted on arm’s length while Intersegment transactions are eliminated.
Comparative information has been restated on the
basis of the new operating areas. Information on
comparative period based on previous operating segments is
presented below, while the definition of
previous operating segments are included in the consolidated financial statements
as at 31.12.2021.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
230
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
(Amounts in mil. Euro)
.
1.1 - 31.12.2021 as restated
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
135.7
111.5
78.0
33.6
36.7
0.1
395.6
Other
income
17.8
(48.0)
11.0
153.7
2.9
(2,135.6)
(1,998.2)
Total income
662.3
527.8
102.6
397.3
213.4
(2,130.1)
(226.7)
Total expenses
(excluding
expenses
for
separation
schemes)
(533.2)
(171.5)
(41.3)
(34.4)
(260.3)
(130.6)
(1,171.3)
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
22,450.8
8,466.8
10,261.9
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
68.3
.
*Certain figures of the previous
year have been restated
as described in note 50.
Β.
Geographical
segments
The breakdown
by
geographical segment
is defined
by
the
country of
the business
operations
of
the
Group company.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
231
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
(Amounts in mil. Euro)
.
1.1 - 31.12.2022
Greece
Other
countries
Group
Net interest income
1,126.8
196.2
1.323.0
Net fee
and commission income
353.0
43.0
396.0
Other
income
552.5
13.8
566.3
Total income
2,032.3
253.0
2.285.3
Total expenses
(838.1)
(244.1)
(1,082.2)
Impairment losses and provisions
to cover
credit risk and
related expenses
(547.8)
(13.5)
(561.3)
Impairment losses on other
financial instruments
4.5
(2.1)
2.4
Profit/(losses) before
income tax
from continued
operations
650.9
(6.7)
644.2
Income tax
(263.6)
Profit/(losses) before
income tax
from continued
operations
380.6
Profit/(losses) before
income tax
from discontinued
operations
17.4
17.4
Profit/(losses) after
income tax
398.0
Non current assets 31.12.2022
1,049.0
199.9
1,248.9
.
(Amounts in mil. Euro)
.
1.1 - 31.12.2021 as
restated
Greece
Other
countries
Group
Net interest income
1,213.7
162.2
1,375.9
Net fee
and commission income
356.2
39.4
395.6
Other
income
(2,001.0)
2.8
(1,998.2)
Total income
(431.1)
204.4
(226.7)
Total
expenses (excluding
provision
for
separation
scheme)
(911.8)
(259.5)
(1.171.3)
Impairment losses and provisions
to cover
credit risk and
related expenses
(935.5)
(476.5)
(1,412.0)
Impairment losses on other
financial instruments
(21.1)
(21.1)
Expenses for
separation
schemes
(97.7)
(97.7)
Profit/(losses) before
income tax
from continued
operations
(2,397.2)
(531.6)
(2,928.8)
Income tax
55.8
Profit/(losses) before
income tax
from continued
operations
(2,873.0)
Profit/(losses) before
income tax
from discontinued
operations
(33.1)
(33.1)
Profit/(losses) after
income tax
(2,906.1)
Non current assets 31.12.2021
1,423.9
217.5
1,641.4
.
For the
purposes
of
the
above
note,
Non-current
Assets
include:
•
Investment property
•
Property, Plant and
Equipment
•
Goodwill
and
other
intangible
assets
Certain figures
of the previous
year have
been restated
as described
in note 50.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
232
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
43.Risk Management
The Group has established a thorough and prudent
risk management framework for all type of risk faces,
considering the best supervisory practices which, considering the common
European legislation and
banking system rules, principles and standards is constantly evolving
over time in order to be
implemented in the daily operations of the Bank and the Group’s
companies, making the Group’s
corporate governance effective.
The Group’s main objective for 2022 was to maintain high standards
in corporate governance and
compliance with regulatory and supervisory provisions for risk
management in order to ensure the
confidence in the conduct of its business activities
through the provision of sound and robust financial
services.
RISK
MANAGEMENT
FRAMEWORK
Risk Management Governance
The Board of Directors (BoD) supervises the overall
operations of the Risk Management Unit. The BoD
has established a Board Risk Management Committee (RMC),
which convenes on a monthly basis and
reports to the Board of Directors. The Committee recommends to the Board
of Directors the risk
undertaking and capital management strategy, checks its implementation
and evaluates its effectiveness.
The risk management framework and its effectiveness
are reassessed 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 types of risks, 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 Group’s Risk
Management Unit and
reports both on a regular basis and on an ad hoc basis
to the Management Committees, the Risk
Management Committee and the Bank’s Board of Directors. These reports
cover the management of all
types of risks. As far as credit risk is concerned the reporting 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, the criteria or in each specific parameter.
-
The concentration risk (by risk type, sector, country,
collateral, portfolio etc.).
-
The evolution of Loan exposures, +90 days past due loans, Non-Performing exposures and the monitoring
of KPIs on a Group basis.
-
The Cost of Risk.
-
The IFRS 9 Staging transition of exposures per asset class.
-
The maximum risk appetite (credit risk appetite) per country, sector,
currency, Business Unit, limit
breaches and mitigation plans.
Organizational Structure
The following Risk Management Units operate under the supervision
of the General Manager - Group
Chief Risk Officer in the Group, that have the responsibility for the immediate
implementation of risk
management framework in accordance with the guidelines
of the Risk Management Committee.
-
Chief Risk Control Officer
-
Credit Risk Policy and Control Division
-
Credit Risk Methodologies Division
-
Credit Risk Cost Assessment Division
-
Market and Operational Risk Division
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
233
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
-
Climate and ESG Risk Management
-
Chief Credit Officer
-
Wholesale Credit Division
-
Credit Workout Division
-
Retail Credit Division
-
Credit Risk Data and Analysis Division
-
Credit Risk Data Management Division
-
Credit Risk Analysis Division
-
Risk Models Validation Division
For credit risk Management purposes, lending facilities
are separated into Wholesale and Retail as
described below.
43.1
.
Credit
Risk
WHOLESALE
BANKING
credit
facilities
Wholesale Banking credit facilities are included in
one of the following categories based on 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 mil. Includes financing in shipping companies,
as
well as, obligors under the
management
of the Investment
Banking Division
SME
Companies with
turnover
>
Euro5 mil.
and up
to
Euro
75
mil.
or
companies with
credit
limit >
Euro 1
mil.
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 main principles and guidelines, the procedures
and actions followed and
the responsibilities of all involved Units and Relationship Managers
are clearly defined, based on the four
eyes principle.
In this context, all credit proposals are prepared by
the Business Units, are reviewed by the Credit Units
and are subsequently forwarded to the respective Credit Committee
based on the total credit exposure,
the obligor credit risk rating, the provided collaterals
and the environmental and social risk rating, for
assessment and final decision.
The limits of the Wholesale Banking Credit Committees are determined
in accordance with Total Credit
Risk, which is defined as the aggregate of all credit facilities
of the obligor (single company or group of
related companies) which can be approved by the
Group and include the following:
-
Requested amount/ credit limit
-
Working Capital limits
-
Withdrawal limits from unclear deposits
-
Limits for issuance of Letters of Guarantee/ Letters of Credit
-
Factoring discount limits
-
Credit Cards discount limits
-
Derivative Financial Transactions Limits
-
Corporate Cards limits
-
Medium and long-term loans (current outstanding/exposure for loan facilities that have been fully drawn
or initially approved limit amount of undrawn loan facilities).
-
Leasing Facilities (current outstanding/exposure for leasing facilities that have been fully drawn or initially
approved limit amount for undrawn leasing facilities).
-
Special credit limits or loans of any the company’s business owners (mortgage loans, consumer loans,
loans for purchase of equity shares, credit cards etc.).
Wholesale Banking Credit Committees
Credit Committees decisions are multidimensional,
with the main activities performed being as follows:
-
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 Risk
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
234
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Adjusted Return on Risk Adjusted Capital - RARORAC (historical RARORAC – RARORAC based on the
outcome of the proposed suggestion).
-
Credit Limit Expiration/Renewal date (depending on the customer’s credit risk zone) and any deviations
from the rule.
-
Amendment on the collateral structure.
-
Decision for actions in case of activation of early warning triggers.
-
Financial Difficulty assessment.
-
Unlikeliness to Pay (UTP) assessment.
-
Credit Rating grading.
-
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 Limits Validity:
The period that credit limits are valid is determined by the relevant Wholesale
Banking Credit
Committees. The basic factor for the determination of the
period that credit limits are valid is the credit
rating grade, which is not in its own an approval
or rejection criterion, but the basis for determining the
amount and quality of collateral required as well as the pricing
of the facility. As a rule, for borrowers that
have been rated in the Low, Medium and Acceptable credit risk
zones, the time period that credit limits
are valid is twelve months, for obligors that have been rated in Medium
credit risk zone Watchlist the time
period that credit limits are valid is six months and for obligors that have
been rated in the High Risk zone
the time period that credit limits are valid is
three months. Deviations from the rule above, are allowable
only after documented decision of the responsible Business Units
and following the decision of the Credit
Committees.
2.Credit Risk Measurement
and Internal Ratings
The assessment of the borrowers’ creditworthiness and their
scaling into credit risk categories is
performed 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 timely identification of potential troubled facilities and the prompt plan of the required actions for the
minimization of the expected loss for the Group.
-
The assessment of the Group’s loan portfolio quality and the credit risk undertaken.
The objective of the credit risk rating systems is the estimation
of the probability that the borrowers will
not
meet their contractual obligations to the Group and the estimation of
the Expected Credit Loss.
The rating systems employed by the Bank and the Group entities
are the Alpha Bank Rating System
(ABRS) and Moody’s Credit Lens which incorporate different credit rating
models.
All current and potential clients of the Group are assessed based
on the appropriate credit risk rating
model and within the predefined time frames.
For the estimation of the probability of default of the borrowers of the
Group, the credit risk rating models
evaluate a number of parameters, which can be grouped as follows:
-
Financial Analysis: borrower’s Financial Ability (liquidity ratios, debt to income, etc.)
-
Borrower’s position in the market environment in which operates compared to the its competitors in the
sector it belongs.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
235
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
-
Transactional Behavioral
of the borrower both to the Group and third parties (debt in arrears, adverse
transaction records, etc).
-
Borrower’s qualitative characteristics (integrity and succession plan of the management, appropriate
infrastructure and equipment etc.).
The credit rating models which are currently employed by the Group
are differentiated according to:
-
The turnover of the companies.
-
The level of the total credit risk of the companies.
-
The credit facility’s specific characteristics.
-
The available information for the borrower’s assessment. Specifically,
for the financial analysis the
differentiation relates to the type of the local accounting standards applied, the accounting framework
applied (financial services, insurance services ect.) and whether the
financial statements are prepared in
accordance with 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 for credit risk
management framework.
Borrowers 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 the 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 “ Watchlist” (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 by the Group
and are fall under one of the following
categories:
-
Housing loans/Mortgages
-
Consumer Loans and Credit Cards
-
Small businesses (SB): Individuals and Legal entities with turnover up to
Euro 5 mil. and credit limit up to
Euro 1 mil.
1. Credit
Risk
Approval
Process
The Group monitors the borrower’s Total Credit Risk
(For Individuals and Small Businesses), which refers
to the aggregate amount of all revolving limits of the obligor, the balances
of one off lending facilities and
specifically for small
businesses the total balance of the approved lending facilities
provided to the
stakeholders of obligors’ companies.
Additionally, lending facilities for which the customer is guarantor
or co-debtor are also taken into
account.
The Group has developed and implemented a framework for the conduct
of credit policy (taking into
account the legislative and supervisory /regulatory
framework) and the procedures of Retail Banking of
the Group are based on. Additionally, it has developed and
put into effect an internal system of basic
principles, processes and rule for internal operations that are
applicable for lending business and ensure
the smooth and safe
management of the risk undertaken.
The main principles and rules that are applicable for the operations
of Retail Banking are the following:
-
Sound lending management.
-
Prudent customer selection based on specific credit criteria
-
Correlation of risks and returns and development of a pricing policy, loans’ coverage with collaterals
taking
into account the credit risk
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
236
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
-
Monitoring and management of the Total Credit Risk, i.e. the aggregated risk arise from any type of credit
facility granted by the Bank and Group companies.
The enforcement of the Credit Policy prerequires the compliance
with certain criteria, which contribute to
the acquisition and maintenance of a healthy loan portfolio,
and the robust and secure placement of
Group’s funds. Specifically:
Individuals
The credit approval process for individuals (individuals with
income 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 specific
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 credit limit up to Euro 1 mil. and annual turnover up to Euro 5 mil.
•
Entrepreneurs with credit limit up to Euro 1 mil.
•
Legal entities with credit limit up to € 1 mil. and annual turnover up to € 5 mil.
The creditworthiness of Small Businesses fall under the responsibility
of the Retail Banking is related to
the creditworthiness of company’s stakeholders/managers
of the company and vice versa. Therefore, the
evaluation of the applications in this category is based on two
dimensions:
•
The valuation of the creditworthiness of company’s stakeholders
or business managers and the guarantors.
•
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 of the company is based on the following:
•
Application fraud detection;
•
Demographics.
•
Financials.
•
Behavior.
•
Credit Bureau.
•
Qualitative data.
•
Collateral risk.
•
Business plan.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
237
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
2. Internal models
The fundamental parameter in measuring the credit
risk of Retail Banking is the credit risk models
developed and utilized throughout the credit risk cycle, both for
the Bank and the Group companies. The
above mentioned models disaggregate the population into homogeneous
risk groups (pools) and are
categorized as:
•
Behavior Models which assess the client’s behavior and predict the probability of default within the following
months.
•
Application Credit Scoring Models. These models assess application data—mainly demographic that predict
the probability of default within the following months.
•
Models for the estimation of regulatory parameters. It is noted that from 1.1.2018 the Bank’s and Group’s
companies’ credit risk models are in line with International Financial Reporting Standard 9 (IFRS 9).
These models and the estimations for the probability of default
that derive from them, play a significant
role in risk management and decision making process throughout the
Group’s operations.
•
The sectors that these models are used are the following:
•
Decision making process for granting lending exposures/renewal of credit limit.
•
Impairment
assessment.
•
Forecasting the future behavior of clients that belong in pool with similar characteristics.
•
The timely identification of potential troubled facilities and the prompt plan of the required actions for the
minimization of the expected loss for the Group.
•
The assessment of the Group’s loan portfolio quality and the credit risk undertaken.
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 in
the portfolio, the purpose of financing;
•
Behavioral data of loan during a recent period: payments during the most recent period, maximum
delinquency, outstanding loan balance versus loan limit, transaction type;
•
Qualitative data: Sector of Operations, Number of Employees, Company Type.
Models are reviewed,
validated and updated on an annual basis and
are subject to quality control so as to
ensure their predictive ability 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 economic environment.
For presentation purposes of table “Loans by credit quality
and IFRS 9 Stage” for Retail Banking Loans
the classification in “Strong”, “Satisfactory” and “Watchlist” categories, is
generally based on the twelve-
month Probability of Default as well as Staging criteria and EBA status.
Specifically, for Alpha Bank
Greece, the range of probabilities that determines
this classification, has derived from an analysis aiming
at optimizing the discriminatory power between categories.
Therefore, ranges might differ per portfolio and per
subsidiary. For the Bank, the range of probability of
default which defines the classification of a loan is
presented in the table below:
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The amounts are presented in thousands
of Euro unless otherwise indicated
.
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 risk management and control framework, there are
three “lines of defense” with distinctive
roles and responsibilities, the Business and Operations Units (first
“Line of Defense”), the Risk
Management Units (second “Line of Defense”) and the Internal
Audit Division (third “Line of Defense”).
In the context of the operation of the second line of defense and within
the single context of operations set
out for the
sectors of Retail Banking, Wholesale Banking and Private and Investment
Banking, the Group
carry out credit controls in order to optimize Credit Risk
management, to confirm the quality of the loan
portfolio and ensure that the first “line of defense” operates within the framework
set out for effective
Credit Risk management.
The operation of the second line of defense is independent
and aims, among else, to:
•
Design and develop procedures and controls for credit risk management.
•
Monitor the sufficiency and effectiveness of existing credit risk management procedures.
•
Highlight critical issues and potential deviations from the Group’s Manuals and Policies.
•
Provide guidelines and instructions related to the procedures for credit risk management.
•
Provide information to involved Units in regards
with the audit findings and possible recommendations.
In order to reinforce the second line of defense the Group has
established, the Risk Models Validation
Division, an independent division from model development
division, with direct reporting to General
Manager -Chief Risk Officer (CRO).
The role of Risk Models Validation Division, in the
context of the Model Risk Management framework
(MRM Framework), includes responsibilities related to the monitoring
of the performance of the models
developed by the first line of defense. The primary
task of the Division is the independent validation of the
reliability of the models, their appropriateness as well
as the compliance with the regulatory guidelines.
Risk Models Validation Division responsibility is
to develop procedures for the evaluation of models’
performance, on a periodic basis.
The frequency and the extent of the validation process is
determined from the significance of the models
that takes into account among other criteria, the size and the complexity
of the portfolio.
The associated level of inherent model risk is determined from the methodology
for the grading of
significance of the models (Model Tiering) which subsequently
determines the frequency, the extent and
the intensity of the validation.
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, either at the loan origination date or during the
loan life, 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 respective loans.
In any case, the necessary legal audit of the collaterals
provided 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.
Collaterals are classified into 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/described
in specific contractual documents, through which commitments
are created to the debtor or to third parties
(individual or legal) that replace the debtor in case of default of the latter’s
obligations to pay the debt and
corresponding rights to the creditor for their claim.
The main type of intangible collateral used in lending is the Guarantee. The
guarantee constitutes a legal
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The amounts are presented in thousands
of Euro unless otherwise indicated
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 presupposes 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 in case that are
integral part of the loan, are taken into account in the calculation
of expected credit losses, compared to
other intangible collaterals that are not taken into account in the calculation
of expected loss.
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 through the liquidation
proceeds of the asset.
Tangible collaterals are distinguished between mortgages and
prenotation on mortgages which are
registered over properties and pledges over movable assets (e.g., commodities,
checks, bills of
exchange) or on claims and rights.
For better assurance of the 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 properties
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 real estate property.
Methods and Frequency of real estate property valuations
According to the Group’s Credit Policy, the existence and the valuation
of collaterals are closely
monitored. The property valuations are performed on an annual basis
for all real estate types, except for
those cases where something different
is foreseen contractually, 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 an on site
visit of the valuator and internal inspection.
The revaluations of real estate properties, which collateralize performing
exposures, are mainly carried
out through:
-
the real estate price index of Bank of Greece, for the Residential Properties used as collateral for
performing exposures of amount up to Euro 3 mil.
-
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 mil.
-
the real estate price 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 performing exposures up to Euro 1 mil.
-
Expert input by authorized engineers, after their visit to the commercial property used as collateral or
through desktop valuation, in cases where the CRE index developed by Alpha Astika Akinita S.A. is not
appropriate for the type of commercial property or the amount of exposure exceeds Euro 1 mil.
The revaluations for property used as collateral for
non-performing exposures, are mainly carried out
through:
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The amounts are presented in thousands
of Euro unless otherwise indicated
-
the real estate price index of Bank of Greece, for the Residential Properties used as collateral for non
performing exposures of amount up to Euro 300 thousand.
-
the real estate price 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 exposures up to Euro 300 thousand.
-
Expert input by authorized engineers, after their visit to the property used as collateral or by desktop
valuation, provided
that either the amount of non-performing exposure related to the under valuation
property exceeds the amount of Euro 300 thousand or in the cases where the indices are not appropriate
of 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 over the procedures of implementation of the Group Loan
Collateral Policy, back-testing
for the verification of property valuations.Audits relate to valuations
that are based on indices or individual
assessments in order to ensure that the proper valuation of the real estate
properties is reflected in the
core systems of the Group companies in accordance with the valuations
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
disallowed from transactions and 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
valuation
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 guaranteed value of the assets provides
as collaterals for loans and for its
determination the quality of the assets as well as their market value are
taken into account.
In this way, the rates for guaranteed values are determined
for each type of collateral, which are
expressed as a percentage of their market value, nominal or weighted
value, depending on the type of the
collateral.
CREDIT RISK EARLY WARNING SYSTEM
In order to optimize 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)
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The amounts 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 has incorporated events related to the assessment
of the impact of the energy crisis and the
increase in interest rates.
The effectiveness of the Credit Risk Early Warning
System is being monitored on a regular basis by three
“lines of defense”:
•
The first “line of defense” consists of controls within the Units of the Group that participate in the process.
•
The second “line of defense”,
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 defense” are applied effectively,
through the
Credit Control Mechanism.
•
The third “line of defense” 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 risk in which the Group is exposed
and derived from the current or future impacts
on its counterparties or on their invested assets as a result of
the transition in an environmentally
sustainable economy) and physical risk (e.g. the risk in
which the Group is exposed and derived from the
current or future impacts on its counterparties or on their
invested assets as a result of the physical
effects of environmental factors).
Recognizing the relevance and potential impact of
risks arising from climate and environmental factors,
and particularly climate change, and in line with the relevant external
guidelines, the Group considers
climate and environmental risk factors as a thematic
area, i.e. as a cross-sectoral risk that can affect the
existing categories of financial and non-financial risks (e.g. credit risk,
operational risk, market risk,
liquidity risk, etc.)
During 2022, the Group integrated ESG into the regular risk
identification process and carried out a
materiality assessment, in the best way possible, given the limitations
of data, methodologies and
measurement tools. For the materiality assessment, the Group takes
into account various factors,
covering both financial materiality (e.g. exposures
sensitive to ESG factors as
a percentage of total assets / total loan portfolio, or
similar metrics), as well as qualitative factors, such as
the perceived impact on the environment and society and
possible aspects related to reputation, in line
with the principle of “double materiality”.
The materiality assessment of ESG risks across the various types
of financial and non-financial risks will
be gradually strengthened and expanded to consider additional
financial criteria beyond the level of ESG
sensitive exposures (e.g. sensitivity metrics, scenario analysis
and stress simulation results etc.), as
computational approaches become more mature and sufficient data points
become available. The Group
will identify and assess the materiality of ESG risks
on an annual basis, as part of the wider recurring risk
materiality assessment process.
In addition, the Group gradually integrates such risks into its Risk
Appetite Framework, using the results
of the materiality assessment as input, in order to assess the need to introduce
new qualitative
statements and/or quantitative indicators, as required.
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 integrating 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
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ANNUAL FINANCIAL
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The amounts are presented in thousands
of Euro unless otherwise indicated
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 define and communicate their customer 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 of activities i.e. the activities that it 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
production 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 incorporation 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 penetration 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 estimate the accuracy 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 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.
CRED
IT RISK
CONCENTRAT
ION MANAGE
MENT
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 detailed 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
CONSOLIDATED
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ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 evolution of its portfolio.
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
developed.
Regulatory limits are mandated externally as following:
•
Hard Regulatory Limit is determined to 25% of Tier 1 and no exception is allowed.
•
Soft Regulatory Limit is set to 10% of Tier 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, considering 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 sectors
of economic activities and sector
concentration risks are estimated in the context of Pillar
2 of Basel II.
DEFINITIONS
The following definitions are provided as guidance
to the 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, substantially,
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;
•
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 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
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REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 authorization 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, recycling, 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
collateralized with securities,e.g. bonds, shares etc. (Margin Financing);
•
Disappearance of an active market for the debtor’s
financial instruments held 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 bankruptcy or insolvency status
(application for bankruptcy);
•
A Bank has initiated bankruptcy or insolvency proceedings (application
for bankruptcy);
•
Sale of credit liabilities;
•
Debt forbearance with a reduction in the accounting value of the financial
liability (NPV loss) greater
than 1%;
•
Cured FPL exposures more than 30 days past due; (on loan facility
basis);
•
Cured FPL exposures in resettlement process; (on
loan facility basis);
•
An exposure was purchased or sold with deep discount that reflects
the low credit quality of the
borrower (POCI); (on loan facility basis).
Additionally, for Wholesale Banking exposures the following Soft UTP
Triggers exist:
•
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 with a simultaneous reduction of the current installment;
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REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
•
Multiple modifications in the same exposure;
•
Deterioration of the leverage ratio (Debt to Equity);
•
An exposure was purchased or sold with a deep discount that reflects the
low credit quality of the
borrower (POCI);
•
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 the 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 the
entity’s turnover, has applied for
bankruptcy;
•
An external auditor report with restrictions or qualifications that results
in significant deterioration of
key financial ratios of the borrower and to worsen 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 held by the Group;
•
The borrower has violated the financial terms of the loan
agreement;
•
There is a significant deterioration of the borrower’s sector activity prospects;
•
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);
•
Overdue 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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
246
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
For Retail Banking exposures the following Hard UTP Triggers
exist:
•
Fraud has been confirmed against the Group;
•
The borrower has passed away;
•
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 Group in case the
borrower cannot repay its debt obligation with the existing operating
cash flows (excluding e.g.
checks);
•
Debt Forgiveness with or without forbearance (conditional or
not), at least for the first 12 months since
the debt forgiveness;
•
Write-off because of unlikeness to pay;
•
Debt forbearance with a reduction in the accounting value of the financial
liability (NPV loss) greater
than 1%;
•
The borrower has requested to be declared bankrupt or insolvent (application
for incorporation under
Law 3869/2010 or any other upcoming law);
•
An exposure was purchased or sold with deep discount that reflects
the low credit quality of the
borrower (POCI);
•
Cured FPL exposures more than 30 days past due;
•
Cured FPL exposures in resettlement process;
Additionally, for Retail Banking exposures the following Soft UTP Triggers
exist:
•
Multiple forbearances in the same exposure;
•
The borrower has other exposures in the Group in default;
•
The borrower is unemployed;
•
The borrower is the sole owner of a company with exposures
in default and for which he has provided
personal guarantees;
•
Withdrawal of a license;
•
Inadequate borrower’s financial data.
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 (UTP triggers) such as sale
of Financial obligations with
NPV Loss > 1%, exposures of the borrower in non-performing status inside
group Subsidiaries
•
Change on the way of counting of Days Past Due meaning, hereafter
counting on the existence of
consecutive days of material past due.
•
An additional three-month probation period from the moment the obligor
is no longer identified with
material past due days and/or no indication of Unlikeliness To Pay occurs.
It is noted that the Group has decided since 2018 to align the perimeter
of exposures recognized as “Non
Performing loans”, as “Default Exposures” and as “IFRS
9 Credit Impaired exposures’.
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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
247
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
2.
Unlikeliness to Pay (UTP) Criterion
The Group considers that the Borrower is unlikely to pay when assesses
as unlikely the repayment of
obligations unless actions such as the liquidation of collaterals are enforced.
Additionally, it is necessary to harmonize the classification of exposures
in Default and the classification
of exposures according to EBA and therefore any Forborne non-performing
exposure (FNPL) or non-
performing exposure (NPL) is considered as an exposure at Default.
For Retail exposures, the above 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.
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.
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 Group,
from credit risk perspective, monitors
the respective adjustment as part of the expected credit losses.
These loans were recognized either in the
context of acquisition of specific loans or companies (i.e. Emporiki
Bank and
Citibank 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 of
the collateral available. In the case of
immovable properties, collateral value is considered the lower
between the prenotation amount and the
market value. Value of guarantees only includes the amount that
exceeds the value of collaterals. 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 expected credit losses calculation 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 at Default” and “IFRS 9 credit Impaired
Exposures”.
The definition of Non-Performing Exposures is 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.
Portfolio Classification in Stages based on the Credit Risk
(Staging)
Following an exposure’s initial recognition, exposure is
classified into stages based on credit risk. The
classification of loans in stages is based on the changes of the credit
quality since 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:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
248
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
•
Exposures that at the time of purchase (Purchased) meet the criteria of
non-performing exposures.
•
Exposures that the old one is derecognised and a new exposure is
recogniszed and for which the
following apply when Originated: if the exposure was classified as
credit impaired (NPE) prior to
derecognition, the new exposure will continue to maintain this
classification and it will be classified as
POCI.
The calculation for for the credit risk of POCI exposures is
calculated in lifetime.
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 date. In this stage, expected credit losses calculated
are based on the probability
of default within the next twelve months and the assessment is
carried out on a collective basis.
•
The Stage 2
includes credit exposures with significant increase
in credit risk since the initial
recognition but are not non- performing. In this stage,
expected credit losses calculated in lifetime and
the assessment is carried out on a collective basis.
•
The Stage 3
includes the non-performing / default exposures. In
this stage expected credit losses
calculated in lifetime and the assessment is performed on a collective
or individual basis.
All possible movements between Stages of credit risk
are presented below
•
An exposure which has been classified in Stage 1 in the 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
criteria of “Significant increase in credit risk” and in particular, for
case of Forborne Performing loans
(FPL), if the exit criteria from the 2-years probation period are met
or 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 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 but meets one one the criteria of Significant increase
in credit risk, or remain in Stage
3, if it is still non-performing/default.
All exposures in default (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 / credit risk rating reflecting
the annual thorough credit risk review.
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 losses 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:
•
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. In the context of the annual update of Credit
Risk parameters, the relative increase
can range between 75% and 200% depending on the
asset class of the loans. The absolute threshold,
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
249
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 be hit in order to
trigger stage 2). Additionally, in the case of wholesale exposures, the Credit
Risk Rating is taken into
account separately as a criterion for determining the significant increase
in credit risk. Finally, the
threefold increase in annualized PD as backstop is
ensured. Threshold determination derives based
on portfolio level analyses. The assessment of the exposures for
significant increase in credit risk is
applied on account level.
It is noted that the critical points - both for the absolute increase
and for the relative increase of PD
between the reference date and initial recognition - are validated
on an annual basis, in order to confirm
their correct application and to confirm that the established criteria
have sufficient identified the significant
increase in credit risk.
•
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 where according to the assessment
performed, an exposure may be
considered as significant increase in credit risk or not. Especially
for Specialized Lending portfolios
through rating (slotting category) 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 significant increase in credit
risk.
As part of the annual update of the credit risk parameters for
2022, the following adjustment was applied
to the determination of Significant Increase in Credit
Risk (SICR):
•
in the case of wholesale loans, the Credit Risk Rating is
taken into account separately as a criterion
for determining the significant increase in Credit Risk.
This adjustment did not have a material impact on the calculation of
Expected Credit Loss (ECL).
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 or the fact that certain exposures
do not share common credit risk
characteristics or for cases of exposures where there is
insufficient historical evidence of behavior in the
Group or on a collective basis for the remaining exposures.
For companies where the corporate guarantee from the parent company
represent 100% of the exposure
of the company, 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 Group). All other wholesale exposures are collectively
assessed.
Specifically for the Bank, wholesale exposures 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 mil.
•
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 wholesale exposures are 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 the following thresholds, per portfolio,
apply:
•
Consumer Loans: Exposures of Consumer Credit Borrowers with total
on balance exposures over €
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
250
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
500 thousand.
•
Mortgage Loans: Accounts of Mortgage Credit Borrowers
with on balance exposures over € 2 mil. 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 or funding.
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
•
Credit Risk Rating
•
Classification in Sales portfolios
•
Time on Probation
The groupings are reviewed on a regular basis to ensure that
each group is comprised of homogenous
exposures in terms of credit risk.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.
•
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:
-
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.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
251
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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, Company Type
•
Loan characteristics: product applied for, loan term
in the protfolio, loan amount, or financing
purpose;
•
Behavioral data: payments during latest period of time, delinquencies
(i.e. overdue amount, days
past due 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 through
regression 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
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 models) as well as the probability of default throughout the lifetime
of exposures (Lifetime PD
models). The twelve-month default models basically
evaluate the behavioural characteristics of the loan
(behavioural models), 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
(unemployment, annual percentage change in GDP, change in property
prices, inflation). 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.
Exceptionally, for
Credit Cards and loan agreements to individuals, the maximum period
is set at four 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 thorough 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 € 4.5 mil. as at 31.12.2022.
The Group uses models for exposure at default that reflect the characteristics
of each portfolio.
•
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, cure rate and cash recoveries 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 cure rate.
Expected recoveries from tangible collaterals are based on the following
inputs: the most recent (updated
within the year) market value of the collateral, the time required for the
liquidation/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 real estate
prices within 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.
As part of the annual update of the credit risk parameters for
the period that ended in 31.12.2022, the
required adjustments were made to the Time to Sale, without
any substantial impact on the estimate of
the Expected Credit Risk Loss (ECL). More specifically,
the expected time to Liquidation was increased
by 1 year, for exposures that are in a specific stage of management
actions.
Finally, it is noted that the LGD varies based on each macroeconomic
scenario since it differentiates the
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
252
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
value of collateral, cash recoveries and the cure rate.
Estimates of expected cash recoveries are adjusted by incorporating macroeconomic
indexes (i.e.
unemployment, annual percentage change in GDP, change in real
estate prices, inflation) 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 evaluate the
expected recoveries combined with the impact of macroeconomic
indicators.
In respect of cure rate estimates, statistical models
(regression) per portfolio have been developed based
on historical time series of observations which incorporate the
effect of the macroeconomic environment
through relevant indicators (indicative unemployment, annual
percentage change in GDP, change in
property prices, inflation).
Management overlays:
Sale scenarios
In case the Group’s business plan includes targets
and strategies for recovery through sale, then for the
loans and advances to customers included in the portfolio
that may be sold, the recoverable amount is
calculated by weighting:
(i)
the value in case of sale (sale price) and
(ii)
the amount expected to be recovered according to the internal
methods applied by the Group for the
impairment of non- performing loans, i.e. based on
the individual assessment for exposures
exceeding a specified limit and based on the collective assessment
for the rest.
The weighting is based on the probability of sale attributed to
each non-performing loan portfolio,
assessing the stage of preparation of the underlying portfolios,
the importance of the conditions preceding
the realization of the sale as well as the recovery time.
Taking into account the developments regarding the sale
transactions of NPL portfolios which are
included in the Business plan for the management of non-performing
exposures (NPE Business Plan),
such as thesedescribed in note 49 “Items of Assets Held for Sale”,
the calculation of expected credit
losses risk has been adjusted, incorporating a sell
scenario with 100% probability, for the following
portfolios:
•
Portfolio of non-performing wholesale loans (“Solar”
and “Hermes” transactions).
•
Portfolio of non-performing leases of Alpha Leasing A.E. (“Leasing” transaction).
•
Portfolio of non-performing shipping loans (“Shipping”), the sale transaction
of which was completed
within July 2022.
•
Portfolio of non-performing retail loans (“Light” transaction) where the sale
transaction was completed
within November 2022 and
•
Portfolio of non-performing exposures in Cyprus (Sky transaction).
The adjustments made by the Group concern the integration of
alternative recovery scenarios in relation
to the objectives of reducing non-performing loans, included in
the Group’s strategic plan.
The impact of the above incorporation of a 100% probability
of sale scenario on expected credit losses in
the current period amounted to € 273 mil..
Post model adjustments (PMA)
Moreover Management proceeds, when deemed necessary,
to additional adjustments which can not be
captured by the expected credit losses internal models. These
adjustments are recognized by the Group
after detailed review of the results that the expected credit losses internal
models calculated, market
and/or data from the Group Strategy that can not be incorporated in the internal
models due their nature.
The Group implements a robust internal process and governance framework
to timely recognize any
required adjustment as well support the management, the calculation
and application of these
adjustments.
The Group’s governance framework requires such
adjustments to be adequately documented and
approved by the Groups’ appropriate authorization levels.
On a regular basis and at least on each reporting period, the Group
examines whether the PMA have a
more permanent impact and access the incorporation or not in the expected
credit losses internal models.
In the context of inflationary pressures and the increase in
borrowing costs for households and
businesses, as well as the general uncertainty that
exists in the economic environment, the Group has
calculated as of 31.12.2022 additional PMA provisions for non-performing
retail loans allocated to Stage 3
totaling to 154.7m.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
253
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 Group 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 estimates the
cumulative probabilities associated with these scenarios.
The macroeconomic variables affecting the level of expected credit
losses are the Gross Domestic
product (hereinafter “GDP”), the unemployment rate, the inflation
and forward-looking prices of residential
and commercial real estates. Regarding 2022, inflation was considered that may
affect the estimates of
Credit Risk parameters and therefore was incorporated into the macroeconomic
variables.
The scenarios forecast growth rates for 2022 ranges from 6.2% (upside
scenario) and strong growth rates
in the coming years, up to 4.7% (downside scenario) with relatively
lower growth rates in the medium term
(about 0%).
Regarding Alpha Bank Cyprus, the growth rate for 2022 ranges from 6.3%
(upside scenario) to 5.1%
(downside scenario), while for Alpha Bank Romania it
ranges from 4.9% (upside scenario) to 3.4%
(downside scenario).
The main features of these scenarios can be described as follows:
Baseline Scenario
Despite the estimations for recession in the EU, the increase of
energy and food prices, the tightening
monetary policy in response to persistent inflationary pressures
and geopolitical uncertainty, the baseline
scenario provides for a strong recovery in 2022, followed
by positive, although relatively low magnitude
rates during the time of forecasts. The upward trend of domestic economic
activity in 2022 is expected to
rely on:
•
first, the better than expected performance of exports of services,
due to the remarkable recovery of
tourism,
•
secondly, the increase in private consumption, due to the continued increase in
emploment and fiscal
measures adopted to protect households against increasing energy
costs,
•
third, the increase in investments due to the remarkable increase
in FDI (Foreign Direct Investments),
and
•
forth, the continued decrease in unemployment.
The resilience of the Greek economy in adverse external
developments following the war in Ukraine, the
disorders in the supply chain and inflationary pressures is
based on three pillars:
First, to the fiscal policy measures applied to mitigate the impact
of high energy prices,
Secondly, to the particular features of the Greek economy in relation
to its energy sources and needs
(less energy -intensive industry, a low share of gas consumption as %
of total energy consumption, a
gradual reduction of Greece’s dependence on Russian gas
in the previous year), and
Thirdly, in the significant inflow of investments through the Public
Investment Program and the Recovery
and Resilience Fund, which is expected to be the main growth
lever in the coming years.
The dynamics of the baseline scenario for 2023 will
be mainly based on boosting investment spending
compared to consumption. The rate of change in domestic and
external consumer demand is expected to
weaken due to the adverse effects of the energy crisis
on household purchasing power but will continue
to support economic growth in 2023, although
to a lower extent, compared to previous years. The
expected shift to a growth which will be based more on investments is
not
limited to 2023, but is expected to continue in the medium term,
as Greece is one of the countries
benefited more from the RRF (Recovery and Resilience Facility).
In addition, there are more factors that
support the expectation of increasing the contribution of investment
in the future development mix, such
as:
•
The notable improvement of the business environment over
the last three years
•
The strong upward of FDI, which are expected to perform
a new record in 2022
•
Gradual adaptation of work costs to current inflationary environment,
and
•
The improvement of public debt viability and optimism
to achieve the investment grade within 2023,
compressing the risk
of sovereign debt and increasing business confidence, since the inflationary
pressures and fiscal tighting compress the debt to GDP ratio.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
254
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The residential real estate prices are expected to continue to move
up in 2022, and their growth rate is
expected to be revised up to 31.12.2022 compared to December
2021. This review is linked to the
enrichment of the analysis with Historical data of the first
9-month of 2022 - with housing prices increasing
by 10.4% compared to the increase of housing investment and
net capital inflows from abroad for real
estate purchases. The upward trend is expected to continue during
the period of forecasts, although at a
slower rate, supported by the strong dynamics of development.
Inflation stood at 9.3% in 2022, due to increase in food and
energy prices. Inflationary pressures are
expected to remain in the short term. However, inflation is expected
to decline from 2023 onwards, as
further increases in energy prices will gradually weaken, approaching
the ECB’s target for 2% in 2025.
Upside Scenario
In the upside scenario the real GDP is to grow throughout the time
period, supported by:
•
Intense increase in investment due to the complete absorption of MAA funds,
the improvement of
business confidence and the large FDI input
•
Lower increases in energy and food prices, leading to restrained
inflationary pressures in 2023,
followed by inflation rates below the 2% target of the ECB from 2024
onwards
•
Stronger performance in the sector of tourism, as milder
inflationary pressures at European level and
reduced geopolitical uncertainty are expected to support the
disposable income of households from
the countries of origin of tourist arrivals.
The unemployment rate is expected to be further reduced, reaching
7.2% in 2026, while residential real
estate prices are expected to record high growth rates throughout the
period.
Downside scenario
The downside scenario forecasts stability, with growth rates of real GDP to
be around 0% and strong
inflationary pressures to prevail during the projection horizon.
The characteristics of the downside
scenario reflect the adverse geopolitical
developments and, in particular, the highest duration of the war
in Ukraine and its impact on economic
activity, specifically by the increase in energy prices.
The high degree of uncertainty remains increased due to persistent inflationary
pressures due to the
increasing and volatile prices of energy and foods that burden
the purchasing power of domestic
households as well as that of Greece’s main commercial
partners, with adverse effects on tourism and
exporting sectors. Finally, the strengthening of monetary policy
is expected to prevent some investment
plans due to the increase in interest rates. As a result, the unemployment
rate is
expected to remain generally stable at 2022 levels, while housing
prices are expected to record negative
growth rates from 2024 onwards, reflecting compressed housing investments
and lower demand for real
estate properties.
Specifically in Greece, macroeconomic variables per
year for the period 2023-2026 which impact both the
Probability of Default and the Loss Given Default in the estimation of expected
credit losses at 31.12.2022
are the following:
Downside Scenario
2023
2024
2025
2026
Real GDP growth (% change)
(0.6)%
0.4%
0.3%
(0.2)%
Unemployment (% change)
13.1%
13.3%
12.8%
12.8%
Inflation (% change)
6.2%
3.7%
3.2%
2.9%
RRE prices (% change)
4.6%
(0.1)%
(1.0)%
(1.1)%
CRE Price Index (% change)
2.4%
0.9%
0.6%
0.9%
Baseline Scenario
2023
2024
2025
2026
Real GDP growth (% change)
1.5%
2.3%
2.0%
1.3%
Unemployment (% change)
12.1%
11.3%
10.3%
10.0%
Inflation (% change)
5.3%
2.7%
2.2%
2.1%
RRE prices (% change)
7.2%
2.9%
1.6%
1.1%
CRE Price Index (% change)
3.4%
2.5%
2.7%
2.6%
Upside Scenario
2023
2024
2025
2026
Real GDP growth (% change)
3.5%
4.1%
3.5%
3.0%
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
255
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Unemployment (% change)
11.1%
9.3%
7.9%
7.2%
Inflation (% change)
4.4%
1.6%
1.4%
1.3%
RRE prices (% change)
9.9%
6.0%
4.1%
3.0%
CRE Price Index (% change)
4.5%
4.4%
5.2%
4.9%
Respectively, the average of the macroeconomic variables for
the period 2022-2025 that impacted the
expected credit losses at 31.12.2021 is presented
in the following tables:
Downside Scenario
2022
2023
2024
2025
Real GDP growth (% change)
3.0%
2.0%
0.9%
0.4%
Unemployment (% change)
13.9%
13.6%
12.3%
11.7%
RRE prices (% change)
3.3%
0.4%
1.0%
1.7%
CRE Price Index (% change)
3.5%
2.9%
2.5%
3.0%
Baseline Scenario
2022
2023
2024
2025
Real GDP growth (% change)
5.2%
4.1%
2.8%
2.2%
Unemployment (% change)
13.2%
11.9%
10.5%
9.7%
RRE prices (% change)
5.4%
2.2%
2.2%
2.6%
CRE Price Index (% change)
4.5%
4.2%
4.4%
3.9%
Upside Scenario
2022
2023
2024
2025
Real GDP growth (% change)
7.4%
6.3%
4.7%
4.1%
Unemployment (% change)
12.4%
10.2%
8.6%
7.7%
RRE prices (% change)
7.6%
4.0%
3.5%
3.5%
CRE Price Index (% change)
5.7%
5.7%
6.6%
5.0%
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
256
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
In the countries where the Group mainly operates,
the average per year of the macroeconomic variables
for the period 2023-
2025 that affects the expected credit risk loss
of 31.12.2022, is presented in the
following tables:
CYPRUS
2023 – 2025
Downside
Scenario
Baseline
Scenario
Upside
Scenario
Real GDP growth (% change)
0.2%
5.2%
2.7%
Unemployment (% change)
8.1%
4.2%
6.1%
Inflation (% change)
3.6%
1.0%
2.3%
RRE prices (% change)
2.1%
6.0%
4.3%
CRE Price Index (% change)
1.9%
5.8%
3.9%
ROMANIA
2023 – 2025
Downside
Scenario
Baseline
Scenario
Upside
Scenario
Real GDP growth (% change)
2.0%
3.0%
3.9%
Unemployment (% change)
6.4%
5.9%
4.9%
Inflation (% change)
8.7%
6.7%
4.9%
RRE prices (% change)
3.4%
6.0%
8.0%
CRE Price Index (% change)
0.4%
6.7%
8.7%
Respectively, the average of the macroeconomic variables for
the period 2022-2024 that impacted the
expected credit losses at 31.12.2021 is presented
in the following tables:
CYPRUS
2022 - 2024
Downside
Scenario
Baseline
Scenario
Upside
Scenario
Real GDP growth (% change)
1.6%
3.5%
5.4%
Unemployment (% change)
8.2%
6.3%
4.3%
RRE prices (% change)
1.1%
3.3%
5.6%
CRE Price Index (% change)
(2.2)%
0.0%
2.3%
ROMANIA
2022 - 2024
Downside
Scenario
Baseline
Scenario
Upside
Scenario
Real GDP growth (% change)
2.5%
4.0%
4.9%
Unemployment (% change)
6.5%
4.5%
3.0%
RRE prices (% change)
3.4%
5.0%
7.0%
CRE Price Index (% change)
0.4%
5.7%
8.0%
The development of baseline scenario which is supported by a consistent
economic description,
operates as the starting point and is the most possible scenario
based on the current economic
circumstances and the Group’s main forecasts for the economic
development.
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 thedownside 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 € 87.5 mil. at 31.12.2022 (31.12.2021: €
88.0 mil.).
If the assigned cumulative probability of the upside scenario was weighted
at 100%, Expected Credit
Losses would decrease by € 85.8 mil. at 31.12.2022 (31.12.2021:
€ 87.2 mil.).
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
257
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The following table shows in more detail this impact per Stage classification.
(In millions of Euro)
Baseline Scenario
Downside Scenario
Upside Scenario
31.12.2022
31.12.2021
31.12.2022
31.12.2021
31.12.2022
31.12.2021
Retail Exposures
(2.9)
(0.6)
69.6
55.9
(68.9)
(54.6)
Stage 1
(0.9)
(0.1)
3.7
2.6
(8.0)
(5.5)
Stage 2
(1.6)
(0.6)
36.7
34.2
(32.4)
(30.3)
Stage 3
(0.4)
0.1
29.3
19.1
(28.5)
(18.8)
Wholesale
Exposures
(2.2)
(2.4)
18.0
32.1
(16.9)
(32.6)
Stage 1
(0.9)
(0.3)
4.7
1.4
(7.5)
(8.3)
Stage 2
(0.9)
(1.9)
10.3
17.0
(6.2)
(11.8)
Stage 3
(0.3)
(0.2)
3.0
13.7
(3.2)
(12.4)
Total
(5.1)
(3.0)
87.7
88.0
(85.8)
(87.2)
Undrawn loan commitments
According to IFRS 9, these contracts fall within the scope for expected
credit losses recognition.
When 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 risk in credit risk models,
deriving from their complexity as well as
the high degree of interdependency from parameters
assessed by other models, has adopted a Model
Risk management framework which includes the principles
of credit risk models development policy and
risk models validation framework. Specifically, the
independent Risk Models Validation Division validates
all models used for the calculation of expected credit losses.
Governance
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 Impairment
Policy through the Risk Management
Committee.
ENERGY AND INFLATIONARY CRISIS
The Group closely monitors the evolving energy crisis
and the impact on inflation due to the Russia-
Ukraine conflict as well as the rise in interest rates
and assesses their impact on its business activity,
financial position and profitability. On 31.12.2022, the impact due to
the Russia-Ukraine conflict is mainly
due to the update of the macroeconomic outlook and amounts for
the year 2022 to € 28 million at Group
level.
As the crisis evolves and the facts change, the Group may proceed to
appropriate adjustments to its
strategy, business plan and financing plan on a case-by-case
basis, and may also consider additional
measures to limit the impact of the energy and inflationary crisis
beyond of those that will be analyzed
subsequently, if this is deemed necessary.
In this direction, the Group carried out the following actions:
-In order to assess the crisis in the sectors of the economy, an assessment
was made of how each
sector of the economy is affected, based on an empirical
approach (expert judgment), taking into account
(a) the cost of raw materials, (b) the cost of production, (c) the cost
of transportation and (d) the
possibility of passing on the increase in costs to the final consumer.
-
Impact analysis on credit risk parameters was performed
-
Adaptation to the Credit Policy and the corresponding procedures:
Special instructions were given to
the Business Units and Credit Units.
-
Assessment in: credit review assessment process for borrowers
with indications of Unlikness to Pay
(UTP), Rating downgrades, Stage 2 triggers, calculation of
impairment of exposures classified in
Stage 3 based on an individual assessment.
-
Interest rates were stressed in order to better evaluate Wholesale
Banking and Retail Banking
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
258
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
borrowers’applications.
In the context of inflationary pressures and the increase in
borrowing costs for households and
businesses, as well as the general uncertainty that
exists in the economic environment, the Group
recognised additional provisions as at 31.12.2022 for retail
non-performing exposures of 154.7mil.
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 Law 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”) “Supervisory
framework for the
management of loans in arrears and non-performing loans” 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:
•
Implementation 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 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
259
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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.
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)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
260
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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.
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.
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.
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 (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 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
31.12.2022
261
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
FINANCIAL
ASSETS
EXPOS
URE TO CRE
DIT
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.
31.12.2022
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
12,425,958
12,425,958
Receivables from credit institutions
1,438,306
70,171
1,368,135
Loans and advances to customers:
- Loans measured at amortised cost
39,158,549
1,133,019
38,025,530
- Advances to customers measured
at amortised cost
266,204
40,800
225,404
- Loans measured at fair value through
profit or loss
314,191
314,191
- Advances to customers measured
at fair value through profit or loss
182,691
182,691
Total
39,921,635
1,173,819
38,747,816
Derivative financial assets
2,142,196
2,142,196
Trading securities:
- Government bonds
338
338
- Securities (other)
91
91
Total
429
-
429
Investments securities measured
at fair value through other comprehensive
income:
- Securities measured at fair value
through other comprehensive
income
(Government bonds)
1,491,789
1,896
1,489,893
- Securities measured at fair value
through other comprehensive
income (other)
284,056
3,253
280,803
Total
1,775,845
5,149
1,770,696
Investment securities measured at
amortised cost:
- Securities measured at amortised
cost (Government bonds)
8,768,400
16,576
8,751,824
- Securities measured at amortised
cost (other)
2,595,935
11,510
2,584,425
Total
11,364,335
28,086
11,336,249
Investment securities measured at
fair value through profit or loss:
- Securities measured at fair value
through profit or loss (other)
13,588
13,588
Total
13,588
-
13,588
Held for sale assets - Loan’s portfolio:
- Loan’s portfolio measured at amortised
cost
3,693,502
2,794,837
898,665
Total
3,693,502
2,794,837
898,665
Total amount of balance sheet
items exposed to credit risk
(a)
72,775,794
4,072,062
68,703,732
Other balance sheet items not
exposed to credit risk
9,892,091
577,132
9,314,959
Total Assets
82,667,885
4,649,194
78,018,691
Β. Credit risk exposure
relating to off balance sheet items:
Letters of guarantee, letters of credit
and other guarantees
4,651,184
34,526
4,616,658
Undrawn loan commitments
4,886,404
6,257
4,880,147
Total amount of off balance
sheet items exposed to credit
risk (b)
9,537,588
40,783
9,496,805
Total credit risk exposure
(a+b)
82,313,382
4,112,845
78,200,537
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
262
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
- Other receivables valued at amortized
cost
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)
76,217,201
5,146,594
71,070,607
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
263
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
FINANCIAL
ASSETS
EXPOS
URE TO CRE
DIT
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 amortised cost, per IFRS 9
Stage as well as loans that are measured at fair value through
profit or loss, as at 31.12.2022 and
31.12.2021:
31.12.2022
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)
Carrying
amount
(before
allowance for
expected
credit
losses)
Net
carrying
amount
Retail
lending
-
-
-
-
7,598,557
80,053
7,678,610
14,882
7,663,728
Mortgage
5,321,130
51,396
5,372,526
3,366
5,369,160
Consumer
690,932
19,781
710,713
5,305
705,408
Credit Cards
768,371
3,224
771,595
3,631
767,964
Small
Businesses
818,124
5,652
823,776
2,580
821,196
Corporate
lending
314,191
-
314,191
306,960
22,828,167
213,846
23,042,013
16,410
23,025,603
Large
corporate
314,191
314,191
306,960
17,051,430
128,985
17,180,415
11,760
17,168,655
SME’s
5,776,737
84,861
5,861,598
4,650
5,856,948
Public
sector
-
-
-
-
26,639
47
26,686
70
26,616
Greece
25,799
47
25,846
58
25,788
Other
countries
840
840
12
828
Total
314,191
-
314,191
306,960
30,453,363
293,946
30,747,309
31,362
30,715,947
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
264
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
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
2,727,505
364,894
3,092,399
142,775
2,949,624
905,130
1,276,797
2,181,927
578,111
1,603,816
Mortgage
1,725,788
226,996
1,952,784
61,008
1,891,776
623,915
625,190
1,249,105
210,436
1,038,669
Consumer
237,080
58,738
295,818
33,786
262,032
102,235
251,479
353,714
159,666
194,048
Credit Cards
90,469
15,029
105,498
13,713
91,785
2,968
58,638
61,606
41,624
19,982
Small
Businesses
674,168
64,131
738,299
34,268
704,031
176,012
341,490
517,502
166,385
351,117
Corporate
lending
1,350,542
89,841
1,440,383
18,977
1,421,406
85,808
185,302
271,110
121,216
149,894
Large
corporate
766,791
40,003
806,794
14,525
792,269
34,921
31,178
66,099
40,465
25,634
SME’s
583,751
49,838
633,589
4,452
629,137
50,887
154,124
205,011
80,751
124,260
Public
sector
466
32
498
29
469
491
611
1,102
686
416
Greece
345
345
27
318
491
611
1,102
686
416
Other
countries
121
32
153
2
151
Total
4,078,513
454,767
4,533,280
161,781
4,371,499
991,429
1,462,710
2,454,139
700,013
1,754,126
31.12.2022
Loans measured
at amortised
cost
Purchased
or originated
credit
impaired
loans
(POCI)
Total
net carrying
amount at
amortised
cos
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
884,888
380,411
1,265,299
210,521
1,054,778
13,271,946
10,774,005
Mortgage
623,895
157,701
781,596
73,942
707,654
9,007,259
8,749,691
Consumer
169,154
87,169
256,323
53,855
202,468
1,363,956
472,266
Credit Cards
664
6,693
7,357
6,310
1,047
880,778
3,742
Small
Businesses
91,175
128,848
220,023
76,414
143,609
2,019,953
1,548,306
Corporate
lending
116,231
42,390
158,621
29,342
129,279
24,726,182
18,495,302
Large
corporate
104,223
12,524
116,747
9,731
107,016
18,093,574
13,985,792
SME’s
12,008
29,866
41,874
19,611
22,263
6,632,608
4,509,510
Public
sector
-
-
-
-
-
27,501
27,345
Greece
26,522
26,421
Other
countries
979
924
Total
1,001,119
422,801
1,423,920
239,863
1,184,057
38,025,629
29,296,652
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
265
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
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
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
266
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2021
Loans measured
at amortised
cost
Purchased
or originated
credit
impaired
loans
(POCI)
Total
net carrying
amount at
amortised
cos
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
“Purchased or originated credit impaired loans” (POCI)
include loans amounting to € 765,451 as at
31.12.2022 (31.12.2021: € 871,520) which are not credit impaired/non performing.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
267
ANNUAL FINANCIAL
REPORT
The amounts 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 31.12.2022 and
31.12.2021.
31.12.2022
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
MORTGAGE
Strong credit quality
4,986,305
4,986,305
Satisfactory
credit quality
364,998
399,470
165,524
929,992
Watch list (higher risk)
21,223
1,553,314
292,920
1,867,457
Default
1,249,105
323,152
1,572,257
Carrying amount (before
allowance for
expected
credit
losses)
5,372,526
1,952,784
1,249,105
781,596
9,356,011
Allowance for expected credit losses
(3,366)
(61,008)
(210,436)
(73,942)
(348,752)
Net Carrying
Amount
5,369,160
1,891,776
1,038,669
707,654
9,007,259
-
Value of collateral
5,171,673
1,798,406
1,093,306
686,306
8,749,691
CONSUMER
Strong credit quality
526,264
844
527,108
Satisfactory
credit quality
171,821
86,081
57,751
315,653
Watch list (higher risk)
12,628
208,893
76,605
298,126
Default
353,714
121,967
475,681
Carrying amount (before
allowance for
expected
credit
losses)
710,713
295,818
353,714
256,323
1,616,568
Allowance for expected credit losses
(5,305)
(33,786)
(159,666)
(53,855)
(252,612)
Net Carrying
Amount
705,408
262,032
194,048
202,468
1,363,956
-
Value of collateral
199,616
84,389
67,211
121,050
472,266
CREDIT
CARDS
Strong credit quality
714,101
714,101
Satisfactory
credit quality
57,274
22,837
305
80,416
Watch list (higher risk)
220
82,661
256
83,137
Default
61,606
6,796
68,402
Carrying amount (before
allowance for
expected
credit
losses)
771,595
105,498
61,606
7,357
946,056
Allowance for expected credit losses
(3,631)
(13,713)
(41,624)
(6,310)
(65,278)
Net Carrying
Amount
767,964
91,785
19,982
1,047
880,778
-
Value of collateral
1,900
86
1,717
39
3,742
SMALL
BUSINESSES
Strong credit quality
728,507
728,507
Satisfactory
credit quality
72,323
323,902
28,344
424,569
Watch list (higher risk)
22,946
414,397
45,819
483,162
Default
517,502
145,860
663,362
Carrying amount (before
allowance for
expected
credit
losses)
823,776
738,299
517,502
220,023
2,299,600
Allowance for expected credit losses
(2,580)
(34,268)
(166,385)
(76,414)
(279,647)
Net Carrying
Amount
821,196
704,031
351,117
143,609
2,019,953
-
Value of collateral
642,164
500,857
293,776
111,509
1,548,306
LARGE
CORPORATE
Strong credit quality
16,004,725
24
16,004,749
295,818
Satisfactory
credit quality
1,127,018
449,258
34,335
1,610,611
15,869
Watch list (higher risk)
48,672
357,512
57,240
463,424
Default
66,099
25,172
91,271
2,504
Carrying amount (before
allowance for
expected
credit
losses)
17,180,415
806,794
66,099
116,747
18,170,055
Allowance for expected credit losses
(11,760)
(14,525)
(40,465)
(9,731)
(76,481)
Net Carrying
Amount
17,168,655
792,269
25,634
107,016
18,093,574
314,191
Value of collateral
13,145,746
697,294
30,532
112,220
13,985,792
306,960
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
268
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
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
SME’S
Strong credit quality
2,863,227
5,265
2,868,492
Satisfactory
credit quality
2,971,145
483,987
5,772
3,460,904
Watch list (higher risk)
27,226
144,298
171,524
Default
39
205,011
36,102
241,152
Carrying amount (before
allowance for
expected
credit
losses)
5,861,598
633,589
205,011
41,874
6,742,072
-
Allowance for expected credit losses
(4,650)
(4,452)
(80,751)
(19,611)
(109,464)
Net Carrying
Amount
5,856,948
629,137
124,260
22,263
6,632,608
-
Value of collateral
3,871,828
456,759
154,988
25,935
4,509,510
PUBLIC
SECTOR
Strong credit quality
11,626
11,626
Satisfactory
credit quality
15,060
164
15,224
Watch list (higher risk)
334
334
Default
1,102
1,102
Carrying amount (before
allowance for
expected
credit
losses)
26,686
498
1,102
-
28,286
-
Allowance for expected credit losses
(70)
(29)
(686)
(785)
Net Carrying
Amount
26,616
469
416
-
27,501
-
Value of collateral
26,571
153
621
27,345
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
269
ANNUAL FINANCIAL
REPORT
The amounts 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
Stage 2
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
13,146,681
9,083
13,155,764
72.465
Satisfactory
credit quality
1,894,307
468,544
40,436
2,403,288
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
31.12.2022
270
ANNUAL FINANCIAL
REPORT
The amounts 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
Stage 2
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
In the table “Loans by credit quality and IFRS 9 Stage” as at
31.12.2021 an amount of 1.7 billion has been
reclassified from “Satisfactory credit quality” category to the “Strong
credit quality” category in Large
Corporates with Stage 1, which concerns
the Senior Bonds of Cosmos in order to be comparable with
31.12.2022, given that the Senior Notes of the Galaxy and Cosmos
securitizations are considered as Low
Risk Bonds taking into account a) the Credit Enhancement
provided by the securitization structure and b)
that the bonds are guaranteed by the Greek State under the Hellenic Asset
Protection Scheme.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
271
ANNUAL FINANCIAL
REPORT
The amounts 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
31.12.2022
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
3,230,974
122
3,231,096
Satisfactory
credit quality
823,224
175,887
999,111
Watch list (higher risk)
119,605
23,560
143,165
Default
277,812
277,812
Carrying amount (before
allowance for
expected credit losses)
4,173,803
199,569
277,812
-
4,651,184
Allowance for expected credit losses
(1,525)
(1,680)
(31,321)
(34,526)
Net Carrying
Amount
4,172,278
197,889
246,491
-
4,616,658
Value of
collateral of
impaired letters of
guarantee, letters of
credit
and other guarantees
38,563
38,563
Undrawn loan
commitments
Strong credit quality
4,075,332
242
4,075,574
Satisfactory
credit quality
647,549
120,647
757
768,953
Watch list (higher risk)
4,821
33,435
118
38,374
Default
3,428
75
3,503
Carrying amount (before
allowance for
expected credit losses)
4,727,702
154,324
3,428
950
4,886,404
Allowance for expected credit losses
(3,792)
(1,819)
(645)
(1)
(6,257)
Net Carrying
Amount
4,723,910
152,505
2,783
949
4,880,147
Value of collateral
of impaired
undrawn
loan commitments
220
220
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 impaired
undrawn
loan commitments
203
7
210
The value of the collaterals that relates to impaired exposures,
amounts to € 2,088,886 as at 31.12.2022
(31.12.2021: € 3,009,853).
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
272
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Ageing
analysis
by
IFRS
9
Stage
and
product
line
of
loans
The following tables present the ageing analysis as of 31.12.2022
and 31.12.2021 and the allocation of
the net carrying amount of the loans per loan portfolio and IFRS 9
Stage including the collateral value.
31.12.2022
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
314,191
314,191
5,317,907
1,671,495
545,447
578,542
8,113,391
1
-
30
days
51,253
157,092
25,315
14,230
247,890
31
-
60
days
42,152
28,214
10,299
80,665
61
-
90
days
21,037
22,469
5,756
49,262
91
-
180
days
75,236
17,056
92,292
181
-
360
days
96,788
30,321
127,109
> 360
days
245,200
51,450
296,650
Total
-
314,191
-
314,191
5,369,160
1,891,776
1,038,669
707,654
9,007,259
Value of collaterals
306,960
306,960
5,171,673
1,798,406
1,093,306
686,306
8,749,691
31.12.2022
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
686,041
211,467
75,005
150,258
1,122,771
764,779
79,266
1,676
573
846,294
1
-
30
days
19,367
37,696
7,844
10,007
74,914
3,185
7,890
444
23
11,542
31
-
60
days
8,999
5,260
3,628
17,887
2,770
212
5
2,987
61
-
90
days
3,870
3,988
2,149
10,007
1,859
173
11
2,043
91
-
180
days
16,724
6,046
22,770
2,960
16
2,976
181
-
360
days
33,764
11,764
45,528
4,664
22
4,686
> 360
days
51,463
18,616
70,079
9,853
397
10,250
Total
705,408
262,032
194,048
202,468
1,363,956
767,964
91,785
19,982
1,047
880,778
Value of collaterals
199,616
84,389
67,211
121,050
472,266
1,900
86
1,717
39
3,742
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
273
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
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
815,679
645,375
149,749
82,949
1,693,752
17,039,838
754,048
19,605
100,200
17,913,691
1
-
30
days
5,517
42,855
8,254
4,031
60,657
128,817
14,024
358
143,199
31
-
60
days
8,772
11,743
1,978
22,493
24,197
152
24,349
61
-
90
days
7,029
4,793
1,528
13,350
91
-
180
days
28,611
5,104
33,715
69
69
181
-
360
days
54,339
7,774
62,113
809
6,816
7,625
> 360
days
93,628
40,245
133,873
4,641
4,641
Total
821,196
704,031
351,117
143,609
2,019,953
17,168,655
792,269
25,634
107,016
18,093,574
Value of
collaterals
642,164
500,857
293,776
111,509
1,548,306
13,145,745
697,294
30,532
112,220
13,985,791
31.12.2022
Loans measured
at amortised
cost
Corporate
lending
Public
Sector
SME’s
Greece
Other
Countires
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Σύνολο
Stage 1
Stage 2
Total
Current
5,772,281
579,765
39,856
8,832
6,400,734
25,741
318
323
26,382
828
119
947
1
-
30
days
84,667
38,913
7,051
1,710
132,341
47
47
32
32
31
-
60
days
9,956
1,132
11,088
61
-
90
days
503
2,800
3,303
12
12
91
-
180
days
2,678
1,814
4,492
181
-
360
days
8,413
8,413
> 360
days
62,330
9,907
72,237
81
81
Total
5,856,948
629,137
124,260
22,263
6,632,608
25,788
318
416
26,522
828
151
979
Value of
collaterals
3,871,828
456,759
154,988
25,935
4,509,510
25,800
621
26,421
771
153
924
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
274
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
31.12.2022
275
ANNUAL FINANCIAL
REPORT
The amounts 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
Countires
Stage 1
Stage 2
Stage 3
Purchased
or originated
credit
impaired
loans
(POCI)
Total
Stage 1
Stage 2
Stage 3
Σύνολο
Stage 1
Stage 2
Total
Current
5,316,381
491,853
200,966
17,098
6,026,298
33,333
311
512
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
31.12.2022
276
ANNUAL FINANCIAL
REPORT
The amounts 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 2022 and 2021:
31.12.2022
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
1.1.2022
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
Changes
for the year
1.1 - 31.12.2022
Transfers
to Stage
1 from
Stage
2 or
3
1,862,185
(1,829,782)
(32,403)
666,517
(640,076)
(26,441)
2,528,702
(2,469,858)
(58,844)
Transfers
to Stage
2 from
Stage
1 or
3
(1,864,795)
2,475,336
(610,541)
(1,118,475)
1,239,742
(121,267)
(2,983,270)
3,715,078
(731,808)
Transfers
to Stage
3 from
Stage
1 or
2
(47,318)
(832,558)
879,876
(5,482)
(35,203)
40,685
(52,800)
(867,761)
920,561
New loans
originated or
purchased
1,129,634
3,320
1,132,954
7,057,572
323
900
7,058,795
8,187,206
323
4,220
8,191,749
Derecognition
of
loans
(6,479)
(3,481)
(2,868)
(8)
(12,836)
(986,792)
(38,269)
(97)
(22,551)
(1,047,709)
(993,271)
(41,750)
(2,965)
(22,559)
(1,060,545)
Changes
due to
modifications that
did not
result in
derecognition
(1,889)
(2,394)
(11,975)
585
(15,673)
1,522
(1,924)
241
(46)
(207)
(367)
(4,318)
(11,734)
539
(15,880)
Write-offs
(34)
(3,616)
(173,875)
(49,327)
(226,852)
(45,022)
(17,186)
(62,208)
(34)
(3,616)
(218,897)
(66,513)
(289,060)
Repayments,
foreign exchange
and other
movements
(754,813)
(229,418)
(21,996)
(13,262)
(1,019,489)
(3,085,662)
(439,068)
(56,180)
(8,952)
(3,589,862)
(3,840,475)
(668,486)
(78,176)
(22,214)
(4,609,351)
Reclassification
of
loans to
“Assets
held for
sale”
(107)
(6,215)
(138,763)
(46,771)
(191,856)
(439)
(2,949)
(1,294,139)
(157,651)
(1,455,178)
(546)
(9,164)
(1,432,902)
(204,422)
(1,647,034)
Balance
31.12.2022
7,678,610
3,092,399
2,181,927
1,265,299
14,218,235
23,068,699
1,440,881
272,212
158,621
24,940,413
30,747,309
4,533,280
2,454,139
1,423,920
39,158,648
Allowance for
expected
credit
losses
(14,882)
(142,775)
(578,111)
(210,521)
(946,289)
(16,480)
(19,006)
(121,902)
(29,342)
(186,730)
(31,362)
(161,781)
(700,013)
(239,863)
(1,133,019)
Balance
of loans
31.12.2022
7,663,728
2,949,624
1,603,816
1,054,778
13,271,946
23,052,219
1,421,875
150,310
129,279
24,753,683
30,715,947
4,371,499
1,754,126
1,184,057
38,025,629
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
277
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
Derecognition
of
loans
5,560,531
5,560,531
5,560,531
5,560,531
Changes
due to
modifications that
did not
result in
derecognition
(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)
Write-offs
(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)
Repayments,
foreign exchange
and other
movements
(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)
Reclassification
of
loans to
“Assets
held for
sale”
(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)
Balance
31.12.2021
(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)
Allowance for
expected
credit
losses
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
Balance of
loans
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)
Balance
1.1.2021
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
31.12.2022
278
ANNUAL FINANCIAL
REPORT
The amounts 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 of allowance
for expected credit losses of loans measured at
amortized cost for the years 2022 and 2021:
31.12.2022
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
1.1.2022
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
Changes for
the year
1.1. - 31.12.2022
Transfers
to Stage
1
from Stage 2
or 3
57,898
(54,883)
(3,015)
8,356
(8,016)
(340)
66,254
(62,899)
(3,355)
Transfers
to Stage
2
from Stage 1
or 3
(6,653)
87,944
(81,291)
(4,155)
6,189
(2,034)
(10,808)
94,133
(83,325)
Transfers
to Stage
3
from Stage 1
or 2
(600)
(75,752)
76,352
(12)
(1,088)
1,100
(612)
(76,840)
77,452
Net
remeasurement
of expected
credit
losses(a)
(51,898)
17,108
54,070
(2,850)
16,430
(7,141)
2,256
52,948
(301)
47,762
(59,039)
19,364
107,018
(3,151)
64,192
Impairment losses
on
new loans
(b)
5,783
(775)
5,008
10,751
(33)
10,718
16,534
(808)
15,726
Change in risk
parameters
(c)
(772)
8,823
203,669
58,353
270,073
(12,888)
(5,907)
105,726
16,746
103,677
(13,660)
2,916
309,395
75,099
373,750
Impairment
losses
on loans
(a)+(b)+(c)
(46,887)
25,931
257,739
54,728
291,511
(9,278)
(3,651)
158,674
16,412
162,157
(56,165)
22,280
416,413
71,140
453,668
Derecognition of
loans
(1)
(203)
(388)
(15)
(607)
(525)
(428)
(54)
(19)
(1,026)
(526)
(631)
(442)
(34)
(1,633)
Write offs
(34)
(3,616)
(173,875)
(49,327)
(226,852)
(45,022)
(17,186)
(62,208)
(34)
(3,616)
(218,897)
(66,513)
(289,060)
Foreign exchange
and
other movements
(929)
758
1,838
979
2,646
(13,820)
5,595
3,378
6,717
1,870
(14,749)
6,353
5,216
7,696
4,516
Change in
the
present value of
the
impairment
losses
(1,944)
100
(1,844)
6,952
1,166
8,118
5,008
1,266
6,274
Reclassification
of
allowance for
expected
credit losses
to
"Assets
held for
sale
(1)
(1,248)
(123,273)
(42,417)
(166,939)
(80)
(911,698)
(125,335)
(1,037,113)
(1)
(1,328)
(1,034,971)
(167,752)
(1,204,052)
Balance
31.12.2022
14,882
142,775
578,111
210,521
946,289
16,480
19,006
121,902
29,342
186,730
31,362
161,781
700,013
239,863
1,133,019
.
In the above table which presents the movement of allowance
for expected credit losses for the year 2022
the amount of € 29,711 which is related to impairment losses of
loans classified to assets held for sale is
not included in “Impairment losses on loans”.
During 2022, allowance for expected credit losses
have been affected by the following movements:
-
Transfer
to Stage 1 of loans amounting € 2,528,702 from Stage 2 and Stage 3 due to an improvement in
their creditworthiness compared to their initial recognition.
-
Impairment losses on loans classified in Stage 3 incorporate the additional provisions of Euro 154.7 mil.
received in the context of inflationary pressures, the increase in the cost of borrowing to households and
businesses and the general uncertainty that exists in the economic environment, as well the cost of risk for
sales transactions of non-performing loan portfolios amounting to Euro 243 mil.
Finally, the total loans’ written off within 2022 amount to €
376,490, and led to an equal reduction in
expected credit losses. It is noted that the loans that were written
off within 2022 but can be legally
claimed amount to € 271,828.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
279
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 high repayment
bonds (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
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
31.12.2022
280
ANNUAL FINANCIAL
REPORT
The amounts 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 2022 and 2021 of letters of guarantee,
letters of credit and undrawn loan
commitments is presented in the tables that follow:
31.12.2022
Stage 1
Stage 2
Stage 3
Purchased
or
originated credit
impaired
(POCI)
Total
Balance
1.1.2022
6,838,370
426,877
324,396
1,080
7,590,723
Changes for
the year 1.1
- 31.12.2022
Transfers
to
Stage 1
from Stage
2
or 3
453,042
(443,009)
(10,033)
Transfers
to
Stage 2
from Stage
1
or 3
(419,649)
441,335
(21,686)
Transfers
to
Stage 3
from Stage
1
or 2
(380)
(712)
1,092
New
letters
of
guarantee,
letters
of
credit
and
undrawn
loan
commitments
3,265,977
3,265,977
Foreign exchange,
repayments and other movements
(1,235,855)
(70,598)
(12,529)
(130)
(1,319,112)
Balance
31.12.2022
8,901,505
353,893
281,240
950
9,537,588
Allowance for
expected credit losses
(5,317)
(3,499)
(31,966)
(1)
(40,783)
Balance
31.12.2022
8,896,188
350,394
249,274
949
9,496,805
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
.
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 2022 and 2021:
31.12.2022
Stage 1
Stage 2
Stage 3
Purchased
or
originated credit
impaired
(POCI)
Total
Balance
1.1.2022
3,248
3,215
36,220
1
42,684
Changes for the year 1.1 - 31.12.2022
Transfers
to Stage
1 from
Stage 2
or 3
3,230
(2,804)
(426)
Transfers
to Stage
2 from
Stage 1
or 3
(319)
2,571
(2,252)
Transfers
to Stage
3 from
Stage 1
or 2
(3)
(11)
14
Net remeasurement
of expected credit losses(a)
(2,362)
(3,145)
(523)
(6,030)
Impairment losses
on new
exposures (b)
9,999
9,999
Change in risk
parameters (c)
(1,974)
1,412
(5,603)
(1)
(6,166)
Impairment
losses
(a)+(b)+(c)
5,663
(1,733)
(6,126)
(1)
(2,197)
Foreign exchange
and other
movements
(6,502)
2,261
4,536
1
296
Balance
31.12.2021
5,317
3,499
31,966
1
40,783
.
.
31.12.2021
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
281
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
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 31.12.2022 amounted to €
266,105 (31.12.2021: € 285,242), while
allowance for expected credit losses amounted to € 40,800 (31.12.2021:
€ 49,987).
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
282
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The following tables present the reconciliation of advances to customers
for the years 2022 and 2021:
Balance
1.1.2022
285,242
Repayments, foreign exchange
and other movements
(19,137)
Balance
31.12.2022
266,105
Allowance for expected credit losses
(40,800)
Balance of advances
to customers 31.12.2022
225,305
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
The reconciliation of the allowance for expected credit losses for the years
2022 and 2021 presented in
the following tables below:
Balance
1.1.2022
49,987
Impairment losses
on advances to customers
(3,209)
Foreign exchange,
write-offs and other movements
(5,978)
Balance
31.12.2022
40,800
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
.
.
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
31.12.2022
Value of collateral
Loans measured
at fair
value through
profi
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
9,676,296
296,011
801,698
10,774,005
1,106,129
Corporate lending
63,402
182,508
61,050
306,960
4,856,178
1,620,447
12,018,677
18,495,302
3,245,366
Public sector
369
163
26,813
27,345
450
Total
63,402
182,508
61,050
306,960
-
14,532,843
1,916,621
12,847,188
29,296,652
4,351,945
31.12.2021
Value of collateral
Loans measured
at fair
value through
profi
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
283
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Total
69,300
-
82,695
151,995
-
14,622,763
1,017,441
12,878,648
28,518,852
4,456,871
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
31.12.2022
31.12.2021
< 50%
1,540,419
1,421,921
50%
-
70%
1,832,002
1,686,796
71%
-
80%
1,191,038
1,050,729
81%
-
90%
1,144,735
1,083,831
91%
-
100%
1,466,986
1,622,902
101% - 120%
792,717
885,280
121% - 150%
521,087
661,487
> 150%
867,027
1,090,547
Total exposure
9,356,011
9,503,493
Simple average of
LTV
(%)
67%
72%
REPOSSESSED
ASSETS
Policy
of
disposal
of
repossessed
assets
Within 2018 the Group established 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 Group. Upon transfer of the
legal title of properties to the Group, 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 optimal 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 periodically reviewed 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
31.12.2022
Balance
Disposals during
the
year
Value of
collaterals
repossessed
31.12.2022
Of which
in
2022
Accumulated
impairment
31.12.2022
Of which
in
2022
Net
carrying
amount of
collaterals
repossessed
31.12.2022
Net
disposal
value
Net
gain/ (loss)
on disposal
Real estate
collaterals
1,122,737
113,327
291,956
48,451
830,781
84,740
4,986
Other collaterals
4,954
4,954
31.12.2021
Balance
Disposals during
the
year
Value of
collaterals
repossessed
31.12.2021
Of which
in
2022
Accumulated
impairment
31.12.2022
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
284
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The net carrying amount of the collaterals repossessed
as of 31.12.2022, includes an amount of €
162,006 (31.12.2021: € 124,208) that relates to properties that were
classified as “Assets held for sale”.
Loans
and
allowance
for
expected
credit
losses
by
IFRS
9
Stage,
industry
and
geographical
region
31.12.2022
Greece
Loans
measured
at
fair
value
through
profi 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
-
5,724,817
2,703,248
2,049,684
1,219,366
11,697,115
878,019
10,819,096
Mortgage
3,665,368
1,631,672
1,156,314
747,265
7,200,619
315,847
6,884,772
Consumer
504,568
237,309
319,478
246,281
1,307,636
220,974
1,086,662
Credit cards
745,382
100,796
59,189
7,357
912,724
62,723
850,001
Small Businesses
809,499
733,471
514,703
218,463
2,276,136
278,475
1,997,661
Corporate lending
283,272
12,949,787
713,563
222,322
125,950
14,011,622
116,583
13,895,039
Financial
institutions and
other financial
services
239,829
507
13
240,349
188
240,161
Manufacturing
169,436
5,073,384
162,728
84,947
22,073
5,343,132
47,349
5,295,783
Construction
and
real
estate
54,371
1,355,982
127,904
20,014
893
1,504,793
8,817
1,495,976
Wholesale and
retail
trade
2,142,346
161,610
67,778
24,726
2,396,460
35,815
2,360,645
Transportation
59,363
874,942
9,463
20,371
5,285
910,061
9,374
900,687
Shipping
93,228
7,267
172
100,667
25
100,642
Hotels-Tourism
2,134,995
160,686
12,216
7,066
2,314,963
3,737
2,311,226
Services
and
other
sectors
102
1,035,081
83,398
16,811
65,907
1,201,197
11,278
1,189,919
Public sector
-
25,846
345
1,102
-
27,293
771
26,522
Total
283,272
18,700,450
3,417,156
2,273,108
1,345,316
25,736,030
995,373
24,740,657
31.12.2022
Other
ountries
Loans
measured
at
fair
value
through
profi 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
-
1,953,793
389,151
132,243
45,933
2,521,120
68,270
2,452,850
Mortgage
1,707,158
321,112
92,791
34,331
2,155,392
32,905
2,122,487
Consumer
206,145
58,509
34,236
10,042
308,932
31,638
277,294
Credit cards
26,213
4,702
2,417
33,332
2,555
30,777
Small Businesses
14,277
4,828
2,799
1,560
23,464
1,172
22,292
Corporate lending
30,919
10,092,226
726,820
48,788
32,671
10,900,505
69,362
10,831,143
Financial
institutions and
other financial
services
2,353
5,755,818
5,879
5,761,697
2,544
5,759,153
Manufacturing
216,215
20,391
2,805
3
239,414
5,650
233,764
Construction
and
real
estate
623,810
465,228
20,627
12,574
1,122,239
22,099
1,100,140
Wholesale and
retail
trade
282,923
57,688
3,189
343,800
4,906
338,894
Transportation
267,768
25,467
3,733
296,968
4,514
292,454
Shipping
28,566
2,745,182
84,938
14,126
2,306
2,846,552
14,195
2,832,357
Hotels-Tourism
58,995
36,390
310
3,577
99,272
4,276
94,996
Services and other sectors
141,515
30,839
3,998
14,211
190,563
11,178
179,385
Public sector
-
840
153
-
-
993
14
979
Total
30,919
12,046,859
1,116,124
181,031
78,604
13,422,618
137,646
13,284,972
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
285
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2021
Greece
Loans measured at
fair
value
through
profi 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
3,718,87
3
1,898,42
5
1,103,44
9
772,961
7,493,70
8
313,473
7,180,23
5
Consumer
384,758
404,338
393,337
286,881
1,469,31
4
288,248
1,181,06
6
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
2,299,47
2
326,261
1,973,21
1
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
4,532,78
6
146,576
423,090
82,107
5,184,55
9
280,097
4,904,46
2
Construction and
real estate
54,061
1,313,27
8
82,422
236,716
27,516
1,659,93
2
159,746
1,500,18
6
Wholesale and
retail trade
1,869,45
0
135,359
664,985
63,964
2,733,75
8
376,955
2,356,80
3
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
1,970,06
9
136,623
83,204
7,563
2,197,45
9
18,789
2,178,67
0
Services and
other
sectors
998,547
60,201
168,585
92,951
1,320,28
4
113,615
1,206,66
9
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
profi 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
1,609,66
1
273,314
91,816
34,994
2,009,78
5
27,590
1,982,19
5
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
5,695,20
1
35,270
5,730,47
1
1,827
5,728,64
4
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
1,034,16
7
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
2,141,17
0
111,984
56,385
2,017
2,311,55
6
26,419
2,285,13
7
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
31.12.2022
286
ANNUAL FINANCIAL
REPORT
The amounts 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 2022 and 2021 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.
31.12.2022
Loans measured
at
amortised cost
Loans measured at
fair value through
Stage 1
Stage 2
Stage
3 profit
or
loss (FVPL)
Stage 1
Stage 2
Stage 3
Purchased or
originated credit
impaired
(POCI)
Total Interest
Income
Retail
lending
318,288
151,242
66,514
54,900
590,944
31
Corporate
lending
659,233
57,749
23,894
22,264
763,139
13,066
Public sector
849
31
33
913
Total interest
income
978,369
209,021
90,408
77,198
1,354,996
13,097
31.12.2021
Loans measured
at
amortised cost
Loans measured at
fair value through
Stage 1
Stage 2
Stage
3 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
287
ANNUAL FINANCIAL
REPORT
The amounts 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 31.12.2022, the Group included
in the portfolio measured at fair value through other
comprehensive income shares, with a fair value of €
3,452 (31.12.2021: € 4,650) which were acquired from respective
transactions.
Analysis of
forborne
loans by
type of
forbearance
measure
31.12.2022
Loans measured at
fair
value through profit or
loss
(FVPL)
Loans measured
at
amortised
cost
Total
Interest only payment
43,779
43,779
Reduced
payments
scheme
2,504
421,114
423,618
Grace period
203,060
203,060
Loan term extension
1,617,454
1,617,454
Arrears
capitalization
1,321,046
1,321,046
Partial write-off in borrower’s
obligations
369,486
369,486
Other
38,675
38,675
Total net carrying amount
2,504
4,014,614
4,017,118
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
288
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Forborne
loans
by
product
line
31.12.2022
Loans measured at
fair
value through profit or
loss
(FVPL)
Loans measured
at
amortised
cost
Total
Retail lending
3,386,549
3,386,549
Mortgage
2,373,740
2,373,740
Consumer
393,626
393,626
Credit cards
4,158
4,158
Small Businesses
615,025
615,025
Corporate lending
2,504
627,464
629,968
Large
corporate
2,504
429,535
432,039
SME's
197,929
197,929
Public sector
601
601
Greece
601
601
Total net carrying amount
2,504
4,014,614
4,017,118
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
Forborne loans by geographical region
31.12.2022
Loans measured at
fair
value through profit or
loss
(FVPL)
Loans measured
at
amortised
cost
Total
Greece
3,611,702
3,611,702
Other
Countries
2,504
402,912
405,416
Total net carrying amount
2,504
4,014,614
4,017,118
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
289
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Forborne loans according to their credit quality
31.12.2022
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
Not
past due
314,191
2,504
1
Total net carrying amount
314,191
2,504
1
Value of collaterals
306,960
2,504
1
Loans measured at
amortised cost
Stage 1
30,747,309
Stage 2
4,533,280
2,107,094
46
Stage 3
2,454,139
1,662,786
68
Purchased or
originated credit
impaired (POCI)
1,423,920
903,072
63
Carrying amount (before
allowance
for
expected credit losses)
39,158,648
4,672,952
12
Stage 1 - Allowance for
expected credit losses
31,362
Stage 2 - Allowance
for expected credit losses
161,781
92,072
57
Stage 3 - Allowance
for expected credit losses
700,013
409,183
58
Allowance for
expected credit losses for
purchased or
originated credit
impaired loans (POCI)
239,863
157,083
65
Total net carrying amount
38,025,629
4,014,614
11
Value of collaterals
29,296,652
3,518,879
12
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
290
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Reconciliation
of the
net value
of forborne
loans
31.12.2022
Loans measured at
fair
value
through
profit
or
loss
(FVPL)
Loans measured
at
amortised
cost
Total
Balance
1.1.2022
56,193
4,720,673
4,776,866
Changes for the year 1.1 -
31.12.2022
Forbearance measures
during the
year
806,767
806,767
Interest income
818
153,322
154,140
Repayment of
loans
(partial
or
total)
(345)
(395,998)
(396,343)
Loans that exited forbearance status during the year
(756,238)
(756,238)
Impairment losses
(232,299)
(232,299)
Remeasurment of fair value
1,544
1,544
Reclassification of loans to
"Assets held for
sale"
(55,480)
(307,786)
(363,266)
Other movements
(226)
26,173
25,947
Balance
31.12.2022
2,504
4,014,614
4,017,118
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
291
ANNUAL FINANCIAL
REPORT
The amounts 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 31.12.2022 and
31.12.2021 by IFRS 9 Stage and credit rating:
31.12.2022
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
1,542,384
1,542,384
Lower than
BBB
10,883,574
10,883,574
Unrated
Carrying amount
(before allowance
for expected
credit losses)
12,425,958
-
-
-
12,425,958
Allowance for expected
credit losses
-
Net carrying
amount
12,425,958
-
-
-
12,425,958
Value
of collaterals
-
Due
from Banks
AAA
AA+
to
AA
334,819
334,819
A+
to
A
568,878
568,878
BBB+
to
BBB
343,657
343,657
Lower than
BBB
77,324
77,324
Unrated
43,667
69,961
113,628
Carrying amount
(before allowance
for expected
credit losses)
1,368,345
-
69,961
-
1,438,306
Allowance for expected
credit losses
(210)
(69,961)
(70,171)
Net carrying
amount
1,368,135
-
-
-
1,368,135
Value
of collaterals
-
Securities
measured
at fair
value
through other
comprehensive
income
AAA
132,916
132,916
AA+
to
AA
68,925
68,925
A+
to
A
7,980
7,980
BBB+
to
BBB
265,281
1,937
267,218
Lower than
BBB
1,241,227
2,440
1,243,667
Unrated
55,139
55,139
Carrying amount
(before allowance
for expected
credit losses)
1,771,468
1,937
2,440
-
1,775,845
Allowance for expected
credit losses
(2,932)
(89)
(2,128)
(5,149)
Net carrying
amount
1,768,536
1,848
312
-
1,770,696
Value
of collaterals
-
Securities measured
at amortized
cost
AAA
639,879
639,879
AA+
to
AA
338,472
338,472
A+
to
A
552,245
552,245
BBB+
to
BBB
3,153,561
3,153,561
Lower than
BBB
6,454,937
10,278
6,465,215
Unrated
214,963
214,963
Carrying amount
(before allowance
for expected
credit losses)
11,354,057
10,278
-
-
11,364,335
Allowance for expected
credit losses
(24,594)
(3,492)
(28,086)
Net carrying
amount
11,329,463
6,786
-
-
11,336,249
Value
of collaterals
-
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
292
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
31.12.2022
293
ANNUAL FINANCIAL
REPORT
The amounts 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.
2022
2021
Trading securities
AAA
AA+
to AA-
A+
to A-
BBB+
to BBB-
91
Lower
than BBB-
338
3,819
Unrated
Net carrying
amount
429
3,819
Value
of collaterals
-
-
Derivative
fi
assets
AAA
AA+
to AA-
382,695
52,736
A+
to A-
621,793
109,695
BBB+
to BBB-
975,228
6,827
Lower
than BBB-
159,870
770,939
Unrated
2,610
1,412
Net carrying
amount
2,142,196
941,609
Value
of collaterals
-
-
Securities
measured
at fair value
through profit
or loss
AAA
AA+
to AA-
A+
to A-
BBB+
to BBB-
1,760
2,171
Lower
than BBB-
Unrated
11,828
37,170
Net carrying
amount
13,588
39,341
Net carrying
amount
-
-
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 31.12.2022 and
31.12.2021:
31.12.2022
Stage
1
Stage2
Stage
3
Purchased or
originated credit
impaired
(POCI)
Total
Balance
31.12.2022
Carrying
amount (before
allowance
for expected
credit
losses)
1,368,345
69,961
1,438,306
Allowance for
expected credit losses
(210)
(69,961)
(70,171)
Net carrying
amount
1,368,135
-
-
-
1,368,135
31.12.2021
Stage
1
Stage2
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
294
ANNUAL FINANCIAL
REPORT
The amounts 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 depicts the classification of securities
per IFRS 9 stage and issuer’s category as of
31.12.2022 and 31.12.2021:
31.12.2022
Stage
1
Stage2
Stage
3
Purchased or
originated credit
impaired
(POCI)
Total
Greek Government
Bonds
Allowance for
expected credit losses
(1,821)
(1,821)
Fair
value
1,143,994
1,143,994
Other Government
Bonds
Allowance for
expected credit losses
(75)
(75)
Fair
value
345,899
345,899
Other
securities
Allowance for
expected credit losses
(1,036)
(89)
(2,128)
(3,253)
Fair
value
278,643
1,848
312
280,803
Total
securities
measured
at fair value
through other
comprehensive income
Allowance
for
expected
credit losses
(2,932)
(89)
(2,128)
-
(5,149)
Fair
value
1,768,536
1,848
312
-
1,770,696
31.12.2021
Stage
1
Stage2
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
Besides securities above, the portfolio of investment securities
measured at fair value through other
comprehensive income includes shares with fair value € 35,749 (31.12.2021:
€ 58,833)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
295
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
ii.
Investment securities measured at amortized cost
The following table depicts the classification of securities
per IFRS 9 stage and issuer’s category as of
31.12.2022 and 31.12.2021:
31.12.2022
Stage
1
Stage2
Stage
3
Purchased or
originated credit
impaired
(POCI)
Total
Greek Government
Bonds
Carrying
amount (before
allowance
for expected
credit
losses)
5,474,719
5,474,719
Allowance for
expected credit losses
(15,808)
(15,808)
Net value
5,458,911
5,458,911
Other Government
Bonds
Carrying
amount (before
allowance
for expected
credit
losses)
3,293,681
3,293,681
Allowance for
expected credit losses
(768)
(768)
Net value
3,292,913
3,292,913
Other
securities
Carrying
amount (before
allowance
for expected
credit
losses)
2,585,657
10,278
2,595,935
Allowance for
expected credit losses
(8,018)
(3,492)
(11,510)
Net value
2,577,639
6,786
2,584,425
Total
securities
measured
at amortized
cost
Carrying
amount (before
allowance
for
expected
credit losses)
11,354,057
10,278
-
-
11,364,335
Allowance
for
expected
credit losses
(24,594)
(3,492)
-
-
(28,086)
Net value
11,329,463
6,786
-
-
11,336,249
31.12.2021
Stage
1
Stage2
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
296
ANNUAL FINANCIAL
REPORT
The amounts 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, securities measured at amortized
cost and the movement of the fair value of
investment securities at fair value through other comprehensive income
including the allowance for
expected credit losses per IFRS 9 Stage.
31.12.2022
Due from
banks
Investment securities measured at fair value
through other
comprehensive income
Stage 1
Stage2
Stage 3
Purchased or
originated
credit impaired
(POCI)
Total
Stage 1
Stage2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Balance
1.1.2022
2,964,262
-
69,961
-
3,034,223
6,561,943
13,344
-
-
6,575,287
Changes for
the year
1.1 - 31.12.2022
Reclassification of
the
Bank portfolio
-
(4,145,791)
(11,093)
(4,156,884)
Transfers to
Stage
1
from Stage
2 or
3
-
2,184
(2,184)
-
Transfers to
Stage
2
from Stage
1 or
3
-
(4,908)
4,908
-
Transfers to
Stage
3
from Stage
1 or
2
-
(2,952)
2,952
-
New financial
assets
originated
5,288,659
5,288,659
1,976,586
1,976,586
Derecognition
of
financial
assets
(405,528)
(405,528)
(629,202)
(209)
(629,411)
Interest on
carrying
amount
before
impairment
976
976
27,010
142
112
27,264
Changes
due
to
modifications
that
did
not
result
in
derecognition
-
-
Write-of
-
-
Held for
Sale
-
-
Repayments, foreign
exchange
differences
and
other movements
(6,480,025)
(6,480,025)
(1,592,819)
(317)
(2,543)
(1,595,679)
Reclassification of
the portfolio of the
subsidiaries
-
(426,467)
(426,467)
Balance
31.12.2022
1,368,345
-
69,961
-
1,438,306
1,768,536
1,848
312
-
1,770,696
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
297
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2021
Due from
banks
Investment securities measured at fair value
through other
comprehensive income
Stage 1
Stage2
Stage 3
Purchased or
originated
credit impaired
(POCI)
Total
Stage 1
Stage2
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-of
-
-
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 held
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
31.12.2022
298
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
Investment securities
measured at
amortized cost
Stage
1
Stage2
Stage
3
Purchased or
originated credit
impaired
(POCI)
Total
Balance 1.1.2022
3,768,120
-
-
-
3,768,120
Changes for
the year 1.1 - 31.12.2022
Reclassification of
the Bank
portfolio
4,155,272
12,398
4,167,670
Transfers to
Stage 1
from Stage
2 or
3
51
(51)
Transfers to
Stage 2
from Stage
1 or
3
Transfers to
Stage 3
from Stage
1 or
2
New
financial assets
originated
3,898,196
3,898,196
Derecognition
of financial assets
(358,455)
(358,455)
Interest on
carrying
amount before
impairment
116,803
157
116,960
Changes due
to modification that
did
not
result
in
derecognition
Write-of
Repayments and other
movements
(680,185)
(2,226)
(682,411)
Reclassification of
t
he portfolio
of the
subsidiaries
454,255
454,255
Balance
31.12.2022
11,354,057
10,278
-
-
11,364,335
31.12.2021
Investment securities measured
at
amortized cost
Stage 1
Stage2
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
modification that
did
not
result
in
derecognition
Write-of
Repayments
and other
movements
(374,716)
(1,436)
(376,152)
Reclassificqtion in
“Assets
held for
Sale”
(14,095)
(14,095)
Balance
31.12.2021
3,768,120
-
-
-
3,768,120
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
299
ANNUAL FINANCIAL
REPORT
The amounts 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 Investment
securities measured at amortized cost per IFRS 9 stage.
31.12.2022
Due from banks
Investment securities
measured at fair value through other
comprehensive
income
Stage 1
Stage2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Stage 1
Stage2
Stage 3
Purchased
or originated
credit
impaired
(POCI)
Total
Balance
1.1.2022
206
-
69,961
-
70,167
20,406
2,099
-
-
22,505
Changes for
the year 1.1 -
31.12.2022
Reclassification
of
the Bank
portfolio
(15,234)
(1,817)
(17,051)
Transfers to
Stage
1
from Stage
2 or
3
-
152
(152)
-
Transfers to
Stage
2
from Stage
1 or
3
-
(16)
16
-
Transfers to
Stage
3
from Stage
1 or
2
-
(369)
369
-
Net
measurement
of
expected
credit
losses (a)
-
(149)
463
1,954
2,268
Impaiment losses
on
new
receivables/
securities (b)
475
475
1,389
1,389
Change
in
credit
risk
parameters
(c)
(448)
(448)
(888)
(150)
(30)
(1,068)
Reclassification
of
the portfolio
of
the
subsidiaries
(d)
(998)
(998)
Impairment
losses
on receivables/
securities
(a)+(b)+(c)+(d)
27
-
-
-
27
(646)
313
1,924
-
1,591
Derecognition
of
financial
assets
(1,729)
(201)
(1,930)
Foreign
exchange
and
other
movements
(23)
(23)
(1)
(1)
36
34
Balance
31.12.2022
210
-
69,961
-
70,171
2,932
89
2,128
-
5,149
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
300
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2021
Due from banks
Investment securities measured
at fair value through other
comprehensive
income
Stage 1
Stage2
Stage 3
Purchased
or
originated
credit
impaired
(POCI)
Total
Stage 1
Stage2
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 -
31.12.2021
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
The amount of Stage 1 expected credit losses of the reporting
period includes an additional income
amounted to € 13 (31.12.2021: € 91 expense), which relates
to the variance of the amount of
accumulated impairment between the opening and the
closing date resulting from the purchases of
securities measured at fair value through other comprehensive income
for which there was an agreement
(trade date) but not settled (settlement date) at these two dates. The above
mentioned impairment is
recognized depending on the securities’ valuation either in “Other Assets”
or “Other Liabilities”.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
301
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
Investment securities
measured at
amortized cost
Stage 1
Stage2
Stage 3
Purchased or
originated credit
impaired
(POCI)
Total
Balance
1.1.2022
15,372
-
-
-
15,372
Changes for the year
1.1 - 31.12.2022
Reclassification of the Bank portfolio
15,234
1,817
17,051
Transfers
to Stage
1 from
Stage 2
or 3
3
(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)
(3)
(3)
Impaiment losses on
new receivables/ securities
(b)
6,104
6,104
Change in
credit risk parameters
(c)
(12,750)
1,678
(11,072)
Reclassification of the portfolio of the
subsidiaries (d)
998
998
Impairment losses
on
receivables/ securities
(a)+(b)+(c)+(d)
(5,651)
1,678
-
-
(3,973)
Derecognition of financial
assets
(365)
(365)
Foreign exchange
and other
movements
1
1
Balance
31.12.2022
24,594
3,492
-
-
28,086
31.12.2021
Investment securities
measured at
amortized cost
Stage 1
Stage2
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)
Impaiment losses on
new receivables/ securities
(b)
5,854
5,854
Change in
credit risk parameters
(c)
(445)
(7)
(452)
Impairment losses
on
receivables/ securities
(a)+(b)+(c)
5,409
(7)
-
-
5,402
Derecognition of financial
assets
(332)
(332)
Foreign exchange
and other
movements
1
1
Transfer
of allowance for
expected credit
losses to
Assets Held
For
Sale
(31)
(31)
Balance
31.12.2021
15,372
-
-
-
15,372
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
302
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The following tables present the financial instruments exposed
to credit risk per counterparty’s sector.
FINANCIAL ASSETS
EXPOSED TO CREDIT RISK - ANALYSIS BY INDUSTRY
SECTOR
31.12.2022
Financial
Institutions
and other
fi
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
12,425,958
12,425,958
Due from
banks
1,438,306
1,438,306
Loans and
advances to
customers
6,004,399
5,751,982
2,681,403
2,740,260
28,286
1,266,392
2,975,785
2,414,235
1,738,587
14,320,306
39,921,635
Derivative financial
assets
2,013,977
469
20,923
1,681
86,208
8,096
10,226
2
614
2,142,196
Trading securities
338
91
429
Securities
measured
at
fair
value
through
other
comprehensive
income
185,253
56,100
6,964
14,235
1,491,788
21,505
1,775,845
Securities measured
at
amortized cost
1,688,018
483,271
34,216
146,952
8,768,401
243,477
11,364,335
Securities
measured
at
fair
value through
profit or
loss
12,883
705
13,588
Assets held
for
sale
-
Loans Portfolio
9,962
348,569
968,946
693,502
4,810
35,316
69,183
78,519
1,467,338
17,357
3,693,502
Total amount of
balance sheet
items
exposed to
credit
risk
(a)
23,778,756
6,640,391
3,712,452
3,597,335
10,379,831
1,309,804
3,055,194
2,492,756
3,471,612
14,337,663
72,775,794
Other balance
sheet items
not exposed to
credit risk
860,839
6,913
376,538
3
8,800
8,638,998
9,892,091
Total
assets
24,639,595
6,647,304
4,088,990
3,597,338
10,379,831
1,309,804
3,055,194
2,501,556
12,110,610
14,337,663
82,667,885
Credit risk
of exposures
relating to off-balance
sheet items:
Letters of guarantee,
letters of
credit
and
other
guarantees
719,254
1,633,289
1,023,505
469,245
189,982
71,602
10,744
53,881
406,522
73,160
4,651,184
Undrawn loan
commitments
333,791
1,202,508
171,457
916,696
2,373
55,669
4,866
103,705
281,254
1,814,085
4,886,404
Total amount of off-
balance sheet
items
exposed to
credit
risk
(b)
1,053,045
2,835,797
1,194,962
1,385,941
192,355
127,271
15,610
157,586
687,776
1,887,245
9,537,588
Total credit risk
exposures (a+b)
24,831,801
9,476,188
4,907,414
4,983,276
10,572,186
1,437,075
3,070,804
2,650,342
4,159,388
16,224,908
82,313,382
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
303
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2021
Financial
Institutions
and other
fi
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
31.12.2022
304
ANNUAL FINANCIAL
REPORT
The amounts 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:
31.12.2022
31.12.2021
Portfolio
Nominal
value
Carrying
amount
Nominal
value
Carrying
amount
Securities measured at fair value through other
comprehensive income
1,180,545
1,143,994
2,681,049
2,848,461
Securities measured at amortized cost
5,162,023
5,458,911
2,588,930
3,088,894
Trading
363
338
3,578
3,819
Total
6,342,931
6,603,243
5,273,557
5,941,174
The variances in the amount of investment securities are
due to the decision of the Executive Committee
to change the business model in December 2021, with reference
date 1.1.2022.
Greek Government bonds are classified at Level 1 or Level
2 based on the quality of inputs used for the
estimation of the fair value.
The Group’s exposure to Greek State, for financial
instruments other than securities, is presented in the
table below:
On balance sheet
exposure
31.12.2022
31.12.2021
Carrying
amount
Derivative financial instruments-assets
86,208
501,852
Derivative financial instruments-liabilities
(626,564)
(2,387)
The Group’s exposure to loans granted to public sector entities/organizations
as of 31.12.2022amounted
to € 27,292 (31.12.2021: € 34,865). The Group has recognized accumulated
impairment for the above
mentioned loans amounted to € 771 (31.12.2021: € 554) as of 31.12.2022. In
addition the balance of
Group’s loans that are guaranteed by the Greek State
as of 31.12.2022 amounted to € 6,622,624
(31.12.2021: € 7,191,890). This category includes the senior notes
of Galaxy
and Cosmos securitization
transactions and loans guaranteed by the Greek State either
directly or through Joint Ministerial
Decisions, loans guaranteed by Hellenic Development Bank
SA. The Group has recognized accumulated
impairment for the above mentioned loans amounted to € 45,375
(31.12.2021: € 70,265). It is noted that
the carrying amount of loans guaranteed by the Covid-19
Guaranteee Fund of the Hellenic Development
Bank amounted as of 31.12.2022 to € 959,100 (31.12.2021: 1,259,451).
The Bank has given as collateral
Treasury Bills of Greek Government of a nominal amount of 400 mil.
and fair value equal to 396 mil. for
derivative transactions with Greek State.
Off balance sheet exposure
31.12.2022
31.12.2021
Portfolio
Nominal
value
Carrying
amount
Nominal
value
Carrying
amount
Greek Government
Treasury
Bills received as
collateral for derivatives transactions
750,000
750,150
Greek Government
Bonds received
as collateral for
derivatives
transactions
6,000
5,281
Greek government
bonds as collateral for funding
purposes
245,638
275,626
..
.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
305
ANNUAL FINANCIAL
REPORT
The amounts 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 or adverse volatility of interest
rates.
•
Foreign exchange risk is the risk arising from adverse changes or adverse 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 hold 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 hold any material portfolio in such instruments.
i. Trading
portfolio
The Group’s Market Risk Management Policy relates to the management
of market risk within the Group,
i.e. the identification, measurement, monitoring and control of market
risk which is inherent in assets and
liabilities processed by the Group’s division for treasury management
and local units per country, as well
as the safeguards that adequate funds retained for
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 Group’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 responsible Units of the Group as well as local Units per country,
apply the Policy by developing and
implementing the appropriate processes.
Market risk of trading portfolio is measured through the calculation
of Value at Risk – VaR, which 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 according to the absolute or
relative approach.
The Bank calculates VAR on a daily basis and the
data sets are updated daily. A retention period of one
and ten days is applied for regulatory purposes. Additional
retention 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 basis
for
the regulatory trading book of the Bank using hypothetical
and actual results. The Bank monitors the
number 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)
.
2022
Foreign currency
risk
Interest rate
risk
Price risk
Comodity
risk
Covariance
Total
31 Dcember
836,901
252,962
408
(232,711)
857,560
Average daily value (annual)
1,038,712
1,537,270
10,209
295
(856,523)
1,729,963
Maximum* daily value (annual)
1,571,882
3,244,254
77,401
35
(882,116)
4,011,456
Minimum* daily value (annual)
381,600
338,602
462
(234,050)
486,614
.
Relates to the total Value at Risk within the year.
.
2021
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
306
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Foreign
currency
risk
Interest rate
risk
Price
risk
Comodity
risk
Covariance
Total
31 Dcember
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
.
The data above refers to the Bank. The Group’s subsidiaries and
branches have limited trading positions,
that are extremely small how compared to those of the Bank. As such,
the market risk impact, which is
derived from these positions in total income is not material.
The Value at Risk methodology is based on certain theoretical
assumptions, which under extreme market
conditions might not reflect 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 evident during the historical
observation period.
On a daily basis, a 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 within 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) 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 percentage of
overage and for any excess of existing limits.
ii.Financial
Risks of Banking
portfolio
The Market risk may arise, apart from the trading portfolio,
from the structure of assets and liabilities of
loan and deposits portfolio of the Group. This risk is
foreign exchange risk and interest rate risk.
.
a.
Foreign exchange risk
The Group takes on the risk arising from fluctuations in foreign exchange
rates.
The management of foreign currency position is performed
centrally. The Group’s policy is the positions
to be closed immediately using spot transactions or foreign 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 foreign exchange limits set.
*Relates to the total Value
at Risk within the year.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
307
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Total position derives from the aggregate balance of current position
of balance sheet items and the
derivatives forward position as depicted in the tables follow.
31.12.2022
USD
GBP
CHF
JPY
RON
RSD
Other
FC
Euro
Total
ASSETS
Cash and balances with Central
Banks
6,868
6,976
1,601
93
257,279
933
12,621,024
12,894,774
Due from banks
367,598
50,620
9,926
2,864
83,512
101
20,491
833,023
1,368,135
Trading
securities
4,261
4,261
Derivative financial assets
2,142,196
2,142,196
Loans and advances to
customers
3,042,681
427,701
270,771
3,735
1,539,083
59
33,463,786
38,747,816
Investment
securities:
- Measured at amortized
cost
194,688
16,938
133,738
10,990,885
11,336,249
-
Measured at
fair
value through
other comprehensive income
18,142
1,788,303
1,806,445
-
Measured at
fair
value through
profit or loss
37,357
290,149
327,506
Investments
in associates and
joint ventures
967
57,644
40,054
98,665
Investment
property
93,511
23,521
127,871
244,903
Property, plant and equipment
4,289
81,260
818
442,858
529,225
Goodwill and other intangible
assets
78
9,640
464,965
474,683
Deferred tax assets
2,859
1
5,229,504
5,232,364
Other assets
2,153
2,102
8,439
26,552
460
1,255,249
1,294,955
Assets held for sale
12,638
1,503,876
1,516,514
Total
Assets
3,670,454
566,348
290,737
6,692
2,227,434
101
58,921
71,198,005
78,018,691
LIABILITIES
Due to banks and customers
2,884,045
290,671
35,739
3,206
1,170,708
19,158
173,480
60,013,768
64,590,775
Derivative financial
liabilities
2,305,318
2,305,318
Debt securities in issue and other
borrowed funds
32,264
14,377
2
2,876,336
2,922,979
Liabilities for current
income tax
and other taxes
22,926
22,926
Deferred tax liabilities
73
6,821
16,593
23,487
Employee defined benefit
obligations
8
23,873
23,881
Other liabilities
and Liabilities
related to assets
classified
as
held for
sale
9,020
11,153
1,377
93
34,203
12
1,610
873,290
930,758
Provisions
1,024
9
7,426
(7,982)
920,634
921,111
Total Liabilities
2,926,353
301,906
37,116
3,299
1,233,535
19,170
167,118
67,052,738
71,741,235
Net balance sheet
position
744,101
264,442
253,621
3,393
993,899
(19,069)
(108,197)
4,145,269
6,277,456
Derivatives
forward foreign
exchange
position
(641,480)
(151,374)
(107,647)
(711)
(719,340)
166,223
1,149,211
(305,118)
Total Foreign
exchange
position
102,620
113,068
145,974
2,682
274,559
(19,069)
58,026
5,294,479
5,972,338
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
308
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
31.12.2022
309
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Τhe open foreign exchange position as at 31.12.2022 presents
the following sensitivity analysis:
Currency
Exchange rate
variation scenario
against
Euro (%)
Impact in net
profit/(loss) before
Income
tax
Impact on
equity
USD
5% Depreciation
EUR against
USD
5,401
5% Appreciation
EUR against
USD
(4,887)
GBP
5% Depreciation
EUR against
GBP
5,951
5% Appreciation
EUR against
GBP
(5,384)
CHF
5% Depreciation
EUR against
CHF
7,683
5% Appreciation
EUR against
CHF
(6,951)
RON
5% Depreciation
EUR against
RON
14,450
5% Appreciation
EUR against
RON
(13,074)
RSD
5% Appreciation
EUR against
RSD
(1,004)
5% Appreciation
EUR against
RSD
908
ALL
5% Depreciation EUR
against ALL
1
5% Appreciation EUR
against ALL
(1)
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-trading Assets-Liabilities
and the portfolio measured at fair value
through other comprehensive income.
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.
Specifically, assets and liabilities are classified in
Gaps depending on their repricing 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 behavioral
models. These models have been validated by the responsible independent
unit of the Bank. The interest
rate risk management is being performed by ALCO, following the
proposals of treasury and market risk
divisions. Stress test scenarios of interest rate risk changes are
being performed on a monthly basis,
whereas their impact on the interest income change is
calculated through the EaR (Earning at Risk) and
on equity through EVE (Economic Value of Equity). Relevant limits
have been set for both measures
(EaR & EVE) that are monitored and presented to ALCO and RMC
on a regular basis.
During 2022, the conflict of Russia and Ukraine and the
energy crisis have contributed to a very high
degree of uncertainty
for the global economy, which led the to lower rates of
growth and higher inflation.
The Federal Reserve Bank raised the base interest rate from
0.25 % to 4.5%, whereas the ECB raised
the base lending interest rates from 0% to 2.5% and the deposit
rates from negative -0.5% to 2% in order
to deal with inflationary pressures.
The raise of interest rates is expected to lead to an increase in
interest income which will result to the
improvement of the
net interest margin. An increase of the interest rates equal to 200 bps is expected
to
have a positive effect on the net interest income from
15% to 20%, depending on the readjustment rate of
the deposit rates.
At the end of 2022, a new directive for the monitoring of interest rate
risk of the banking portfolio and the
inclusion of the Credit Spread Risk of the Banking Book has
been issued.
The resolution of the loan portfolio has been achieved through the
reduction of Non-
performing
exposures as a result of the securitization of Galaxy
and Cosmos loans, and the sale of held for sale loan
portfolios. The enhancement of the quality of the loan portfolio contributes
to the mitigation of interest rate
risk which is considered higher due to the increase of credit
default obligations from corporates and
households which are susceptible to the fluctuations of inflation
and interest rates.
During 2021 the interest rate risk of the banking portfolio has been
affected by the sale of Non-performing
exposures of Cosmos portfolio and the senior notes guaranteed by
the Greek State, which are held by the
Group as a result of the completion of the NPE transactions Galaxy
and Cosmos.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
310
ANNUAL FINANCIAL
REPORT
The amounts 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.
31.12.2022
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
12,484,171
410,603
12,894,774
Due from banks
1,167,269
5,830
1,535
100
307
193,094
1,368,135
Trading
securities
1,209
900
2,152
4,261
Derivative financial assets
2,142,196
2,142,196
Loans and advances to customers
12,557,237
12,869,198
3.955.125
620,180
5,137,874
3,608,202
38,747,816
Investment
securities:
- Measured at amortized
cost
246,263
668,774
469,635
461,262
5,136,237
4,354,078
11,336,249
-
Measured at
fair
value through
other comprehensive income
54,316
411,144
633,980
271,872
362,997
72,136
1,806,445
-
Measured at
fair
value through
profit or loss
279,406
48,100
327,506
Investments
in associates and
joint
ventures
98,665
98,665
Investment
property
244,903
244,903
Property, plant and equipment
529,225
529,225
Goodwill and other intangible
assets
474,683
474,683
Deferred tax assets
5,232,364
5,232,364
Other assets
1,294,955
1,294,955
Assets held for sale
1,516,514
1,516,514
Total
Assets
28,652,661
14,234,352
5,060,275
1,353,414
10,638,315
8,277,762
9,801,912
78,018,691
LIABILITIES
Due to banks
13,990,040
348,700
2,056
1,169
2,886
14,344,851
Derivative financial assets
2,305,318
2,305,318
Due to customers
13,241,141
3,350,750
2,971,588
4,678,715
17,364,767
8,638,963
50,245,924
Debt securities in issue and other
borrowed funds
537,418
198,275
2,187,286
2,922,979
Liabilities for current
income tax and
other taxes
22,926
22,926
Deferred tax liabilities
23,487
23,487
Employee defined benefit obligations
23,881
23,881
Other liabilities
920,097
920,097
Provisions
921,111
921,111
Liabilities related
to assets held
for
sale
10,661
10,661
Total Liabilities
29,536,499
4,236,868
3,171,919
4,678,715
19,553,222
8,641,849
1,922,163
71,741,235
EQUITY
Share capital
680,980
680,980
Share premium
5,259,115
5,259,115
Special Reserve from Share Capital
Decrease
296,424
296,424
Minus: Treasury
Shares
(1,296)
(1,296)
Reserves
(273,048)
(273,048)
Retained
earnings
296,911
296,911
Non-controlling
interests
18,370
18,370
Total
Equity
-
-
-
-
-
-
6,277,456
6,277,456
Total Liabilities and
Equity
29,536,499
4,236,868
3,171,919
4,678,715
19,553,222
8,641,849
8,199,619
78,018,691
OPEN
EXPOSURE
(883,838 )
9,997,484
1,888,356
(3,325,301)
(8,914,907)
(364,087)
1,602,293
-
CUMULATIVE
EXPOSURE
(883,838 )
9,113,646
11,002,002
7,676,701
(1,238,206)
(1,602,293)
-
-
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
311
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2021 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
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 assets
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 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
5,257,622
5,257,622
Special Reserve from Share Capital
Decrease
6,104,890
6,104,890
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)
-
-
From the Interest Rate Gap Analysis and from the implementation
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 change in the net interest income and in equity
in the case of instruments measured at
fair value through other comprehensive income as well
as the related hedging instruments is directly
calculated. In the scenarios of Interest Rate decrease the variance is
examined, up to the point it’s
feasible (interest rate equals to zero), according to the interest rate curves
per currency as in force.
Interest rate variation scenario (parallel fall or
rise in
yield curves)
Sensitivity for net interest income
(annual)
Sensitivity of Equity
-200
(107,900)
27,160
+200
120,675
(31,124)
*Certain figures of the previous
year have been restated
as described in note 50.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
312
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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 that
analyze their behavior. These models have been validated by the responsible
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 approving
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 remains within
approved limits. Moreover,
management receives on a daily basis a liquidity report, which
depicts 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 supervisory 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.
As at 31.12.2022 both ratios (LCR and NSFR) exceeded the minimum
acceptable regulatory threshold
(100%) with Liquidity Coverage Ratio (LCR) to estimated at 161%. This is
attributed to the fact that there
is an increase in deposits due to customers, the improved access
to interbank markets, the issuance of
Τier 2 bonds in February 2020 as well as the increase in long-term
financing through the Eurosystem
(TLTRO-III).
It is noted that methodological adjustments that may affect the liquidity
indicators are expected to be
implemented in the context of the continuous supervisory
dialogue and will be reflected in the Pillar 3
disclosures.
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.
In more detail, the total funding can be divided into two main categories:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
313
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Α.
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 credit 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
its credit assessment as well as the domestic and international economic
environment.
2.
Funding
from
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 inadequacy
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 intends gradually to eliminate its
economic dependency from this type of funding source, if
circumstances allow.
However, for as long as the country is experiencing financial
and economic crisis, the Bank ensures its
smooth financing from financial instruments which
constitute conventional marginal lending from the ECB
(MRO), as Emergent Liquidity Assistance from Bank of Greece (ELA)
has ceased since February 2019.
The Bank ensures the adequacy of collateral required forthe financing from
the above financial
instruments,taking into account thatboth the type and the amount of
financing is under the discretion of
the Euro system.
The announcements of the European Central Bank, on
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. One of these measures
was the waiver to accept Greek sovereign debt instruments
as
collateral in Eurosystem credit operations. even though they
do not meet minimum ECB rating
requirements for this purpose. Through these measures ECB,
aknowledges 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. The amount of funding from TLTRO III program in
the current year amounts to € 12.9 bil. The
amount of € 8 bn from the TLTROIII program funding will
be repaid during 2023 and the rest € 5 bn during
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
314
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
2024. Upon termination of the above funding plans and the release of
the collaterals pledged for the ECB,
alternative funding sources will be activated either through
repo agreements or through conventional
marginal lending from the ECB (MRO).
During 2022 Alpha bank proceeded to the issue of
two senior preferred bonds. More specifically on
21.10.2022 a preferred senior note with a nominal value of € 0.4
bn was issued with coupon of 7.0%. The
bond has three years maturity with redeemed option at the second
year. On 6.12.2022, Alpha Bank also
proceeded to the issue of a second preferred senior note with nominal
value of € 0.45 bn. The bond has
4,5 years maturity with redeemed option at 3,5 years.
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
31.12.2022
315
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
< 1 month
1 to 3
months
3 to 6
months
6 to 12
months
> 1 year
Total
ASSETS
Cash and
balances with Central Banks
12,894,774
12,894,774
Due from banks
1,167,266
5,830
1,538
100
193,401
1,368,135
Trading
securities
4,261
4,261
Derivative financial assets
2,142,196
2,142,196
Loans and advances to customers
1,083,760
1,737,155
1,420,968
2,535,459
31,970,474
38,747,816
Investment
securities:
- Measured at amortized
cost
226,210
34,383
198,766
192,717
10,684,174
11,336,249
- Measured at fair value through
other comprehensive
income
1,806,445
1,806,445
-
Measured at
fair value
through profit
or
loss
327,506
327,506
Investments in associates
and joint ventures
98,665
98,665
Investment
property
244,903
244,903
Property, plant and equipment
529,225
529,225
Goodwill and other intangible
assets
474,683
474,683
Deferred tax assets
412,409
76,520
4,743,435
5,232,364
Other assets
1,294,955
1,294,955
Assets held for sale
742,651
500,268
273,595
1,516,514
Total
Assets
19,652,418
2,932,428
2,121,540
3,078,391
50,233,914
78,018,691
LIABILITIES
Due to banks
299,594
94,521
8,333,526
97,053
5,520,157
14,344,851
Derivative financial assets
2,305,318
2,305,318
Due to customers
9,438,976
3,542,713
3,273,484
5,284,425
28,706,326
50,245,924
Debt securities in issue and other borrowed funds
542,138
2,380,841
2,922,979
Liabilities for current income
tax and other taxes
22,926
22,926
Deferred tax liabilities
23,487
23,487
Employee defined benefit obligations
23,881
23,881
Other liabilities
920,097
920,097
Provisions
921,111
921,111
Liabilities related
to
assets held
for
sale
10,661
10,661
Total Liabilities
12,043,888
4,179,372
11,607,010
5,427,891
38,483,074
71,741,235
EQUITY
Share capital
680,980
680,980
Share premium
5,259,115
5,259,115
Special Reserve from
Share Capital
Decrease
296,424
296,424
Minus: Treasury
Shares
(1,296)
(1,296)
Reserves
(273,048)
(273,048)
Retained
earnings
296,911
296,911
Non-controlling interests
18,370
18,370
Total
Equity
6,277,456
6,277,456
Total Liability
and Equity
12,043,888
4,179,372
11,607,010
5,427,891
44,760,530
78,018,691
OPEN
LIQUIDITY
GAP
7,608,530
(1,246,944)
(9,485,470)
(2,349,500)
5,473,384
CUMULATIVE
LIQUIDITY
GAP
7,608,530
6,361,586
(3,123,884)
(5,473,384)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
316
ANNUAL FINANCIAL
REPORT
The amounts 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
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
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 assets
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 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
5,257,622
5,257,622
Special Reserve from
Share Capital Decrease
6,104,890
6,104,890
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
31.12.2022
317
ANNUAL FINANCIAL
REPORT
The amounts 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.
31.12.2022
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
14,344,851
(197,900)
(48,428)
(8,559,116)
(309,910)
(6,321,714)
(15,437,067)
Due to customers
50,245,924
(9,029,174)
(3,597,538)
(3,274,974)
(5,331,957)
(29,800,318)
(51,033,960)
Debt securities in issue and
other borrowed funds
2,922,979
(11,586)
(565,923)
(38,771)
(78,445)
(2,711,886)
(3,406,610)
Other liabilities
920,097
(920,097)
(920,097)
Derivative held for assets
fair value hedge
35,064
- Outflows
(72,785)
(54,925)
(56,138)
(1,686)
(20,562)
(206,096)
-
Inflows
70,253
50,075
51,728
10,236
182,292
Derivatives held for
liabilities fair value hedge
178,375
- Outflows
(31,744)
(36,193)
(5,845)
(12,839)
(51,685)
(138,306)
-
Inflows
30,450
20,311
7,518
12,718
52,474
123,471
Derivatives held for trading
2,091,879
- Outflows
(414,709)
(229,001)
(131,480)
(158,901)
(2,185,807)
(3,119,898)
-
Inflows
394,677
187,842
88,816
182,205
1,871,740
2,725,280
Total
70,739,169
(9,262,517)
(4,273,780)
(11,918,261)
(5,698,814)
(40,077,618)
(71,230,991)
Off Balance
sheet items
Undrawn loan commitments
which can’t be recalled
(committed)
(693,031)
(693,031)
Financial
guarantees
114,636
255,896
131,801
219,201
2,598,355
3,319,889
Total off
Balance sheet
items
-
(578,395)
255,896
131,801
219,201
2,598,355
2,626,858
.
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
318
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
31.12.2022
319
ANNUAL FINANCIAL
REPORT
The amounts 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
.
31.12.2022
Level 1
Level 2
Level 3
Total fair value
Total
carrying
amount
Financial
Assets
Loans and advances to customers
37,125,262
37,125,262
38,250,934
Investment securities
- Measured at amortized
cost
8,684,980
1,167,783
120,664
9,973,427
11,336,249
Financial liabilities
Due to customers
50,162,366
50,162,366
50,245,924
Debt securities in issue and other borrowed funds
2,405,832
411,629
2,817,461
2,922,979
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
.
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 a model for discounting the
contractual future cash flows until maturity. The components
of the discount rate are the interbank market
yield curve, the liquidity premium, the operational cost, the capital
requirement 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 discount rate of impaired loans is constituted of the interbank market
yield curve, the liquidity
premium, the operational cost and the capital requirement.
The fair value of debt securities classified as Loans
and advances to customers and measured at
amortized cost, is being calculated through the use of a model
for discounting the contractual future cash
flows taking into account their credit risk.
The fair value of deposits is estimated based on the interbank
market yield curve the operational cost and
the liquidity premium until their maturity.
Level 1 includes securities and debt securities in issue that are traded in active
market.
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 discounted cash flow
methodologies such (income approach) using interest rates and credit
spreads which are observable in
the market.
Level 3 includes securities for which there are no observable
data in an active market.
The fair value of the remaining financial assets and liabilities
which are measured at amortised cost does
not differ materially from their respective carrying
amount.
Fair
Value hierarchy
- financial
assets
and liabilities
measured
at fair
value
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
320
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
Level 1
Level 2
Level 3
Total fair value
Derivative financial assets
712
2,141,484
2,142,196
Trading
securities
- Bonds and Treasury
bills
429
429
-
Shares
3,832
3,832
Securities measured
at fair value through
other comprehensive income
- Bonds and Treasury
bills
1,674,200
96,184
312
1,770,696
-
Shares
11,653
24,096
35,749
Securities measured
at fair value through
profit
or
loss
- Bonds and Treasury
bills
2,760
10,828
13,588
- Other variable yield securities
248,168
15,251
263,419
-
Shares
6,773
32,989
10,736
50,498
Loans measured
at
fair
value through
profit
or
loss
314,191
314,191
Other Receivables
measured at fair value
through profit or loss
182,691
182,691
Derivative financial
liabilities
107
2,305,211
2,305,318
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
The above tables present the fair value hierarchy of financial instruments
measured at fair value per fair
value hierarchy level based on the significance of the data
used for its determination.
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 the fair value of which is
estimated using significant unobservable inputs
The fair value calculation methodology has not been amended
as consequence of the Russia Ukraine
war.
The valuation methodology of securities is subject to approval
of Asset Liability Committee. It is noted that
specifically for securities whose fair value is calculated based on
market prices, bid prices are used 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 in the disclosure of fair
value for loans measured at amortized cost.
Given that the data used for the calculation of fair value
are non observable, loans are classified at Level
3.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
321
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Shares the fair value of which is computational, are classified
to Level 2 or Level 3, depending on the
extent of the contribution of unobservable data in the calculation
of the 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 valuation 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.
Income methodologies are used for the valuation of over the counter
derivatives: discounted cash flow
models, option calculation models, or other widely accepted economic
valuation models.
The valuation methodology of the over the counter
derivatives is subject to approval by the Assets
Liabilities Committee. 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 counterparty banks or central
clearing houses in the context of the daily process of provision of collaterals
and settlement of derivatives.
If the non-observable inputs used for the determination
of fair value are significant, then the above
financial assets are classified as Level 3 or otherwise
as Level 2.
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 time
of 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 and derivatives exposure per counterparty simulate throughout
the life of respective financial
assets. 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.
The tables below present a breakdown of BCVA counterparty sector
and credit quality, (as defined for the
presentation purposes of the table “Loans by credit quality
and IFRS 9 Stage”):
31.12.2022
31.12.2021
Category of counterparty
Corporates
403
(904)
Governments
856
(11,144)
31.12.2022
31.12.2021
Hierarchy of counterparty by credit quality
Strong
364
(246)
Satisfactory
895
(11,802)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
322
ANNUAL FINANCIAL
REPORT
The amounts 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:
31.12.2022
Total
Fair
Value
Fair Value
Valuation
Method
Significant
Non-observable
Inputs
Bonds measured
at fair
value through
other
comprehensive
income
312
312
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
24,096
24,096
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
10,828
10,828
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
10,736
10,736
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
314,191
314,191
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
182,691
182,691
Discounted cash
flows of the
underlying receivables
portfolio /
Discounted cash
flows of estimated
revenue / EBITDA
Cash
Flows
from
the
management of
the
underlying receivables
portfolio / Revenue growth
rate / EBITDA
In relation to the valuation of the earn-out consideration (from
the buyer to the Bank in the context of the
disposal of the
80% of the equity shares of the former subsidiary) which is
related to the estimated
earnings before depreciation, tax and interest (EBITDA)
of Cepal Holdings for the next six years, the base
scenario of the company’s business plan was taken into consideration. Based
on this scenario (which is in
line with the valuation of 20% of the Bank’s investment in the company),
the valuation of the earn-out
consideration is zero.
In the context of the sale of the Bank’s participation in
Alpha Payment Services S.M.S.A., the Bank
reserves the right to repurchase in the fourth year after the completion
of the transaction part of the
shares that will correspond to a participation between 24%
and 39% in the company according to with a
fixed strike price. According to the estimated figures of the company,
the value of this option as of
31.12.2022 is zero.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
323
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
159,696
159,696
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
324
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The Group reassess the fair value hierarchy on an
instrument-by-instrument basis at each reporting
period and proceeds with the transfer of financial instruments,
when required, based on the data at the
end of each reporting period.
Within the current reporting period bonds of a total amount of € 64,804
have been transferred from Level
1 to Level 2 due to the bid-ask spread which is outside the limit
range set in order for a market to be
classified as active.
Within the previous reporting period corporate bonds of a total
amount of € 51.864 have been transferred
from Level 2 to Level 1 due to the bid-ask spread which was within the limit
range set in order for a market
to be classified as active.
A reconciliation of the movement of financial assets measured at
fair value and classified at Level 3,
taking into account that the opening balance as of 1.1.2022 differs
than the one as at 31.12.2021 by the
amount that has been reclassified to portfolio at amortized cost.
31.12.2022
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
1.1.2022
37,919
46,095
159,696
40,000
Total gain or
loss recognized in
Income Statement
7,722
11,824
789
-
Interest
1,313
10,515
789
- Gains less
losses on financial
transactions
6,409
1,309
Total
gain/(loss) recognized in
Equity-Reserves
(11,005)
Purchases
/ Disbursements
/
Initial
Recognition
1,018
325
272,857
141,902
Repayments
(3,349)
(10,232)
(75,090)
Sales
/ Derecognition
(486)
(22,346)
Transfer
in Level
3
from Level
2
312
Transfer
to
assets held
for
sale
(55,095)
Balance
31.12.2022
24,409
21,564
314,191
182,691
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 -
31.12.2022
(1,032)
3,777
789
-
Interest
659
4,746
789
- Gains less
losses on financial
transactions
(1,691)
(969)
Within the current reporting period a security has been
transferred from Level 2 to Level 3 due to lack of
observable inputs in the market.
Caption Sales / Derecognition includes the amount of bonds s that relates
to the share capital decrease in
kind of Alpha Services and Holdings through distribution to
the shareholders of the shares issued by
Galaxy Mezz Ltd that has been finalized on 27.10.2022. (Note 34)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
325
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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
33,313
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)
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)
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)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
326
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
A sensitivity analysis of financial instruments classified at Level 3 the valuation
of which was based on
significant unobservable data as at 31.12.2022 is depicted in the
table 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
Favourable
variation
Bonds measured at
fair value through
other
comprehensive
income
Issuer
price
Issuer price equal
to
7.0%
Variation
+/-10% in
issuer
price
20
(20)
Shares measured at
fair value through
other
comprehensive
income
Future
profitability
of issuer, expected
growth / Valuation
indexes /
Weighted
average cost
of
capital
Valuation index
P/BV 0.48x, P/BV,
WACC
Variation
+/-10% in
P/B. WACC ±1%
350
(380)
Bonds measured at
fair value through
profit or loss
Issuer price /
Credit
spread
Average
issuer
price
equal to
76%
Variation
+/-10% in
issuer price, -/+10%
n adjustment
of
estimated / Credit
Risk
1,009
(986)
Average
credit
spread equal to
1,722 bps
Loans measured at
fair value through
profit or loss
Expected credit loss
and
cash flows
from
credit risk
of
the
counterparty
Average
credit
spread,liquidity
premium and
operational risk
equal to
41.27%
Decreaseof the
expected
cash
flows
by
10% on
loans individually
assessed
1.161
(1.161)
Sharesat fair value
through profit or loss
Future profitability
of issuer,
expected
growth
/
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
+/20%
2,100
(1,500)
Other
receivables
measured at
fair
value through
profit
or loss
Cash flows from
management
of
underlying
receivables
portfolio
Value of property
collateral €
607.6
mil. and
third party
receivables
€ 42.4
mil.
Variation +/-4% to
property collateral
valuation. Variation
+/- 33%
to third
party receivables
9,000
(7,000)
Contingent
consideration - Rate
of increase in revenue
Nexi
Payments
Hellas
S.A. by
2025
Average
revenue
increase 15% by
year between
2022
and 2025
+/- 20%
3,761
(1,847)
Contingent
consideration
-
EBITDA
of Cepal Holdings for
the
next 6
years
Estimated
profits of
the company Cepal
Holdings
+/- 10% in
estimated profits
of
the company
3,120
Total
20,151
(12,494)
370
(400)
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
327
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
A sensitivity analysis of financial instruments classified at Level 3 the valuation
of which was based on
significant unobservable data as at 31.12.2021 is depicted in the
table 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
Favourable
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
mil.
/
And
third-
party receivables
€
42.4 mil.
variation
+/-
4%
to
property
collateral
valuation
/
Variation +/-
33%
to third
party
receivables
9,000
(7,000)
Total
19,580
(25,313)
358
(358)
There are no interrelations between non observable data that
significantly affect the fair value.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
328
ANNUAL FINANCIAL
REPORT
The amounts 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.
As of 31.12.2022 the financial assets that have not been derecognized,
despite the contractual transfer of
their cash flows, derive from the following categories:
a)
Securitization
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 rewards 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 carrying amount of
these securitized loans as of 31.12.2022 amount to € 1,272,615
(31.12.2021 € 1,398,364).
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 the financial statements
of the Group since the
Group retains all risks and rewards as it owns the
notes issued by the special purpose entity. The carrying
amount of these securitized loans as at 31.12.2022 amount
to € 3,989,314 (31.12.2021 € 4,526,627),
without in practice a liability from the transfer to exist.
Additionally, within 2021, two securitization transactions performed
by Alpha Bank S.A. before the
demerger during previous reporting periods, were withdrawn,
with the repayment of the total amount of
debt securities issued by the special purpose entities i.e. the securitization
of a bond loan through the
special purpose entity Alpha Quantum DAC (withdrawal 19.3.2021)
and the securitization of consumer
loans through the special purpose entity Katanalotika
Plc (withdrawal 17.6.2021). During the period that
the abovementioned transactions were valid, the special purpose entities
were fully consolidated by the
Group and the securitized loans were recognized in the
category loans and advances to customers, as
the Group retained all risks and rewards due to the owned issued subordinated
notes or/and the right to
receive the deferred consideration.
In addition, Alpha Bank S.A. before the hive down,
proceeded on 30.4.2020 with a securitization of non-
performing retail and corporate 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 above
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 mezzanine and junior 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. Within the current year, the securitization transaction
through the special purpose entity
Galaxy III Funding DAC was withdrawn as the loan portfolio has been
transferred directly to third party
investor. The carrying amount of the securitized loan portfolio
of Galaxy III Funding DAC as of 31.12.2021
amounted to€ 52,959 and given the own issued securities
no liability of the transfer existed.
b)
Sale
and
repurchase
agreements
of
debt
securities
The Group as at 31.12.2022, has transferred certain Greek Government
Bonds and Treasury Bills and
bonds of other issuers
and agreements to repurchase. These securities are recognized
in the Group’s
investment portfolio and the respective amounts are presented in the following
table.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
329
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
31.12.2022
Securities measured at
fair value
through other
comprehensive income
Securities Measured
at
Amortised Cost
Greek Government Bonds and
Treasury Bills
Other Issuers’ Bonds
Greek Government Bonds
and
Treasury Bills
Carrying amount of transferred
securities
1,097
2,762
33,556
Carrying amount of related liability
(1,032)
(2,371)
(28,667)
Fair value
of transferred securities
1,097
2,762
31,494
Fair
value of
related liability
(1,032)
(2,371)
(28,667)
Net position
65
391
2,827
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.
These
securities
are
recognized
in
the
Group’s
investment
portfolio
and
the respective
amounts are
presented in
the following
table.
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
Οµόλογα και Έντοκα
Γραµµάτια
Ελληνικού
Δηµοσίου
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
.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
330
ANNUAL FINANCIAL
REPORT
The amounts 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 – Credit Support Annex (ISDA-
CSA) 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 Group is able to offset
its assets and liabilities relating to a
counterparty in case of a credit default.
Financial assets
subject
to offsetting
.
31.12.2022
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
2,100,115
-
2,100,115
(1,231,008)
(720,150)
148,957
Reverse repos
-
-
-
-
-
-
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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
331
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Financial liabilities
subject to offsetting
31.12.2022
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
2,098,942
-
2,098,942
(1,231,008)
(327,569)
540,365
Repos
32,070
-
32,070
-
17
32,087
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
Reconciliation
of
the
net
amount of
financial
assets and
liabilities presented
in the
balance sheet
31.12.2022
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
2,100,115
2,142,196
42,081
Reverse repos
16
-
-
-
31.12.2022
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
2,098,942
2,305,318
206,376
Repos
27
32,070
32,070
-
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
-
.
In addition, it is disclosed that within the context of the abovementioned contracts,
apart from the cash
collateral received, securities of nominal amount of € 400,000
(31.12.2021: € 750,000) have been
received as collateral.
43.7.Disclosures on interest rate reform
As of 1st 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
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
332
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
representative.
In accordance with the announcements of the United Kingdom regulatory
authority for financial affairs
Financial Conduct Authority, at the end of 2021 the finalization of the
first significant phase of the cease
of LIBOR with 24 out of 35 durations of LIBOR to cease. 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 diffaerent 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. A detailed action plan
was developed and the Internal Working Group with
the participation of several Divisions recognized any correlations with LIBOR
and applied the required
amendments.
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. Additionally, the Group currently
prepares the transition to the rest LIBOR
durations in USD which will continue to exist as of 30 June 2023.
In respect to new developments, on 23 November 2022 FCA
announced a consultation on its proposal to
require from the administrator of LIBOR (IBA) to continue
publishing the 1, 3 and 6-month durations of
US Dollar LIBOR using a different calculation methodology known as
“synthetic”, with effect from the end
of September 2024, only for existing contracts (legacy contracts).
In addition, the Euro Risk Free Rates working group recommended
a forward-looking term rate as an
alternative to EURIBOR for certain asset classes. The European Money Markets
Institute (EMMI) started
on 13 June 2022 to publish a trial version of the alternative interest rate
for EURIBOR (EFTERM – Euro
Forward Looking Term Rate). This is a forward rate designed to measure the
average expected Euro
STR interest rates relative to the usual editions (durations) of EURIBOR.
On October 10, 2022, the
European Money Markets Institute (EMMI) announced
the start of EFTERM from November 14, 2022.
The Group continues to monitor all relevant market developments,
taking all necessary measures to
ensure compliance where required and to support
its customers.
The transition to the new IBOR interest rates has no impact
on the Group’s financial statements as, on
the one hand, the Group makes use of the option provided regarding changes
in contractual cash flows,
i.e. when changing the basis for calculating the cash flows
of financial assets and liabilities, the changes
required by the interest rate reform do not lead to the recognition of a modification
gain or loss in the
income statement but to a recalculation of the interest rate, and
on the other hand the hedging
instruments used in the hedging relationships have Euribor as a reference interest
rate.
The exposure of the Group on financial assets and liabilities
with reference rate USD and GBP Libor
which have not been transferred to alternative reference rates
as at 31.12.2022 amounts to € 2,026,037
for non-derivative financial assets (carrying amount) and € 198,622 derivatives
(nominal value).
44.Capital Adequacy
The policy of the Group is to maintain strong capital
ratios and capital buffers over requirements in order
to secure that the its business plan will be achieved and to
ensure trust of depositors, shareholders,
markets and business partners.
Share capital increases are conducted following resolutions
of the General Meeting of Shareholders or
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 treasury shares is not permitted without its
consent, based on the relevant
provisions of the Relationship Framework Agreement (RFA) signed
between the Company 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 also counterparty
credit risk and CVA risk), the market risk of the trading book
and the operational risk.
Alpha Bank S.A., as a systemic bank, and therefore its Parent company
Alpha Services and Holdings
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
333
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
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) 876/2019 (CRR 2) and
the relevant European Directive 2013/36 (CRD IV),
as incorporated into the Greek Law through the Law
4261/2014 as amended, inter alia, by Directive (EU)
2019/878 (CRD V) and incorporated 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 the Combined
Buffer Requirement (CBR) consisting of:
•
the Capital conservation buffer stands at 2.5%.
•
the following capital buffers set by the Bank of Greece through Executive Committee Acts:
-
Countercyclical capital buffer equal to “zero percent” (0%) for 2022.
-
Other Systemically Important Institutions (O-SII) buffer,
which will gradually rise to “one percent” (1%)
from 1.1.2019 to 1.1.2023. For 2022, the O-SII buffer stands at 0.75%.
These limits should be met on a consolidated basis.
The following table presents the capital adequacy ratios of the
Group:
.
31.12.2022
31.12.2021
Common Equity
Tier
I Ratio
13.2%
13.2%
Tier
I Ratio
13.2%
13.2%
Capital Adequacy
Ratio*
16.1%
16.0%
.
Taking into consideration the 2021 SREP decision, ECB notifed
Alpha Services and Holdings S.A., that
for 2022 it is required
to meet the minimum limit for consolidated Overall Capital Requirements
(OCR),
of at least 14.31% (OCR includes for Q4 the CCB
Capital Buffer of 2.5% the O-SII buffer of 0.75% and
the CCyB of 0.06%) which mainly derives from the contribution
of subsidiaries.
The ΟCR consists of the minimum limit
of the total Capital adequacy Ratio (8%), in accordance with art.
92(1) of the CRR, the additional regulatory requirements of Pillar
2 (P2R) in accordance with article 16(2)
(a) of the Council Regulation EU 1024/2013 (3%), as well
as the combined buffers’ requirements (eg
CCB, OSII, CCyB), in accordance with Article 128 (6) of Directive
2013/36/ EU. The minimum rate should
be kept on an on-going basis, considering the CRR
/ CRD Transitional Provisions.
Measures
taken for
the
banks
in order
to tackle
Covid-19
pandemic
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 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 thresholds at least up to the end of
2022.
•
Furthermore, the upcoming change that was expected in January 2021 under CRD V regarding the P2R
buffer,
was applied earlier, 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.
•
The European Commission decided to revise the existing regulatory framework by bringing forward
regulations that would normally come in effect with the CRR2/CRDV framework as well as to mitigate the
Covid-19 impact on economy and encourage banks to grant new loans. As a result, in 22 June 2020 the EU
published the Regulation (EU) 2020/873 in its Official Journal, which included amendments in relation
to
capital requirements set by 575/2013 and 876/2019.
* Supervisory disclosures
regarding capital adequacy
and risk management
in accordance with Regulation
575/2013 (Pillar
III)
will be published on
the Bank’s website.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
334
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
The revised regulation includes, inter alia, articles 468 and 473a
which introduce new provisions aiming
to :
•
Mitigate the negative impact on the regulatory capital of the Bank from the increase in the expected
credit loss as a result from the Covid-19 pandemic. This article extents to another two-year period the
ability to add-back to the regulatory capital the expected credit losses recognized in 2020 and afterwards
relating to performing financial instruments. This transition period is effective until the end of 2024.
•
Introduce a temporary prudential filter to neutralize debt market volatility
deriving from the effects of the
Covid-19 pandemic. The filter is effective from 1 January 2020 to 31 December 2022. As a result of the
application of the filter, Banking Institutions will be able to add -back a percentage of the unrealized gains
and losses in the sovereign debt securities placements that affected CET1. For 2022 the applied
percentage is 40%.
The Group decided to implement articles art 468 and 473a of the
Regulation (EU) 2020/873.
Finally, on 22 December 2020, Commission Delegated Regulation (EU)
2020/2176 of 12 November
2020 amending Delegated Regulation (EU) No 241/2014 was
published in the Official Journal of the
European Union. The regulation includes certain provisions
for the deduction of software category from
CET1.
EBA Transparency
Exercise
On 22 April 2022, EBA announced the launch of prudential Transparency
Exercise at European level for
2022.The aim of the exercise is to provide additional
information for exposure and exposures and the
quality of the data of the banks. The exercise includes data
as provided by the banks through the
FINREP/COREP reporting for the periods:
•
Q3 2021
•
Q4 2021
•
Q1 2022 and
•
Q2 2022
The Bank participated in the exercise, which commenced in
September 2022. The results of the exercise
were published in December 2022.
In connection with the Capital adequacy of the European Banks
as of 30.6.2022 we note the following:
•
The average CET1 was 15.2% & 15.0% with full implementation of the transitional provisions, presenting
change of (YoY) -60 bp.
•
The average of OCR was 19.0% presenting an anuall change of (YoY) -60bp.
Minimum
requirements
for
own
funds
and
eligible
liabilities
(MREL)
On 23 March 2022, Alpha Bank S.A., received a communication letter
from the European Single
Resolution Board including its decision for the minimum requirements for
own funds and eligible liabilities
(MREL). The requirements are based on the Recovery
and Resolution Directive (“BRRD2”), which was
incorporated into the Greek Law 4799/2021 on 18.5.2021. At
the same time, by the same decision, the
Resolution Authority defined the single point of entry (SPE) resolution strategy.
According to the
decision, from 1 January 2026 Alpha Bank S.A. is required to meet,
on a consolidated basis, minimum
MREL of 23.37% of the risk-weighted assets and 5.92% of the Leverage
ratio. The letter also sets out the
intermediate MREL to be met from 1 January 2022, i.e. 14.02% of the risk-weighted
assets and 5.91% of
the leverage ratio. The MREL ratio, expressed as a percentage of risk-weighted
assets, does not include
the Combined Buffer Requirement (CBR), which currently stands
at 3.25%. Furthermore, The Resolution
Authority has decided that Alpha Bank S.A. is not subject
to requirement for subordinated MREL.
Minimum requirements for own funds and eligible liabilities
(MREL), including the transition compliance
period, are in line with the expectations of Alpha Bank S.A. The long-term
financing plan of Alpha Bank
S.A. envisages further strengthening of MREL,
so that these requirements can be met when they enter
into force. In this context, and following the issuance of two
series of Senior Preferred Bonds in 2021
amounting in total to € 900 mil., on 21.10.2022 Alpha Bank
proceeded to a new issuance amounting to €
400 mil., with a 3 year maturity and redeem option on the second year,
interest of 7% and return of
7.25%
As of 31 December 2022, the Bank’s MREL ratio on a consolidated
basis was 20.79%. This ratio include
also the profit for the year ended 31 December2022, as well
as the recent issuance of AT1 Notes. The
final targeted MREL ratio is updated annually by the SRB.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
335
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
45.Related party transactions
The Company and the Group companies entered in 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 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:
.
31.12.2022
31.12.2021
Assets
Loans and advances to
customers
3,911
1,858
Liabilities
Due to customers
5,058
4,352
Employee defined
benefit obligations
213
207
Debt securities in issue and
other borrowed funds
3,622
Total
8,893
4,559
Letters of guarantee and approved limits
382
306
.
From 1
January to
31.12.2022
31.12.2021
Income
Interest and similar income
68
35
Fee and
commission income
6
10
Gains less
losses on
financial transactions
1
Other
income
124
1
Total
199
46
Expenses
Interest expense
and similar
charges
61
5
Commission
expenses
1
General
administrative
expenses
1
Remuneration of Board
members, salaries and wages
7,387
6,533
Total
7,448
6,540
.
Remuneration of key executives and their close relatives is analyzed as
follows:
.
From 1
January to
31.12.2022
31.12.2021
Remuneration of Board
members, salaries and wages
5,685
4,770
Benefits fees
116
16
Bonus
Incentive
program
expenses
708
1,217
Employer
contributions
446
377
Other
432
153
Total
7,387
6,533
.
In addition, according to the decision of the General
Meeting of Shareholders held at 29.6.2018, a
compensation scheme for
the Bank’s Senior Management is operating, 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 as well as the results related to these transactions
are as follows:
.
31.12.2022
31.12.2021
Assets
Loans and advances to
customers
98,491
106,043
Other
Assets
65,168
2,611
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
336
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Total
163,659
108,654
.
.
31.12.2022
31.12.2021
Liabilities
Due to customers
44,494
62,709
Other Liabilities
62,750
23,655
Total
107,244
86,364
.
From 1
January to
31.12.2022
31.12.2021
Income
Interest and similar income
3,248
2,656
Fee and
commission income
13
4
Gains less
losses on
financial transactions
310
127
Other
income
3,663
1,960
Total
7,234
4,747
Expenses
General
administrative
expense
1,677
887
Other
expenses
34,689
51,797
Total
36,366
52,684
.
c.
The outstanding balances with the Group’s, joint ventures as well as the results related to these
transactions are as follows:
.
31.12.2022
31.12.2021
Assets
Loans and advances to
customers
58,692
3,966
Other
Assets
175
219
Total
58,867
4,185
Liabilities
Due to customers
7,143
13,772
Total
7,143
13,772
.
From 1
January to
31.12.2022
31.12.2021
Income
Interest and similar income
884
418
Fee and
commission income
459
Other
income
290
197
Total
1,633
615
Expenses
Interest expense
and similar
charges
488
Gains less
losses on
financial transactions
523
5,658
Total
1,011
5,658
.
d.
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
31.12.2022
31.12.2021
Income
Fee and
commission income
6
7
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
337
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
.
46.Auditor’s fees
The total fees of the statutory auditor of the Bank “Deloitte Certified
Public Accountants S.A.”, a member
of Deloitte Touche Tohmatsu Ltd (“DTTL”), as well as of the
other DTTL companies and their respective
associates, are analyzed below, in accordance with the provisions
of paragraph 2 and 32, article 29, of
Law 4308/2014.
.
From 1
January to
31.12.2022
31.12.2021
Statutory audit of the annual
accounts*
3,351
3,715
Issuance of tax certificate
618
595
Other non-audit
services
775
784
Total
4,744
5,094
.
47.Disclosure 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 2022, the amount of dormant deposit accounts
that will be granted to the Greek State,
according to article 8 par. 2 of Law 4151/2013, until
31.12.2022, amounts to € 4,560.
48.Assets held for sale
.
31.12.2022
31.12.2021
Non performing loans
and assets portfolio in
Cyprus - Sky project
661,066
668,698
Non performing loans and assets portfolio
381,691
95,093
Skyline Project
394,359
APE Investment Property S.A.
42,300
42,300
AGI-BRE Paricipations
4 EOOD
12,354
Startrek
Project
5,033
Investment Property
of
Alpha Leasing
S.A.
15,351
7,158
Assets of
Alpha Bank
S.A.
3,260
3,478
Pernik Logistics Park
EOOD
734
Other
366
Alpha
Bank Albania
544,532
Other receivables related to
the Bank’s
merchant acquiring business unit
52,896
Fierton
Ltd
10,114
Investment Property AGI-BRE
PART2EO
6,518
ABC RE
P4 Ltd
698
Total
1,516,514
1,431,485
.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
338
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Liabilities related
to assets
held for
sale
31.12.2022
31.12.2021
Alpha
Bank Albania
575,392
Other liabilities related to the Bank’s
merchant acquiring business unit
31,025
ABC RE
P4 Ltd
11
Fierton
Ltd
12
Other liabilities
10,661
1,217
Total
10,661
607,657
The Group has initiated the process for the sale of
selected subsidiaries, joint ventures, non-performing
loan portfolios, as well as real estate properties and other fixed
assets. As a result, certain assets and
liabilities have been classified as “Assets Held for Sale” in accordance
with IFRS 5.
Non performing loans continue to be measured in accordance with
the provisions of IFRS 9, however
for
those loans measured at amortised cost, the estimate of expected
credit loss incorporates the sale
scenario with 100% probability weight, taking into consideration the interested
/ preferred investors’
prices. Similarly, for loans measured at fair value through
profit or loss the determination of fair value is
based on investors’ prices.
Fair values of other assets classified as Held for sale are measured
at each reporting period in
accordance with the methods referred to in note 1.2.7, considering
offers from the investors for the items
included in the perimeter that is expected to be transferred in conjunction
with Management decisions for
the completion of the transactions. Fair vales in terms
of fair value hierarchy are classified as Level 3,
since they make use of data from market research, estimates and data
which refer to financial assets of
similar characteristics and therefore make use of significant non-observable market
input.
Non-performing
exposure
portfolio
and
real
estate
in
Cyprus-Project
Sky
In September 2021, the Group commenced the process for
the sale of a Cypriot portfolio consisting of
non-performing loans, investment properties, properties repossessed
from auctions and special
purposes entities owning properties repossessed 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. On 12.2.2022 the
binding sales agreement for the sale of the above portfolio was signed.
Therefore, as of 31.12.2021 considering the estimation that the transaction will
be completed within 12
months the above portfolio of loans real estate properties and special
purposes entities were classified
as disposal group in “Assets Held for Sale”.
Specifically, the carrying amount of the investment properties, the
properties repossessed from auctions
and the other assets of the special purpose entities of the Sky
Project amounted at 31.12.2022 to €
144,092 following its valuation at the lower of the carrying amount
and fair value less cost to sell. During
2022, an impairment loss of an amount € 31,868 (31.12.2021
€ 65,693) was recognized in “Other
expenses” and “Gains less losses on financial transactions”
of the Income Statement.
The fair value of loans included in this transaction as of 31.12.2022
amounts to € 516,974 and does not
differ from its carrying amount, as for the expected credit loss estimate
a 100% probability of sale has
been considered. The sale of the items included
in this transaction perimeter has not
been completed as
of 31.12.2022, i.e. within 12 months from the date of their classification
as a group of dispoal assets held
for sale. Considering that the two counterparties are
committed to the agreement for the completion of
the sale and the approval which is pending from the Central
Bank of Cyprus is expected to be shortly
received, the assets of the said transactions remained as a
disposal group of held for sale.
The above loans portfolio and real estate properties is
included in the operating segment “Non –
Performing Exposures” of note 42 “Operating Segments”
Project Skyline
In July 2022, the Bank commenced the process for
the sale of a portfolio of investment and owned-
occupied properties as well as assets classified in “Other Assets”.
In the context of the Skyline
transaction, the Group is expected to transfer to third
investor the shares of the newly established special
purpose entity (Skyline), to which specific properties or/ and specific
shareholdings investments of Group
subsidiaries will be transferred. These Group subsidiaries
have Group properties in their assets. In the
third quarter, the Executive Committee approved the selection
of a preferred investor and the
commencement of negotiations on the details of the transaction.
As a result, and taking into
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
339
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
consideration that the
Bank has assessed that the completion of the transaction within the following
12
months will take place, the criteria for classifying the properties
and participations as a held for sale
disposal group were met within the third quarter. On 6.2.2023 the
Group announced that entered into a
binding agreement with the consortium comprised of Dimand
S.A. and Premia Properties REIC,
according to which the investor will obtain the 65% of the shareholding
of Skyline while Alpha Astika
Akinita, a subsidiary of the Group will proceed to the signing of
an agreement with Skyline for the
administration of these properties, with an initial duration of
7 years. According to the agreement Alpha
Astika Akinita will act as the exclusive provider of
portfolio property management services.
The carrying amount of the held for sale disposal group of the
Group as of 31.12.2022 amounts to €
394,358. Upon valuation at the lower of the carrying amount and the fair
value less cost to sell an
impairment of € 32,495 was recognized in “Other expenses”. The
measurement of the fair value was
based on the consideration that the Group expects
to receive from the transfer of the aformenentioned
properties. The above loans portfolio and real estate properties
is included in the operating segment
“Non-Performing Exposures” of note 42 “Operating Segments”.
Project
Startrek
In the third quarter of 2022, the Bank initiated the process of selling
the portfolio of properties that were
classified under “Other Assets”. The context of the transaction is the transfer
of these assets to the
Group’s special purpose entity and in turn the transfer
if the shareholding of the latter to an investor.
Considering that the sale transaction is expected to be completed within
12 months, the underlying
properties were classified during the third quarter as held-for-sale
disposal group. The properties were
valued at the lower value between the carrying amount and the fair
value less cost to sell, which resulted
in a loss of € 1,286
and is included in the “Other expenses”. In the fourth quarter Alpha Bank
disposed
certain properties portfolio for a consideration amount of € 5,211 with
a gain of € 197 recognised in
“Results from financial transactions” The carrying amount of the remaining
properties as of 31.12.2022
amounts to € 2,826 while their fair value has been measured
based on the investor’s consideration.
The above loans portfolio and real estate properties is
included in the operating segment “Non –
Performing Exposures” of note 42 “Operating Segments”.
Pernik
Logistics
Park
EOOD
Within 2022, the Group considering that the transaction will
be finalized within 12 months, classified
Pernik Logistics Park EOOD as held for sale the company with
a fair value of € 734, based on non
binding offers received on 9.5.2022. The loss from the valuation
was € 125.
The Company is included in “International operations” segment for operating
segment disclosure
purposes (note 42).
Fierton Ltd
On 28.2.2022, Group’s subsidiary AGI – Cypre Ermis Ltd sold its subsidiary
Fierton, recognizing a loss of
€ 251. As the entity does not present for the Group a separate
business segment it does not meet the
criteria to be classified as discontinued operations and is
included in “Non-Performing Exposures”
segment for operating segment disclosure purposes.(note
42)
ABC
RE
P4
Ltd
On 28.2.2022, Group’s subsidiary Alpha Bank Cyprus
Ltd sold its subsidiary ABC RE P4 Ltd, recognizing
a loss of € 5. As the entity does not present for the
Group a separate business segment it does not meet
the criteria to be classified as discontinued operations and is included
in “International operations”
segment for operating segment disclosure purposes.
Investment
Property
Investment properties
Alpha Leasing
Α.Ε.
Within 2022, 4 properties with a total carrying amount of € 6,185 were
classified as “Assets Held For
Sale” while the sale of the 4 properties of the company was completed
for a consideration of € 5,130
resulting in a profit of € 680 which has been recognized in the line of
“Other Income” of the Income
statement. It is noted that the aforementioned properties of
Alpha Leasing are included in “Non-
Performing Exposures” segment for operating segment disclosure purposes (note
42).
Properties
of Alpha
Bank S.A.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
340
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
In the third quarter 2021, the Bank commenced the sales process
of an investment property portfolio held
by the Group, which resulted to the transfer of investment
property with a carrying amount of € 3,704 to
held for sale assets. Within the year 2021,
the Bank proceeded to the sale of properties for a total
consideration of € 710 while a gain of € 48 was recognized in
the income statement of 2021. In 2022
the
sale of 3 properties for a consideration of € 3,480 was completed
and a gain of € 329 was recognised in
the income statement for the year. The Bank measured the
fair value of the assets for 2021 and there
was no result.
In addition, in “Assets Held For Sale” a fixed asset with
a carrying amount of € 435 (31.12.2021 € 435) is
included for which a sale agreement has been signed. The investment
properties of the Company are
included in “Non-Performing Exposures” segment for operating segment disclosure
purposes.
Other
investment
properties
Within 2022,the Group classified as “Assets held for Sale” fixed
assets of company Alpha Asset
Management Α.Ε.Δ.Α.Κ. with a carrying amount of
€ 722.
The investment properties of the Company are included in
“Non-Performing Exposures” segment for
operating segment disclosure purposes.
Non-performing loans
portfolio
Loan portfolio – Project Orbit
Within 2021 the Bank commenced the process for the sale, through
a single phased process, of a mainly
unsecured retail portfolio, which comprised of:
a)
loan exposures securitized into Galaxy III Funding Designated Activity Company of Alpha Services and
Holdings S.A.
b)
Certain perimeter of bank’s loan exposures.
In December 2021 the Bank received binding offers
from interested investors and on 28.12.2021 the
Bank entered into a binding agreement with the preferred investor for
the sale of the portfolio.
Considering that the transaction would have been completed
in the first quarter of 2022 the Bank and
the Company, as at 31.12.2021, classified this portfolio as “Assets held
for sale”, with a carrying amount
of € 34,903 and € 52,959 respectively.
In the first quarter of 2022, loans of a carrying amount of €
1,313 of this portfolio were transferred to
“Loans and advances to customers” since they seized to meet the Held for
sale criteria, in accordance
with IFRS 5. On 8.3.2022 the Bank acquired the
loans portfolio of the special purpose entity Galaxy III
Funding Designated Activity Company with a carrying amount
of € 52,018 in order to include it in the
transaction with the afore mentioned preferred bidder.
On 24.3.2022 the transaction was completed. The loss
from the sale of the loan portfolio included in
“Gains less losses on derecognition of financial assets measured at
amortised cost” amounted to € 4,616
and was calculated after taking into consideration the relative transaction costs
and the relevant
provisions for indemnities.
The aforementioned loan portfolio is included in “Non-Performing
Exposures” segment for operating
segment disclosure purposes (note 42).
Loan
portfolio
–
Project
Light
In the first half of 2022, the Bank commenced the process for the
sale of mainly unsecured non-
performing loans. In this context, the Bank received on 22.6.2022
binding offers and on 29.6.2022 its
Executive Committee approved the preferred investor. On 21.7.2022
the final agreement was signed
while the transfer of the portfolio was completed on 7.11.2022. The
gain from the sale of the portfolio
amounted to € 770 and includes the expenses of the transaction
and the provision for contingent
consideration payments based on the terms of the contract. This gain is
included in ”Gains less losses on
derecognition of financial assets measured at amortised
cost”.
The aforementioned loan portfolio is included in “Non-Performing
Exposures” segment for operating
segment disclosure purposes (note 42).
Loan
portfolio
– Project
Hermes
In the first half of 2022, the Group commenced the process for
the sale of large and SME corporate
collateralized loans and advances. On 29.6.2022 the Executive
Committee approved the continuation of
the sale’s process, pursuant to the received
offer that is subject to the investor’s confirmatory
due
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
341
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
diligence, while the transaction is expected to be completed within
the 1
st
semester 2023. Considering
the above the Group classified on 30.6.2022, the loan portfolio
as “Assets Held for Sale”. The carrying
amount of the portfolio as of 31.12.2022 is € 242,070.
The aforementioned loan portfolio is included in “Non-Performing
Exposures” segment for operating
segment disclosure purposes (note 42).
Loan portfolio
– Project
Leasing
In the first half of 2022, the Group initiated the process for the sale of leasing
portfolio. On 29.6.2022 the
Executive Committee approved the sale of this portfolio to the
preferred investor and the transaction is
expected to be completed in 2023. Considering the above, the Group classified
the loan portfolio with a
carrying amount of € 59,851 as “Assets Held for Sale”.
The aforementioned loan portfolio is included in “Non-Performing
Exposures” segment for operating
segment disclosure purposes (note 42).
Loan
portfolio
–
Project
Solar
In the first half of 2022, the Bank commenced the process
for the sale of a portfolio consisting of
syndicated secured corporate non-performing loans. In the context
of the transaction, in which all four
systemic banks are participating, a joint securitization
and notes issuance. Out of the notes to be issued
the banks will retain 100% of the senior notes, 5%
of mezzanine and junior subordinated notes and they
will proceed, through bidding process, to the sale
of 95% of mezzanine and junior subordinated notes.
Alongside, for the purpose of obtaining a state guarantee through
the Hercules II program, an application
was submitted within August 2022 and a supplementary
application within October 2022. Binding offers
were submitted by the investors in December 2022, while the completion
of the sale transaction is
expected to be completed within the first half of 2023. The Bank
classified as at 30.6.2022 this loan
portfolio with a carrying amount of € 61,690 as of 31.12.2022 as “Assets
Held for sale”.
The aforementioned loan portfolio is included in “Non-Performing
Exposures” segment for operating
segment disclosure purposes (note 42).
Loan portfolio
– Shipping
loans
In the first quarter of 2022, the Group commenced
the process for the sale of secured shipping loans
portfolio. On 30.6.2022 the Board of Directors of the Group approved
the signing of the conventional
documents relating to the transaction with the preferred investor. Considering
the above, the Group
classified at 31.3.2022 the loan portfolio as “Assets Held for Sale”
On 14.7 2022 the sale of this shipping
portfolio of non-performing exposures to the preferred investor was completed.
The sale price was €
43,741 while the gain / loss from the sale amounted to € 2,345 and is
included in “Gain less losses on
financial transactions.
The aforementioned loan portfolio is included in “Non-Performing
Exposures” segment for operating
segment disclosure purposes (note 42).
Other
loans
As at 31.12.2022, the Group had classified in “Assets held for sale”
and certain loans with a total carrying
amount of € 18,080,
the sale process of which is in advance stage and is
expected to be completed
during the first quarter of 2023. As 31.12.2021 certain loans classified
as “Assets held for Sale”
amounting to € 7,231 were sold in the first quarter 2022. The sales
consideration amounted to € 7,240
and the results from the sale of € 37 loss is included in “Gains
less losses on derecognition of financial
assets measured at amortized cost.
The aforementioned loan portfolio is included in “Non-Performing
Exposures” segment for operating
segment disclosure purposes (note 42).
Alpha
Bank
Albania
On 18.7.2022, as part of project Riviera, the sale of the shares of the
Group’s subsidiary Alpha Bank
Albania, by Alpha International Holdings to OTP Bank Plc was completed
with a consideration of €
53,800, while a profit of € 19,886 (2021: loss of € 32,766) was recognized
on “Net profit/(loss) for the
period after tax from discontinued operations” as at 30.9.2022, out of which
and amount of € 8,777
relates to the recycling of foreign exchange differences reserve.
Its operations are included in the
operating segment “International operations” of note 42 “Operating
Segments”.
Other
receivables
related
to
merchant
and
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:
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
342
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
i)
The carve-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
ii)
The sale of a 51% stake of this entity to Nexi S.p.A subject to the fulfilment of certain conditions
precedent and
iii)
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.
Based on the above, as of 31.12.2021 assets and liabilities
of the merchant acquiring business in Greece
of the Bank classified as “Assets held for sale” since the criteria
set by IFRS 5 were met. On the date of
classification, the carrying amount of the business was lower than its
fair value less cost to sell the
classification and as a result no gain or loss arose from
the measurement.
On 30.6.2022 the carve-out of the Bank’s business unit to its subsidiary
“Alpha Payment Services S.A”
was completed. The later issued shares and same
day the Bank sold the 51% of its stake to its
subsidiary, which renamed to “Nexi Payments Greece S.A.”
As a result of the sale of 51% of its shareholding in “Alpha Payments
Services S.A.” the Bank lost
control. The result of this transaction derived from the comparison between:
a) the consideration price of
the sale transaction (a part of which is cash, and another part
is contingent, as it will be paid if the
company achieves certain performance) and the fair
value of the shareholding which was held after the
loss of Alpha Payment Services S.A. and b) the carrying amount of
the assets and liabilities of Alpha
Payment Services S.A. that were transferred, the
provisions for the deferred payments calculated based
on the terms of the agreement and the transaction
costs.
Additionally, on 29.7.2022, the sale to Nexi of an additional
39.01% stake in the associate company, Nexi
Payments Hellas S.A.
was completed, while the Bank acquired the right to repurchase
part of the shares
of Nexi Payments Hellas S.A. on the fourth anniversary
of the completion of the transaction. The
consideration for the transaction has been agreed
to be paid at a future date (deferred consideration) and
the result from such transfer was determined by comparing the consideration
price and the carrying
amount of the interest share transferred after taking into account the
value of the option and adjustments
of the provisions for indemnities that may be paid based on the terms
of the agreement.
Total gain resulted from the above transactions amounted to
€ 297.941 and was recognized in the line
“Results of Financial Transactions” and for the purpose of information
per operating segment it is
included in the segments “Retail Banking customers” and “Medium large
companies”.
The participation in Nexi Payments Hellas S.A. is still
classified as investments in associates as the Bank
continues to participate in the company’s Board of Directors
taking part in the decisions on its main
operations.
AGI-BRE Participations
4 EOOD
Within 2022 the Group initiated the sale of subsidiary
AGI-BRE Participations 4 EOOD, for which non
binding offers were received on 9.5.2022. According to IFRS 5,
the company was classified as held for
sale for the preparation of the financial statements. The Group
measured the assets and liabilities of the
subsidiaries on the lower between carrying amount and fair value
less cost to sell. From the valuation
there was no result in the statement of profit or loss.
Since the companies did not constitute a core business for
the Group, the requirements for classifying
them as discontinued operations were not met. The Subsidiary are included
in the context of operation
segments reporting in “International Operations”.
49.Corporate events relating
to the Group structure
•
On 18.1.2022, the Group’s company,
Ionian Equity Participations, through the 15th capital disbursement
of € 75 covered it’s participation in the private equity fund, EOS Hellenic Renaissance Fund, based in
Luxembourg.
•
On 18.1.2022, the Group’s investment participation, EOS Hellenic Renaissance Fund, proceeded to capital
return of € 2 to the Group’s subsidiary,
Ionian Equity Participation Ltd.
•
On 21.1.2022, the Bank’s subsidiary, Alpha Group Investments Ltd,
participated in the share capital
increase of the Group subsidiaries, AEP Neas Kifissias and AEP Kalliroi, through the amounts of € 13,600
and € 6,800, respectively.
•
On 24.1.2022, Alpha Services and Holdings S.A. subsidiary, Alpha Group Jersey, resolved on the full
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
343
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
repayment of the outstanding amount of € 600,000 Series B CMS-Linked, Non-cumulative Guaranteed,
Non-voting Preferred Securities
(ISIN: DE000A0DX3M2) (Hybrid notes), which are under subordinated
guarantee by the Company,
at the preferred divident payment date of 18 February 2022 (in accordance
with Hybrid Notes terms as stated in Alpha Group Jersey Articles of Association and the Law) at the
repayment price.
•
On 8.2.2022, Bank’s Subsidiary,
AGI-Cypre Ermis Ltd proceeded to the sale of 59 SPVs to Group’s
subsidiary, Alpha Credit Acquisition Company Ltd, of a total amount € 85,000.
•
On 10.2.2022 started the trading on Athens Stock Exchange of the 1,430,168 new,
ordinary, registered,
dematerialized shares of Alpha Services and Holdings S.A. deriving from the recent share capital increase
of € 429, due to the exercise of the Stock Options Rights by eighty eight (88) Beneficiaries – Specific Staff
Members (Material Risk Takers
- MRTs) of the Company and its Affiliated Companies, at nominal value of
€ 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.
•
On 11.2.2022, Group’s investment participation, Southeastern Europe Fund proceeded to a capital return
to the Group’s subsidiary Ionian Equity Participation Ltd, amounted at € 1,325.
•
On 12.2.2022, Alpha Services and Holdings S.A. (together with
its subsidiaries, hereinafter as the “Alpha
Bank Group” or the “Group”) reached an agreement with an affiliate company 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 carrying amount of c. € 2.3 billion (the “Portfolio”). The Portfolio will be sold
through a 100% (indirect) Group’s subsidiary,
Alpha International Holdings S.M.S.A.
•
On 28.2.2022, Group’s company,
AGI-Cypre Ermis Ltd, proceeded to the sale of its subsidiary, Fierton Ltd.
•
On 28.2.2022, Group’s company,
Alpha Bank Cyprus Ltd, proceeded to the sale of its subsidiary, ABC RE
P4 Ltd.
•
On 1.3.2022, the Bank proceeded to share capital increase through 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.
•
On 11.3.2022 was completed the transfer of a part of non-performing loan portfolio from the Bank’s
subsidiary, Alpha Bank Cyprus Ltd, to the Group’s
subsidiary, Alpha Credit Acquisition Company Ltd.
•
On 21.3.2022 Group’s company,
Alpha Credit Acquisition Company Ltd, proceeded to share capital
increase through cash
in its subsidiaries AGI-Cypre Tochni Ltd, AGI-Cypre
Property 2 Ltd, AGI-Cypre
Property 4 Ltd, AGI-Cypre Property 12 Ltd, AGI-
•
Cypre Property 13 Ltd, AGI-Cypre Property 15 Ltd. AGI-Cypre Property 17 Ltd, AGI-Cypre Property 19 Ltd,
AGI-Cypre Property 20 Ltd, AGI-Cypre Property 22 Ltd, AGI-Cypre Property 26 Ltd, AGI-Cypre Property 27
Ltd, AGI-Cypre Property 28 Ltd, AGI-
Cypre Property 30 Ltd, AGI-Cypre Property 31 Ltd, AGI-Cypre
Property 32 Ltd, AGI-Cypre Property 34 Ltd, AGI-Cypre Property 37 Ltd, AGI-Cypre Property 38 Ltd, AGI-
Cypre Property 40 Ltd, AGI-Cypre Property 44 Ltd, AGI-Cypre Property 46 Ltd, AGI-
Cypre Property 47 Ltd,
AGI-Cypre Property 48 Ltd, AGI-Cypre Property 49 Ltd, AGI-Cypre Property 50 Ltd, AGI-Cypre Property 51
Ltd, AGI-Cypre Property 53 Ltd, AGI-Cypre Property 54 Ltd, AGI-Cypre RES Pafos
Ltd, AGI-Cypre P&F
Limassol Ltd, AGI-
Cypre P&F Pafos Ltd, AGI-Cypre COM Pafos Ltd, AGI
-Cypre RES Ammochostos Ltd, AGI-
Cypre P&F Larnaca Ltd, AGICypre
RES Larnaca Ltd, AGI-Cypre COM Larnaca Ltd, AGI-Cypre COM Nicosia
Ltd paying the amounts of € 175, € 40, € 35, € 45,
•
€ 370, € 2,580, € 200, € 9,210, € 160, € 35, €
45, € 60, € 45, € 35, € 2,768, € 1.450, € 35, € 45, € 40, €
50, €
35, € 45, € 40, € 35, € 400, € 1,800, € 580, € 1,100, €
550, € 4,280, € 200, € 665, € 400, € 1,050, € 650, €
1,727, € 300, and € 179,respectively.
•
On 5.4.2022, the Group’s company,
Alpha Bank Cyprus Ltd, transferred its subsidiary company AGI-Cypre
Property 55 Ltd, to the subsidiary company of the Group, Alpha Credit Acquisition Company Ltd.
•
On 11.4.2022, the Group’s company,
Alpha Bank Cyprus Ltd, transferred its subsidiary company AGI-
Cypre Property 52 Ltd, to the subsidiary company of the Group, Alpha Credit Acquisition Company Ltd.
•
On 27.4.2022, in the context of Galaxy transaction & Cosmos Distribution in Kind, Alpha Service and
Holdings S.A. established its subsidiary, Galaxy Cosmos Mezz Ltd, domicilated in Cyprus, for an amount of
€ 84.5.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
344
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
•
On 30.6.2022 Alpha Payments Services S.A., proceeded to a share capital increase, following the
completion of the spin off of the Bank and the contribution of its
merchant acquiring business unit to
Alpha Payments Services S.A. of € 61,364 and the issuance of
six mil. one hundred and thirty-six thousand
four hundred and forty-seven (6,136,447) new ordinary registered shares, with a nominal value of ten
Euros (€ 10.00) and an offer price of fifty Euros (€ 50.00) per share respectively. The difference between
the issue price and the sale price of the new shares of € 245,458,
was credited to a special reserve
account of “Alpha Payment
Services S.A.” from issuing shares premium.
•
On 30.6.2022 Bank’s subsidiary Alpha Payment Services S.A. renamed to Nexi Payments Greece S.A.
•
On 30.6.2022, the sale of 51% of Alpha Payment Services S.M.S.A. to Nexi was completed for a
consideration of € 156,900.
•
On 5.7.2022, Alpha Bank S.A. participated in the share capital increase of its affiliated entity, Nexi
Payments Hellas S.A., for an amount of € 2,450.
•
On 13.7.2022 the Group company, Alpha Credit Acquisition Company Ltd, established the subsidiary
company AGI-Cypre Property 56 Ltd, based in Cyprus.
•
On 15.7.2022, Alpha Services and Holdings S.A. proceeded
to a share capital increase in its subsidiary
company Galaxy
Mezz Ltd through: a) a contribution in kind of 44% of the mezzanine and junior
subordinated notes of Galaxy and Cosmos securitizations held after the completion of the respective
transactions of € 22,496 and b) increase in cash by € 894 against issuance of common shares.
•
In the context of the Riviera project, on 18.7.2022, the sale of all the shares of Alpha Bank Albania was
completed by the Group’s subsidiary,
Alpha International Holdings A.E., to OTP Bank Plc, in, for a total
consideration of € 55,000.
•
On 21.7.2022, in the context of the implementation of the Performance Incentive Program for the year
2021 to “Specific Staff Members” of the Company and the Group, the Board of Directors of Alpha Services
and Holdings S.A., decided, among others, the following:
-
to amend and align the Regulations of this Program with the Company’s Remuneration Policy,
as
approved by the Ordinary General Meeting of 22.7.2021,
-
a total of 1,402,545 stock options to be granted to 36 beneficiaries, in the context of the
aforementioned 2021 Performance Incentive Program PIP.
(Given that, according to the Regulation,
each of the stock options granted corresponds to one (1) New Share, in the event that all such
Options are exercised, a total of up to 1,402,545 new common, registered, intangible shares of the
Issuer will be issued, corresponding to 0.06% of its paid in share capital),
•
On 29.7.2022, the sale to Nexi of an additional 39.01% stake in the Nexi Payments Hellas S.A., was
completed.
•
On 18.8.2022 Group company, Alpha Group Real Estate
Ltd, established the subsidiary company AAEP
Professional Real Estate II S.M.S.A., domiciled in Greece.
•
On 18.8.2022 the Group company, Alpha Group Real Estate Ltd,
established the subsidiary company AEP
Residential Properties IV S.M.S.A., domiciled in Greece.
•
On 18.8.2022 the Group Company, Alpha Group Real Estate Ltd,
established the subsidiary company
Startrek Real Estate S.M.S.A., domiciled in Greece.
•
On 1.9.2022 the Group Company, Alpha Group Real Estate Ltd,
established the subsidiary company
Nigrinus Ltd, domiciled in Greece.
•
On 2.9.2022, the liquidation of the Group’s subsidiary company, Alpha
Group Ltd, was completed.
•
On 19.9.2022 the Group Company, Alpha Group Real Estate Ltd. proceed
to thesale of its subsidiaries
SPVs, AEP Professional Properties of Urban Centers M.A.E., AEP Professional Properties of Periferia
M.A.E., AEP Professional Properties of Thessaloniki M.A.E., AEP Professional Properties of Thessaloniki
M.A.E., AEP Professional Properties of Thessaloniki M.A.E., and AEP Regional Stores M.A.E., to the
Group’s
subsidiary company, Alpha Group Investments
Ltd., for a consideration paid in cash of € 42,502.
•
On 26.9.2022, the Group Company, Alpha Group Investments, proceeded to an in cash share capital
increase in its subsidiary company, AEP Spaton, paying an amount of € 20,000.
•
On 27.9.2022, the sale of all tshares of Byte Computer A.B.E.E. held by the Bank
was completed for a
gross consideration price of € 4,329 (2,061,610 shares x € 2.10/share) plus 819,675 new shares of Ideal
Holdings traded in Athens Stock Exchange, with a nominal value of € 0.40/share and a bid r price of €
4.15/unit, i.e. value of new shares € 3,402.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
345
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
•
On 29.9.2022 the Group company, Alpha Group Investments, established the subsidiary Skyline Real
Estate M.A.E., domiciled in Greece with in kind contribution of its subsidiaries AEP Attica S.A., AEP
Kallitheas S.A., AEP Kallirois S.A., AEP Livadias S.A., AEP Neas Erythrias S.A.,
AEP Neas Kifisias S.A., AEP
Heracleiou A.E. E., AEP Professional Properties of Urban Centers M.A.E., AEP Professional Properties of
Region M.A.E., AEP Professional Properties of Thessaloniki M.A.E., AEP Attica Stores I M.A.E., and AEP
Stores Regional U.A.E with a total value of of € 113,419 and in cash contribution of € 8,581.
•
On 5.10.2022, the liquidation of the Group’s subsidiary company, Alpha International
Holding Company
S.A., based in Luxembourg, was completed.
•
On 10.10.2022 the Group company, Alpha Group Real Estate
Ltd participated in the share capital increase
in cash of its subsidiary companies, AEP Residential Properties Attica II and AEP Residential Properties III,
paying the amounts of € 5,000 and € 5,000 respectively.
•
On 11.10.2022, the Bank participated in the share capital increase, in cash, of Pankritia Bank, paying an
amount of € 1,875.
•
On 19.10.2022 the bank’s subsidiary company,
Alpha Group Investments Ltd, completed the transfer of
the subsidiaries AEP Attica M.A.E., AEP Kallirois M.A.E., AEP Nea Kifissia M.A.E., AEP Kallithea S.A.E., AEP
Nea Erythrea S.A.E., AEP Livadia S.A.E., AEP Heraklion S.A.E. to its subsidiary company Skyline
Akinita
M.A.E.
•
On 4.11.2022 the Group subsidiary company, Alpha International Holdings M.A.E., participated in the in
cash share capital increase of its subsidiary company, Sky CAC Ltd, paying
an amount of € 12,000.
•
On 10.11.2022, the Parent Company of the Group participated in the cash increase of the share capital of
its subsidiary Alpha Bank S.A., paying an amount of € 90,000.
•
On 22.11.2022 the Group company, Alpha Credit Acquisition Company Ltd, increased the share capital of
its subsidiary AGI- Cypre Property 56 Ltd by paying the amount of € 2,315.
•
On 24.11.2022 Alpha International Holdings M.A.E. increased the share capital of the subsidiary Skycac
Ltd by paying the amount of € 40,000.
•
On 25.11.2022, the liquidation of the Group’s subsidiaries, AGI - RRE ZEUS Srl and AGI - RRE HERA Srl was
completed.
•
On 29.11.2022 the Group subsidiary, Alpha Credit Acquisition Company Ltd, increased the share capital in
its subsidiaries AGI-Cypre Property 15 Ltd, AGI-Cypre Property 17 Ltd, AGI-Cypre Property 19 Ltd, AGI-
Cypre Property 20 Ltd, AGI-Cypre Property 31 Ltd, AGI-Cypre Property 32 Ltd, AGI-Cypre Property 46 Ltd,
AGI-Cypre Property 49 Ltd, AGI-Cypre Property 55 Ltd, AGI-Cypre RES Larnaca Ltd, AGI-Cypre RES
Ammochostos Ltd, AGI-Cypre P&F Larnaca Ltd, AGI-Cypre P&F LIMASSOL Ltd, AGI-Cypre COM Larnaca Ltd,
ABC RE P&F Larnaca Ltd, ABC RE P7 Ltd, ALPHA CREDIT PROPERTIES Ltd paying the amounts of € 130, €
37, € 1,089, € 198, € 399, € 272, € 1,266, € 117, € 18,
€ 1,419, € 347, € 244, € 228, € 525, € 5, € 6 and €
279, respectively.
•
On 7.12.2022, the sale of the Bank’s participation in Cosmo-One A.E. to the company Soft-One
Technologies A.E. was completed for a consideration of € 486.
•
On 8.12.2022, the Bank received the amount of € 510 which related to the return of capital from its
participation in the Alpha TANEO AKES mutual fund.
•
On 8.12.2022 the Bank participated in the share capital increase with cash of Alpha TANEO AKES, paying
an amount of
•
€ 45.9.
•
On 8.12.2022, the sale of the Group’s participation in Rosequeens Properties Srl was completed.
•
On 9.12.2022 Alpha International Holdings S.A. increased the share capital of its subsidiary SKYCAC Ltd
with a contribution
•
in kind, amounting to € 450.
•
On 9.12.2022 the subsidiary company of the Group, Alpha Credit Acquisition Company Ltd, carried out the
transfer of the subsidiaries AGI-Cypre Mazotos Ltd, AGI-Cypre
Tochni Ltd, AGI-Cypre Property 4 Ltd, AGI-
Cypre Property 6 Ltd, AGI-Cypre Property 9 Ltd, AGI-Cypre Property 12 Ltd, AGI-Cypre Property 13 Ltd,
AGI-Cypre Property 14 Ltd, AGI-Cypre Property 15
Ltd, AGI-Cypre Property 16 Ltd, AGI-Cypre Property 17
Ltd, AGI-Cypre Property 18 Ltd, AGI-Cypre Property 19 Ltd, AGI-Cypre Property 20 Ltd, AGI-Cypre Property
22 Ltd, AGI-Cypre Property 23 Ltd, AGI-Cypre Property 26 Ltd, AGI-Cypre Property 28 Ltd, AGI-Cypre
Property 31 Ltd, AGI-Cypre Property 32 Ltd, AGI-Cypre Property 35 Ltd, AGI-Cypre Property 42 Ltd, AGI-
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
346
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Cypre Property 43 Ltd, AGI-Cypre Property 44 Ltd, AGI-Cypre Property 45 Ltd, AGI-Cypre Property 46 Ltd,
AGI-Cypre Property 49 Ltd, AGI-Cypre Property 55 Ltd, AGI-Cypre COM Nicosia Ltd, AGI-Cypre RES Larnaca
Ltd, AGI-Cypre RES Ammochostos Ltd, AGI-Cypre P&F Nicosia Ltd, AGI-Cypre P&F Pafos Ltd,
AGI-Cypre RES
PAFOS Ltd, AGI
-Cypre P&F Larnaca Ltd, AGI-Cypre RES Nicosia Ltd, AGI-Cypre P&F Limassol Ltd, AGI-Cypre
COM Pafos Ltd, AGI-Cypre COM Larnaca Ltd, AGI-Cypre Property 50
Ltd, AGI-Cypre Property 53 Ltd, AGI-
Cypre Property 51 Ltd, AGI-Cypre Property 54 Ltd, ABC RE L4 Ltd, ABC RE P&F Larnaca Ltd, ABC RE P6 Ltd,
ABC RE P7 Ltd, ABC RE RES Pafos Ltd, ABC RE COM Pafos Ltd, ALPHA
Credit Properties Ltd the subsidiary
company of the Group Sky CAC Ltd.
•
On 12.12.2022, the Bank’s shareholding in Ideal Holdings S.A. proceeded to a share capital return
amounting to € 122.
•
On 19.12.2022 the Bank participated in the share capital increase in cash of ‘Olganos S.A., paying an
amount of € 60.8.
•
On 22.12.2022 the Bank participated in the share capital increase in cash of Alpha Leasing, paying an
amount of € 20,000.
•
On 28.12.2022 the subsidiary of the Group, Alpha Group Investments Ltd, carried out a share capital
increase in its subsidiary companies AGI-BRE Participations 1 Ltd, AGI-RRE Hera
Ltd, AGI-BRE
Participations 2 Ltd, AGI-RRE Hermes Ltd, AGI-RRE Arsinoe Ltd, AGI-SRE Ariadni Ltd, AGI-Cypre Tersefanou
Ltd, AGI-SRE Participations 1 Ltd, Krigeo Holdings Ltd, Alpha Trustees
Ltd paying the amounts of € 20, €
30, € 30, € 20, € 30, € 20, € 60, € 40, € 150 and €
10 respectively.
•
On 28.12.2022 the Group subsidiary, Alpha Credit Acquisition Company Ltd, increased the share capital of
its subsidiary AGI-Cypre Property 29 Ltd by paying the amount of € 42.
•
On 28.12.2022 the Group company Alpha Group Real Estate Ltd, increased the share capital of its
subsidiary Sapava Ltd by paying the amount of € 60.
•
On 30.12.2022, the sale of the subsidiary company of Alpha Astika Akinita S.A. was completed. under the
name Chardash Trading E.O.O.D.,
to its subsidiary company Alpha Group Real Estate Ltd, for a price of €
486.
•
On 30.12.2022 the liquidation of Alpha Group Jersey Ltd was completed. The liquidation proceeds
returned to its sole Shareholder, Alpha Services and Holdings SA, amounted to € 121.
•
On 30.12.2022 the Group subsidiary, Skyline properties Μ.Α.Ε proceeded to the establishment of the
subsidiaries Athens Commercial Assets I and Athens Commercial Assets II domiciled in Greece.
50.Restatement of financial statements
The Group in the current year restated the presentation of the expenses
related to credit cards
transactions as well expsnses related to the issuance of credut cards from”General
Administration
expenses” to “Commission expenses” The amounts relates to “cards”
as aproduct and management
assessed that the above restatement will
better present the nature of the expense.
Restatements in Income Statement for the year 1.1.2021 – 31.12.2021
is presented in the following
tables:
.
From 1
January to
31.12.2021
Published amounts
Restatement of
General
administrative
expenses to
Commission expense
Restated amounts
Interest and similar income
1,887,539
1,887,539
Interest expense
and similar
charges
(511,643)
(511,643)
Net interest income
1,375,896
-
1,375,896
-
of
which calculated
based
on
effective
rate
1,431,992
1,431,992
Fee and
commission income
466,808
466,808
Commission
expense
(66,438)
(4,786)
(71,224)
Net fee
and commission income
400,370
(4,786)
395,584
Dividend
income
1,825
1,825
Gain less losses
on derecognition of
financial assets measured
at amortized cost
(2,247,871)
(2,247,871)
Gains less
losses on
financial transactions
218,089
218,089
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
347
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Other
income
23,617
23,617
Staff costs
(406,746)
(406,746)
Expenses for
separation
schemes
(97,701)
(97,701)
General
administrative
expenses
(480,187)
4,786
(475,401)
Depreciation and amortization
(157,055)
(157,055)
Other expenses
(132,116)
(132,116)
Total expenses
before
impairment losses and
provisions
to cover
credit risk
(1,501,879)
-
(1,501,879)
Impairment losses and provisions
to cover
credit risk
(1,433,013)
(1,433,013)
Share of profit/(loss) of associates and
joint ventures
6,167
6,167
Profit/(loss) before
income tax
(2,928,725)
-
(2,928,725)
Income tax
55,795
55,795
Net profit/(loss) before
income tax from continued
operations
(2,872,930)
-
(2,872,930)
Net profit/(loss) before
income tax from
discontinued operations
(33,144)
(33,144)
Net profit/(loss) after income tax
(2,906,074)
-
(2,906,074)
Profit/(loss) attributable to:
Equity holders
of the
Company
- From
continued operations
(2,873,016)
(2,873,016)
- From
discontinued operations
(33,144)
(33,144)
Non-controlling interests
- continued operations
86
86
.
For a better presentation of equity, the Group reclassified an amount
of € 6,104,890 from “Share
Premium” separately in
the line item “Special reserve from share capital decrease”. This classification
was applied retrospectively. However, taking into account that the Group’s total
equity remains
unchanged and the reclassification was made for the purposes
of greater analysis of the Balance Sheet
items, it was not considered necessary to present a restated balance
sheet at the beginning of the
comparative period.
.
31.12.2021
Published
amounts
Restatement
Restated amounts
ASSETS
Cash and
balances with
central banks
11,803,344
11,803,344
Due from banks
2,964,056
2,964,056
Trading securities
4,826
4,826
Derivative financial
assets
941,609
941,609
Loans and
advances to customers
36,860,414
36,860,414
Investment securities
- Measured at fair value through other
comprehensive income
6,634,120
6,634,120
- Measured at amortized cost
3,752,748
3,752,748
-
Measured at
fair
value through
profit
or loss
253,346
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
71,924,471
-
71,924,471
Assets classified as held
for
sale
1,431,485
1,431,485
Total Assets
73,355,956
-
73,355,956
LIABILITIES
Due to
banks
13,983,656
13,983,656
Derivative financial liabilities
1,288,405
1,288,405
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
348
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Due to
customers
46,969,626
46,969,626
Debt securities in issue
and other borrowed
funds
2,593,003
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
66,668,792
-
66,668,792
Liabilities
related
to
assets
classified as
held
for
sale
607,657
607,657
Total Liabilities
67,276,449
-
67,276,449
EQUITY
Equity attributable to holders of the Company
Share capital
703,794
703,794
Share
premium
11,362,512
(6,104,890)
5,257,622
Special
Reserve
from Share
Capital Decrease
6,104,890
6,104,890
Reserves
320,671
320,671
Amounts directly recognized in equity
and associated with assets classified as
held for
sale
15,127
15,127
Retained
earnings
(6,366,258)
(6,366,258)
6,035,846
-
6,035,846
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
.
73,355,956
-
73,355,956
.
51.Discontinued Operations
The activities of Alpha Bank Albania were constituting for the Group
a distinct geographical area of
operations that is included in the S.E. Europe sector for information
purposes by operational sector, they
were characterized as “discontinued operations”.
Consequently, the presentation of the results related to the items
that were sold changed in order to be
presented in aggregate as results from discontinued operations
in a separate line of the Income
Statement, Other Comprehensive Income and accordingly
the comparative period has been restated.
.
From 1
January to
31.12.2022
31.12.2021
Interest and similar income
10,445
17,685
Interest and similar
expense
(1,581)
(2,833)
Net interest income
8,864
14,852
Fee and
commission income
2,854
4,817
Commission
expenses
(259)
(414)
Net income from fees and commissions
2,595
4,403
Gains less losses from derecognition of
financial assets measured at amortized cost
(432)
Gains less
losses on
financial transactions
7,574
(1,215)
Other
income
240
147
Payroll
and personnel
costs
(3,226)
(6,172)
General
Administrative
Expenses
(4,507)
(7,413)
Depreciation
(1,663)
(2,768)
Other
expenses
87
(11,405)
Total impairment losses and
credit risk provisions
9,535
(9,571)
Impairment losses, credit risk
provisions
and related
expenses
(3,098)
(434)
Profit/(loss) before
income tax
6,436
(10,006)
Income tax
(109)
2,367
Net earnings/(losses) after
income tax
6,327
(7,638)
Result of
11,109
(25,506)
Net earnings/(losses) after
income tax
from discontinued operations
17,436
(33,144)
Net change in the reserve of bonds valued at fair value through the other comprehensive income
(5,132)
2,391
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
349
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
Foreign currency translation net of investment hedges of foreign operations
(10,764)
(1,946)
Income tax
769
(67)
Amounts reclassified to the
Income Statement from
discontinued operations
(15,127)
378
Net earnings/(losses) after
income tax
2,309
(32,766)
.
52.
Strategic
Plan
Alpha Bank, announced in May 2021 its a Strategic Plan, focusing
on 5 pillars (for the period until the
end of 2024):
a)
Clearance of non performing exposures (NPE), supported by significant NPE transitions and preventive
management actions
b)
Enhancements in the core functions performance that would lead to a more flexible operating model
c)
Increase in commission income
d)
Increase in revenues through asset enhancement
e)
Accelerate the development of the Subsidiaries abroad by taking advantage of opportunities in the local
market
Since then, the business environment has significantly changed since
the food and energy prices (also
affected by the impact of the war) has led to inflationary
pressures, escalating even further the upward
trend already observed in 2021. The ECB’s monetary policy
adjusted to the new environment with
several increases in interest rate within 2022 and early 2023,
and additional increases are expected in
the following ECB meetings.
The above events changed the dynamics of the balance sheet
and the performance of the banks and
are
expected to impact a number of their performance indicator, such as:
a)
revenues will be higher mainly due to the increase in net interest income also supported by the structure
of the Bank’s balance sheet which benefits from increases in the base curve,
b)
cost will also increase to reflect the inflationary environment and the increased needs for investments
and
c)
the cost of risk is expected to be relatively higher,
considering the possible deterioration of asset quality
as a result of the increased interest rate environment.
Overall, in the medium term, we expect higher return on capital,
driven by a combination of movements
in the results, but following similar strategic initiatives to those
presented in May 2021.
Specifically, the basis of the Bank’s strategic plan (2023-2025)
are actions which aim to the sustainable
development and profitability of the Group. The following initiatives
govern the above strategic plan:
a)
Increase in revenue based on the increase in assets derived a) from the expected recovery of the Greek
economy and funds from the EU RRF mechanism, boosting both net interest income from performing
loans and income from Bank commissions as well as b) from the expected increase in investment
securities taking advantage of the current high yield environment, strengthening further net interest
income.
b)
Initiatives for decreasing NPEs, which mainly include organic actions of NPE management (i.s. curings,
partial debt forgiveness, recoveries thorugh pledget assets or other final settlements’ actions) and aim to
decrease significantly NPEs for the period 2023-2025 and also is expected to result in significant decrease
of the credit risk but also and the operational risk related to NPEs. NPE ratio is expected to be lower than
7% in 2023, with a taget to reach even lower levels in the following years. As soon as the NPE
management actions will further decrease the related balances, it is anticipated subsequent improvement
of the quality of assets, at the same levels as the rest of European banks, while maintaining satisfactory
capital adequacy, above the applicable minimum capital requirements
c)
Capital measures that will provide additional capital buffers. These measures include the issuance of
additional Tier 1 instruments (AT1 notes) in the first quarter of 2023, the formation of a joint venture with
an international partner in the real estate market and two additional synthetic securitization transactions
(completion within 2023). The first two synthetic securitization transactions were completed in the
second quarter of 2022 and the fourth quarter of 2021. The successful completion of the above capital
measures ensures the maintenance of a satisfactory capital position above the applicable capital
requirement.
CONSOLIDATED
FINANCIAL STATEMENTS
AS AT
31.12.2022
350
ANNUAL FINANCIAL
REPORT
The amounts are presented in thousands
of Euro unless otherwise indicated
d)
Measures to reduce operational costs and improve operational efficiency by focusing on core commercial
banking activities, reducing operational costs across the organization, improving and expanding the digital
platform and implementing comprehensive sustainable banking policies incorporating environmental and
social criteria and corporate governance (ESG) criteria. The increase in base interest rates, as a result of
the inflationary environment, has resulted in price increases in several expense categories such as
utilities, facilities management and other general and administrative expenses. This increase is estimated
to remain completely manageable as the higher operating income, a result of the balance sheet structure,
significantly exceeds the expected increases in operating expenses.
e)
Initiatives to increase commission income, mainly based on wealth management and bancassurance
products and services.
f)
Initiatives to develop the profitability of the international presence, through strengthening of loan and
other investment portfolios, taking advantage of the rising prospects of the foreign markets in which we
operate.
53.Events
after
the reporting period
•
On 23.1.2023 the sale of the Group Company AGI-Cypre Property 29 Ltd was completed.
•
On 1.2.2023 the Company completed successfully the pricing of the first issue of Fixed Rate Reset
Additional Tier 1 Perpetual Contingent Temporary Notes of € 400 mil. The AT1
Notes issued with a
redemption option after 5.5 years and a yield of 11.875%.
•
On 3.2.2023 the Bank put into effect Voluntary Separation Scheme for the regular Staff working under
indefinite employment contract or with a salaried assignment relationship. The cost is estimated at
approximately € 50 million.
•
On 6.2.2023 the Bank announced that entered into a definitive agreement with the consortium
comprised of Dimand S.A. and Premia Properties R.E.I.C. for the formation of an equity partnership in real
estate investment through the sale of a Euro 438 mil. real estate portfolio (Project Skyline).
The definite
agreement provides for the acquisition of the real estate
•
portfolio through successive transfers from the Group company Skyline Akinita Single Member,
SA
(“Skyline”), the acquisition of the majority stake 65% of the Skyline company by Premia Properties R.E.I.C.
The exclusive provider of real estate management services will be the subsidiary of the Group, Alpha
Astika Akinita S.A.
•
On 14.2.2023, the listing for trading of 700,783 new common, registered shares of the parent company
on the Athens Stock Exchange resulting from a share capital increase following the exercise
of stock
options rights was approved, the trading of which has started on 16.2.2023.
•
On 24.2.2023 Alpha Bank completed the issuance of the Covered Bond of a nominal value of €
400 mil.
.
Athens, March 14, 2023
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
.
Financial
Statements Of
Alpha Services
And Holdings S.A.
as
at
31.12.2022
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
353
ANNUA
L
F
INANCIA
L
REPORT
The attached notes
(pages 359-441) form
an integral part of the Company’
s
financial stateme
nts
Income
Statement
(Amounts in thousands
of Euro)
From 1
January to
Note
31.12.2022
31.12.2021
as restated
Interest and similar income
54,930
183,575
Interest expense and similar charges
(50,125)
(51,933)
Net
interest income
based on
the
effective
interest rate
2
4,805
131,642
Fee and
commission income
26,341
31,422
Commission
expense
(20,124)
(10,881)
Net fee and commission income
3
6,217
20,541
Dividend
income
4
1,290
Gains less losses on derecognition
of financial assets measured
at amortised cost
5
(10)
(2,238,990)
Gains less losses
on financial transactions
6
6,905
5,262
Other
income
7
502
495
Staff costs
8
(887)
(833)
General
administrative
expenses
9
(5,646)
(6,951)
Depreciation
and amortization
18,
19
(43)
(33)
Other
expenses
(1)
Profit/(loss) before impairment losses,
provisions to
cover credit risk
and related
expenses
13,133
(2,088,868)
Impairment losses,
provisions to cover
credit risk and related expenses
10,11
6,591
(256,345)
Profit/(loss) before
income tax
19,724
(2,345,213)
Income tax
12
(4,778)
44,717
Profit/(loss) after income tax from
continuing operations
14,946
(2,300,496)
Net profit/(loss)
after income tax from discontinued
operations
39
(338,386)
Profit/(loss) for the year
14,946
(2,638,882)
Earnings/(losses)
per share
Basic (€ per
share)
13
0.01
(1.37)
Basic from continuing operations
(€ per share)
13
0.01
(1.19)
Basic from discontinued
operations (€ per share
13
(0.18)
Diluted (€ per share)
13
0.01
(1.37)
Diluted from continuing
operations (€ per share)
13
0.01
(1.19)
Diluted from discontinued
operations (€ per share)
13
(0.18)
Certain
figures of the
previous year have
been restated as
described in note
38.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
354
ANNUA
L
F
INANCIA
L
REPORT
The attached notes
(pages 359-441) form
an integral part of the Company’
s
financial stateme
nts
Statement
of Comprehensive
Income
(Amounts in thousands
of Euro)
From 1
January to
Note
31.12.2022
31.12.2021
Profit/(loss) for
the year,
recognized in the
Income Statement
14,946
(2,638,882)
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)
Net change in cash flow hedge reserve
6,036
Income tax
23,759
Items that may be reclassified to the Income Statement
12
-
(58,169)
Items that will not be reclassified to the Income
Statement
Net change
in actuarial
gains/(losses)
of defined benefit
19
(17)
Gains/(losses)
from investments
in equity securities
measured at fair value through
other
comprehensive
income
(59)
117
Income tax
(34)
Items that will not be reclassified to the Income
Statement
12
(40)
66
Other comprehensive
income, after
income
tax
(40)
(58,103)
Total
comprehensive income for
the year
14,906
(2,696,985)
From continuing
operations
14,906
(2,300,514)
From discontinued
operations
-
(396,471)
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
355
ANNUA
L
F
INANCIA
L
REPORT
The attached notes
(pages 359-441) form
an integral part of the Company’
s
financial stateme
nts
Balance Sheet
(Amounts in thousands
of Euro)
Note
31.12.2022
31.12.2021
as restated
ASSETS
Due from banks
14
7,648
25,705
Due from customers
15
339
18,446
Investment securities
- Measured at fair value through
other comprehensive
income
16
74
133
-
Measured at
fair
value through
profit or
loss
16
22,537
- Measured at amortized
cost
16
1,007,242
993,060
Investments in associates
17
6,251,797
6,160,102
Property, plant and equipment
18
5
7
Goodwill and other intangible
assets
19
329
370
Other assets
20
30,667
75,928
7,298,101
7,296,288
Assets classified
as held for
sale
35
52,959
Total Assets
7,298,101
7,349,247
LIABILITIES
Debt securities in issue and other borrowed funds
21
1,028,924
1,044,403
Liabilities for current income
tax and other taxes
22
15
31,839
Employee defined benefit obligations
23
16
30
Deferred tax liabilities
24
614
24
Other liabilities
25
13,945
12,292
Total Liabilities
1,043,514
1,088,588
EQUITY
Share capital
26
680,980
703,794
Share premium
27
5,259,114
5,257,622
Special Reserve from
Share Capital Decrease
28
296,424
6,104,890
Reserves
29
792,013
423,244
Retained
earnings
30
(773,944)
(6,228,891)
Total
Equity
6,254,587
6,260,659
Total Liabilities
and Equity
7,298,101
7,349,247
Certain
figures of the
previous year have
been restated as
described in note
38.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
356
ANNUA
L
F
INANCIA
L
REPORT
The attached notes
(pages 359-441) form
an integral part of the Company’
s
financial stateme
nts
Statement
of
Changes
in
Equity
(Amounts in thousands
of Euro)
Note
Share
capital
Share Premium
as restated
Special
Reserve from
Share Capital
Decrease as
restated
Reserves
Retained
earnings
Total
Balance
1.1.2021
463,110
4,696,139
6,104,890
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
-
-
-
(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
Expenses for share
capital
increase
(40,335)
(40,335)
Share
Capital
Increase
through options exercise
684
1,483
(1,666)
183
684
Share
Capital
Increase
through cash
240,000
560,000
800,000
Balance
31.12.2021
703,794
5,257,622
6,104,890
423,244
(6,228,891)
6,260,659
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
357
ANNUA
L
F
INANCIA
L
REPORT
The attached notes
(pages 359-441) form
an integral part of the Company’
s
financial stateme
nts
(Amounts in thousands
of Euro)
Note
Share
capital
Share Premium
as restated
Special
Reserve from
Share Capital
Decrease as
restated
Reserves
Retained
earnings
Total
Balance
1.1.2022
703,794
5,257,622
6,104,890
423,244
(6,228,891)
6,260,659
Changes for
the year
1.1 - 31.12.2022
Profit/(loss) for the year, after
income tax
14,946
14,946
Other
comprehensive
income
for
the year,
after income
tax
(40)
(40)
Total comprehensive
income for the year after
income tax
-
-
-
-
14,906
14,906
Discrete
monitoring
of
intragroup dividends
in
reserves
788,777
(788,777)
-
Valuation reserve of
employee stock option
program
2,014
2,014
Expenses for share
capital
increase
(178)
(178)
Offsetting
of Retained
Earnings
with Reserves
(5,808,466)
(420,425)
6,228,891
-
Share
Capital
Increase
through options exercise
660
1,492
(1,597)
105
660
Share
Capital
decrease
through distribution
in kind
(23,474)
(23,474)
Balance
31.12.2022
680,980
5,259,114
296,424
792,013
(773,944)
6,254,587
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
358
ANNUA
L
F
INANCIA
L
REPORT
The attached notes
(pages 359-441) form
an integral part of the Company’
s
financial stateme
nts
Statement
of
Cash
Flows
(Amounts in thousands
of Euro)
From 1
January to
Note
31.12.2022
31.12.2021
Cash flows from
continuing operating activities
Profit/(loss) before income tax from continuing
operations
19,724
(2,345,213)
Adjustments of profit/(loss) before income tax for:
Depreciation,
impairment,
write-offs
and net result from
disposal of
property,
plant and equipment
2
1
Amortization,
impairment,
write-offs
of intangible
assets
42
32
Impairment losses
on financial assets, related expenses
and other provisions
(7,235)
246,048
Gains less losses on derecognition
of financial assets measured
at amortised cost
10
2,238,990
Fair value (gains)/losses
on financial assets
measured at fair value through
profit or loss
(7,103)
(2,893)
Impairment
of investments
290
760
(Gains) /losses from sale of investments
(91)
(Gains)/losses from investing activities
(54,710)
(38,205)
(Gains)/losses from financing activities
50,021
46,014
Other adjustments
(2,672)
(1,722)
145,534
Net (increase)/decrease in
assets relating to
continuing operating activities:
Due from customers
(610)
163,333
Other assets
58,434
(61,131)
Net increase/(decrease) in liabilities relating
to continuing operating activities:
Other liabilities
(533)
(10,050)
Net cash flows from continuing operating activities before
income tax
55,570
237,686
Income tax paid
(35,818)
(54,209)
Net cash flows from continuing operating activities
19,751
183,477
Net cash flows from
discontinued operating activities
-
3,183,008
Cash flows from
continuing investing activities
Investments
in associates and joint ventures
(90,979)
(1,160,725)
Dividends
received
1,290
Interest received
from investment
securities
47,132
7,421
Purchases of investment securities
(1,000,000)
Disposals/maturities
of investment securities
69,803
5,811
Net cash flows from continuing investing activities
27,246
(2,147,493)
Net cash flows from
discontinued investing activities
-
(164,344)
Cash flows
from continuing financing
activities
Share
Capital
Increase
660
800,684
Share
Capital
Increase
expenses
(178)
(40,327)
Proceeds from issue
of debt securities and other borrowed funds
495,660
Interest paid on debt securities
in issue and other borrowed funds
(48,839)
(28,188)
Repayments
of debt securities in issue and other borro
wed funds
(16,697)
Net cash flows from
continuing financing activities
(65,055)
1,227,829
Net cash flows
from discontinued financing activities
-
(60,749)
Effect of foreign exchange changes on cash and cash equivalents
215
Cash equivalent from discontinued
operations
(9,263,381)
Net increase/(decrease)
in cash flows
(18,057)
(7,041,438)
Cash and cash equivalents
at the beginning of
the year
25,705
7,067,143
Cash and cash equivalents at the
end of the year
14
7,648
25,705
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
359
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se 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 be
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
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
22.7.2022,
is four
years and
is extended
until the
end of
the period
within which
the next
Ordinary General
Meeting must
be
convened and
until
the
relevant decision
is
taken.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
360
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
The
Board of
Directors as
at 31.12.2022,
consisted of:
The
Board of
Directors
can
set up
an
Executive Committee
in
order
to delegate
certain powers
and
responsibilities. The
Executive
Committee (the
“Committee”) acts
as
the
collective corporate
body
of
the
Company.
The
powers
and
responsibilities
of
the Committee
are set
out in
an Act
of the
Chief Executive
Officer, which
delegates powers
and responsibilities
to the
Committee. Indicatively,
the Committee’s
main responsibilities
include, but
are not
limited to,
the preparation
of the
strategy,
business
plan
and
annual
budget
of
the
Company
and
the
Group
in
order
to
be
submitted
to
the
Board
of
Directors
for
approval, as
well as the
preparation of the
annual and
interim financial statements, management
of the
funding allocation
to
the
Business Units
including decision
making, the
preparation of
the
Reports for
the Internal
Capital Adequacy
Assessment
Process
(ICAAP)
and
the
Internal
Liquidity
Adequacy
Assessment
Process
(ILAAP),
the
review
and
approval
of
the
Company’s
policies, approval
and
management of
any
employee
schemes
proposed
by
the Human
Resources
Department and
ensuring
the
effectiveness
of
corporate
governance,
processes
and
systems
related
to
Recovery
Plan.
Furthermore,
the
Committee
is
responsible for
the implementation of
the overall
risk strategy
– including
risk appetite
and the
Company’s risk management
framework-
of a
robust and
effective corporate
governance and
internal control
framework, for
the selection process
and for
the
evaluation
of
the
key
management
personnel,
for
the
distribution
of
both
internal
and
regulatory
funds,
as
well
as
for
the
determination of the
amount and
type and for
the achievement of
the Company’s
liquidity management objectives.
*
Member of the
Audit
Committee
**
Member of the Risk Manage
ment
Committee
***
Member of the Remunera
tion Comm
ittee
****
Member of Corporate Governance,
Sustainabi
lity and Nominations Committee
CHAIRMAN (Non Executive
Member)
Jean L.
Cheval */**
Vasileios T.
Rapanos
Carolyn Adele
G. Dittmeier */****
EXECUTIVE
MEMBERS
Richard
R.
Gildea
**/***
Vassilios E.
Psaltis, Chief
Executive Officer
(CEO) Spyros
Elanor
R.
Hardwick
**/****
N.
Filaretos,
General
Manager
-
Growth
and
Innovation
Shahzad A.
Shahbaz ****
Officer
NON-EXECUTIVE MEMBER
NON
EXECUTIVE
MEMBERS
(in accordance with
the requirements
of
Efthimios O.
Vidalis */****
Law
3864/2010)
Johannes Herman
Frederik G.
Umbgrove*/**/***/****
NON-EXECUTIVE INDEPENDENT
MEMBERS
Elli M.
Andriopoulou */****
SECRETARY
Aspasia F.
Palimeri **/***
Eirini
E.
Tzanakaki
Dimitris K.
Tsitsiragkos **/***
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
361
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
The
Executive Committee
as of
31.12.2022 consists
of
the following
Executive members:
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)
Ioannis
Μ.
Emiris,
General
Manager
-
Wholesale
Banking
Isidoros S. Passas, General
Manager - Retail Banking
Nikolaos R. Chrisanthopoulos, General Manager - Chief of Corporate Center
Sergiu-Bogdan
A.
Oprescu,
General
Manager
-
International
Network
Anastasia
X.
Sakellariou,
General
Manager
-
Chief
Transformation
Officer
Stefanos
Ν.
Mytilinaios,
General
Manager
-
Chief
Operating
Officer
Fragkiski G. Melissa, General
Manager - Chief Human
Resources Officer
Georgios
V.
Michalopoulos
General
Manager
–
Wealth
Management
&
Treasury
There has
been no
change in the
composition of the
Executive Committee from
31.12.2022 and
until the publication
date of
thefinancial statements.
The
share
of
the
company
“Alpha
Services
and
Holdings Societe
Anonyme
is
listed
in
the
Athens
Stock
Exchange
since
1925
and
is constantly
included among
the companies
with the
higher market
capitalization. Additionally,
the
Bank’s
share
is
included in a
series of 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 2022
were 2,348,207,784
ordinary, registered,
voting, dematerialized
shares
with
a
face
value
of
each
equal
to
€
0.29,
of
which
211,138,299
shares
are
held
by
the
Hellenic
Financial
Stability
Funds
(“HFSF”)
(9%
of
share
capital).
During
the
year
2022,
the
average
daily
volume
of
the
share
per
session
was
€
8,684.
The
present
annual
financial statements
have
been
approved
by
the
board
of
directors
on
14th
March
2023.
ACCOUNTING
POLICIES
APPLIED
1.1
Basis
of presentation
The financial statements for
the current period ending at
31.12.2022 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
31.12.2021,
after
taking
into
account
the
amendments
to
standards
which
were issued
by
the International
Accounting Standards
Board (IASB),
adopted by
the European
Union and
applied on
1.1.2022, regarding
which further
analysis is
provided
in note
1.1.2.
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:
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
362
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
-
Investment securities
measured at
fair
value
through other
comprehensive income
-
Investment securities
measured at
fair value
through profit or
loss
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 31.12.2022
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
The growth
momentum during 2022 reflects
the resilience of
the Greek economy
against adverse external
developments,
following
the war
in Ukraine,
supply chain
disruptions and
inflationary pressures.
According to
the latest
data from
ELSTAT,
the
real
GDP
increased by
5.9%.
Economic
growth
was driven
primarily by
private
consumption,
which grew
by
7.8%
in 2022,
contributing 5.3
points to
the annual
GDP growth
rate, supported by
high propensity
to consume
in the
post
-pandemic era,
the accumulation
of
savings during
the pandemic
and
the remarkable
rise in
employment.
Investments registered
an annual
increase of
11.7%, in
2022, strengthening
their momentum and
contributing to
the
change
in
GDP by
1.5
percentage points.
The
contribution of
inventories was
also
positive
(including
statistical differences,
1.9
p.p). On
the contrary,
net exports
(-2.5 p.p.)
and
public consumption
(-0.3
p.p.) had
a
negative contribution.
Exports of
goods
and
services
rose
cumulatively in
2022 by
4.9%,
with goods
increasing by
0.4%
and
services by
9.9%, respectively,
reflecting
strong performance
of
tourism. Imports
of
goods
and
services,
however,
rose
more strongly
(10.2%)
compared
to corresponding
exports in
2022, with
imports of
goods increasing
by
11.2% and
imports of
services registering
a rise
of
7.2%.
Inflation,
based
on
the
Harmonized
Index of
Consumer
Prices
(HICP), remained
on
an
upward
trajectory in
the
first
two
months
of
2022,
accelerating
after
the
outbreak
of
the
war,
while
decelerating
in
the
last
quarter
of
the
year.
The
HICP
increased
by
an
average
of
9.3%
in
2022,
compared
to
an
increase
of
0.6%
in
2021,
primarily
due
to
rising
global
energy
prices -
given that
Greece is
a net
energy
importer -,
disruptions in
supply chains
and
shortages in
raw
materials. In
2023,
harmonized
inflation
is
expected
to
be
4.5%
according
to
the
European
Commission
(European
Economic
Forecast,
Winter,
February 2023)
and 5%
according to
the Ministry
of Finance
(State Budget
2023).
GDP growth
is expected
to slow
in 2023,
due to
the adverse
effects of
inflationary pressures
on the
purchasing power
of
European
citizens and
thus on
private
consumption and
exports of
services. The
implementation of
investments under
the
Recovery
and
Resilience
Fund
(Euro
7
billion)
and
the
Public
Investment
Program
(Euro
8.3
billion)
and
the
strong
rise
in
Foreign Direct
Investment (FDI),
however,
are estimated
to maintain
the rate
of
change of
GDP positive
in
2023.
The
European Commission (European
Economic Forecast,
Winter, February 2023) and the Organization
for Economic Cooperation
and
Development (OECD
2023
Economic
Survey
of
Greece,
January
2023)
predict
an
increase
in
GDP
by
1.2%
and
1.1%
for
2023,
while
the
State
Budget
2023
by
1.8%
respectively.
It is
noted, however,
that the
high degree
of uncertainty prevailing
in the
international environment may
adversely affect
the
Greek economy
in the
short term.
The main
uncertainty factors
are as
follows:
-
External demand
and
tourism revenues,
in relation
to the
course of
the global
economy and
the purchasing
power of
European
households:
The
outlook
for
the
global
economy
has
worsened
compared
to
previous
estimates.
The
increased
cost of
production, mainly
due
to problems
in the
supply chain
and
energy appreciation,
has burdened
the
financials
of
companies and
its inevitable
transfer
to
consumers has
limited the
purchasing power
of
households. Therefore,
a significant
risk for
the Greek
economy in
the next
year is
the eventual
weakening of
external demand
primarily for
services,
that
is, for
the
Greek
tourism product
and
secondarily for
goods.
-
Geopolitical developments
and
inflationary pressures:
The
continuation and
outcome
of
the war
in
Ukraine can
undoubtedly affect
the European
economies, since
the conflict
in the
territories of
the European
continent, as
well as
the
energy
dependence on
Russia, have
led
to a
sharp
increase
in
the prices
of
energy.
It
is
noted,
however,
that
concerns
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
363
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
about
Europe’s energy
sufficiency for
this winter
have eased.
Τhe high
filling rate
of natural
gas
storage tanks
in Europe,
the initiatives
taken at
European level
to reduce
natural gas
consumption and
the relatively
mild weather
conditions have
contributed to
this.
-
A
sharp
increase
in
interest rates
and
consequently in
the
cost of
borrowing
for
households
and
businesses,
which
could
potentially delay the implementation of
investment plans.
-
Risks arising
from the
speed of
absorption of
the funds
of the
Recovery and
Resilience fund
and
the implementation of
the
program,
as
well
as
from
possible
delays
in
the
implementation
of
reforms.
Liquidity
Regarding
the
liquidity
levels
of
the
Group,
it
is
noted
that
there
was
no
adverse
change
in
terms
of
the
Banks’
ability
to
draw
liquidity from
the Eurosystem
Mechanisms and
from money
markets (with
or without
collateral) nor
restrictions on
the use
of
the
Group’s
cash reserves
as a
result of
the war
between
Russia and
Ukraine or
the pandemic.
The
Board of
Directors
of
the European
Central Bank
decided on
a series
of increases
in its
intervention
interest rates,
from the
second half
of
2022
onwards, in order
to
ensure a
timely return of
inflation to the
medium-term
target of
2%. Additionally in October
2022
it
decided
to
modify
the
terms
of
TLTRO
III,
with
the
aim
of
being
compatible
with
the
wider
monetary
policy
normalization
process,
by
strengthening
the
transmission
of
its
relevant
decisions
to
the
interbank
market
and,
by
extension, to
the
real
economy. This
is expected
to put
downward pressure
on
inflation, helping
to
restore price
stability over
the
medium
term.
The
Bank made
use
of
the TLTRO
III program
of
the
European Central
Bank and
ensured
long-term liquidity.
In
this
context, the
total financing
from the
European Central
Bank on
31.12.2022 amounts
to €
12.8 billion.
In February
2023,
the
Bank, in
the
context of
optimizing
the Group’s
liquidity management,
and
having
sufficient reserves,
decided to
prepay
€
2 billion
of
the
European Central
Bank’s
TLTRO-III
program,
following
the
relevant modification
of
its terms.
The
Bank,
continuing to
implement the
strategy of
achieving the
MREL targets in
a sustainable
manner, while
improving its
financial
profile and
diversifying its
funding
sources, in
September and
December 2021
issued
senior bonds,
amounting to
€
500
million and
€ 400
million with
a duration
of six
years and
six months
and
two years
respectively. Additionally, in
October
and
December
2022
the
Bank
completed
the
issuance
of
senior
bonds
of
€
400
million
and
€
450
million
with
a
term
of
three
and
four
years and
six months
respectively. The
second
one
replaced
the
December
2021
issuance. Also
significant
liquidity was
drawn from
the issuances
of
Tier 2
and AT1
bonds referred
below in
the capital
adequacy section.
Finally,
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.
In addition,
private sector
deposits increased
by
€
3.3 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.
Moreover,
considering
the conditions
that
form
the
current economic
environment, stress
test
exercises
are
carried
out
regularly (at
least monthly)
for
liquidity purposes,
in
order
to assess
possible outflows
(contractual
or
potential). The
Group
completes
successfully 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 31.12.2022,
the Common
Equity Tier
I of
the Group
stands at
13.2%,
while the
Total Capital
Adequacy Ratio
at 16.2%.
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
million,
with
a
10.25-year
maturity
while,
on
8.2.2023,
Alpha
Services and
Holdings issued
a perpetual
Additional Tier
I bond
amounting
to €
400
million. Taking
into
consideration
the results
of
internal capital
adequacy assessment
process (ICAAP),
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
up to
2025
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
364
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
The
Group has
as a
basis of
its strategic
plan specific
actions aimed
at
its sustainable
development and
profitability. The
following
initiatives govern
the above
strategic plan:
•
The
development
of
assets,
with
a
particular
focus
on
business
loans,
within
the
framework
of
the
expected
recovery
of
the
Greek economy
and
the prospects
developed
through the
resources
of
the
Recovery and
Resilience Fund
(RRF),
with
corresponding
reinforcement of
net
interest
income
and
commission income.
•
The
initiatives to
reduce
Non-Performing Exposures
(NPEs), which
mainly include
organic NPE
management
actions
that
aim
at
a
significant
reduction
of
NPEs,
and
which
will
lead
to
a
parallel
significant
reduction
of
credit
risk
costs,
but
also
of
operating
expenses
related
to
NPEs
management.
•
Efficiency enhancement
initiatives, with
the aim
of
achieving excellent
operational performance
and
reducing operating
costs in
all activities.
•
Initiatives to
increase
income from
fees
and
commissions, through
low
capital intensive
operations, such
as
Wealth
Management
products
and
services
and
the
sale
of
Bancassurance
products.
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 actions
taken to
enhance efficiency and
profitability,
•
the
fact
that
any
impact
on
the
Group’s
financial
result
from
inflation
and
increase
in
base
rates
is
expected
to
be
positive
as
it
is
estimated
that
the
higher
performance
of
operating
income,
as
a
result
of
the
balance
sheet
structure,
will
exceed
the
expected
increases
in
operating
expenses,
•
the expected
positive growth
rate of
the Greek
Economy despite
the adverse
effects
caused
by
inflationary pressures
mainly
in
terms of
energy prices
and
additionally the
implementation of
the National
Recovery and
Resilience Plan,
within the
framework of
the EU’s
“Next Generation
EU” program,
through
which Greece
is expected
to
receive a
total
of
€
30.5
billion
by
2026,”
•
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
1.1.2022:
‣
Amendment
to the International Financial
Reporting
Standard 3
“Business
Combinations”:
Reference
to the
Conceptual
Framework (Regulation
2021/1080/28.6.2021).
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 above
amendment had
no impact
on the
financial statements
of the
Company.
‣
Amendment
to
International
Accounting
Standard 16
“Property,
plant
and
equipment”:
Proceeds
before
intended
use
(Regulation
2021/1080/28.6.2021).
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
365
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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 above
amendment had
no impact
on the
financial statements
of the
Company.
‣
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).
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 above
amendment had
no impact
on the
financial statements
of the
Company.
‣
Annual Improvements
–
cycle 2018-2020
(Regulation
2021/1080/28.6.2021).
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 had
no impact
on the
financial statements
of the
Company.
In
addition, the
European Union
has
adopted IFRS
17 as
well as
the following
amendments to
standards which
are effective
for
annual periods
beginning after
1.1.2022 and
have not
been early
adopted by
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
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
366
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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 International Financial
reporting Standard
17
:
“Insurance
Contracts”:
Initial
Application
of
IFRS
17
and
IFRS 9 –
Comparative information (Regulation 2022/1491/8.9.2022).
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
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 Company
is examining the
impact from
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.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
367
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
-
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 12
“Income
Taxes”:
Deferred
tax
related
to
assets
and
liabilities
arising from a
single transaction (Regulation 2022/1392/11.8.2022).
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.
In
addition, the
International Accounting
Standards Board
has
issued
the following
standards and
amendments to
standards
which have
not yet
been adopted
by
the European
Union and
which have
not been
early
applied by
the Company.
‣
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.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
368
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
‣
Amendment
to International
Financial
Reporting
Standard
16
“Leases”:
Lease
liability
in a
sale and
leaseback.
Effective
for
annual periods
beginning on
or after
1.1.2024.
On 22
September 2022,
the International
Accounting Standards
Board amended
IFRS 16
in order
to
clarify that,
in
a
sale and
leaseback
transaction, the
seller-lessee shall
determine “lease
payments” or
“revised lease
payments” in
a
way that
he
would
not recognize any
amount of
the gain
or
loss that
relates to
the right
of
use
retained by
the
seller-lessee.
In
addition,
in
case
of
partial
or
full
termination
of
a
lease,
the
seller-lessee
is
not
prevented
from
recognizing
in
profit
or
loss
any
gain
or
loss
resulting
from
this
termination.
The Company
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
1.1.2024.
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 Company
since in
its balance
sheet liabilities
are
not
classified
as
current
and
non-current.
‣
Amendment
to the
International
Accounting
Standard 1
“Presentation
of
Financial
Statements”:
Non-current
liabilities
with
covenants.
Effective
for
annual periods
beginning on
or after
1.1.2024.
On
31.10.2022, the
International Accounting
Standards Board
(IASB) issued
an
amendment to
IAS 1
with
which
it provided
clarifications
regarding
the
classification
as
current
or
non-current
of
a
liability
that
an
entity
has
the
right
to
defer
for
at
least
12
months
and
which
is
subject
to
compliance
with
covenants.
In
addition,
the
amendment
extended
the
effective
date
of
the
amendment
to IAS
1 “Classification
of liabilities
as
current or
non-current” issued
in 2020
by
one year.
The above
amendment will
have no
impact on
the financial
statements of
the Company
since in
its balance
sheet liabilities
are
not
classified
as
current
and
non-current.
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
369
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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 Company’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.
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.
Short-term balances
due
from banks
Short-term balances
due from
banks are
those that
upon initial
recognition mature
within three
months.
Short-term balances
due
from banks
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.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
370
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
1.2.10 and
1.2.11.
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,
-
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
1.2.10 and
1.2.11.
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
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
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)
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
371
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
•
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.
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 and
due from
customers 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
and due
from customers
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,
up
to
5
sales
per
month
within
the
above
size
limit
are
considered
infrequent.
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
372
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
-
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
and
IFRS 9
requirements are
met. In
this case
the reclassification
is applied
prospectively from
the first
reporting period
following
the
change in
the business
model. Changes
in the
business model
of
the Company
that lead
to the
reclassification of
financial assets
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
373
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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.
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
note
1.2.18.
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
374
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
-
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
1.2.22
and
1.2.23. 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.
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 derivatives
held
for
trading 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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
375
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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.
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.
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
1.2.10),
•
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
Derivative
financial
instruments
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
376
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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.
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.
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.
More
specifically 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
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
377
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se 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 EURIBOR
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.
1.2.6
Investments
in
subsidiaries
This
caption
includes
Company’s
investments
in
subsidiaries.
Investments in
subsidiaries 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
31.12.2022.
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
the equipment
used by
the
Company.
Equipment is
initially recognised
at cost
which includes
any expenditure
directly attributable
to the
acquisition of
the asset.
Subsequently, equipment
is
measured
at
cost
less
accumulated depreciation
and
impairment losses.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
378
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
the
equipment
and
it
is
calculated
on
the
asset’s
cost
minus
residual
value.
The
estimated
useful
life
of
the
equipment
has
been
defined
from
5
to
14
years.
The residual
value of
the equipment
and its
useful life
is periodically
reviewed and
adjusted if
necessary at
each reporting
date.
Equipment is
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
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
Goodwill
and
other
intangible
assets
The
Company
has
included
in
this
caption:
a)
Goodwil
l
which
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.
Negative
goodwill is
recognized
in profit
or
loss.
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,
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
3
to
15
years.
All intangible
assets are
assessed for
impairment when
there are
triggers for
impairment (note
1.2.12).
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
379
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
is
recognized
in
profit
or
loss.
1.2.9
Leases
The
Company enters
into
leases
as
a
lessee. 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
Company as
a
lessee
revises the
lease
term if
there
is a
change
in
the non-cancellable
period
of
a
lease.
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
1.2.12).
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.
1.2.10
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.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
380
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
a)
Default definition
The
Company
has
adopted
the
default
definition
provided
by
EBA Guidelines
(GL/2016/07).
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) 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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
381
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
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
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
382
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
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.
1.2.11
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:
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
383
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
-
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
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.
1.2.12
Impairment
losses
on
investments
and
non-financial
assets
The
Company assess
as at
each balance
sheet date
its investments
in
subsidiaries as
well as
non-financial
assets for
impairment, particularly,
goodwill and
other
intangible assets
and at
least annually
property, plant
and equipment.
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.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
384
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
-
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 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.
An impairment
loss recognised
in prior
periods shall
be reversed
in case
of a
change in
the estimates
for
the determination
of
the recoverable
amount. The
increased carrying
amount of
the asset
attributable
to the
reversal of
an impairment
loss shall
not exceed
the carrying
amount
that would
have been
determined had
no
impairment loss
been recognised.
An impairment
loss
recognised
for
goodwill shall
not
be
reversed.
1.2.13
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, 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.
1.2.14
Non-current assets
held
for
sale
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
385
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
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.
1.2.15
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
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).
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
386
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
retirement 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.
1.2.16
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.
1.2.17
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.
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
387
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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.
1.2.18
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.
1.2.19
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
388
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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.
1.2.20
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.
-
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.
1.2.21
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
389
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
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,
at 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.
In
particular, with
regards to
fee
income for
promotion and
distribution of
Insurance Products
(bankassurance) the
entity is
entitled
to
a
commission
as
a
percentage
of
sales
that
is
recognized
in
profit
or
loss
as
sales
occur.
The
entity
is
also
entitled
to
a performance
bonus that
is accounted
as
a
variable consideration
recognized in
profit or
loss based
on
the progress
towards
complete
satisfaction
of
the
performance
obligation
(actual
sales),
provided
that
it
is
highly
probable
that
a
significant
reversal
in
the
amount
of
cumulative
revenue
will
not
occur
when
the
uncertainty
associated
with
the
variable
consideration
is
subsequently
resolved.
1.2.22
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.
1.2.23
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.
1.2.24
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.
1.2.25
Related
parties
definition
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
390
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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%.
1.2.26
Earnings
per share
Basic earnings
per share
are
calculated by
dividing profit
or
loss attributable
to ordinary
equity holders
of
the Company
by
the
weighted average
number of
ordinary
shares outstanding
during the
period.
Diluted
earnings per
share
are calculated
using
the same
method as
the calculation
of
basic earnings
per
share, however,
both
the
nominator
and
the
denominator
are
adjusted
for
the
effects
of
all
dilutive
potential
ordinary
shares.
1.2.27
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
Company,
in
the
context of
applying
accounting policies,
makes
judgments and
assessments
which have
a
significant
impact on
the amounts
recognized in
the financial
statements. Those
judgements relate
to the
following:
Income
Tax
(notes
12
and
31)
The recognition
of assets
and liabilities
for
current and
deferred
tax and
of the
relevant results
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.
Key
sources of
estimation
uncertainty
Key sources
of estimation
uncertainty used
by
the Company
in the
context of
applying its
accounting principles
and
relating to
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
391
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
the
carrying
amount
of
assets
and
liabilities
at
the
end
of
the
reporting
period
are
presented
below.
Final
amounts
in
the
next
periods may
be significantly
different
from those
recognised in
the financial
statements.
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.
Impairment
losses
on
investments
in subsidiaries
and
on
non
- financial
assets
(note
17)
The
Company,
at
each
reporting date,
assesses
for
impairment its
intangible
assets and
its investments
in
subsidiaries, and
at
least on
an annual
basis property,
plant
and equipment.
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.
In
particular,
regarding
the
Company’s
investment
in
the
Bank,
it
is
noted
that
it
was
evaluated
that
there
is
no
trigger
of
impairment. The
following
factors were
taken into
account in
the evaluation:
a.
At
the
end
of
2022
the
Bank
has
completed
the
majority
of
its
multi-year
NPE
deleveraging
plan.
b.
Under
the
approved
Budget
for
2023,
the
Bank
is
expected
to
generate
a
significant
after
tax
profit.
c.
Bank’s
actual
results for
2022 are
very close
or
exceed
the corresponding
estimations of
Project Tomorrow.
d.
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
years.
In
addition,
the
Bank
aims
for
a
significant
annual
profitability
in
the
medium
term.
e.
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.
f.
The
positive market
response
regarding
the
stock
price
of
the
Company and
Bank’s
prospects.
Revenue
recognized
from
variable
consideration
in
contracts
with
customers
(note
20)
The
Company under
the contract
of
distribution of
insurance products
is entitled
to a
performance bonus
on
the achievement
of
a
specified sales
target in
the future.
As a
result, this
amount represents
a
variable
consideration which,
however,
according
to
the Company’s
assessment, is
not
considered
constrained since
the successful
achievement of
the
target is
highly
dependent on
factors that
are
within its
influence.
Revenue
is recognized
as
sales
occur
since it
has
been
assessed
that the
best method
for
measuring progress
towards satisfaction of
the performance
obligation is
the appraisal
of sales
achieved. At
the end
of each
reporting period,
the Company
updates its
method
for
measuring progress
of performance
obligation, as
well
as its
assessment of
whether the
estimate of
variable
consideration is
not constrained.
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.
INCOME
STATEMENT
2.
Net
interest
income
From 1 January to
31.12.2022
31.12.2021
Interest and similar income
Due from banks
4
Loans and advances
to customers
measured at amortized
cost
644
145,133
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
392
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Loans and advances
to customers
measured
at fair value through
profit or loss
237
Investment
securities
measured at amortized
cost
53,711
37,818
Investment
securities
measured
at fair value through
profit or loss
473
387
Other
98
Total
54,930
183,575
Interest expense
and similar
charges
Due to banks
(284)
Debt securities in issue and other borrowed funds
(49,737)
(47,638)
Other
(104)
(4,295)
Total
(50,125)
(51,933)
Net interest income
4,805
131,642
During 2022,
interest income
from loans
and advances
to customers
relate to
the securitized
loans of
the special
purpose
entity Galaxy
III
Funding
DAC, until
their
derecognition
on
8.3.2022
(Note
35).
The
comparable period
includes
interest income
deriving
from
the securitised
loans portfolios
of
the
special purpose
entities Orion
Securitisation Designated
Activity
Company,
Galaxy
II
Funding
Designated
Activity
Company,
Galaxy
IV
Funding
Designated
Activity Company
until
their
derecognition
on
18.6.2021,
as
well as
from
the securitised
loans of
Galaxy
III Funding
DAC, which
remained to
the
Company.
Interest income
from Investment
securities measured
at amortised
cost includes
the interest
income
from subordinated
notes
issued
by
the
Bank
and
paid
by
the
Company
in
April
2021,
after
the
hive
down
(Note
16).
Interest
expense
includes
mainly
the
interest from
subordinated TIER
II notes,
issued
by
the
Company
(Note21).
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
31.12.2022
31.12.2021
Financial assets measured
at amortised cost
54,353
178,656
Financial assets
measured at fair value
through profit
or loss
473
624
Financial liabilities
measured at amortised
cost
(50,021)
(47,638)
Total
4,805
131,642
3.
Net
fee
and
commission
income
From 1 January to
31.12.2022
31.12.2021
as restated
Loans
325
1,511
Credit
cards
1
5
Advisory fees and securities transaction
fees
110
Insurance
brokerage
5,781
19,025
Total
6,217
20,541
Certain
figures of the
previous year have
been restated as
described in note
38.
During the
year ended
31.12.2022, net
fee and
commission income
mainly includes
the net
fee and
commission income
from
insurance brokerage
of €
5,781 (2021:
€
19,025) which
is consisted
of insurance
contracts recognized
upon
sale (point
in time)
of
€
3,166
(2021:
€
19,025)
and
success
fees
of
€
2,
615
(2021:
€
0)
that
are
recognized
overtime
based
on
the
achievement
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
393
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
of
the
sales
target.
It
is
noted
that
in
2021,
the
aforementioned
fees
included
also
an
amount
of
€
10
mil.
received
from
AXA
Mediterranean
Holding
S.A., parent
entity of
AXA
Insurance
S.A., due
to
the early
termination
of
a
sale agreement
for
banking
and
insurance
products
in
the
context
of
the
sale
of
the
latter
to
Generali.
4.
Dividend
income
From 1 January to
31.12.2022
31.12.2021
Subsidiaries
1,290
-
Total
1,290
-
Dividend
income
for
2022
relates
to
dividends
from the
subsidiary
Alpha
Insurance Agents
S.A.
5.
Gains
less
losses
on
derecognition
of
financial
assets
measured
at
amortised
cost
Gains less
losses on
financial assets measured
at amortised
cost for
2021 amounting
to €
2,238,990 mainly includes
the
loss resulting
from the
derecognition of
the
loans included
in Galaxy
Transaction.
The
carrying amount
of
these loans
on
the
derecognition date amounted
to €
5,810,559.
6.
Gains
less
losses
on
financial
transactions
From 1 January to
31.12.2022
31.12.2021
Foreign
exchange
differences
1,024
Financial assets
measured at fair value
through profit
or loss
- Loans
(40)
- Bonds
7,338
2,933
Impairment
of Investments
in subsidiaries
(Note 17)
(199)
(760)
Other financial instruments
(234)
2,105
Total
6,905
5,262
Gains
less
losses
on
financial
transactions
for
2022
have
been
affected
by
gains
of
€
7,338
(2021:
€
2,933)
of
bonds
measured
at
fair
value
through
profit
or
loss,
deriving
mainly
from
the
change
in
the
valuation
of
mezzanine
notes
of
the
Galaxy
securitization
transaction.
7.
Other
Income
From 1 January to
31.12.2022
31.12.2021
Income from accounting
and tax services
502
494
Other
1
Total
502
495
Other
income
relates to
the
tax and
accounting services
that
the Company
provides
to
other
Group companies.
8.
Staff
costs
and
expenses
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
394
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
From 1 January to
31.12.2022
31.12.2021
Wages and
salaries
559
706
Social
security
contributions
108
91
Employee indemnity
provision due to
retirement
based on Law 2112/1920
8
8
Other
charges
212
28
Total
887
833
The
total
number
of
the
Company’s
employees
as
at
31.12.2022
was
11
(31.12.2021:
12).
9.
General
administrative
expenses
From 1 January to
31.12.2022
31.12.2021
as restated
Lease
expenses
29
21
Maintenance of EDP equipment
23
64
EDP expenses
32
199
Marketing and
advertising expenses
505
477
Telecommunications and postage
4
Third party fees
2,006
2,035
Consultants
fees related to financial
information
451
Insurance
164
182
Stationary
1
Electricity
2
Taxes and Duties (VAT,
real estate tax etc)
1,078
3,258
Building and equipment
maintenance
3
Cleaning
expenses
4
Other
1,357
702
Total
5,646
6,951
Total
General
Administrative Expenses
for
2022 present
a decrease
compared to
the comparative
year,
resulting mainly
from
the decrease
in taxes
and duties,
as
in 2021
this line
item included
the VAT
relating to
the share
capital increase
expenses
classified
either
in profit
or
loss or
in
equity,
considered
as
non-tax deductible.
10.
Impairment
losses,
provisions
to
cover
credit
risk
and
related
expenses
“Impairment losses,
provisions to
cover credit
risk and
related expenses”
for
year 2022
amounted to
€ 6,591
(2021:
€
256,345)
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.
Certain
figures of the
previous year have
been restated as
described in note
38.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
395
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
From 1 January to
31.12.2022
31.12.2021
Impairment losses
on loans
1
234,427
Provisions to cover credit risk on letters
of guarantee,
letters of credit
and undrawn
loan commitments
(44)
(Gains) / Losses from modifications
of contractual terms
of loans and advances to customers
24
2,925
Recoveries
(22)
(1,392)
Loan servicing fees
664
8,764
Total
667
244,680
Impairment losses,
provisions to
cover credit
risk and
related expenses
for
2022 relate
to the
Galaxy securitized
loan
portfolio
till its
disposal
on
8.3.2022 as
well as
securitized
loans in
the
SPV Galaxy
III Funding
DAC. For
the
comparative
period the
related expenses
include the
impairment losses
of
securitized loan
portfolio of
the special
purpose entities
Orion
X
Securitisation
DAC,
Galaxy
II
Funding
DAC
και
Galaxy
IV
Funding
DAC
until
their
derecognition
on
18.6.2021.
The
following
table
presents
the
carrying
amount
of
the
loans
and
advances
to
customers
for
which
there
was
gain
or
loss
from
the
modification
of
the
contractual
terms
and
the
loss
allowance
was
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
31.12.2022
31.12.2021
Net carrying
amount after
impairment
and before the
modification
2,094
788,823
Net
gain
or
(loss) due
to
the modification
(25)
2,916
11.
Impairment losses
and
provisions
to
cover
credit
risk
and
related
expenses
on
other
financial
instruments
From 1 January to
31.12.2022
31.12.2021
Loss from impairment
of debt securities
and other securities
measured
at amortized cost
(7,259)
11,665
Total
(7,259)
11,665
The
credit
amount
from
impairment
of
debt
securities
and
other
securities
measured
at
amortized
cost
in
2022
is
mainly
attributable
to
the
reversal
of
expected
credit
loss
of
subordinated
loans
issued
by
the
Bank
and
owned
by
the
Company,
resulting
from
the
credit
rating
upgrade
of
the
Bank
within
the
year
2022.
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,
and
it has
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
396
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
retained
the
same
General
Commercial
Register
registration
and
Tax
Identification
Numbers.
Statutory
income
tax
rate
applicable
for
societe
anonymes
for
both
years
2021
and
2022
is
22%.
Income
tax
is
analyzed
as
follows:
From 1 January to
31.12.2022
31.12.2021
Current
tax
4,188
8
Deferred tax
590
(44,725)
Total
4,778
(44,717)
The amount
of €
4,188 under
the heading
“Current tax”
refers to
prior year
income tax
difference.
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
31.12.2022
31.12.2021
Write-offs, depreciation,
impairment
of plant, property
and equipment
and leases
2
24
Loans portfolio
(27,059)
Other temporary differences
588
(17,690)
Total
590
(44,725)
“Other
temporary
differences”
in
2021
includes
the
derecognition
of
the
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,
following
the completion
of the
Galaxy transaction.
A reconciliation
between
the effective
and
nominal tax
rate is
provided below:
From 1 January to
31.12.2022
31.12.2021
%
%
Profit / (Loss) before
income tax
19,725
(2,345,213)
Income tax (nominal
tax rate)
22
4,340
22
(515,947)
Increase
/ (Decrease)
due
to:
Non-taxable income
(1.44)
(284)
Non-deductible
expenses
0.47
92
Non-recognition
of deferred tax on tax losses
(10.16)
238,244
Non-recognition
of deferred tax for temporary
differences in the current
period
(10.87)
255,001
Adjustment in tax
rates for
the estimation of
deferred tax
0.59
(13,723)
Other tax adjustments
3.19
630
0.35
(8,292)
Income tax
24.23
4,778
1.91
(44,717)
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
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.
Income tax of other
comprehensive income
recognized
directly in equity
From 1
January to
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
397
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
31.12.2022
31.12.2021
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 reserve
of debt securities measured
at
fair value through other comprehensive
income
(87,964)
25,509
(62,455)
Net change in cash flow hedge reserve
6,036
(1,750)
4,286
-
-
-
(81,928)
23,759
(58,169)
Amounts that will not
be reclassified to the
Income
Statement
Net change in actuarial gains/(losses)
of defined
benefit obligations
19
19
(17)
(17)
Gains/(Losses)
from equity securities measured at
fair value through other comprehensive
income
(59)
(59)
117
(34)
83
(40)
-
(40)
100
(34)
66
Total
(40)
-
(40)
(81,828)
23,725
(58,103)
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
shareholders
of
the
Company,
by
the
weighted
average
number
of
ordinary
shares
outstanding
during
the period,
excluding
the
weighted
average
of
own
ordinary
shares
held by
the
Company,
during
the
same
period.
From 1 January to
31.12.2022
31.12.2021
Profit/(Loss) attributable to equity holders of the Company
14,946
(2,638,882)
Weighted average number
of outstanding ordinary
shares
2,347,406,796
1,931,471,968
Basic earnings /(losses) per share (in
€)
0.0064
(1.3663)
From 1 January to
31.12.2022
31.12.2021
Profit/(Loss) from continuing operations attributable to equity holders of the Company
14,946
(2,300,496)
Weighted average number
of outstanding ordinary
shares
2,347,406,796
1,931,471,968
Basic earnings /(losses) per share (in
€)
0.0064
(1.1911)
From 1 January to
31.12.2022
31.12.2021
Profit/(Loss) from discontinued operations attributable to equity holders of the
Company
-
(338,386)
Weighted average number
of outstanding ordinary
shares
1,931,471,968
Profit/(Loss)
from discontinued
operations attributable
to equity holders of the Company
(0.1752)
It is
noted
that in
January 2022, 1,430,168
options rights
were exercised,
resulted in
the issuance of
1,430,168 ordinary,
registered, voting
shares with
nominal value
of Euro
0.30 each.
In addition,
in September
2022, 796,519
options rights
were
exercised, resulted
in
the issuance
of
796,519 ordinary,
registered,
voting shares
with nominal
value of
Euro 0.29
each.
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,
arising from
a plan
of
awarding stock
option rights
to
employees of
the Company
and other
Group entities
(note
36).
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
398
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
For
the
calculation
of
the
diluted
earnings
per
share,
it
is
assumed
that
the
option
rights
are
exercised
and
that
the
related
hypothetical inflows
derive from
the issuance
of ordinary
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
treated
as
issuance of
ordinary
shares
without exchange.
From 1 January to
31.12.2022
31.12.2021
Profit/(Loss) attributable to equity holders of the Company
14,946
(2,638,882)
Weighted average number
of outstanding ordinary
shares
2,347,406,796
1,931,471,968
Adjustment
for options
3,314,955
870,098
Weighted average
number of outstanding
ordinary shares
for diluted earnings per share
2,350,721,751
1,932,342,066
Diluted earnings /(losses) per share (in €)
0.0064
(1.3656)
From 1 January to
31.12.2022
31.12.2021
Profit/(Loss) from continuing operations attributable to equity holders of the Company
14,946
(2,300,496)
Weighted average number
of outstanding ordinary
shares
2,347,406,796
1,931,471,968
Adjustment
for options
3,314,955
870,098
Weighted average
number of outstanding
ordinary shares
for diluted earnings per share
2,350,721,751
1,932,342,066
Diluted earnings /(losses) per share (in €)
0.0064
(1.1905)
From 1 January to
31.12.2022
31.12.2021
Profit/(Loss) from discontinued operations attributable to equity holders of the
Company
-
(338,386)
Weighted average number
of outstanding ordinary
shares
1,931,471,968
Adjustment
for options
870,098
Weighted average
number of outstanding
ordinary shares
for diluted earnings per share
1,932,342,066
Diluted earnings /(losses) per share (in €)
(0.1751)
ASSETS
14.
Due
from
banks
31.12.2022
31.12.2021
Placements with banks
7,648
25,705
Total
7,648
25,705
Due from
banks include
the cash
and cash
equivalents of
the Company
as at
31.12.2022.
15.
Loans
and
advances
to
customers
31.12.2022
31.12.2021
Advances to customers
measured at amortised
cost
339
18,466
Total
339
18,466
Loans and
advances to
customers relate
to trade
receivables from
the provision
of accounting
and
tax supporting
services to
the Group
companies while
as of
31.12.2021 these
receivables also
included the
amounts due
from the
special purpose
entity
Galaxy
III Funding
Designated Activity
Company
in
the
context of
the
securitization
transaction.
The
movement
of
loans
and
advances
to
customers
for
2022
and
2021
is
presented
below:
Balance
1.1.2021
299,196
Repayments, foreign exchange
Differences and other movements
(34,538)
Hive down of banking sector
(246,212)
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
399
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Balance
31.12.2021
18,446
Balance
1.1.2022
18,446
Derecognition
of Galaxy
III Funding Designated Activity Company
(18,605)
Repayments, foreign exchange
Differences and other movements
498
Balance
31.12.2022
339
The movement
of the
allowance for
expected credit
losses of
loans measured
at amortized
cost for
year 2021
is presented
below:
Balance
1.1.2021
36,995
Impairment losses
on advances to customers
7,224
Repayments,
foreign exchange Differences, write
-offs and other movements
(2,003)
Hive down of banking sector
(42,216)
Balance
31.12.2021
-
In
2022
the Company
has not
recognized any
allowance
for
expected credit
losses of
loans and
advances
to customers.
Reconciliation
of
loans
by
IFRS
9
Stage
As
at
31.12.2021
the
Company
reclassified
the
entirety
of
its
loan
portfolio
to
Assets
Held
for
Sale
and
within
the
first
quarter
of
2022,
the Company
transferred
them to
its subsidiary
Alpha Bank
S.A.
The following
tables present
the movement
in the
loans measured
at amortised
cost by
IFRS 9
Stage for
the years
2021:
31.12.2021
Retail
lending
Corporate lending
and
public sector
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
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(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
Changes
for the year
1.1 - 31.12.2021
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
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
400
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Reconciliation
of
allowance
for
expected
credit
losses
of
loans
by
IFRS
9
stage
As
at
31.12.2021
the
Company
reclassified
the
entirety
of
its
loan
portfolio
to
Assets
Held
for
Sale
and
within
the
first
quarter
2022,
the Company
transferred them
to
its subsidiary
Alpha
Bank
S.A.
The
following
tables
include
the
movement
for
the
year
2021
in
the
allowance
for
expected
credit
losses
of
loans
measured
at
amortized
cost:
31.12.2021
Retail
lending
Corporate lending
and
public sector
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
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16.
Investment
securities
31.12.2022
31.12.2021
Securities measured
at fair value through other comprehensive
income
74
133
Securities
measured at fair value
through profit
or loss
22,537
Securities measured
at amortized cost
1,007,242
993,060
Total
1,007,316
1,015,730
Αn analysis
of
investment securities
is provided
in the
following
tables per
classification category
and per
type of
security.
a.
Securities
measured
at
fair
value
through
other
comprehensive
income
31.12.2022
31.12.2021
Equity
securities
-
Non
listed
74
133
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
401
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Total
74
133
Securities
in
this
category
are
consisted of
securities of
REOCO
COSMOS
SINGLE
MEMBER
S.A,
REOCO
GALAXY
II
SINGLE
MEMBER S.A.,
REOCO GALAXY
IV
SINGLE MEMBER
S.A.
and REOCO
ORION X
SINGLE MEMBER
S.A.
In
2022, the
Company did
not dispose
any
shares included
in this
category. Change
within the
year is
due
to fair
value
adjustments.
b.
Securities
measured
at
fair
value through
profit
or loss
31.12.2022
31.12.2021
Other
issuers
- Listed Bonds
22,537
Total
-
22,537
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% on 18.6.2021.
2)
44% of
junior and
mezzanine notes
held by
the Company
in
the context
of the
Cosmos transaction.
The
Board of
Directors
during
its
meeting dated
29.4.2022,
decided,
among
others,
the distribution
in kind,
of the
aforementioned
junior
and
mezzanine
notes
of
the
Galaxy
and
Cosmos
securitizations
to
the
newly established
Cypriot
company
“Galaxy
Cosmos
Mezz
Plc”
(initially
establishes
as
“Galaxy
Mezz
Ltd”)
and
at
the
same
time
the
issuance
of
new
shares.
In
July
2022
the
Company proceeded
to
a
share
capital increase
in
its subsidiary
company
Galaxy
Cosmos Mezz
Plc
through
distribution in
kind of
44% of
the mezzanine
and junior
notes of
Galaxy and
Cosmos securitizations
held after
the
completion
of
the respective transactions
of
€
22,496 and to
an
increase in share
capital in
cash. As
a
result of
the above
86,628,044
new
shares
of
Galaxy
Cosmos
Mezz
Plc
were
issued.
The
shareholders
General
Meeting
dated
22.7.2022
approved
the
in
kind decrease
of
share
capital of
the Company
through distribution
to
its shareholders
of
the above
shares
issued by
Galaxy
Cosmos
Mezz
Plc
(note
37).
c.
Securities
measured
at
amortized
cost
31.12.2022
31.12.2021
Other
issuers
-
Non
listed
1,007,242
993,060
Total
1,007,242
993,060
“Securities measured
at amortized
cost” relates
to the
subordinated notes
issued by
the Bank
on 19.4.2021
and
fully covered
by
the Company
and
for
which the
Company has
recognised an
expected credit
loss of
€
4,406 (31.12.2021:
€
11,665). The
gross carrying amount
of these
securities is €
1,011,648 (31.12.2021: €
1,004,725).
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
402
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
17.
Investments
in
subsidiaries
31.12.2022
31.12.2021
SUBSIDIARIES
Opening
Balances
6,160,102
2,480,967
Additions
115,489
6,504,943
Decreases
(23,794)
(370,225)
Transfer from equity securities
measured at fair value through
other comprehensive
income
(58)
Hive-down of banking sector
(2,457,429)
Valuation
of
investments due
to
fair
value hedge
1,904
Closing
balance
6,251,797
6,160,102
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
€
115,489 relate
to:
a.
Share capital increase:
-
Share
capital increase
of
the subsidiary
Alpha Bank
S.A. amounting
to €
90,000 as
analysed
in Note
37.
b.
Establishment of
new entities
-
On
27.4.2022
the Company
proceed
to
the establishment
of
“Galaxy
Cosmos Mezz
Plc”
(initially established
as
“Galaxy
Mezz Ltd”)
incorporated in
Cyprus with
an initial
share capital
of €
85. On
15.7.2022 the
Company proceeded
to a share
capital
increase
in
its
subsidiary
through
a)
a
distribution
in
kind
of
44%
of
the
mezzanine
and
junior
notes
of
the
corresponding transactions
of €
22,496 and
b) an
increase of
€
894
through cash
and
issue of
new common
shares.
c.
Granting of
stock option
rights
In
the
context
of
the
implementation
of
the
stock
option
plan
of
the
Bank
for
employees
of
the
Bank
and
the
Group,
the
Company’s
acquisition
cost of
its
subsidiaries,
Alpha
Bank
S.A. and
Alphalife AEAZ
was
increased
by
a
total amount
of
€
2,015
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 option
rights represents
an
indirect capital
contribution.
Decreases in
subsidiaries amounting
to €
23,794 relate
to:
-
Impairment
of
€
290
in
subsidiary
Alpha
Group
Jersey
Ltd
recognized
in
the
first
half
of
2022.
This
impairment
amount,
estimated based
on
its fair
value, has
been classified
in the
fair value
hierarchy of
Level 3,
since the
Company used
observable market
prices for
such a
measurement. In
December 2022,
the liquidation
of the
subsidiary was
completed
which
had
a
book
value
of
€
29.
-
Transfer
to Alphalife
A.E.A.Z. of
ten (10)
ordinary, nominal,
voting, non
listed shares,
with an
acquisition cost
of one
Euro and
twenty
cent (€
1.20)
for
a
total
amount
of
twelve Euro
and
fifty cents
(€
12.50)
held by
the Company
in
the share
capital
of
the Bank
and which
represent approximately the
0.00000002 %
of the
shares of
Bank’s share
capital.
-
Transfer
of
shares of
Galaxy Cosmos
Mezz Plc
owned by
the Company
amounted
to €
23,474
to the
shareholders of
the
Company.
The
aforementioned
process
was
concluded
in
October 2022
and
as
a
result
Galaxy
Cosmos
Mezz
Plc
seized
to
be
a
subsidiary of
the
Company.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
403
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Key
financial
information
of
investments
Subsidiaries
Balance
31.12.2022
1.1 - 31.12.2022
Name
Country
Assets
Equity
Liabilities
Turnover
Profit/(Loss)
before taxes
Company
’s
ownership
interest
%
31.12.2022
Banks
1.
Alpha Bank
S.A
Greece
72,145,641
6,252,583
65,893,058
2,437,538
619,641
100.00
Insurance
1. Alpha
Insurance
Agents
S.A
Greece
1,405
1,248
157
589
469
100.00
2. Alphalife A.A.E.Z.
Greece
777,951
31,728
746,223
16,032
12,100
99.92
Special purpose
and holding
entities
1. Alpha Group
Jersey Ltd
Jersey
(16)
(146)
18.
Property
plant
and
equipment
Land
and
Buildings
Equipment
Rights-of-
use on
fixed
assets
Total
Balance
1.1.2021
Acquisition
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
Acquisition
Cost
23
23
Accumulated
depreciation
and impairment losses
(16)
(16)
Net book value
1.1.2022
-
7
-
7
Depreciation charge
for the year
(2)
(2)
Net book value 31.12.2022
-
5
-
5
Balance
31.12.2022
Acquisition
Cost
23
23
Accumulated
depreciation
and impairment losses
(18)
(18)
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.
The
movement
of
property,
plant
and
equipment
for
2021
includes
depreciations
of
€
15,837
which
relate
to
discontinued
operations.
The
impairments/
reversals
of
impairments
relate
to
discontinued
operations.
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
used
for
the
fair
value
measurement
are
related
to
properties
with
similar
characteristics
and
therefore
encompass
a
wide
range
of
unobservable
market
inputs.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
404
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
19.
Goodwill
and
other
intangible
assets
Software
Banking rights
Goodwill
Other
Intangible
Total
Balance
1.1.2021
Acquisition
cost
853,355
1,785
237
138,339
993,716
Accumulated
depreciation
and impairment losses
(399,004)
(1,785)
(119,469)
(520,258)
Net book value
1.1.2021
454,351
237
18,870
473,458
Additions
14,504
14,504
Disposals / Write-offs
(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
Acquisition
cost
440
237
677
Accumulated
depreciation
and impairment losses
(307)
(307)
Net book value
1.1.2022
133
237
370
Amortization
charge for the year
(41)
(41)
Net book value 31.12.2022
92
237
329
Balance
31.12.2022
Acquisition
cost
440
237
677
Accumulated
depreciation
and impairment losses
(348)
(348)
For
the
year
2021,
the
above
movement
includes
an
amount
of
€
22,850
which
relates
to
amortizations
from
discontinued
operations. All
impairments for
the year
2021 relate
to discontinued
operations.
20.
Other
assets
31.12.2022
31.12.2021
Tax advances and withholding taxes
21,540
72,864
Prepaid
expenses
220
879
Employee
advances
9
9
Accrued
income
8,801
1,961
Other
97
215
Total
30,667
75,928
Change
in
“tax
advances
and
withholding
taxes”
is
mainly
attributed
to
the
refund
from
Greek
State
of
the
year
2021
income
tax
return
amounting
to €
59,557.
“Accrued
income”
includes
the accrued
commissions from
insurance brokerage.
“Accrued
income”
includes
an
amount
of
€
4,857
(31.12.2021:
€
0)
which
derives
from
the
performance
bonus
for
the
sale
of
insurance
products
based
on
the relevant
agreement. More
specifically, this
balance
represents the
income
that
is associated
with the
performance obligations that
have been
fulfilled up to
31.12.2022. The
Company’s right to
the total consideration
becomes
unconditional
after
10
years
from
the
date
of
the
signing
of
the
agreement
and
therefore,
it
constitutes
a
variable
consideration
which is
subject to
limitations in
accordance
with the
provisions of
IFRS 15.
However,
it is
considered
that there
is
no
increased probability
that
a
significant reversal
of
the recognized
accumulated income
will occur.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
405
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
LIABILITIES
21.
Debt
securities
in
issue
and
other
borrowed
funds
Following the
hive down
of the
banking sector
the Company retained
total liabilities that
are related
to the
subordinated
notes
and hybrid
titles.
i.
Liabilities
from
securitization
of
loans
On 30.4.2022
the Company,
in the
context of
securitization of non
performing loans
portfolios, transferred
loans to
the
special
purpose
entity
Galaxy
III
Funding
Designated
Activity Company.
In
specific,
the
special
purpose
entity
issued
a
senior
note
of
€
946,538
nominal
value,
which
was
held
by
the
Company.
Due
to
the
fact
that
the
Company
holds
the
notes,
the
liability
of
the
aid
securitization
is
not
included
in
“Debt
securities
in
issue
and
other
borrowed
funds”
as
of
31.12.2021.
On 8.3.2022
the Bank
repurchased the
loans that
had been
transferred to
the special
purpose entity
Galaxy
III Funding
Designated
Activity Company
and
following
their desecuritization
the respected
liability seized
to exist.
ii.
Subordinated
Notes
(Lower
Tier
II,
Upper
Tier
II)
In
the
context
of
the
Euro
Medium
Term
Note
Program
of
€
15
billion,
the
Company
issued
on
13.2.2020,
prior
to
the
hive-
down,
subordinated
notes
with
a
nominal
value
of
€
500
million
and
maturity
date
13.2.2030,
with
redeemed
option
in
five
years
and
with
a
fixed
annual
interest
rate
of
4.25%
until
13.2.2025,
adjusted
to
a
new
interest
rate
effective
from
the
date
of
adjustment
until
maturity
and
which
is
determined
on
the
basis
of
the
five-year
swap
rate
plus
a
margin
of
4.504%.
On 11.3.2021
Alpha Bank
S.A., prior
to
the hive-down,
proceeded
to a
new
issue of
subordinated debt
with nominal
value
of
€
500
million
and
maturity
date
11.6.2031,
with
redeemed
option
right
between
5
and
5.25
years
and
an
initially
fixed
annual
interest
rate
of
5.5%
until
11.6.2026,
adjusted
to
a
new
interest
rate
effective
from
the
date
of
cancellation
until
maturity,
which
is
determined
on
the
basis
of
the
five-year
swap
rate
plus
a
margin
of
5.823%.
On
27.4.2022
the
subordinated
note
with
a
nominal
value
of
€
0.65
million,
with
no
maturity
date
and
a
floating
interest
of
3m
Euribor +1,5%
was fully
repaid.
Balance
1.1.2022
1,029,096
Changes for the period
1.1 - 31.12.2022
Maturities / Repayments
(49,403)
Accrued
interests
49,231
Balance
31.12.2022
1,028,924
Detailed information
for
the abovementioned
issuances are
provided in
the following
table:
Currency
Interest Rate
Maturity
Nominal value
31.12.2022
31.12.2021
Alpha Services
and Holdings
S.A
Euro
3m
Euribor+1.5%
Indefinite
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
500,000
Total
1,000,000
1,000,650
iii. Other
borrowed
funds
On
18.2.2022,
the
Company’s
subsidiary
Alpha
Group
Jersey
Ltd
repaid
the
outstanding
nominal
amount
of
€
15.5
million
of
the Series
B CMS-Linked, without
accumulated dividend, non-voting
preferred securities “Hybrid
Securities”, which were
under
subordinated guarantee
by
the
Company.
The
Company has
fully repaid
its obligation
to
Alpha
Group
Jersey Ltd.
Balance
1.1.2022
15,307
Changes
for the period
1.1 – 31.12.2022
Maturities / Repayments
(16,047)
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
406
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Accrued
interests
506
Financial
gains/(losses)
234
Balance
31.12.2022
-
Detailed information
for
the abovementioned
issuances are
provided in
the following
table:
Held by
third parties
Issuer
Currency
Interest Rate
Maturity
Nominal value
31.12.2022
31.12.2021
Alpha Services
and Holdings
S.A
Euro
4 x (CMS10
-CMS2),
min
3.25%, max
10%
30.12.2045
15,542
Total
-
15,542
The
following
table presents
the changes
in debt
securities and
other
borrowing
funds by
separately disclosing
the cash
and
non-cash flows.
Cash flows
from
financing activities
1.1.2022
Cash Flows
Non
cash
flows
31.12.2022
New issues,
maturities,
repayments
Accrued
interest
Foreign
exchange
differences
Fair
value
change
Other
Subordinated loans (ii)
1,029,096
(49,403)
49,231
1,028,924
Other borrowed funds (iii)
15,307
(16,047)
506
234
-
Cash flows
from
financing activities
1.1.2021
Cash Flows
Non
cash
flows
31.12.2021
New issues,
maturities,
repayments
Accrued
interest
Foreign
exchange
differences
Fair
value
change
Hive
down
of banking
sector
Covered bond
loans (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
The
above
cash
flows
are
included
in
the
net
cash
flows
from
financing
activities
in
the
cash
flow
statement
of
the
year.
22.
Liabilities for
current income tax
and other taxes
31.12.2022
31.12.2021
Income tax
31,630
Other taxes
15
209
Total
15
31,839
23.
Employee
defined
benefit
obligations
Total amounts
recognized in
the financial
statements for
defined benefit
obligations are
presented in
the table
below:
Balance
Sheet
-Liabilities
31.12.2022
31.12.2021
Bank employee's
indemnity
provision due to retirement
in accordance
with Law 2112/1920
16
30
Total Liabilities
16
30
Total of debt securities in issue
and other borrowed funds, not held
by the Bank, as at
31.12.2022
1,028,924
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
407
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Income
Statement
Expenses/
(Income)
From 1 January to
31.12.2022
31.12.2021
Bank employee's
indemnity
provision due to retirement
in accordance
with Law 2112/1920
96
1,790
Savings program guarantee
39
Plans for Diners (pension and health care)
21
Total
96
1,850
In
2021
an
amount
of
€
1,842
related
to
defined
benefit
obligations
from
discontinued
operations.
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.
The
amounts recognized
in
the balance
sheet are
as
follows:
31.12.2022
31.12.2021
Present value of defined obligations
16
30
Liability
16
30
The amounts
recognized in
the income
statement are
as
follows:
From 1 January to
31.12.2022
31.12.2021
Current
service
cost
8
643
Net interest
cost resulted
from net
asset/liability
7
Settlement/Curtailment/Termination
(gain)/loss
88
1,140
Total (included in staff costs)
96
1,790
The movement
in the
present value
of defined
obligation is
as follows:
2022
2021
Opening
Balance
30
24,725
Current
service
cost
8
643
Interest
Cost
7
Benefits paid
(91)
(1,355)
(Gain)/Loss
from
Settlement/Curtailment/Termination
88
1,140
Hive-down of banking sector
(25,147)
Actuarial (gain)/loss
– financial assumptions
(4)
Actuarial (gain)/loss – experience
assumptions
(15)
17
Closing
Balance
16
30
The
amounts recognized
in equity
during
the year
are analyzed
as
follows:
31.12.2022
31.12.2021
Change in liability gain/(loss)
due to
changes in financial and demographic
assumptions
4
Change in liability gain/(loss) due to experience adjustments
15
(17)
Total actuarial
gain/(loss) recognized directly in
Equity
19
(17)
The movement
in the
defined obligation
liability is as
follows:
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
408
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
31.12.2022
31.12.2021
Opening
Balance
30
24,725
Benefits paid
(91)
(1,355)
Loss/(Gain) recognized in Income Statement
96
1,790
Loss/(Gain)
recognized
in equity
(19)
17
Hive-down of banking sector
(25,147)
Closing
Balance
16
30
b.
Savings
plan
guarantee
For employees
hired by
the Company
prior hive
down
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
by
Law
2084/1992
and
the
Cabinet
Act
2/39350/0022/2.3.99.
Total
defined
benefit
obligation
as
of
the
hive
down
date
amounted
to
€
2,800
transferred
to
the
Bank
and
thus
no
such
obligation exists as of
31.12.2022.
c.
Supplementary
Pension
Fund
and Healthcare
of Diners
The
Company
guarantees
from
30.9.2014,
date
of
acquisition
of
Diners
Club
Greece
S.A., 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.
Net
obligation
as
of
the
hive
down
date
amounted
to
€
8,969
transferred
to
the
Bank
and
thus
no
such
obligation
exists
as
of
31.12.2022.
Valuation
results depend
on
the actuarial
assumptions used
in
the actuarial
studies. The
principal actuarial
assumptions used
for
the abovementioned
defined benefit
plans are
as follows:
31.12.2022
31.12.2021
Discount rate
3.79%
0.59%
Inflation
rate
2.50%
2.00%
Future salary growth
2.60%
2.00%
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:
31.12.2022
31.12.2021
Bank employee's
indemnity
provision due to retirement
in accordance
with Law 2112/1920
8.4
5.2
The table
below presents
the sensitivity analysis
of the
financial assumptions
with regards
to the
obligation of
the above
programs:
Percentage
variation
in liability (%)
Increase in discount rate
by 0.5%
(3.9%)
Decrease in discount
rate by 0.5%
4.1%
Increase in
future salary
growth
rate
by
0.5%
4.1%
Decrease in
future salary
growth
rate
by
0.5%
(3.9%)
Retirement compensation
to employees under
Law
2112/1920 is
an unfunded
benefit.
24.
Deferred tax liabilities
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
409
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
31.12.2022
31.12.2021
Liabilities
614
24
Total
614
24
Deferred
tax liabilities
are analyzed
as follows:
Balance
1.1.2022
Recognised
in
Balance
31.12.2022
Income
Statement
Equity
Write-offs and depreciation
of fixed assets and leases
(24)
(2)
(26)
Other temporary differences
-
(588)
(588)
Total
(24)
(590)
-
(614)
Balance
1.1.2021
Recognised
in
Hivedown
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)
-
Employee defined benefit 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)
As at 31.12.2021 the Company did not recognize a deferred
tax asset of € 231,627 on tax losses
resulting mainly from the transfer of 51% of mezzanine and junior subordinated
notes of Galaxy
NPE portfolio.
In addition, as at 31.12.2021 the Company did not
recognize a deferred tax asset of € 267,527
deriving mainly from the valuation of the 44% of mezzanine
and junior subordinated notes of Galaxy
securitization retained by the Company, on the basis
that there won’t be sufficient future taxable
profits to offset them. Out of the above non recognized deferred tax
assets, an amount of € 257,262
realized as a loss since in July 2022 the aforementioned notes were
contributed in kind for the
purpose of the share capital increase of the Company Galaxy Cosmos
Mezz Plc.
As at 31.12.2022 the deferred tax asset on tax losses that has not been
recognized by the
Company amounts to € 486,805 and is presented in the following table
in the following table by
maturity year.
Offsetting period
Deferred tax
assets
2026
231,627
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
410
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
2027
255,178
Total
486,805
As at
31.12.2022 the
Company has
not recognized
Deferred
Tax
Assets amounting to
€
7,896 which
stems from
the valuation
of bonds.
This amount
mainly concerns
valuations of
bonds with
a maturity
of less
than one
year.
25.
Other liabilities
31.12.2022
31.12.2021
Suppliers
259
4,976
Accrued Expenses
13,662
7,292
Liabilities to
third parties
24
24
Total
13,945
12,292
Accrued expenses
of
the current
year include
mainly an
amount of
€
6,093
relating to
accrued expenses
for
Galaxy
transactions and
an amount
of
€
3,653
relating to
Bancassurance expenses.
EQUITY
26.
Share
Capital
Movement from 1.1.
to 31.12.2022 (number
of shares)
Open Balance
as
at 1.1.2022
Shares
from
Share
Capital
Increase
through
the
stock
options exercise
Shares from
Share
Capital
Increase
through
cash
Balance as
at
31.12.2022
Share
Capital
paid
on
31.12.2022
Number of ordinary shares
2,345,981,097
2,226,687
-
2,348,207,784
680,980
The
Company’s
share
capital
as
at
31.12.2022
amounts
to
€
680,980
(31.12.2021:
€
703,794)
divided
into
2,348,207,784
(31.12.2021: 2,345,981,097) ordinary,
registered shares with voting
rights with a
nominal value of €
0.29 each (31.12.2021:
€
0.30)
In the
context of
Stock Options
Plan through
which stock
option rights
could be
granted to
management and
personnel of
the
Company
and
the Group,
in
January 2022,
1,430,168 options
rights vested
and
exercised
from
the beneficiaries,
in
accordance
with Performance Incentive Program for
the years
of
2018, 2019
and
2020.
As a
result of
the above,
1,430,168 ordinary,
registered, voting
shares with
nominal value
of €
0.30 were
issued in
February
and
the Share
Capital of
the
Bank increased
by
€
429.
Moreover,
the
Ordinary
General Meeting
of
the
Shareholders on
22.7.2022
approved, among
others,
the decrease
of
its share
capital
in kind,
by
decreasing the
nominal value
of each
ordinary share
issued by
the Company
by
€
0.01 and
by
distributing to
its
Shareholders
shares
issued
by
the
subsidiary
company
under
the
corporate
name
“Galaxy
Cosmos
Mezz
Plc”
(initially
named
“Galaxy Mezz
Ltd”),
with a
value corresponding
to the
value of
the share
capital decrease,
i.e. 86,941,158
common shares
with
a
nominal
value
of
€
0.27
each,
which
will
be
distributed
to
the
Company’s
shareholders
based
on
a
ratio
of
1
share
of
Galaxy
Cosmos Mezz
Plc for
every 27
shares
of
the Company.
As
a
result, share
capital of
the
Company decreased
by
€
23,474.
In
September,
796,519 stock
options rights
vested and
were exercised
from the
beneficiaries, in
the
context of
the
Performance
Incentive Program
for 2021.
As a
result in
November 2022,
796,519 ordinary,
registered, voting
shares with
nominal value
of
€
0.29
each
were
issued
and
the
Share
Capital
of
the Bank increased by €
231.
Share
capital
within
2022
decreased
in
total
by
€
22,814.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
411
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
27.
Share
premium
Balance as at 1.1.2022 as restated
5,257,622
Increase in Share Capital - share premium through
exercise of stock options
1,492
Balance as at 31.12.2022
5,259,114
Following
the share
capital increase
in January
and
September,
as
described
in note
26 above,
from
the exercise
of
stock
option rights, share
premium increased by
€
1,043 and
€ 450
respectively resulting
from the
fair value
measurement, οn
the
date of
awarding
to the
senior management
personnel, of
the option
rights, which
were exercised
by
the beneficiaries
during
the exercise
period.
28.
Special
Reserve
from
Share
Capital
Decrease
2022
2021
Balance as at 1.1 as restated (note 38)
6,104,890
6,104,890
Changes for the year 1.1 -
31.12
Offsetting of Reserves
with Special Reserve
from Share Capital
Decrease in accordance
with Law 4548/2018
(5,808,466)
Balance as at 31.12
296,424
6,104,890
According
to
art
31
par.2
of
Greek
Law
4548/2018,
share
capital
decrease
is
permitted
for
the
formation
of
special
reserve.
This
special
reserve
can
be
used
only for
the
purpose
of
its
capitalization
or
for
absorbing
accumulated
losses
of
the
Company.
The
Company
had
established
in
prior
periods
a
special
reserve
of
€
6,104,890
resulting
from
share
capital
decreases.
For the
purpose
of
better
presentation,
this
reserve
is
presented
as
a
separate
line
in
Equity.
The
Company
can
utilize
this
special
reserve
exclusively
either
for
its
recapitalization
or
for
offsetting
lossesThe
Ordinary
General
Meeting
of
the
Shareholders
held
on 22.7.2022
approved,
among others,
the offsetting
of €
6,228,891
of “Retained
earning”. This
offsetting
performed
through
utilization
of
the
Company’s
reserves
with
the
following
priority:
“Statutory
Reserve”
of
€
420,425,
“Special
Reserve
from
Share
Capital
Decrease”
of €
5,808,466.
29.
Reserves
Reserves
are
analyzed
as
follows:
a.
Statutory
reserve
2022
2021
Balance as at
1.1
420,425
420,425
Changes for the year 1.1 -
31.12
Offsetting of Reserves
with Statutory reserve
(420,425)
Balance as at 31.12
-
420,425
According
to
art.158
of
L.4548/2028,
at
least one
twentieth
(1/20)
is
deducted
from
the
annual
net
profit
for
the
formation
of
regulatory reserve.
This requirement
seizes once
regulatory reserve
reaches the
one
third (1/3)
of the
share capital.
The article
provides
that
this
reserve
can
be
utilized
exclusively
prior
to
any
dividend
distribution
in
order
to
offset
prior
year
accumulated
results. Movement for
theyear 2022
is presented
in note
28.
b.
Reserve
of
investment
securities
measured
at
fair
value
through
other
comprehensive
income
2022
2021
Opening
Balance
1.1
-
128,737
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)
Fair value of securities measured
at fair value through
other comprehensive
income transf
erred to profit or loss, after
income tax
(42,319)
Hive-down of banking sector
(66,282)
Balance
31.12
-
-
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
412
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
The
movements for
the year
2021 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
the
Income
Statement,
amounts
(before
income
tax)
to
a
debit
amount
of
€
28,361
and
a
debit
amount
of
€
59,603
respectively.
c. Cash
flow
hedge reserve
recognised
directly in equity
2022
2021
Opening
Balance
1.1
-
(223,671)
Changes for the year 1.1 - 31.12
Cash flow hedging reserve after income tax
4,286
Hive-down of banking sector
219,385
Balance
31.12
-
-
d. Other reserves
2022
2021
Opening
Balance
1.1
(264)
(264)
Changes for the year 1.1 - 31.12
Reclassification
788,777
-
Balance
31.12
788,513
(264)
The
Shareholders Ordinary
General Meeting
of 22.7.2022
decided for
the discrete
monitoring and
transfer
of an
amount of
€
788,777 of
dividend of
subsidiaries of
previous
years from
Retained Earnings
to other
reserve accounts.
e.
Reserve
valuation
for
stock
options
rights
to
employees
2022
2021
Opening
Balance
1.1
3,083
1,667
Changes for the year 1.1 - 31.12
Exercise of
rights
(1,597)
(1,667)
Reserve valuation
for stock options right to employees
2,014
3,083
Balance
31.12
3,500
3,083
For
further analysis
please
see Note
36.
Total
reserves
(a+b+c+d+e)
792,013
423,244
30.
Retained
earnings
Since
in
the
year
2021
there
were
no
distributable
profits,
in
accordance
with
article
159
of
Codified
Law
4548/2018,
the
Ordinary
General Meeting
of
Shareholders on
22.7.2022
decided the
non-distribution
of
dividends
to
ordinary
shareholders of
the Company.
Considering
the setting
off and
the reclassification
of
intercompany dividends
as disclosed
in notes
28 and
29, retained
earning
were
formed
in
accumulated
losses
amount
to
€
773,944
as
at
31.12.2022.
ADDITIONAL
INF
ORMATION
31.
Contingent
liabilities
and
commitments
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
413
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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.
As
of
31.12.2022
there
are
no
claims
or
pending
litigation
against
the
Company
that
are
expected
to
have
a
significant
effect
on
the Company’s
Equity or
operation.
b. Tax
issues
According
to
art.65A
of
L.4174/2013
for
the
years
2011
the
statutory
auditors
and
auditing
firms
that
conduct
mandatory
audits are
required to
issue an
annual tax
compliance report
regarding the
application of
the tax
provisions in
certain tax
areas.
Based
on
art.56
of
L.
4410/3.8.2016
tax
compliance
reports
is
optional
for
the
years
from
1.1.2016
and
thereon.
Nevertheless,
the
intention
of
Alpha
Services
and
Holdings
S.A.
is
to
continue
receiving
such
tax
compliance
report.
Alpha
Services and
Holdings S.A.
has been
audited by
the tax
authorities for
the years
up
to and
including 2010
as
well as
for
the year
2014. Years
2011 to
2016 are
considered as
closed, in
accordance with
the Ministerial
Decision
1208/20.12.2017 of
the Independent
Public Revenue
Authority. For
the years
2011-2021 the
Company has
received
tax
compliance
report,
according
to
the
article
82
of
Law
2238/1994
and
the
article
65A
of
Law
4174/2013,
with
no
reservation. Tax
audit for
the tax
compliance report
for
the year
2022
is in
progress.
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
statutory auditor
and they
have received
an unqualified
tax compliance
report. 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.
c. Off
Balance Sheet Commitments
As of
31.12.2022 the
Company has
no off-balance
sheet commitments. On
4.2.2022 the
Company entered
into an
open
revolving
facility
with
the
Bank
for
an
amount
up
to
€
50
mil,
with
interests
rate
of
EUR3M
+
2.05
and
duration
of
each
loan
facility
up
to
6
months.
As
at
31.12.2022,
the
Company
has
not
made
use
of
the
loan
facility.
d. Pledged
assets
The
entity
did
not
have
any
pledged
assets
as
at
31.12.2022.
32.
Risk
Management
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
414
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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.
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
equal
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
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
415
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
exposure
to
credit
risk”
column.
31.12.2022
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
7,648
7,648
Advances
to
customers:
- Advances to customers
measured
at amortised cost
339
339
Advances to customers
measured
at fair value through
profit or loss
Total
339
339
Securities measured
at amortised cost:
Securities measured
at amortised cost
1,011,648
4,406
1,007,242
Total
1,011,648
4,406
1,007,242
Securities measured
at fair value through other comprehensive
income:
- Securities measured
at fair value through other comprehensive
income
Total
-
-
-
Securities measured
at fair value through profit
or loss:
-
Securities measured at
fair
value through
profit or
loss
Total
-
-
-
Total amount of balance sheet items
exposed to credit risk (a)
1,019,634
4,406
1,015,228
Other balance sheet
items not exposed
to credit risk
6,282,873
6,282,873
Total
Assets
7,302,507
4,406
7,298,101
Total amount of balance sheet items
exposed to credit risk (a)
1,019,634
4,406
1,015,228
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
25,705
25,705
Loans and advances to customers:
Loans measured
at amortised cos
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 amortised
cost
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
416
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
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
31.12.2022 and
31.12.2021 by
IFRS 9
Stage and
credit rating
31.12.2022
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-
Lower than BBB-
7,648
7,648
Unrated
Carrying amount (before
allowance
for
expected credit losses)
7,648
-
-
-
7,648
Allowance for expected credit losses
Net carrying amount
7,648
-
-
-
7,648
Value of collaterals
Securities measured at
amortized cost
AAA
AA+ to AA-
A+ to
A-
BBB+ to
BBB-
Lower than BBB-
1,011,648
1,011,648
Unrated
Carrying amount (before
allowance
for
expected credit losses)
1,011,648
-
-
-
1,011,648
Allowance for expected credit losses
(4,406)
(4,406)
Net carrying amount
1,007,242
-
-
-
1,007,242
Value of collaterals
31.12.2021
Στάδιο
(Stage)
1
Στάδιο
(Stage)
1
Στάδιο
(Stage)
1
Αποµειωµένα
κατά
την
αρχική
τους
αναγνώριση
(POCI)
Σύνολο
Balances with
central 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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
417
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Net carrying amount
25,705
-
-
-
25,705
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
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.
2022
2021
Securities measured at fair value through profit or loss
AAA
AA+ to AA-
A+ to
A-
BBB+ to
BBB-
Lower than BBB-
Unrated
22,537
Carrying amount (before
allowance
for
expected credit losses)
-
22,537
Value of collaterals
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 31.12.2022
and 31.12.2021.
31.12.2022
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(POCI)
Total
Balance
31.12.2022
Carrying amount (bef
ore allowance for expected credit losses)
7,648
7,648
Allowance for expected credit losses
Net carrying amount 31.12.2022
7,648
-
-
-
7,648
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(POCI)
Total
Balance
31.12.2021
Carrying amount (bef
ore allowance for expected credit losses)
25,705
25,705
Allowance for expected credit losses
Net carrying amount 31.12.2021
25,705
-
-
-
25,705
Investment
Securities
Investment
securities
measured
at
amortized
cost
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
418
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
The
following
table presents
the classification
of
securities per
IFRS 9
Stage and
issuer’s
category as
of 31.12.2022
and
31.12.2021:
31.12.2022
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(POCI)
Total
Other
securities
Carrying amount (bef
ore allowance for expected credit losses)
1,011,648
1,011,648
Allowance for expected credit losses
(4,406)
(4,406)
Net value
1,007,242
-
-
-
1,007,242
Total securities
measured at amortized cost
Carrying amount (before
allowance
for
expected credit losses)
1,011,648
1,011,648
Allowance
for
expected credit
losses
(4,406)
-
-
-
(4,406)
Net value
1,007,242
--
-
-
1,007,242
31.12.2021
Stage 1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(POCI)
Total
Other
securities
Carrying amount (bef
ore 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
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.
31.12.2022
Due from
banks
Investment securities measured at
fair value through
other
comprehensive
income
Securities measured
at amortized
cost
Stage1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(POCI)
Total
Stage1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(POCI)
Total
Stage1
Stage 2
Stage 3
Purchased
or
originated
credit
impaired
(POCI)
Total
Balance
1.1.2022
25,705
-
-
-
25,705
-
-
-
-
-
1,004,725
-
-
-
1,004,725
Changes
for the year
1.1 -
31.12.2022
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
-
-
Derecognition
of
financial assets
-
-
-
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
419
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Interest on
carrying
amount
before
impairment
-
-
53,711
53,711
Changes due to
modifications
that did not
result in
derecognition
-
-
-
Write-off
-
-
-
Repayments,
foreign exchange
differences and
other movements
(18,057)
(18,057)
-
(46,788)
(46,788)
Hivedown of
banking sector
-
-
-
Balance
31.12.2022
7,648
-
-
-
7,648
-
-
-
-
-
1,011,648
-
-
-
1,011,648
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
-
-
-
New financial
assets originated
5,659,643
5,659,643
1,042,150
1,042,150
1,297,405
1,297,405
Derecognition
of
financial assets
-
(705,081)
(4,228)
(709,309)
(22,906)
(22,906)
Interest on
carrying
amount
before
impairment
-
10,802
240
11,042
49,035
24
49,059
Changes due to
modifications
that did
not result
in derecognition
-
-
-
Write-off
-
-
-
Repayments,
foreign exchange
differences and
other movemen
ts
(4,386,043)
(4,386,043)
(667,276)
(502)
(667,778)
(210,706)
(23)
-
-
(210,729)
Απόσχιση
τραπεζικού
κλάδου
(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
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.
31.12.2022
Due from
banks
Investment securities measured at
fair value through
other
comprehensive
income
Securities measured
at amortized
cost
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
420
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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
1.1.2022
-
-
-
-
-
-
-
-
-
-
11,665
11,665
Changes
for the year
1.1 -
31.12.2022
-
-
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)
-
-
Change
in credit
risk
parameters
(c)
-
-
(7,259)
(7,259)
Allowance
for expected
credit
losses
receivables/
securities
(a)+(b)+(c)
-
-
(7,259)
(7,259)
Derecognition
of
financial assets
-
-
Foreign exchange
and other
movements
-
-
Hivedown of
banking sector
-
-
Closing
Balance
31.12.2022
-
-
-
-
-
-
-
-
-
-
4,406
4,406
Gain
from
impairment
of
debt
securities
and
other
securities
at
amortized
cost
in
2022,
is
mainly
attributed
to
the
reversal
of
expected
credit
losses
of
subordinated
debt
issued
by
the
Bank
and
owned
by
the
Company,
as
a
result
of
the
credit
rate
upgrade
of
the
Bank
in
2022.
31.12.2021
Due from
banks
Investment securities measured at
fair value through
other
comprehensive
income
Securities measured
at amortized
cost
Στάδιο
(Stage)
1
Στάδιο
(Stage)
2
Στάδιο
(Stage)
3
Απαιτήσεις
αποµειωµένες
κατά
την
αρχική
τους
αναγνώριση
(POCI)
Σύνολο
Στάδιο
(Stage)
1
Στάδιο
(Stage)
2
Στάδιο
(Stage)
3
Απαιτήσεις
αποµειωµένες
κατά
την
αρχική
τους
αναγνώριση
(POCI)
Σύνολο
Στάδιο
(Stage)
1
Στάδιο
(Stage)
2
Στάδιο
(Stage)
3
Απαιτήσεις
αποµειωµένες
κατά
την
αρχική
τους
αναγνώριση
(POCI)
Σύνολο
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
-
-
-
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
421
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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)
Balance
31.12.2021
-
-
-
-
-
-
-
-
-
-
11,665
-
-
-
11,665
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.
The
following
table
presents
the Interest
Rate Repricing
Analysis of
both
Assets and
Liabilities,
financial and
non
financial.
31.12.2022
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
Due from Banks
7,648
7,648
Loans and advances to customers
339
339
Trading
securities
-
Measured at
fair
value through
other comprehensive income
-
Measured at
fair
value through
profit and loss
74
74
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
422
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
- Measured at amortized
cost
490,474
516,768
1,007,242
Investments in subsidiaries
6,251,797
6,251,797
Investment properties
Property, plant and equipment
5
5
Goodwill and other intangible
assets
329
329
Deferred tax assets
Other
Assets
30,667
30,667
Assets held for sale
Total
Assets
7,722
490,813
516,768
-
-
-
6,282,798
7,298,101
LIABILITIES
Debt securities in issue and other
borrowed funds
517,276
511,648
-
1,028,924
Liabilities for current
income tax and
other taxes
15
15
Deferred tax liabilities
614
614
Employee defined benefit
obligations
16
16
Other Liabilities
13,945
13,945
Provisions
Total Liabilities
-
517,276
511,648
-
-
-
14,590
1,043,514
EQUITY
Share capital
680,980
680,980
Share premium
5,259,114
5,259,114
Special Reserve from Share Capital
Decrease
296,424
296,424
Reserves
792,013
792,013
Retained
earnings
(773,944)
(773,944)
Total
Equity
-
-
-
-
-
-
6,254,587
6,254,587
Total Liabilities and
Equity
-
517,276
511,648
-
-
-
6,269,177
7,298,101
Open
Exposure
7,722
(26,463)
5,120
-
-
-
13,621
Cumulative
Exposure
7,722
(18,741)
(13,621)
(13,621)
(13,621)
(13,621)
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
Due from Banks
25,705
25,705
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
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
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
423
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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)
-
-
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
portfolio,
Assets
and
Liabilities
include
fixed
rate
securities.
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
Medium term 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.
The
table
below presents
the
Liquidity Gap
Analysis for
all Assets
and
Liabilities.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
424
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
31.12.2022
< 1 month
1 to 3
months
3 to 6
months
6 to 12
months
> 1 year
Total
ASSETS
Due from Banks
7,648
7,648
Loans and advances to customers
339
339
Investment
securities:
-
-
Measured at
fair
value through
other
comprehensive
income
74
74
-
Measured at
fair value
through profit
and loss
- Measured at amortized
cost
1,007,242
1,007,242
Investments in subsidiaries
6,251,797
6,251,797
Investment properties
-
Property, plant and equipment
5
5
Goodwill and other intangible
assets
329
329
Deferred tax assets
-
Other
Assets
30,667
30,667
Assets held for sale
-
Total
Assets
7,722
339
-
-
7,290,040
7,298,101
LIABILITIES
Due to customers
-
Debt securities in issue and other borrowed funds
1,028,924
1,028,924
Liabilities for current income
tax and other taxes
15
15
Employee defined benefit obligations
16
16
Deferred tax liabilities
26
588
614
Other Liabilities
13,945
13,945
Provisions
-
Total Liabilities
-
-
-
41
1,043,473
1,043,514
EQUITY
Share capital
680,980
680,980
Share premium
5,259,114
5,259,114
Special Reserve from
Share Capital Decrease
296,424
296,424
Reserves
792,013
792,013
Retained
earnings
(773,944)
(773,944)
Total
Equity
-
-
-
-
6,254,587
6,254,587
Total Liabilities and
Equity
-
-
-
41
7,298,060
7,298,101
OPEN
LIQUIDITY
GAP
7,722
339
(41)
(8,020)
CUMULATIVE
LIQUIDITY
GAP
7,722
8,061
8,061
8,020
31.12.2021
< 1 month
1 to 3
months
3 to 6
months
6 to 12
months
> 1 year
Total
ASSETS
Due from Banks
25,705
25,705
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
993,060
993,060
Investments in subsidiaries
6,160,102
6,160,102
Investment properties
-
Property, plant and equipment
7
7
Goodwill and other intangible
assets
370
370
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
425
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Deferred tax assets
-
Other
Assets
75,928
75,928
Assets held for sale
52,959
Total
Assets
48,375
52,959
-
18,446
7,229,467
7,349,247
LIABILITIES
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 liabilities
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
31.12.2022
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
Debt securities in issue and other
borrowed funds
1,028,924
(4,140)
(7,880)
(12,154)
(24,575)
(1,142,231)
(1,190,981)
Other liabilities
13,945
(13,945)
(13,945)
Total
1,042,868
(4,140)
(7,880)
(12,154)
(24,575)
(1,156,176)
(1,204,925)
Off Balance
sheet items
Financial
guarantees
Total off
Balance sheet items
-
-
-
-
-
-
-
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
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)
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
-
-
-
-
-
-
-
32.4
Fair value
of financial
assets and liabilities
Hierarchy
of financial
instruments
that are
not measured
at fair
value
31.12.2022
Level 1
Level 2
Level 3
Total fair value
Total
Carrying
amount
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
426
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Financial
Assets
Loans and advances to customers
339
339
339
Investment securities
- Measured at amortized
cost
807,758
807,748
1,007,242
Financial liabilities
Due to customers
Debt securities in issue and other borrowed
funds
423,702
420,030
843,732
1,028,924
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
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.
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
non observable
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.
Fair
value
hierarchy
financial
assets
and
liabilities
measured
at fair
value
31.12.2022
Level 1
Level 2
Level 3
Total
Fair
Value
Securities measured
at fair value through other comprehensive
income
- Bonds and Treasury
bills
-
Shares
74
74
31.12.2021
Level 1
Level 2
Level 3
Total
Fair
Value
Securities measured
at fair value through other comprehensive
income
-
Shares
133
133
Securities measured
at fair value through other comprehensive
income
- Bonds, issues and
Treasury bills
22,537
22,537
The
tables
above
present
the
fair
value
of
financial
instruments
measured
at
fair
value
by
fair
value
hierarchy
based
on
the
data used
for
its determination.
The Company’s
portfolio
in securities
are classified
as Level
3,
since
their fair
value has
been
determined based
on
the
Company’s percentage
to
the
issuer’s
equity.
In
addition,
the Company
held Level
3 bonds
amounted
to €
21.3 mil,
which were
transferred to
Galaxy Cosmos
Mezz Plc
in July
2022
(note 37).
The
table
below
sets
out
the
valuation
methods
used
for
the
determination
of
Level
3
fair
values
for
the
comparative
period
31.12.2022
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
427
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Total
Fair
Value
Fair Value
Valuation
Method
Significant
Non
observable
Inputs
Shares measured at fair
value
through other
comprehensive
income
74
74
Based on the Group's share in equity
Issuer's
equity
31.12.2021
Total
Fair
Value
Fair Value
Valuation
Method
Significant
Non
observable
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
The
Company recognizes
the transfer
between
fair
value hierarchy
Levels
at
the end
of
each reporting
period.
A reconciliation
for
the movement
of financial
assets measured
at fair
value and
classified at
Level 3
is depicted below:
31.12.2022
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
1.1.2022
133
22,537
-
-
-
Total
gain/(loss) recognized in
Income Statement
7,810
-
Net interest
income
473
- Gains less
losses on financial
transactions
7,338
- Impairment losses
Total
gain/(loss) recognized in
Equity Reserve
Total
gain/(loss) recognized in
Equity
Retained
earnings
(59)
Purchases
/ Disbursements/
Issues
70,613
Sales
(92,299)
Repayments
(8,662)
Hivedown of banking sector
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
31.12.2022
74
-
-
-
-
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 -
31.12.2022
-
Net interest
income
- Gains less
losses on financial
transactions
- Impairment losses
31.12.2021
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
428
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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 Reserve
7
Total
gain/(loss) recognized in
Equity
Retained
earnings
48
Purchases
/ Disbursements/
Issues
133
22,655
276
321
Sales
(253)
Repayments
(77)
(3,315)
(2,478)
Hivedown of banking sector
(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
133
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
-
31.12.2021.
3,282
-
Net interest
income
340
- Gains less
losses on financial
transactions
2,942
- Impairment losses
Sensitivity analysis
for Level
3 financial
instruments as of
31.12.2022 does not
provide significant
measurable results as
the
valuation
is
perfomed
on
the
issuer’s
equity.
It
is
also
noted
that
there
are
no
correlation
between
the
non
observable
data
that
could significantly impact
the fair
value measurement. The
following tables
present the
sensitivity analysis for
31.12.2021
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)
-
-
32.5
Transfers
of financial
assets
The
Company,
before
the
hive
down,
had
carried out
securitization
transactions of
corporate,
shipping,
consumer
loans and
credit
cards
in
order
to
raise
liquidity. The
Company
continued
to
recognize
the
securitized loans
in
its balance
sheet, since
it retained,
in
all cases,
the
risks and
rewards, as
per
the characteristics
of
the
transactions (e.g.
full consolidation
of
special
purpose companies,
bond
ownership and
the right
to collect
the deferred
consideration from
the transfer).
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,
i.e. the
securitization of
a
bond
loan through
the Alpha
Quantum DA
(revocation on
19.3.21).
Assets
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
429
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
and
liabilities
from
the
other
remaining
transactions
were
transferred
to
the
Bank
as
part
of
the
hive
down
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. 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
have
control
over
them.
The
carrying
amount
of
the
securitized loan
portfolio of
Galaxy III
Funding DAC
that recognized
by
the Company
as at
31.12.2021 amounted
to €
52,959
and
given
the
fact
that
the
notes
are
owned
by
the
Company
ownership
of
the
bond
issue,
there
was
no
transfer
obligation.
As of
31.12.2022 the
Company has
neither securitized
loan portfolio
nor owned
securities.
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 Company’s
competent bodies.
a.
A of
31.12.2022 and
31.12.2021 there
are no
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.
The following
table presents
the results
of the
transactions with
the related
parties:
From
1
January
to
31.12.2021
Income
Interest and similar income
9
Fee and
commission income
Total
9
Expenses
Interest expense and similar charges
1
Remuneration
paid to key management
and close family members
1,291
Total
1,292
The remuneration
of key
management and
their close
family members
is analyzed
as follows:
From 1
January to
31.12.2021
Remuneration
of Board Members, salaries and wages
1,178
Defined benefit obligations
4
Remuneration
paid to key management
Employer
contribution
80
Other
29
Total
1,291
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
430
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
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 and
in
specific by
Alpha
Bank
S.A.
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
31.12.2022
31.12.2021
Assets
Due from banks
7,648
25,705
Loans and advances to customers
238
18,194
Investment
securities
measured at amortized
cost
1,007,242
993,060
Other
Assets
2,390
540
Total
1,017,518
1,037,499
Liabilities
Debt securities in issue and other borrowed funds
40,179
Other liabilities
2,236
4,544
Total
2,236
44,723
Letters of guarantee and other guarantees
From 1
January to
31.12.2022
31.12.2021
Income
Interest and similar income
50,746
48,496
Fee and
commission income
7,478
4,522
Gains less losses
on financial transactions
10,936
Dividend
income
1,290
Other
income
332
2,132
Total
59,846
66,086
Expenses
Interest expense and similar charges
329
4,152
Commission
expense
20,123
428
Gains less losses
on financial transactions
14,014
General
administrative
expenses
1,103
13,935
Amortisation
of rights of use assets
608
Impairment losses
and provisions to cover
credit risk and related expenses
(7,259)
44,737
Total
14,296
77,874
ii.
Associates
31.12.2022
31.12.2021
Assets
Loans and advances to customers
19
48
Total
19
48
From 1
January to
31.12.2022
31.12.2021
Income
Interest and similar income
229
Gains less losses
on financial transactions
314
Other
income
51
9
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
431
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Total
51
552
Expenses
Impairment losses,
provisions to cover
credit risk and related expenses
4,125
Total
-
4,125
iii. Joint
Ventures
31.12.2022
31.12.2021
Assets
Loans and advances to customers
68
132
Total
68
132
From 1
January to
31.12.2022
31.12.2021
Income
Interest and similar income
206
Gains less losses
on financial transactions
303
Other
income
99
16
Total
99
525
For
the impairments
of
investments subsidiaries,
associates and
joint ventures
there
are references
in
the relevant
notes.
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
31.12.2022
31.12.2021
Income
Fee and
commission income
1
34.
Auditors’
fees
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
31.12.2022
31.12.2021
Statutory
audit of the annual
accounts*
188
862
Issuance of tax certificate
57
135
Other
fees
for
non audit
service
374
480
Total
619
1,477
35.
Assets
held for
sale
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
432
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
31.12.2022
31.12.2021
Loans
52,959
Total
-
52,959
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
consisted 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.
On
28.12.2021
the
Bank
entered
into
a
binding
agreement
with
the
investor
for
the
sale
of
the
portfolio.
Considering
that
the
transaction
was
expected
to
be
completed
within
the
first
quarter
of
2022,
the
Company
classified
as
at
31.12.2021
this
portfolio
with
carrying
amount
of
€
52,959
as
“Assets
held
for
sale”.
The completion
of the
sale transaction provided
that the
loans portfolio
would be
transferred to
the Bank.
Such transfer
completed
in
8.3.2022
and
the
Bank
paid
the
amount
of
€
52,600
to
the
special
purpose
entity
Galaxy
III
Funding
Designated
Activity Company.
Upon
transfer
of
the
securitized loans
portfolio, the
Company derecognized
loans of
a
carrying amount
of€ 52,018
and receivable
from Galaxy
III Funding
Designated Activity Company
of a
carrying amount
of €
18,605, that
had
been
recognized as
part
of
the securitization
transaction, since
risks and
rewards seized
to exist
for
the Company
while at
the
same time
the later
recognized the
Senior notes
of the
aforementioned special
purpose entity measured
at fair
value through
profit
or
loss
for
an
amount
of
€
70,613.
As
a
result
the
Company
had
a
loss
of
€
10
recognized
in
results
from
derecognition
of
financial assets
measured at
amortised cost.
On 24.3.2022
the sale
transaction with
the investor
was completed by
the Bank.
As
at
30.6.2022
and
following
the
capital
collection
of
€
69,653,
the
above
notes
were
valued
at
€
200.
Within
the
third
quarter
the
Company
received
and
amount
of
€
150
as
a
repayment
of
the
said
notes
and
recognized
a
loss
of
€
50
in
the
Income
Statement, in
line
“Results from
financial
transactions”.
*
Statutory
audit
of the annual
accoun
ts includes relevan
t
expenses.
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
(Stock Options Plan) by awarding
of stock options rights to management
and employees of the Bank and
its Group companies. The plan refers
to 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. 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
Company’s policies. Following
the exercise of the Stock Options Rights,
the New Shares are subject to a twelve
(12) months retention period.
The Board of Directors of the Company,
at its meeting on 30.12.2020
approved the Plan’s The Board of
Directors at the meetings held on 16.12.2021
and 21.7.2021 awarded stock options
to employees in the context
of this Performance Incentive Program
for the years 2020 and
2021.
According to the terms of the Program, within
the first year from the date the awarding,
the beneficiaries may
exercise 60% of their total rights while, for the
rights granted until 31.12.2021,
for each year that follows for the
next three years they can exercise 13.3%
of these while, for the rights granted
in July 2022, for each year that
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
433
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
follows for the next four years they can exercise
10% of the rights. The exercise of
the rights takes place in
January or September.
Non exercised options are not valid. Also,
in the event that one of the beneficiaries ceases
to be an employee
or executive
of the Group (with some exceptions such
as due to retirement or working inability) they
cease to
have the right to purchase shares. It
is also noted that in the context of the
Performance Incentive Program
for
the year 2020, 3,612,094 stock options
were awarded to Senior Executives, the
exercise of which is subject
to the deferral condition of the amendment
or repeal of the provisions for the prohibition
of additional remuneration, introduced
pursuant to 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
Changes in the number of existing stock option
rights are presented in the table below:
Balance
1.1.2021
4,146,394
Changes
for
the
year
1.1
–
31.12.2021
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 exercise price of the above
mentioned options was € 0.30, while the Company’s
share price at the time
when options were exercised in January
2021 was € 0.77.
Balance
1.1.2022
6,802,236
Changes
for
the
year
1.1
–
31.12.2022
Options Rights awarded
during the year
1,402,545
Options Rights exercised during the year
(2,226,687)
Options Rights exercised during the year
(151,316)
Balance
31.12.2022
5,826,778
The exercise price of stock options is equal
to the nominal value of the Company’s
share. Therefore, due to the
reduction of
the nominal value of the share
by € 0.01 following the decision of the Ordinary
General Meeting of
Shareholders of 22.7.2022, from 9.8.2022
the exercise price of all active options
was reduced from € 0.30 to €
0.29.
The weighted average exercise price
for options exercised as well as for options
expired in 2022 was
€ 0.296
and € 0.297 respectively. Company’s
share price at the time of options exercised
in January 2022 and in
September 2022 was € 0.68
and
€ 0.86 respectively.
As of 31.12.2022, the exercise price
of active stock options is € 0.29 (31.12.2021:
€ 0.30), while the average
duration of the active stock option rights is
14.3 months (31.12.2021:
19.5 months).
Following the stock option rights awarding
on 2022, an amount of € 2,014, was
recognized in equity reserve
against a debit in the cost of investments in subsidiaries
of the Company, since the beneficiaries provide
their
services to these subsidiaries. (31.12.2021:
€ 3,083, out of which an amount of €
175 was recognized as an
expense from discontinued operation
in the Income Statement of 31.12.2021
and an amount of € 2,908
recognized in the cost of investments
in subsidiaries of the Company.)
Fair value
of stock
options
For options awarded on 31.12.2021
with exercise date January 2022, the
fair value was determined as the
difference between the share price
as of 31.12.2021, the awarding
date, and the exercise price.
For options awarded on 29.7.2022
with exercise date September 2022, the
fair value was determined as the
difference between the share price
as of 29.7.2022, the awarding
date, and the exercise price.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
434
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
For the remaining options the fair value
was determined by using the
Black & Scholes valuation model. The
most significant inputs of the model, as presented
in the below table, are the share
price, the exercise price,
the volatility of the share price and the remaining
period until 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 year 2020
Options under
the
Performance Incentive
Program for the year 2021
Average weighted value
0.79
0.60
Expected volatility
%
58.20%
58.40%
Expected duration (in years)
2
2.5
Weighted average share price
1.077
0.865
Exercise price
0.3
0.3
Expected
dividends
No risk interest rate
(0.48%)
1.15%
The weighted fair value of the rights granted
during 2022 under the
Performance Incentive Program for the
year 2021 amounted to €
322 (31.12.2020: € 1,665).
Following the resolution of the General
Meeting on 22.7.2022
and due to the fact that the nominal value of the
Company’s shares decreased
by € 0.01, from 9.8.2022 the exercise price of
the active stock options decreased
from € 0.30 to € 0.29. As a result, the fair value
of the active options increased
and the additional amount
recognized in equity reserve € 61.
The incremental fair value of the options
was calculated as the difference
between the fair values between the
old and new exercise price on modification
date, using the same methodology
and parameters, as described
above
37.
Corporate
events
•
On 24.1.2022, the Company, being
the 100% parent of Alpha Group
Jersey Ltd, announced that Alpha
Group Jersey Ltd decided to repay
the remaining amount of Series B of the
Preferred Securities. In
specific, Alpha Group Jersey Ltd decided
to repay in full the remaining nominal amount
of its € 600,000
Series B CMS Linked Non-Cumulative Dividend
Non-Voting Preferred Securities (ISIN:
DE000A0DX3M2) which are under
subordinated guarantee by the Company,
at the preferred dividend
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
replayed 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 (note 12).
•
On 10.2.2022, the trading of 1,430,168
new ordinary, registered, shares
of Alpha Services and Holdings
S.A., which resulted from the recent
increase in its shareholding, began
on the Athens Stock Exchange
(hereinafter the “ATH”). This increase
in share capital by € 429, derived
from the exercise of Stock Options
by eighty-eight (88) Beneficiaries - Specific
Members of Staff (Material
Risk Takers – MRTs) of the Company
the Group, at a disposal price of € 0.30
per share, in accordance with
the decision of the Ordinary General
Meeting of Shareholders of 31 July 2020
and the relevant decisions of the
Company’s Board of Directors of
30 December 2020, 16 December
2021 and 28 January 2022.
•
On 25.2.2022, the Company transferred
to Alphalife AAEAZ ten (10) ordinary,
nominal, with voting rights,
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
435
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
non listed shares, at a nominal value €
0.10 for a total amount of twelve euros
and fifty cents (€ 12.50) held
by the Company in the share capital of the
Bank and which represent approximately
0.00000002 %
of the
Bank’s share capital (note 11).
•
On 27.4.2022 the Company established
the subsidiary Galaxy Cosmos Mezz
Plc (originally named “Galaxy
Mezz Ltd”), incorporated in Cyprus, for € 85.
On 15.7.2022 and 18.7.2022
the Company proceeded to the
share capital increase of Galaxy Cosmos
Mezz Plc through: a) contribution in kind
of 44% of the mezzanine
and junior subordinated notes of Galaxy and
Cosmos securitizations amounted
to € 22,496 and b) increase
in cash by € 894 and issue of new
common registered shares. As a result of
the above in kind and in cash
contribution by the Company, 86,628,044
new shares with a nominal value of € 0.27
each were issued and
the share capital of Galaxy Cosmos Mezz
Plc amounted to € 23,474
with a total number of shares of
86,941,164. The Ordinary General
Meeting of the Company’s
Shareholders convened on 22.7.2022,
approved the reduction of the share
capital in kind, by reducing the nominal value
of each common share
issued by the Company by the amount
of € 0.01, and the payment of the amount
of the in kind share capital
decrease through the distribution to
the Company’s Shareholders
of the issued shares of Galaxy Cosmos
Mezz Plc held by the Company. The
value of the shares corresponded
to the value of the reduction of the
share capital, i.e. 86,941,158 ordinary
shares with a nominal value of € 0.27,
which were distributed in ratio
of 1 share of Galaxy Mezz Ltd for every 27
shares of the Company. The
above process was completed
in
October 2022 and as a result Galaxy Cosmos
Mezz Plc ceased to be a
subsidiary of the Company.
•
The Board of Directors of the Company,
during its meeting dated
21.7.2022 and in the context of the
implementation of the Performance
Incentive Program for 2021
to “Specific Staff Members” of the
Company and the Group, decided,
among others, the following:
-
To amend the Regulations of the Program
in order to align with the Company’s
Remuneration Policy, as
approved by the Ordinary General Meeting
of 22.7.2021.
-
To award a total of 1,402,545 Stock
Options to 36 beneficiaries, within the
above 2021 Performance
Incentive Program - PIP.
Given that, according to the Regulation,
each of the awarded Stock Option Rights
corresponds to one (1) New
Share, in the event that all Options are exercised,
a total of up to 1,402,545
new ordinary, registered, shares of
the Issuer will be issued. Following the
above decision, during the
Exercise Period of the awarded
Stock
Options, and in particular during the
period from 1.1.2022 to 15.9.2022,
796,519 Stock Option Rights were
exercised for the acquisition of a corresponding
number
of common, nominal shares of the Company,
with a
nominal value and exercise price of € 0.29
per share. The purchase
amount of the above shares was paid
in
cash and amounted to € 231. On 2.11.2022,
the increase of the Company’s
share capital was registered in the General
Commercial Register (G.E.MΙ),
while on 3.11.2022, the introduction
to trading
of the above common registered shares
of the Company on the
Stock Exchange with the first day of
trading on 7.11.2 was approved.
•
On 24.11.2022, the share capital increase
of Alpha Bank S.A. by the amount of € 90,000
was completed with
a cash payment by its shareholders Alpha
Services and Holdings S.A and AlphaLife
A.A.E.Z. and the
issuance of 90,000 new shares
with a nominal value of € 0.10 each
and a subscription price of € 1.00 each.
•
On 30.12.2022 the liquidation of Alpha
Group Jersey Ltd was completed.
The liquidation proceeds
returned to its sole Shareholder, Alpha
Services and Holdings SA, amounted
to € 121.
38.
Restatement of
financial statements
Within
the
first
half
2022,
the
Company
in
order
to
achieve
a
better
presentation
and
correlation
between
commission income and commission expense
form insurance brokerage, restated
the classification of the of the
fees for the
provision of insurance brokerage services from
“General administration expenses” to “Commission
expenses”.
As
a
result
of
the
above
changes,
certain
figures
of
the
Income
Statement
were
restated,
as
presented in
the
following tables
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
436
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
From 1
January to 31.12.2021
Published
amounts
Restatement
Restated
amounts
Interest and similar income
183,575
183,575
Interest expense and similar charges
(51,933)
(51,933)
Net interest income
131,642
-
131,642
Fee and
commission income
31,422
31,422
Commission
expense
(4)
(10,877)
(10,881)
Net fee and commission
incom
31,418
(10,877)
20,541
Dividend
income
Gains less losses on derecognition
of financial assets measured
at amortized cost
(2,238,990)
(2,238,990)
Gains less losses
on financial transactions
5,262
5,262
Other
income
495
495
Staff costs
(833)
(833)
General
administrative
expenses
(17,829)
10,877
(6,952)
Depreciation
and amortization
(33)
(33
Total expenses
before
impairment losses, provisions
to cover
credit risk and
related
expenses
(2,088,868)
-
(2,088,868)
Impairment losses,
provisions to cover
credit risk and related expenses
(256,345)
(256,345)
Profit/(loss) before
income tax
(2,345,213)
-
(2,345,213)
Income tax
44,717
44,717
Profit/(loss) after income tax from continuing operations
(2,300,496)
-
(2,300,496)
Profit/(loss) after income
tax from discontinued
operations
(338,386)
(338,386)
Profit/(loss) of the year
(2,638,882)
-
(2,638,882)
For a better presentation of equity,
the Company reclassified an amount
of € 6,104,890 from “Share Premium”
separately in the line item “Special reserve
from share capital decrease”.
This classification was applied
retrospectively. However, taking into
account that the Company’s
total equity remains unchanged
and the
reclassification was made for the purposes
of greater analysis of the Balance Sheet items,
it was not
considered necessary to present
a restated balance sheet at the beginning
of the comparative period.
31.12.2021
Published
amounts
Restatement
Restated
amounts
ASSETS
Due from banks
25,705
25,705
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
property
7
7
Property, plant and equipment
370
370
Other assets
75,928
75,928
7,296,288
-
7,296,288
Assets classified
as held for
sale
52,959
52,959
Total
Assets
7,349,247
-
7,349,247
LIABILITIES
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 liabilities
24
24
Other liabilities
12,292
12,292
Total Liabilities
1,088,588
-
1,088,588
EQUITY
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
437
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Share capital
703,794
703,794
Share premium
11,362,512
(6,104,890)
5,257,622
Special Reserve from
Share Capital Decrease
6,104,890
6,104,890
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
7,349,247
-
7,349,247
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
438
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
39.
Discontinued
operations
The demerger by way of hive down
of its banking business sector, completed
on 16.4.2021, is consisted of
the establishment of a new Company
(under the legal name “Alpha Bank Societe Anonyme”)
to which the
Company transferred to entire banking
operations. The operations that have
been transferred under this hive
down met the definition of discontinued
operations for the period 1.1.2021
until 16.4.2021 for the preparation
of stand-alone financial statements of the
Company and therefore
the related result and cash flows deriving
from the discontinued operations are
disclosed in Income Statement, Statement
of Comprehensive Income
and Statement of Cash flows.
Its is noted that for the presentation of the
results from continuing and discontinued
operations, the imputed
income or expenses, if any, as well as the results
of the transactions between the
banking sector and the
sectors retained by the Company were
not taken into account.
The results form banking sector are presented
below.
From 1 January to
16.4.2021
Interest and similar income
451,420
Interest expense and similar charges
(127,585)
Net interest income
323,835
Fee and
commission income
85,195
Commission
expenses
(10,100)
Net fee and commission income
75,095
Dividend
income
103
Gains less losses on derecognition
of financial assets measured
at amortized cost
2,541
Gains less losses
on financial transactions
(303,439)
Other
income
5,644
Total other income
(295,151)
Total
income
103,779
Staff costs
(83,410)
Expenses for
separation schemes
(97,670)
General
administrative
expenses
(98,022)
Depreciation
and amortization
(39,007)
Other
expenses
(43,678)
Total expenses
before
impairment losses, provisions
to cover
credit risk
and related expenses
(361,787)
Impairment losses,
provisions to cover
credit risk and related expenses
(54,342)
Profit/(loss) before
income tax
(312,350)
Income tax
(26,036)
Net earnings/(losses) after
income tax
from discontinued operations
(338,386)
The
banking
sector
results
for
the
period
from
1.1.2021
to
16.4.2021
are
mainly
affected
by
the
following:
•
Increase in
interest income,
mainly attributable
to the
amount of
€
36,407 recognized
in connection
with the
TLTRO
III
program,
and
is
related
to
the
retrospective
recognition
of
interest
income
with
an
additional
interest
rate
of
-0.50%
for
the
period
24.6.2020
-
31.3.2021,
on
the
basis
that
the
Company
achieved
the
new
loans’
target.
•
Increase in
loss from
“Results from
financial transactions” and
the impairment
of subsidiaries of
€
359,009.
•
Recognition of
voluntary exit
scheme provision
of €
97,200 in
”Staff costs and
expenses”, in
the context
of the
three year
strategic transformation
plan of
branches and
central divisions
for staff
retirement programs.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
439
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Other
Comprehensive income
of
the banking
sector
is
presented in
the below
table:
From 1 January to
16.4.2021
Profit/(loss) for
the period recognized in
the Income Statement
(338,386)
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)
Net change in cash flow hedge reserve
6,036
Income
Tax
23,759
Items that may be reclassified to the Income Statement
(58,169)
Items that will not be reclassified to
the Income Statement
Remeasurement
of defined benefit liability/
(asset)
Gains/(losses)
from equity securities
measured at fair value through other
comprehensive
income
117
Income
Tax
(33)
Items that will not be reclassified to
the Income Statement
84
Other comprehensive income for
the period, after
income tax
(58,085)
Total
comprehensive income for
the period
(396,471)
40.
Strategic
Plan
Alpha Services and Holding Group,
in which the Company is a subsidiary,
announced in May 2021
its a
Strategic Plan, focusing on 5 pillars (for
the period until the end
of 2024) :
a)
Clearance of non-performing exposures
(NPE), supported by significant NPE transitions
and preventive
management actions
b)
Enhancements in the core functions performance
that would lead to a more flexible operating
model
c)
Increase in commission income
d)
Increase in revenues through
asset enhancement
e)
Accelerate the development of the
Subsidiaries abroad by taking advantage
of opportunities in the local market
Since then, the business environment
has significantly changed
since the food and energy prices (also
affected by the impact of the war) has led
to inflationary pressures, escalating
even further the upward trend
already observed in 2021. The
ECB’s monetary policy adjusted to the
new environment with several increases
in interest rate within 2022 and
early 2023, and additional increases are expected
in the following ECB
meetings.
The above events changed
the dynamics of the balance sheet and
the performance of the banks and
are
expected to impact a number of their performance
indicator, such as:
a)
revenues will be higher mainly due
to the increase in net interest income also supported
by the structure
of the Bank’s balance sheet which
benefits from increases in the base
curve,
b)
cost will also increase to reflect the inflationary
environment and the increased
needs for investments and
c)
the cost of risk is expected to be relatively
higher, considering the possible
deterioration of asset quality as
a result of the increased interest rate environment.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
440
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Overall, in the medium term, we expect
higher return on capital, driven by a
combination of movements in the
results, but following similar strategic
initiatives to those presented
in May 2021.
Specifically, the basis of the Bank’s strategic
plan (2023-2025) are actions which
aim to the sustainable
development and profitability of the Group.
The following initiatives govern the above
strategic plan:
a)
Increase in revenue based
on the increase in assets derived a) from the expected
recovery of the Greek
economy and funds from the EU RRF
mechanism, boosting both net interest
income from performing loans
and income from Bank commissions as well
as b) from the expected increase
in investment securities taking
advantage of the current high yield environment,
strengthening further net interest
income.
b)
Initiatives for decreasing NPEs, which
mainly include organic actions of NPE
management (i.s. curings,
partial debt forgiveness, recoveries
through pledged assets or other final
settlements’ actions) and aim
to decrease significantly NPEs for
the period 2003-2005 and also is expected
to result in significant
decrease of the credit risk but also and
the operational risk related to NPEs. NPE
ratio is expected to be
lower than 7% in 2023, with a target to reach
even lower levels in the following
years. As soon as the
NPE management actions will further
decrease the related balances, it
is anticipated subsequent
improvement of the quality of assets, at
the same levels as the rest of European
banks, while
maintaining satisfactory capital adequacy,
above the applicable minimum
capital requirements
c)
Capital measures that will provide additional
capital buffers. These measures
include the issuance of
additional Tier 1 instruments (AT1 notes)
in the first quarter of 2023, the formation
of a joint venture with an
international partner in the real estate market
and two additional synthetic securitization
transactions
(completion within 2023). The first two
synthetic securitization transactions
were completed in the second
quarter of 2022 and the fourth
quarter of 2021. The successful completion of
the above capital measures
ensures the maintenance of a satisfactory
capital position above
the applicable capital requirement.
d)
Measures to reduce operational
costs and improve operational efficiency
by focusing on core commercial
banking activities, reducing operational
costs across the organization, improving
and expanding the digital
platform and implementing comprehensive
sustainable banking
policies incorporating environmental and
social criteria and corporate governance
(ESG) criteria. The increase in base interest rates, as a
result of the
inflationary environment, has resulted
in price increases in several expense
categories such as utilities,
facilities management and other
general and administrative expenses.
This increase is estimated to remain
completely manageable as the
higher operating income, a result of
the balance sheet structure, significantly
exceeds the expected increases
in operating expenses
e)
Initiatives to increase commission income,
mainly based on wealth management
and bancassurance products
and services.
f)
Initiatives to improve the profitability of
the international presence,
through strengthening of loan and
other investment portfolios, taking advantage
of the rising prospects of the foreign markets
in which the
Bank operate.
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
441
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
41.
Events
after
the
balance
sheet
date
•
On 8.2.2023, the Company issued Τier
1 notes of € 400 million of indefinite
duration with a call option from
8.2.2028 to 8.8.2028, subject to obtaining
approval from the competent supervisory
authority, and with a
fixed yield of 11.875% until 8.8.2028,
which will be adjusted from that date based
on the five-year swap
rate plus a margin of 9.312%.
•
In the context of the stock option plan for
the years 2018,2019 and
2020, during the exercising period of the
stock options and in specific during
the period 2.1.2023 until 13.1.203, 700,783
stock options were exercised
by the holders for the acquisition of common,
nominal shares of the Company
of the same number with a
nominal value and exercise price of
€ 0,29 each. The purchase amount
of the above shares was paid in cash and
amounted to a total of € 203.
On 10.2.2023 the share capital increase
was registered General Electronic
Commercial Registry’s (GEMI)
while on 14.2.2023 the listing for trading of
the above 700,783 new
common, registered shares of the
Company on the Stock Exchange
(ASE), whose trading started on 16.2.2.2023,
was approved. It is noted
that, following the above increase, the share
capital of the Company amounts
to € 681,183, divided into
2,348,908,567 common, nominal, voting
shares with a nominal value of € 0.29
each.
Athens,
March
14,
2023
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
FINANCIAL STATEMENTS
OF ALPHA SERVICES AND HOLDINGS
S . A . A S AT
31.12 . 2022
442
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
ALPHA BANK
443
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se 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 were published in
October 2015 and were applicable from
3 July 2016,
in the
following
sections are disclosed the
definitions and the
calculations of the related
(APMs), as included in
the Board
of Directors’ Annual
Management Report for year 2022.
As described in the accounting policies section, the financial statements for the year 1.1
- 31.12.2022
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. Howeve
r, the
presented measures not defined under IFRS are not considered as substitute for
IFRS measures.
A.
Loans to
deposits
ratio
(Amounts in millions of Euro)
Definition
Interpretation of the ratio
Calculation
31.12.2022
31.12.2021
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
38,748
36,860
Denominator
+
Due to Customers
50,246
46,970
Ratio
=
77%
78%
B.
Normalized
results
aft
income
tax
Normalised
results
between
financial
year 2022
and 2021
are not
comparable
due to
initiation
of a
new normalized
results
policy
effective
since
1.1.2022.
Normalization
includes
a set
of non-recurring
adjustments
to the
reported
results
for items
which
may
be related
to the
transformation
performed
by the Group
or may
not be related
to the
normal course
of business
operations
or are
non-
recurring
in nature
and distort
the reported
earnings
of the
business.
The purpose
of normalization
is to
eliminate
such one
off results
and provide
historical
information
that enables
reliable
comparisons
and forecasting.
The main
areas
of adjustments
to the
accounting
results
in order
to derive
the
normalized
results
are mentioned
below:
1.
Transformation
related
events.
a.
Transformation
Costs
and related
Expenses
b.
Expenses
and Gains/Losses
due to
Non Core
Assets
’
Divestiture
c.
Expenses/Gains/Losses
as a result
of NPE/NPA
exposures
transactions
2.
Other
non recurring
related
events.
a.
Expenses/Losses
due to
non anticipated
operational
risk
b.
Expenses/Losses
due to
non anticipated
legal
disputes
c.
Expenses/Gains/Losses
due to
short term
effect
of non
anticipated
and extraordinary
events with
significant
economic
impact
d.
Non recurring
human resources/social
security
related
benefits/expenses.
e.
Impairment
expenses
related
to owned
used assets
and property
obtained
from auctions
and other
property
held for
sale
f.
Initial
(one off)
impact
from the
adoption
of new
or amended
IFRS
g.
Tax
related
one off
expenses
and gains/losses
3.
Income
Taxes
Applied
on the
aforementioned
transactions.
The main
difference
between
the new
normalized
results
policy
compared
to the
old one,
is that
under the
old practice,
the
entire
captions
“
gains less
losses
on financial
transactions
”
and
“
gains/(losses)
on derecognition
of financial
assets
measured at amortised cost
”
were excluded from the normalized
results by default.
The normalized results after income tax
for year 2022 are presented after
the exclusion of the following:
APPENDIX OF THE BOARD
OF DIREC TORS’ ANNUAL MANAGEMENT
REPORT
ALPHA BANK
444
ANNUA
L
F
INANCIA
L
REPOR
T
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
•
Gains less losses on financial transactions
amounting to Euro 443 million derived
from profits due to the sale of the Bank’s merchant
acquiring business unit amounting to Euro 298
million, from the trading profit of derivatives
of Euro 142 million and income from
NPE portfolio de-leveraging for Euro 3
million;
•
Gains/(losses) on derecognition of
financial assets measured at amortized cost
of Euro 4 million related to loss
from the
finalization of the Orbit transaction;
•
Total expenses before impairment losses and provisions to cover credit
risk of the amount of Euro 111 million resulting from
impairments of real estate that are part
of the perimeter of the Skyline
and Startrek transactions of € 58
million, additional
impairment of real estate assets included
in the Sky transaction of € 36 million, other
real estate valuation impairments of
€ 2
million, from provision of costs for court cases
amounting to € 13 million, transformation
costs of the amount of € 9 million,
non-
recurring financial support to employees
of € 3 million, income relating to non-anticipated
Operational Risk events of the amount
of
€ 6 million as well as income from sickness/maternity
subsidy of previous years amounting
to € 4 million;
•
Impairment losses and provisions to cover credit
risk of € 301 million mainly due to a) impairments
of loan portfolios (Leasing,
Solar, Hermes and Light transactions) that were transferred
to the held for sale category amounting to
€ 273
million and (b) impairments of loan portfolios
due to an update of the macroeconomic
outlook as a consequence of the
invasion in
Ukraine and the energy crisis amounting
to € 28 million;
•
Income tax of € 75 million related to
the above excluded results;
•
Results from discontinued activities amounting
to Euro 17 million relating to the subsidiary
company Alpha Bank Albania ShA.
Normalized results for the period 1.1.2021-31.12.2021
after tax
(Amounts in millions)
Amounts from the
Consolidated
Income Statement
Transactions excluded
Normalized results
Gains less losses on financial transactions
471
443
28
Gains/(losses) on derecognition
of financial assets measured
at
amortised cost
(4)
(4)
Total expenses
before impairment losses
and provisions to
cover credit risk and related expenses
*
(1,082)
(111)
(971)
Impairment losses and provisions to
cover credit risk and
related expenses
(559)
(301)
(258)
Net profit/(loss) from continuing operations
for the period
before income tax
644
26
619
Income Tax
(264)
(75)
(188)
Net profit/(loss) from discontinued operations
for the period after
income tax
17
17
0
Net profit/(loss) for the period
398
(31)
429
1
For the year 2021, after excluding the items below,
the normalised net profit after income
tax for 2021 amounted to €330 million
(including a tax expense amounting to €75
million).
*The caption
“Total
expenses before
impairment
losses and
provisions to
cover credit
risk and related
expenses”
includes the
following
line items
as presented
in the consolidated
Income Statement:
Staff costs,
general and
administrative
expenses,
depreciation and
amortization
and other
expenses.
APPENDIX OF THE BOARD
OF DIREC TORS’ ANNUAL MANAGEMENT
REPORT
ALPHA BANK
445
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Normalized results for the period 1.1.2021-31.12.2021
after tax
(Amounts in millions)
Amounts from the
Consolidated
Income Statement
Transactions excluded
Normalized Results
Gains less losses on financial transactions
218
218
Gains/(losses) on derecognition
of financial assets measured
at
amortised cost
(2,248)
(2,248)
Total expenses
before impairment losses
and provisions to
cover credit risk and related expenses
*
(1,269)
(265)
(1,004)
Impairment losses and provisions to
cover credit risk and
related expenses
(1,433)
(1,038)
(395)
Net profit/(loss) from continuing operations
for the period
before income tax
(2,929)
(3,333)
404
Income Tax
56
131
(75)
Net profit/(loss) from discontinued operations
for the period after
income tax
(33)
(34)
1
Net profit/(loss) for the period
(2,906)
(3,236)
330
•
The total effect in the income statement from
the Galaxy Securitisation amounted
to €2.1 billion. This comprises
(a)
losses relating
to the Galaxy Securitisation of €2.2 billion,
included in gains less losses on derecognition of
financial assets measured at amortised
cost; (b) gains from the sale of Cepal
Hellas of €111 million, included in gains less losses on financial transactions; and
(c) tax
expenses related to the above transactions
of €12.3 million, included in income
tax;
•
The total effect in the income statement from
Project Cosmos amounted to €22.1
million, which has been recognised in gains
less losses on derecognition of financial assets
measured at amortised cost;
•
Expenses amounted to €265 million, relating
to (a) provision for employee separation
schemes of €97.7 million; (b) impairment
of
€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 €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 €15.1 million relating
to
computer applications which in the context
of the Group’s transformation programme
were considered not to meet the new
business requirements; (e) impairments and
sales of real estate assets amounting
to €65.7 million related to Project
Sky; (f)
impairments and sales of fixed assets amounting
to €9.3 million; and (g) other expenses
amounting to €50.2 million included
as
operating expenses that have been designated
as non-recurring;
•
Impairment losses of €1,038 million
related to the incorporation of sales scenarios
in the expected credit losses calculation for
specific transactions included in the Bank’s NPE
Business Plan (the Cosmos,
Orbit, Sky, Leasing and Solar projects);
•
The results of financial operations that amounted
to profits of €107 million;
•
The results concerning the estimated
loss from the Alpha Bank Albania Sale
amounting to €34 million;
ALPHA BANK
446
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Disclosures
of Law
4374/2016
According to
article 6 of Law
4374/1.4.2016 “Transparency
among credit instit
utions, media companies
and subsidized
persons” introduced
to all credit institutions establi
shed in Greece the obli
gation to publish annuall
y
and on consolida
ted
basis:
a)
All payments made wit
hin the year directly
or indirectly
to media company and
its
related parties, accord
ing to IAS 24,
or
communication and advertising company.
b)
All payments made wit
hin the year due to dona
tion, subsidy,
grant
or other granti
s
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 ΑΝΕΞΑΡΤΗΤΗ ΔΗΜΟΣΙΟΓΡΑΦΙΑ ΑΜΚΕ
16,911.00
24 MEDIA ΨΗΦΙΑΚΩΝ
ΕΦΑΡΜΟΓΩΝ ΑΕ
51,565.00
ACTION
PRESS
ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
3,000.00
ADWEB LTD
ΕΤΑΙΡΕΙΑ ΠΕΡΙΟΡΙΣΜΕΝΗΣ
ΕΥΘΥΝΗΣ
1,575.00
AIRLINK-ΕΛΛ/ΚΕΣ ΕΠΙΧ/ΣΕΙΣ
ΕΚΔ&
ΟΠΤΙΚ/ΚΩΝ ΜΕΣΩΝ
ΑΕ
10,243.00
ALPHA
EDITIONS
AE
11,000.00
ALPHA
ΔΟΡΥΦΟΡΙΚΗ
ΤΗΛΕΟΡΑΣΗ
ΑΕ
360,048.23
ALPHA ΡΑΔΙΟΦΩΝΙΚΗ
ΑΕ
23,983.68
AMOS
INTERNATIONAL
IKE
3,150.00
ANTENNA TV
AE
412,727.19
ART SAVY
ΜΟΝ ΙΚΕ
5,050.00
ASM PUBLICATIONS
PC
5,200.00
BANKINGNEWS
AE
65,000.00
BARDOLIN
IKE
5,000.00
BARKINGWELL
MEDIA AE
4,500.00
BETTERMEDIA
IKE
4,500.00
BRAINFOOD
ΕΚΔΟΤΙΚΗ
ΜΕΠΕ
900.00
CLOCKWORK
ORANGE
MINDTRAP
LIMITED
12,000.00
CPAN
CONNECT -
ED
PUPLIC AFFAIRS
NETWORK
LTD
BANKWARSGR
12,000.00
DG NEWSAGENCY
AE
18,300.00
DIMERA
ΕΚΔΟΤΙΚΗ
ΑΝΩΝΥΜΗ
ΕΤΑΙΡΙΑ
3,500.00
DPG DIGITAL
MEDIA ΜΟΝΟΠΡΟΣΩΠΗ
ΑΕ
37,880.01
ELCPRODUCTIONS
ΑΣΤΙΚΗ
ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΗ
ΕΤΑΙΡΕΙΑ
800.00
ENERGY
MAG
ΜΟΝΙΚΕ
4,000.00
ENIGMA MG
ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
4,300.00
ETHOS
MEDIA
ΑE
1,900.00
EUROMONEY
TRADING
LIMITED
11,655.43
EXIT BEE GREECE
ΥΠΟΚΑΤΑΣΤΗΜΑ
ΑΛΛΟΔΑΠΗΣ
12,600.00
FAROSNET ΑΕ
18,758.00
FAST RIVER ΔΗΜKEIMENO
CONCEPTI
ΕΚΔΕΠΕ
22,160.00
FINAΝCIAL MARKETS
VOICE
AE
ΕΦΗΜΕΡ
FM
VOICE
30,800.00
FORWARD
MEDIA
IKE
15,980.00
FREED ΑΕ
18,731.00
FRONTSTA
GE ΨΥΧΑΓΩΓΙΚΗ
ΑΕ
20,565.34
GATEWORK AE
1,050.00
GLOBVY
AE
12,062.96
*
Names have
not
been translated
into english.
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
447
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
GLOMAN AE
12,146.00
GRAMMABOOKS
ΙΚΕ
5,000.00
GREEN BOX
ΕΚΔΟΤΙΚΗ
ΑΕ
3,300.00
HAZLIS AND
RIVAS
COMMUNICATIONS LTD
8,000.00
HELLAS JOURNAL
INC
2,850.00
ΗΤ
PRESS
ONLINE ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
10,000.00
HTTPOOL
HELLAS
MIKE
132,690.39
ICAP AE
11,600.00
INFINITAS
ΙΚΕ
1,340.00
INTERNATIONAL
RADIO NETWORKS
ΑΕ DEE JAY
13,679.60
JO INFOCENT
ΕΠΙΚΟΙΝΩΝΙΕΣ
ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ
5,398.00
KE HEALTH TRA
VEL OE
29,525.00
KEYWE ΙΚΕ
5,500.00
KISS AE
ΜΕΣΑ
ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
6,473.87
KONTRA IKE
3,000.00
KONTRA
MEDIA
ΜΕΣΑ
ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
ΑΕ
15,633.24
KOOLWORKS
Μ AE
2,850.00
KYRTSOS GROUP ΕΕ
12,500.00
LIQUID PUBLISHING
AE
50,570.00
LOVE RADIO
BROADCASTING
AE
2,142.00
MNMARKETNEWS
LIMITED
3,400.00
MV PRESS
ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ ΕΚΔΟΣΕΙΣ
677.42
MARATHON
PRESS IKE
1,600.00
MEDIA PUBLISHING
GK ΙΚΕ
20,475.00
MEDIA2DAY ΕΚΔΟΤΙΚΗ
ΑΝΩΝΥΜΗ
ΕΤΑΙΡΙΑ
120,999.50
MINDSUPPORT
ΙΚΕ
5,226.50
MINDTHEGAP
MEDIA COMMUNICATIONS
ΜΟΝ ΙΚΕ
5,000.00
MONITOR
GROUP
Μ ΕΠΕ
ΑΠΑΠΑΣΤΑΘΟΠΟ
ΥΛΟΣ
ΜΕΠΕ
800.00
MONOCLE MEDIA LAB
MONONEWS ΜΙΚΕ
98,949.00
MY RADIO
ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ
5,190.00
NAG MEDIA
ΑΕ
14,470.00
NEW
MEDIA NETWORK
SYNAPSIS ΑΕ
86,480.75
NEWPOST
PRIVATE
COMPANY
16,493.00
NEWSIT
ΕΠΕ
68,818.00
NEWSROOM
ΙΚΕ
10,172.50
NIKELCO
HUB EE
800.00
NK MEDIA
GROUP ΕΠΕ
10,000.00
NOVA
BROADCASTING
AE
56,082.02
ONE BRAND
STUDIO IKE
1,950.00
ONE DIGITAL
SERVISES ΑΕ
28,400.00
OPINION
POST ΗΛΕΚΤΡΟΝΙΚΕΣ
ΕΚΔΟΣΕΙΣ
ΑΕ
6,485.00
PAPALIOS
MEDIA
GROUP
IKE
4,587.60
PERFECT
MEDIA ADVERTISING
ΜΙΚΕ
60,314.44
PHAISTOS
NETWORKS
AE
10,853.49
PLAN A ΜΟΝ ΙΚΕ
2,500.00
POLITICAL
PUBLISHING
IKE
11,000.00
POWERGAME
MEDIA IKE
14,300.00
PREMIUM
AE
25,560.00
PRIME APPLICATIONS
AE
48,660.00
PROJECT AGORA LTD
28,118.00
PROMOACTION
ΜΟΝΟΠΡΩΣΩΠΗ
ΙΚΕ
600.00
PROPERTY
MARKETING
SERVICES ΔΙΑΦΗΜΙΣΤΙΚΗ
ΙΚΕ
3,000.00
R
MEDIA ΕΚΔΟΤΙΚΗ
ΕΕ
1,500.00
REAL
MEDIA ΜΕΣΑ
ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
ΑΕ
79,210.50
REPORT PRIVATE
COMPANY
800.00
SABD ΕΚΔΟΤΙΚΗ
ΑΕ
74,515.00
*
Names have
not
been translated
into english.
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
448
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
SFERA
RADIO
ΑΝΩΝΥΜΟΣ
ΡΑΔ/ΚΗ
ΕΤΑΙΡΙΑ
14,395.47
SOL DE
GRECIA
ΜΟΝΙΚΕ
2,500.00
SOLAR
ΡΑΔΙΟΤ/ΚΕΣ
&
ΨΥΧΑΓΩΓΙΚΕΣ
ΥΠΗΡΑΕ
18,621.00
SPORT
TV ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΗ
ΠΡΟΒΟΛΗ
ΑΕ
32,945.43
SPORTNEWS
ΥΠΗΡΕΣΙΕΣ
ΔΙΑΔΙΚΤΙΟΥ
ΑΕ
16,500.00
SPREAD
MEDIA ΙΚΕ
1,800.00
STRATEGIC
BUSINESS
DEVELOPMENT
ΙΚΕ
13,353.98
TELIA
COMMUNICATIONS
AE
6,110.00
TELIA INTERNET
IKE
2,660.00
THE TOC
DIGITAL
MEDIA
ΥΠΗΡΕΣΙΕΣ
ΕΝΗΜΕΡΩΣΗΣ
ΜΟΝ ΑΕ
26,958.20
THE WALT DISNEY
COMPANY
GREECE ΜΕΠΕ
20,479.05
THESS NEWS
IKE
550.00
THESSALONIKI 89 RAINBOW
ΜΟΝΕΠΕ
3,200.02
TLIFE ΕΦΑΡΜΟΓΕΣ
ΔΙΑΔΙΚΤΥΟΥ
ΕΕ
7,900.00
TOMORROW
NEWS
ΙΚΕ
10,215.00
TYPOS MEDIA
ΕΠΕ
5,094.25
U MEDIA
ΕΞΕΙΔΙΚΕΥΜΕΝΕΣ
ΔΙΑΦ ΥΠΗΡΕΣΙΕΣ
ΙΚΕ
43,531.00
USAY
ΣΠΑΥΛΟΠΟΥΛΟΣ
ΜΟΝΕΠΕ
2,467.50
VITO
PR
&
EVENTS ΥΠΟΚΑΤΑΣΤΗΜΑ
ΑΛΛΟΔΑΠΗΣ
1,700.00
WSF WALL
STREET FINANCE
ΙΚΕ
5,800.00
ΑΒΡ ΕΚΔΟΤΙΚΗ
ΙΔΙΩΤΙΚΗ
ΚΕΦΑΛΑΙΟΥΧΙΚΗ
ΕΤΑΙΡΕΙΑ
8,575.00
ΑΔΕΣΜΕΥΤΗ
ΕΝΗΜΕΡΩΣΗ
ΙΚΕ
2,379.00
ΑΘΕΝΣ
ΒΟΙΣ ΑΝΩΝΥΜΗ
ΕΚΔΟΤΙΚΗ ΕΤΑΙΡΕΙΑ
43,258.00
ΑΛΗΘΙΝΟ ΡΑΔΙΟΦΩΝΟ ΑΕ REAL FM
71,270.23
ΑΛΤΕΡ ΕΓΚΟ
ΜΜΕ
ΑΕ ΕΠΙΧΕΙΡΗΣΗ
ΜΕΣΩΝ
ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
876,867.28
ΑΝΑΣΤΑΣΙΟΣ
ΚΑΡΑΜΗΤΣΟΣ
&
ΣΥΝΕΡΓΑΤΕΣ
ΕΕ
OLIVE MAGAZINE
GR
12,490.00
ΑΝΕΞΑΡΤΗΤΑ
ΜΕΣΑ
ΜΑΖΙΚΗΣ
ΕΝΗΜΕΡΩΣΗΣ
ΑΕ
48,863.50
ΑΠΕ-ΜΠΕ
ΑΕ
20,000.00
ΑΣΛΑΝΙΔΗΣ
Γ ΑΝΑΣΤΑΣΙΟΣ
550.00
ΑΤΤΙΚΑ
ΠΟΛΥΚΑΤΑΣΗΜΑΤΑ
ΜΟΝ/ΠΗ ΑΕ
8,000.00
ΑΤΤΙΚΕΣ ΕΚΔΟΣΕΙΣ ΑΕ
13,000.01
ΒΑΡΟΥΞΗΣ
ΕΛΕΥΘΕΡΙΟΣ
&
ΥΙΟΙ
ΟΕ
3,500.00
ΒΑΣΙΛΕΙΟΣ ΛΙΑΤΣΟΣ
ΚΑΙ
ΣΙΑ
ΕΕ
1,000.00
ΒΑΣΙΛΟΠΟΥΛΟΣ
Χ -
ΠΕΤΡΟΠΟΥΛΟΣ
Δ ΟΕ
(NEMA PROBLEMA)
9,806.00
ΒΟΡΕΙΑ
ΕΝΗΜΕΡΩΤΙΚΗ
ΑΕ
1,850.00
ΓΕΝΙΚΕΣ ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΕΣ
ΕΠΙΧ ΑΕ
7,595.90
ΓΕΩΡΓΙΟΣ ΠΑΠΑΤΡΙΑΝΤΑΦΥΛΛΟΥ
& ΣΙΑ
ΕΕ
3,400.00
ΓΕΩΡΓΙΟΣ
ΣΚΑΤΣΑΙΤΗΣ
ΕΚΔΟΣΕΙΣ
ΕΝΗΜΕΡΩΣΗ
200.00
ΓΝΩΜΗ ΜΙΚΕ
121.00
ΓΝΩΜΗ
ΜΟΝΟΠΡΟΣΩΠΗ
ΕΚΔΟΣΕΙΣ
ΕΠΕ
150.00
Δ ΜΠΟΥΡΑΣ
& ΣΙΑ ΕΕ
37,500.00
ΔΕΣΜΗ
ΕΚΔΟΤΙΚΗ
ΑΕ
8,238.00
ΔΗΜ.ΡΟΥΧΩΤΑΣ
& ΣΙΑ
ΟΕ ΑΣΦΑΛΙΣΤΙΚΗ
ΑΓΟΡΑ
141.51
ΔΗΜΗΤΡΙΟΣ
ΑΛ ΑΡΑΜΠΑ
ΤΖΗΣ ΣΕΡΡ
ΑΪΚΟΝ
ΘΑΡΡΟΣ
5,000.00
ΔΗΜΟΤΙΚΗ
ΕΠΙΧ/ΣΗ
ΤΗΛΕΟΡΑΣΗΣ
ΔΑΣΠΡ/ΡΓΟΥ
ATTICA TV
10,018.50
ΔΙΕΘΝΕΙΣ ΕΚΔΟΣΕΙΣ
ΕΠΕ
500.00
ΔΙΟΓΕΝΗΣ ΜΚΟ
ΑΣΤΙΚΗ ΜΗ
ΚΕΡΔΟΣΚΟΠΙΚΗ
ΕΤΑΙΡΕΙΑ
1,500.00
ΔΙΟΝΑΤΟΣ
Ι & ΣΙΑ ΕΕ
13,500.00
ΔΟΥΣΗΣ ΑΝΑΣΤΑΣΙΟΣ
& ΣΙΑ
ΕΕ -
DOUSIES COM
EE
11,493.00
ΔΥΑΔΙΚΗ ΕΝΗΜΕΡΩΣΗ
ΕΕ
8,311.63
ΔΥΟ ΔΕΚΑ
ΑΝΩΝΥΜΗ
ΕΚΔΟΤΙΚΗ
ΕΤΑΙΡΕΙΑ
48,627.00
ΕΙΔΗΣΕΙΣ
ΝΤΟΤ
ΚΟΜ ΑΕ
383,461.31
ΕΙΔΙΚΛΟΓ/ΜΟΣ
ΚΟΝΔΕΡΕΥΝΤΟ
Υ
ΕΘΝΑΣΤΕΡΟΣΚΟΠΕΙΟΥ
805.00
ΕΚΔΟΣΕΙΣ
INFONEWS
IKE
20,900.00
ΕΚΔΟΣΕΙΣ
MOTORI ΕΠΕ
1,500.00
ΕΚΔΟΣΕΙΣ
ΕΝΤΥΠΟΥ
ΥΛΙΚΟΥ
ΚΑΡΑΜΑΝΟΓΛΟ
Υ
ΕΠΕ
5,250.00
*
Names have
not
been translated
into english.
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
449
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
ΕΚΔΟΣΕΙΣ ΕΠΕΝΔ
ΥΣΗ ΑΕ
13,000.00
ΕΚΔΟΣΕΙΣ
ΝΠΑΠΑΝΙΚΟΛΑΟ
Υ
ΑΕ
2,133.06
ΕΚΔΟΣΕΙΣ
ΝΕΟ ΧΡΗΜΑ
ΑΕ NEWMONEY
GR
34,476.00
ΕΚΔΟΣΕΙΣ
ΠΡΩΤΟ
ΘΕΜΑ
ΕΚΔΟΤΙΚΗ
ΑΕ
499,416.40
ΕΚΔΟΣΕΙΣ ΣΟΦΙΑ
ΜΟΣΧΑΝΔΡΕΟΥ
&
ΣΙΑ ΕΕ
955.64
ΕΚΔΟΣΕΙΣ
ΣΤΑΜΟΥΛΗ ΑΝΩΝΥΜΗ
ΕΤΑΙΡΕΙΑ
4,000.00
ΕΚΔΟΤΙΚΗ ΒΟΡΕΙΩΝ
ΠΡΟΑΣΤΙΩΝ
Μ
ΙΚΕ
1,500.00
ΕΛΕΥΘΕΡΙΑ ΤΟΥ ΤΥΠΟΥ
ΕΚΔΟΤΙΚΗ
ΑΕ
56,750.00
ΕΛΛΗΝΟΓΕΡΜΑΝΙΚΟ ΕΜΠΟΡΙΚΟ
& ΒΙΟΜΗΧΑΝΙΚΟ
ΕΠΙΜΕΛΗ
1,680.00
ΕΛΝΑΒΙ
ΙΚΕ
1,540.00
ΕΝΙΚΟΣ
ΑΝΩΝΥΜΗ
ΕΤΑΙΡΕΙΑ
34,050.00
ΕΝΤΥΠΟΕΚΔΟΤΙΚΗ
ΑΕΒΕΤ
9,000.00
ΕΞΕΡΕΥΝΗΤΗΣ-ΕΞΠΛΟΡΕΡ
ΑΕ
70,000.00
ΕΠΙΚΟΙΝΩΝΙΑ
ΕΠΕ
3,000.00
ΕΡΙΝΥΑ ΕΙΔΗΣΕΙΣ
Μ ΙΚΕ
12,400.00
ΕΣΤΙΑ ΕΠΕΝΔΥΤΙΚΗ
ΜΜΕ ΑΕ
39,150.00
ΕΦΗΜΕΡΙΣ
ΕΣΤΙΑ
ΑΝΩΝΥΜΗ
ΕΚΔΟΤΙΚΗ
ΕΤΑΙΡΕΙΑ
29,593.06
ΖΟΥΓΚΛΑ
ΤΖΙ ΑΡ
ΑΕ
89,120.00
ΖΟΥΓΡΗΣ
ΔΗΜΗΤΡΙΟΣ
ΚΑΙ ΣΙΑ
ΕΕ
900.00
ΖΩΗ ΛΕΥΚΟΦΡΥΔΟ
Υ
ΙΚΕ
471.77
Η ΑΥΓΗ ΑΕ
2,362.90
Η ΝΑΥΤΕΜΠΟΡΙΚΗ
56,528.98
ΗΛΙΑΣ ΚΑΝΕΛΛΗΣ
& ΣΙΑ
ΕΕ
3,300.00
ΗΧΟΣ ΚΑΙ
ΡΥΘΜΟΣ
ΜΟΝΟΠΡΟΣΩΠΗ
AE
4,322.40
ΘΕΜΑ ΡΑΔΙΟ
ΑΕ
1,963.84
ΘΕΟΧΑΡΗΣ
ΣΠΥΡ ΓΕΩΡΓΙΟΣ
7,902.50
Ι & Ε
ΚΟΥΤΣΟΛΙΟΝΤΟΥ
ΟΕ
3,000.00
ΙΚΑΡΟΣ ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΕΣ
ΕΠΙΧ/ΣΕΙΣ
ΑΕ
19,584.00
ΙΝΣΤΙΤΟΥΤΟ
ΕΡΕΥΝΩΝ
& ΜΕΛ
ΤΗΣ
ΚΕΝΤΕΝΕΠΙΜΕΛΛ/ΔΟΣ
2,900.00
ΙΟΝΙΚΕΣ ΕΚΔΟΣΕΙΣ
ΑΕ
6,000.00
ΚΜ ΧΑΤΖΗΗΛΙΑΔΗΣ
& ΣΙΑ ΕΕ
2,142.00
ΚΑΘΗΜΕΡΙΝΕΣ
ΕΚΔΟΣΕΙΣ
ΜΟΝΟΠΡΟΣΩΠΗ
ΑΕ
390,745.99
ΚΑΛΟΠΟΥΛΟΥ
ΓΕΩΜΑΡΙΑ (WOMANIDOL)
1,800.00
ΚΑΠΙΤΑΛGR AE
80,801.00
ΚΙΜΩΝ ΦΡΑΓΚΑΚΗΣ
ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
SOPHISTICATED
1,000.00
ΚΟΣΜΟΠΟ
ΥΛΟΣ
ΝΙΚΟΛΑΟΣ
ΓΕΩΡΓΙΟΥ
800.00
ΚΟΣΜΟΡΑΔΙΟ
ΕΕ
1,564.15
ΚΥΚΛΟΣ
ΑΕ ΠΑΓΚΡΗΤΙΑ
ΗΜΕΡΗΣΙΑ
ΕΦΗΜΕΡΙΔΑ
1,279.26
ΚΥΡΙΑΚΟΠΟ
ΥΛΟΣ
ΙΩΑΝΝΗΣ
ΦΙΛΙΠΠΟΣ
3,000.00
ΛΑΚΩΝΙΚΟΣ ΤΥΠΟΣ
ΧΡΙΣΤΙΝΑ ΑΝΝΑ
ΧΙΩΤΗ
287.50
ΛΑΜΨΗ
ΕΚΔΟΤΙΚΕΣ
& ΡΑΔ/ΚΕΣ
ΕΠΙΧΕΙΡΗΣΕΙΣ
ΑΕ
1,929.54
ΛΥΚΑΒΗΤΤΟΣ
ΕΚΔΟΣΕΙΣ
ΜΟΝΟΠΡΟΣΩΠΗ
ΙΚΕ
3,500.00
ΜΑΚΕΔΟΝΙΑ
ΕΝΗΜΕΡΩΣΗ
ΑΕ
4,541.51
ΜΑΚΕΔΟΝΙΑ ΤV
ΜΟΝΟΠΡΟΣΩΠΗ
AE
2,359.82
ΜΑΝΕΣΙΩΤΗΣ ΝΙΚ -
ΨΩΜΙΑΔΗΣ ΚΩΝ ΟΕ
FMVOICEGR
5,800.00
ΜΑΡΙΑ ΒΑΣΙΛΑΚΗ
ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ
9,000.00
ΜΕΤΡΟΝΤΗΛ
ΜΟΝ ΙΚΕ
5,790.03
ΜΠΑΜ ΕΝΗΜΕΡΩΣΗ ΜΟΝ ΙΚΕ
3,500.00
ΜΠΟΥΣΙΑΣ
ΕΠΙΚΟΙΝΩΝΙΕΣ
ΕΠΕ
4,603.10
ΝΕΑ ΤΗΛΕΟΡΑΣΗ
ΑΕ
261,837.81
ΝΕΑ ΤΗΣ
ΒΟΙΩΤΙΑΣ ΙΩΑΝΝΗΣ Η
ΚΑΝΤΑΣ
300.00
ΝΕΟΤΥΠΟΓΡΑΦΙΚΗ ΜΟΝΟΠΡΟΣΩΠΗ
ΕΠΕ Ο
ΛΟΓΟΣ
4,246.01
ΝΟΗΣΙΣ
ΙΚΕ
2,320.00
ΞΑΝΘΟΠΟΥΛΟΣ
-
ΟΜΗΡΟΥ -
ΕΥΑΓΓΕΛΟΠΟΥΛΟΣ
ΟΕ (KITCHEN
900.00
ΟΚΤΑΣ
MEDIA ΙΚΕ
43,000.00
ΟΜΙΛΟΣ
ΤΟΤΣΗ
169.82
*
Names have
not
been translated
into english.
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
450
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
ΟΤΕ ΑΕ
54,305.70
Π ΔΕΛΗΓΙΑΝΝΗΣ &
ΣΙΑ ΕΕ
1,800.00
ΠΔΕΚΔΟΣΕΙΣ
ΕΠΕ
13,000.00
ΠΤΣΙΤΑΣ ΕΕ
300.00
ΠΑΛΟ
ΨΗΦΙΑΚΕΣ
ΤΕΧΝΟΛΟΓΙΕΣ
ΕΠΕ
950.00
ΠΑΠΑΔΟΠΟΥΛΟΥ
ΑΘΑΝΑΣΙΑ &
ΣΙΑ ΕΕ
1,400.00
ΠΑΠΑΡΟΥΝΗΣ
ΦΑΝΜΙΧΑΛΗΣ
250.00
ΠΑΠΟΥΛΙΔΗΣ
ΘΕΟΔΩΡΟΣ
ΜΙΚΕ
2,642.00
ΠΑΡΑΕΝΑ
ΜΕΠΕ
75,763.81
ΠΑΡΑΠΟΛΙΤΙΚΑ
ΕΚΔΟΣΕΙΣ
ΑΕ
38,520.00
ΠΑΤΣΙΚΑΣ
ΕΚΔΟΤΙΚΗ ΔΗΜΟΣΙΟΓΡΑΦΙΚΗ
ΒΕΡΟΙΑΣ
ΕΕ
-
ΕΦΗΜΕΡΙΔΑ ΛΑΟΣ
265.00
ΠΕΛΟΠΟΝΝΗΣΟΣ
ΠΑΤΡΩΝ ΕΚΔΟΣΕΙΣ
ΑΕ
4,674.53
ΠΕΡΙΟΔΙΚΟ
BEAUTE
ΙΚΕ
1,500.00
ΠΡΟΤΑΓΚΟΝ
ΑΕ
11,865.00
ΡΗΕΜΕΑΕ
Ρ/Τ ΗΛΕΚΡΟΝ
ΕΚΔΟΤΙΚΑ
ΜΕΣΑ
ΕΛΛ ΑΕ
3,000.00
ΡΑΔΙΟ ΘΕΣΣΑΛΟΝΙΚΗ
AE
7,653.15
ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΕΣ
ΕΠΙΧΕΙΡΗΣΕΙΣ
ΑΕ
10,157.57
ΡΑΔΙΟΤΗΛΕΟΠΤΙΚΗ
ΑΕ
104,389.08
ΡΑΔΙΟΦΩΝΙΚΕΣ
ΕΠΙΧΕΙΡΗΣΕΙΣ RADIO
NORTH 98FM
ΜΟΝ ΕΠΕ
6,579.00
ΡΑΔΙΟΦΩΝΙΚΕΣ
ΠΑΡΑΓΩΓΕΣ
ΜΟΝ ΑΕ
11,058.75
ΡΑΔΙΟΦΩΝΙΚΗ ΕΠΙΚΟΙΝΩΝΙΑ ΜΟΝΑΕ ΔΙΕΣΗ FM
9,868.90
ΣΕΛΑΝΑ
ΑΕ
7,000.00
ΣΙΜΟΥΣΙ ΕΕ
7,585.00
ΣΥΓΧΡΟΝΗ ΕΠΟΧΗ
ΕΚΔΟΤΙΚΗ
ΑΕΒΕ
3,808.00
ΤΟΜΕΛΙΤΟΥ
Ι-ΚΑΣΤΟΡΙΝΗ
1,500.00
ΤΡΑΜΠΑΣ
ΔΗΜΗΤΡΙΟΣ
ΣΤΥΛΙΑΝΟΣ
2,500.00
ΤΣΙΤΑΣ Χ ΠΡΟΔΡΟΜΟΣ
3,000.00
ΤΥΠΟΣ ΧΑΛΚΙΔΙΚΗΣ
ΘΩΜΑ
ΘΕΟΔΩΡΑ
135.00
ΦΕΛΝΙΚΟΣ
ΗΛΕΚΤΡΜΕΣΩΝ
ΕΝΗΜΕΡΩΣΗΣ
Μ ΕΠΕ
5,000.00
ΦΙΛΑΘΛΟΣ ΙΚΕ
10,000.00
ΦΙΛΕΛΕΥΘΕΡΟΣ
ΤΥΠΟΣ
ΜΟΝΟΠΡΟΣΩΠΗ
ΑΕ
82,797.00
ΦΩΤΑΓΩΓΟΣ
ΕΠΕ
4,100.00
ΦΩΤΗΣ ΤΣΙΜΕΛΑΣ
& ΣΙΑ
ΕΕ
5,000.00
Χ ΘΕΟΦΡΑΣΤΟΥ
ΤΗΛΕΟΠΤΙΚΕΣ
ΠΑΡΑΓΩΓΕΣ ΙΚΕ
3,000.00
ΧΡΥΣΗ ΕΥΚΑΙΡΙΑ ΕΚΔΟΣΕΙΣ
ΑΕ
738.00
6,776,308.01
PAYMENTS
TO
MEDIA
COMPANIES
OF
AMOUNTS
LESS
THAN
€100
PER
MEDIA
COMPANY
Name*
NEWSFRONT
ΝΑΥΤΙΛΙΑΚΕΣ
ΕΚΔΟΣΕΙΣ
ΙΚΕ
62.00
ΑΡΧΑΙΟΛΟΓΙΑ
ΚΑΙ ΤΕΧΝΕΣ
94.34
ΕΛΕΥΘΕΡΙΑ ΑΕ
72.00
ΕΛΕΥΘΕΡΙΑ ΑΕ
ΑΝΩΝΥΜΟΣ
ΕΚΔΟΤΙΚΗ
ΕΤΑΙΡΕΙΑ
44.00
ΘΑΡΡΟΣ ΕΚΔΟΤΙΚΗ
ΕΠΕ
66.00
ΙΔ ΚΟΛΛΑΡΟΥ
& ΣΙΑ
ΑΕ ΒΙΒΛΙΟΠΩΛΕΙΟ
ΤΗΣ ΕΣΤΙΑΣ
56.60
ΚΥΚΛΑΔΙΚΗ
ΕΕ
34.00
ΚΩΣΤΑΡΕΛΛΑΣ
Ν
ΙΩΑΝΝΗΣ
30.00
ΝΑΥΤΙΚΑ
ΧΡΟΝΙΚΑ
- GRATIA
ΕΚΔΟΤΙΚΗ ΙΚΕ
75.47
ΣΚΟΥΤΕΡΗΣ ΖΡΗΣΤ
ΟΣ Γ ΚΟΡΙΝΘΙΑΚΗ
ΗΜΕΡΑ
100.00
ΤΟΠΙΚΕΣ ΕΦΗΜΕΡΙΔΕΣ
ΙΚΕ
99.00
733.41
*
Names have
not
been translated
into english.
TOTAL FOR
MEDIA
PAYMENTS
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
451
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
ΠΛΗΡΩΜΕΣ
ΦΟΡΟΥ ΤΗΛ
ΕΟΡΑΣΗΣ
57,657.77
ΤΕΛΟΣ ΔΙΑΦΗΜΙΣΕΩΝ
2% ΣΤΟ
INTERNET
44,265.82
ΠΛΗΡΩΜΕΣ ΕΙΔΙΚΟΥ ΤΕΛΟΥΣ
0,02%
383.20
ΠΛΗΡΩΜΕΣ ΔΗΜΟΤΙΚΩΝ ΤΕΛΩΝ 2%
1,873.13
104,179.92
PAYMENTS DUE
TO DONATIONS,
SPONSORSHIP, SUBSIDIES
OR OTHER CHARIT
ABLE REASONS
(Article 6
Par.
2 of
L.4374/2016)
12ος ΠΥΡΟΣΒΕΣΤΙΚΟΣ
ΣΤΑΘΜΟΣ ΑΘΗΝΩΝ
3,600.00
63ο ΓΥΜΝΑΣΙΟ
ΑΘΗΝΩΝ
499.50
ACS
SAH
CLUB
UNIVERSUL
10,000.00
ACTION AID
100,150.00
AEGEAN MESSINIA
PROAM,
ATS
LTD
COSTA
NAVARINO
50,000.00
AFFEKT ΑΜΚΕ
5,000.00
ALPI
ΕΚΜΕΤΑΛΛΕΥΣΗ
ΑΚΙΝΗΤΩΝ
ΑΝΩΝΥΜΗ
ΕΤΑΙΡΕΙΑ
25,000.00
ASOCIATIA
CENTRUL
MEMORIAL
DR.GHEORGHE
TELEA
-BOLOGA
10,000.00
ASOCIATIA
HELP
AUTISM
2,000.00
ASOCIATIA
PENTRU
PROMOVAREA
PERFORMANTEI
IN EDUCATIE
11,000.00
ASOCIATIA
SOCIETATEA PENTRU
MUZICA
CLASICA
5,000.00
CAMERA
DE COMERT
BILATERALA
ELENO-ROMANA
2,000.00
CONGRESS LINE
Ι.ΠΑΠΑΔΗΜΗΤΡΟΠΟΥΛΟΣ
&
ΣΙΑ
ΟΕ
5,000.00
DOWN SYNDROME
FOUNDATION ALBANIA
2,110.11
EBEN
1,000.00
ECOPLEFSI
– ROBOTICA.GR
1,000.00
ETHOS
MEDIA AE
ΕΚΔΟΤΙΚΗ
ΣΥΝΕΔΡΙΑΚΗ
17,000.00
EUROPA
DONNA
ΚΥΠΡΟΥ
2,000.00
FEDERATIA ROMANA
DE TIR SPORTIV
2,000.00
FUNDATIA
DEMOCRATIE
PRIN CULTURA
10,000.00
GIVMED
3,210.00
HELLENIC
BUSINESS
ASSOCIATION
ALBANIA
1,994.74
Hi.K.E.R. ΔΙΕΘΝΕΣ
ΙΝΣΤΙΤΟΥΤΟ
ΙΠΠΟΚΙΝΗΣΙΟ
ΕΚΠΑΙΔΕΥΤΙΚΗΣ
ΑΠΟΚΑΤΑΣΤΑΣΗΣ
1,000.00
ITFA
(INTERNATIONAL
TRADE
AND
FORFAITING
ASSOCIATION)
2,500.00
J & P VERITAS
IKE
10,000.00
LIQUID MEDIA
AE
GAZZETTA
GR
7,500.00
MADAME FIGARO ΒΡΑΒΕΙΑ
ΓΥΝΑΙΚΕΣ ΤΗΣ
ΧΡΟΝΙΑΣ 2022
- ΕΝΙΣΧΥΣΗ
ΦΙΛΑΝΘΡΩΠΙΚΟΥ
ΙΔΡΥΜΑΤΟΣ
318.00
MESSINIA
PROAM, Τ.Ε.
ΜΕΣ Α.Ε.
COSTA NAVARINO
20,000.00
MUZEUL NATIONAL
PELES SINAIA
14,906.50
ON TIME
CONCEPT
SHPK
2,375.14
ORGANIZATIA
SALVATI
COPIII
15,000.00
PALLADIAN
COMMUNICATION
SPECIALISTS
7,000.00
PUBLIC AFFAIRS
&
NETWORKS
1,750.00
REDCLOUD
1,218.13
SAFE
WATERSPORTS
ΝΠΙΔ
ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΟ
ΣΩΜΑΤΕΙΟ
15,000.00
SAFER INTERNET
HELLAS
2,000.00
SCICO
SCIENCE
COMMUNICATION
207,000.00
SOLID HAVAS
8,640.00
ST. ASDVADZADZIN
ARMEN.
CHURCH
CHOIR
200.00
THE AMERICAN COLLEGE
OF GREECE
4,000.00
WOMEN DO BUSINESS
ΑΜΚΕ
10,000.00
WORLD HUMAN
FORUM ΑΣΤΙΚΗ
ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΗ
ΕΤΑΙΡΕΙΑ
35,000.00
ΑΘΛΗΤΙΚΟΣ ΣΥΛΛΟΓΟΣ
ΝΙΚΑΓΟΡΑΣ
ΚΩ
1,725.00
ΑΝΤΑΠΟΚΡΙΣΗ
ΣΤΗΝ
ΑΝΘΡΩΠΙΣΤΙΚΗ
ΚΡΙΣΗ
ΣΤΗΝ
ΟΥΚΡΑΝΙΑ
2,018.59
ΑΝΤΙΚΑΡΚΙΝΙΚΟ ΟΓΚΟΛΟΓΙΚΟ ΝΟΣΟΚΟΜΕΙΟ
ΑΘΗΝΩΝ Ο
ΑΓΙΟΣ ΣΑΒΒΑΣ
21,950.00
ΑΝΤΙΚΑΡΚΙΝΙΚΟΣ
ΣΥΝΔΕΣΜΟΣ
ΚΥΠΡΟΥ
350.00
*
Names have
not
been translated
into english.
ΑΝΩΤΑΤΗ
ΣΧΟΛΗ ΚΑΛΩΝ
ΤΕΧΝΩΝ
3,000.00
ΑΣΦΑΛΙΣΤΙΚΗ
ΕΤΑΙΡΙΑ
ΔΥΝΑΜΙΣ
3,500.00
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ ΑΘΗΝΩΝ
ΛΑΙΚΟ
11,527.50
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
452
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
ΓΕΝΙΚΟ
ΝΟΣΟΚΟΜΕΙΟ
ΑΙΤΩΛΟΑΚΑΡΝΑΝΙΑΣ
1,250.00
ΓΕΝΙΚΟ ΝΟΣΟΚΟΜΕΙΟ ΘΕΣΣΑΛΟΝΙΚΗΣ
"Γ.
ΓΕΝΝΗΜAΤΑΣ -
O ΑΓΙΟΣ
ΔΗΜΗΤΡΙΟΣ -
8,025.00
ΓΕΝΙΚΟ
ΝΟΣΟΚΟΜΕΙΟ
ΠΑΤΡΩΝ
ΚΑΡΑΜΑΝΔΑΝΕΙΟ
1,432.00
ΓΕΝΙΚΟ
ΝΟΣΟΚΟΜΕΙΟ
ΣΥΡΟΥ
1,345.00
ΓΙΑΤΡΟΙ
ΤΟΥ
ΚΟΣΜΟΥ
5,000.00
ΓΝΑ ΚΑΤ
2,650.00
ΔΗΜΟΣ ΑΘΗΝΑΙΩΝ
900.00
ΔΗΜΟΣ
ΗΡΩΙΚΗΣ
ΝΗΣΟΥ
ΚΑΣΟΥ
2,000.00
ΔΗΜΟΣ
ΣΑΜΗΣ
8,065.00
ΔΙΑΓΝΩΣΤΙΚΗ ΚΑΙ
ΘΕΡΑΠΕΥΤΙΚΗ
ΜΟΝΑΔΑ ΓΙΑ
ΤΟ
ΠΑΙΔΙ "ΣΠΥΡΟΣ
ΔΟΞΙΑΔΗΣ"
1,000.00
ΔΙΑΣΩΣΤΙΚΗ
ΕΘΕΛΟΝΤΙΚΗ
ΟΜΑΔΑ
ΦΙΓΑΛΕΙΑΣ
5,000.00
ΔΙΕΘΝΕΣ
ΙΝΣΤΙΤΟΥΤΟ
ΓΙΑ ΤΗΝ
ΚΥΒΕΡΝΟΑΣΦΑΛΕΙΑ
ΣΩΜΑΤΕΙΟ
24,000.00
ΕΘΕΛΟΝΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ ΠΥΡ
ΟΠΡΟΣΤΑΣΙΑΣ
ΔΑΣΩΝ
ΛΟΥΤΡΑΚΙΟΥ
- ΠΕΡΑΧΩΡΑΣ
34,305.00
ΕΘΝΙΚΗ ΛΥΡΙΚΗ
ΣΚΗΝΗ
82,000.00
ΕΘΝΙΚΗ ΟΜΟΣΠΟΝΔΙΑ ΤΥΦΛΩΝ
1,116.68
ΕΘΝΙΚΗ
ΠΙΝΑΚΟΘΗΚΗ
ΜΟΥΣΕΙΟ
ΑΛΕΞΑΝΔΡΟ
Υ
ΣΟΥΤΣΟΥ
56,800.00
ΕΘΝΙΚΟ
ΘΕΑΤΡΟ
60,000.00
ΕΘΝΙΚΟ ΚΑΙ
ΚΑΠΟΔΙΣΤΡΙΑΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ
ΑΘΗΝΩΝ
33,598.23
ΕΘΝΙΚΟ
ΚΕΝΤΡΟ
ΕΡΕΥΝΑΣ
ΚΑΙ ΤΕΧΝΟΛΟΓΙΚΗΣ
ΑΝΑΠΤΥΞΕΩΣ
21,000.00
ΕΙΔΙΚΟ
ΚΕΝΤΡΟ
ΕΦΟΔΙΑΣΜΟΥ
ΜΟΝΑΔΩΝ
ΣΤΡΑΤΟΥ
6,050.00
ΕΙΔΙΚΟ ΝΗΠΙΑΓΩΓΕΙΟ
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΚΩΦΩΝ ΚΑΙ
ΒΑΡΥΚΟΩΝ ΑΡΓΥΡΟΥΠΟΛΗΣ
414.39
ΕΛΛΗΝΙΚΗ
ΔΗΜΟΚΡΑΤΙΑ
ΥΠΟΥΡΓΕΙΟ
ΕΣΩΤΕΡΙΚΩΝ
ΚΑΙ ΔΙΟΙΚΗΤΙΚΗΣ
ΑΝΑΣΥΓΚΡΟΤΗΣΗΣ
ΑΡΧΗΓΕΙΟ
ΕΛΛΗΝΙΚΗΣ
ΑΣΤΥΝΟΜΙΑΣ
11,212.58
ΕΛΛΗΝΙΚΗ
ΕΤΑΙΡΕΙΑ
ΠΕΡΙΒΑΛΛΟΝΤΟΣ
ΚΑΙ ΠΟΛΙΤΙΣΜΟΥ
7,500.00
ΕΛΛΗΝΙΚΗ
ΕΤΑΙΡΙΑ
ΠΡΟΣΤΑΣΙΑΣ
ΚΑΙ
ΑΠΟΚΑΤΑΣΤΑΣΕΩΝ
ΑΝΑΠΗΡΩΝ
ΠΡΟΣΩΠΩΝ
6,000.00
ΕΛΛΗΝΙΚΗ
ΣΤΑΤΙΣΤΙΚΗ
ΑΡΧΗ
3,050.00
ΕΛΛΗΝΙΚΗ ΣΧΟΛΗ
ΣΚΥΛΩΝ ΟΔΗΓΩΝ
Η ΛΑΡΑ
3,500.00
ΕΛΛΗΝΙΚΟ
ΙΔΡΥΜΑ
ΚΑΡΔΙΟΛΟΓΙΑΣ
1,000.00
ΕΛΛΗΝΟΓΑΛΛΙΚΗ
ΣΧΟΛΗ
ΟΥΡΣΟΥΛΙΝΩΝ
500.00
ΕΜΠΟΡΙΚΗ
ΛΕΣΧΗ
ΞΑΝΘΗΣ
2,500.00
ΕΜΠΟΡΙΚΟ
ΕΠΙΜΕΛΗΤΗΡΙΟ
ΑΡΓΟΛΙΔΟΣ
500.00
ΕΜΠΟΡΙΚΟΣ
ΚΑΙ ΕΠΙΧΕΙΡΗΜΑΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΝΑΥΠΛΙΟΥ
300.00
ΕΜΠΟΡΙΚΟΣ
ΣΥΛΛΟΓΟΣ ΑΡΓΟΥΣ
300.00
ΕΜΠΟΡΟΕΠΑΓΓΕΛΜΑΤΙΚΟΣ
ΚΑΙ
ΒΙΟΤΕΧΝΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΤΗΝΟΥ
300.00
ΕΝΩΣΗ
ΚΥΠΡΙΩΝ
ΣΥΝΤΑΞΙΟΥΧΩΝ
100.00
ΕΠΙΜΕΛΗΤΗΡΙΟ
ΣΕΡΡΩΝ
1,000.00
ΕΠΙΣΕΥ
ΕΡΕΥΝΗΤΙΚΟ
ΠΑΝΕΠΙΣΤΗΜΙΑΚΟ
ΙΝΣΤΙΤΟΥΤΟ
ΣΥΣΤΗΜΑ
ΤΩΝ,
ΕΠΙΚΟΙΝΩΝΙΩΝ
ΚΑΙ
ΥΠΟΛΟΓΙΣΤΩΝ
45,000.00
ΕΡΕΥΝΗΤΙΚΟ
ΚΕΝΤΡΟ
ΣΤΡΑΤΗΓΙΚΗΣ
ΔΙΟΙΚΗΣΗΣ
ΤΩΝ ΕΠΙΧΕΙΡΗΣΕΩΝ
ΚΑΙ ΕΠΙΧΕΙΡΗΜΑΤΙΚΟΤΗΤΑΣ
5,000.00
ΕΡΥΘΡΟΣ ΣΤΑΥΡΟΣ - ΚΛΑΔΟΣ ΚΕΡΥΝΕΙΑΣ
100.00
ΕΤΑΙΡΕΙΑ
ΑΞΙΟΠΟΙΗΣΕΩΣ
ΚΑΙ ΔΙΑΧΕΙΡΙΣΕΩΣ
ΤΟΥ ΟΙΚΟΝΟΜΙΚΟ
Υ
ΠΑΝΕΠΙΣΤΗΜΙΟ
Υ
ΑΘΗΝΩΝ
Α.Ε.
2,500.00
ΕΤΑΙΡΙΑ
ΠΡΟΣΤΑΣΙΑΣ
ΣΠΑΣΤΙΚΩΝ
ΠΟΡΤΑ ΑΝΟΙΧΤΗ
3,500.00
Η ΚΑΡΔΙΑ
ΤΟΥ
ΠΑΙΔΙΟΥ
1,500.00
ΙΑΣΙΣ
ΑΜΚΕ
1,000.00
ΙΔΡΥΜΑ
ΕΥΣΤΑΘΙΑΣ Ι.
ΚΩΣΤΟΠΟΥΛΟΥ
215,300.00
ΙΔΡΥΜΑ ΙΑΤΡΟΒΙΟΛΟΓΙΚΩΝ
ΕΡΕΥΝΩΝ
ΑΚΑΔΗΜΙΑΣ ΑΘΗΝΩΝ
10,000.00
ΙΔΡΥΜΑ
ΚΩΝΣΤΑΝΤΙΝΟΣ
ΣΗΜΙΤΗΣ
3,000.00
ΙΔΡΥΜΑ
'ΜΙΚΡΟΙ
ΗΡΩΕΣ'
3,100.00
ΙΔΡΥΜΑ ΜΟΥΣΕΙΟΥ
ΜΑΚΕΔΟΝΙΚΟΥ
ΑΓΩΝΑ
7,000.00
ΙΔΡΥΜΑ ΣΟΦΙΑ ΓΙΑ ΤΑ
ΠΑΙΔΙΑ
200.00
ΙΕΡΑ
ΜΕΓΙΣΤΗ ΜΟΝΗ
ΒΑΤΟΠΑΙΔΙΟΥ
1,000.00
ΙΕΡΑ
ΜΗΤΡΟΠΟΛΗ
ΣΕΡΡΩΝ
ΚΑΙ ΝΙΓΡΙΤΗΣ
2,000.00
ΙΕΡΑ ΜΗΤΡΟΠΟΛΗ
ΤΡΙΜΥΘΟΥΝΤΟΣ
100.00
Κ2
ΑΝΑΠΤΥΞΙΑΚΟΣ ΟΡΓΑΝΙΣΜΟΣ
ΠΕΡΙΦΕΡΕΙΑΣ ΝΟΤΙΟΥ
ΑΙΓΑΙΟΥ
ΑΕ
80,000.00
*
Names have
not
been translated
into english.
ΚΑΝΕ ΜΙΑ
ΕΥΧΗ
ΕΛΛΑΔΟΣ ΑΜΚΕ
14,630.00
ΚΑΡΑΙΣΚΑΚΙΟ
ΙΔΡΥΜΑ
1,417.50
ΚΕΝΤΡΟ ΕΙΔΙΚΩΝ
ΑΤΟΜΩΝ Η
ΧΑΡΑ
200.00
ΚΕΝΤΡΟ
ΕΝΗΜΕΡΩΣΗΣ
ΚΑΙ ΘΕΡΑΠΕΙΑΣ
ΕΞΑΡΤΗΜΕΝΩΝ
ΑΤΟΜΩΝ
"ΚΕΝΘΕΑ"
200.00
ΚΕΝΤΡΟ
ΕΡΕΥΝΩΝ
ΠΑΝΕΠΙΣΤΗΜΙΟ
Υ
ΠΕΙΡΑΙΩΣ
3,000.00
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
453
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
ΚΙΒΩΤΟΣ
ΤΟΥ
ΚΟΣΜΟΥ
1,500.00
ΚΟΡΑΚΑΚΗ
ΑΝΝΑ ΙΚΕ
30,000.00
ΚΡΑΤΙΚΗ
ΟΡΧΗΣΤΡΑ
ΑΘΗΝΩΝ
10,000.00
ΚΥΠΡΙΑΚΗ ΑΘΛΗΤΙΚΗ
ΟΜΟΣΠΟΝΔΙΑ ΑΤΟΜΩΝ
ΜΕ ΑΝΑΠΗΡΙΑ
100.00
ΚΥΠΡΙΑΚΟΣ ΕΡΥ
ΘΡΟΣ ΣΤΑΥΡΟΣ
100.00
ΜΑΡΓΑΡΙΤΑ-ΕΡΓΑΣΤΗΡΙ
ΕΙΔΙΚΗΣ
ΑΓΩΓΗΣ
1,800.00
ΜΗΛΙΤΣΗΣ ΠΑΥΣΑΝΙΑΣ
ΜΟΝ ΙΚΕ
30,500.00
ΜΙΧΑΛΕΛΕΙΟΣ
ΟΙΚΟΣ ΕΥΓΗΡΙΑΣ
1,000.00
ΜΟΥΣΙΚΟΣ ΚΑΙ ΔΡΑΜΑΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΩΔΕΙΟΝ ΑΘΗΝΩΝ 1871
30,000.00
ΜΟΥΣΙΚΥΝΘΟΣ
ΑΜΚΕ
1,500.00
ΜΠΟΥΣΙΑΣ
ΕΠΙΚΟΙΝΩΝΙΕΣ
10,000.00
ΝΗΠΙΑΓΩΓΕΙΟ ΛΕΙΨΩΝ
ΝΙΚΗΦΟΡΕΙΟ
704.50
ΝΟΜΙΣΜΑΤΙΚΟ
ΜΟΥΣΕΙΟ
1,200.00
ΝΟΣΟΚΟΜΕΙΟ
ΘΕΙΑΣ
ΠΡΟΝΟΙΑΣ
"Η
ΠΑΜΜΑΚΑΡΙΣΤΟΣ"
1,588.85
ΟΓΚΟΛΟΓΙΚΟ
ΚΕΝΤΡΟ ΙΑ
ΤΡΟΒΙΟΛΟΓΙΚΗΣ
ΕΚΠΑΙΔΕΥΣΗΣ
ΚΑΙ ΕΡΕΥΝΑΣ
1,000.00
ΟΙ ΦΙΛΟΙ ΤΗΣ ΤΗΝΟΥ
1,000.00
ΟΙΚΟΝΟΜΙΚΗ ΕΝΙΣΧΥΣΗ
ΦΙΛΑΝΘΡΩΠΙΚΩΝ ΙΔΡΥΜΑΤΩΝ
500.00
ΟΙΚΟΝΟΜΙΚΟ ΦΟΡΟΥΜ ΔΕΛΦΩΝ
27,000.00
ΟΙΚΟΥΜΕΝΙΚΗ
ΟΜΟΣΠΟΝΔΙΑ
ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΙΤΩΝ
1,500.00
ΟΜΑΔΑ ΑΝΤΙΜΕΤΩΠΙΣΗΣ
ΚΑΤΑΣΤΡΟΦΩΝ
4Χ4 ΜΕΣΣΗΝΙΑΣ
34,305.00
ΟΡΓΑΝΙΣΜΟΣ 'HOPE
FOR
CHILDREN'
1,000.00
ΟΡΓΑΝΙΣΜΟΣ
ΔΙΑΧΕΙΡΙΣΗΣ
ΚΑΙ
ΑΝΑΠΤΥΞΗΣ
ΠΟΛΙΤΙΣΤΙΚΩΝ
ΠΟΡΩΝ
642.00
ΟΡΓΑΝΙΣΜΟΣ
ΜΕΓΑΡΟΥ
ΜΟΥΣΙΚΗΣ ΑΘΗΝΩΝ
76,848.57
ΠΑΓΚΥΠΡΙΑ ΟΡΓΑΝΩΣΗ
ΤΥΦΛΩΝ
100.00
ΠΑΓΚΥΠΡΙΟΣ
ΑΝΤΙΝΑΡΚΩΤΙΚΟΣ
ΣΥΝΔΕΣΜΟΣ
30.00
ΠΑΓΚΥΠΡΙΟΣ ΣΥΝΔΕΣΜΟΣ
ΓΟΝΕΩΝ
ΤΥΦΛΩΝ
ΠΑΙΔΙΩΝ
200.00
ΠΑΓΚΥΠΡΙΟΣ
ΣΥΝΔΕΣΜΟΣ
ΕΥΗΜΕΡΙΑΣ
ΤΥΦΛΩΝ
100.00
ΠΑΓΚΥΠΡΙΟΣ
ΣΥΝΔΕΣΜΟΣ
ΠΟΛΛΑΠΛΗΣ
ΣΚΛΗΡΥΝΣΗΣ
100.00
ΠΑΓΚΥΠΡΙΟΣ
ΣΥΝΔΕΣΜΟΣ
ΦΙΛΩΝ
ΝΕΦΡΟΠΑΘΩΝ
5,050.00
ΠΑΙΔΟΓΚΟΛΟΓΙΚΟΣ
ΘΑΛΑΜΟΣ
ΤΟΥ
ΜΑΚΑΡΕΙΟ
Υ
ΝΟΣΟΚΟΜΕΙΟΥ
558.00
ΠΑΝΕΠΙΣΤΗΜΙΑΚΟ
ΓΕΝΙΚΟ
ΝΟΣΟΚΟΜΕΙΟ
ΑΛΕΞΑΝΔΡΟΥΠΟΛΗΣ
8,244.00
ΠΑΝΕΠΙΣΤΗΜΙΟ
ΘΕΣΣΑΛΙΑΣ
20,000.00
ΠΑΝΕΠΙΣΤΗΜΙΟ ΚΥΠΡΟΥ -
ΤΜΗΜΑ ΟΙΚΟΝΟΜΙΚΩΝ
1,000.00
ΠΑΝΟΣ &
ΧΡΥΣΗΙΔΑ ΒΟΗΘΕΙΑ ΣΤΑ
ΠΑΙΔΙΑ
1,500.00
ΠΑΝΤΕΙΟ
ΠΑΝΕΠΙΣΤΗΜΙΟ
7,000.00
ΠΑΣΥΚΑΦ
(ΠΑΓΚΥΠΡΙΟΣ ΣΥΝΔΕΣΜΟΣ
ΚΑΡΚΙΝΟΠΑΘΩΝ ΚΑΙ
ΦΙΛΩΝ)
60.00
ΠΓΝ
ΑΛΕΞΑΝΔΡΟΥΠΟΛΗΣ
13,000.00
ΠΟΛΙΤΙΣΤΙΚΟ ΙΔΡΥΜΑ
ALPHA
BANK
15,000.00
ΠΟΛΙΤΙΣΤΙΚΟΣ
ΑΘΛΗΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΟΝΗΣΙΛΟΣ
ΛΑΚΑΤΑΜΙΑΣ
300.00
ΠΟΛΥΤΕΧΕΙΟ ΚΡΗΤΗΣ
17,000.00
ΠΡΟΓΡΑΜΜΑ
ΜΑΖΙ ΜΕ ΣΤΟΧΟ
ΤΗΝ ΠΑΙΔΕΙΑ
75,000.00
ΠΡΟΓΡΑΜΜΑ
ΜΑΖΙ ΜΕ ΣΤΟΧΟ
ΤΗΝ ΥΓΕΙA
124,000.00
ΠΡΟΓΡΑΜΜΑ ΠΑΡΑΟΛΥΜΠΙΟΝΙΚΩΝ –σχολικο τουρνουα Μποτσια –
Γ. Πολυχρονιδης
1,600.00
ΠΡΟΤΥΠΟ
ΕΘΝΙΚΟ
ΝΗΠΙΟΤΡΟΦΕΙΟ
ΚΑΛΛΙΘΕΑΣ
1,000.00
Σ.ΑΥΓΟΥΛΕΑ - ΛΙΝΑΡΔΑ
ΤΟΥ ΑΝΩΝΥΜΗ
ΕΚΠΑΙΔΕΥΤΙΚΗ
ΕΤΑΙΡΕΙΑ
1,000.00
ΣΤΕΓΗ
ΠΡΟΣΤΑΣΙΑΣ
ΑΔΕΣΠΟΤΩΝ
ΖΩΩΝ
2,000.00
ΣΤΗΡΙΞΗ 23HΣ ΕΤΗΣΙΑΣ
ΔΙΑΔΡΟΜΗΣ ΑΓΑΠΗΣ
2023 - ΈΝΑ
ΟΝΕΙΡΟ ΜΙΑ ΕΥΧΗ
1,000.00
ΣΤΗΡΙΞΗ
ΕΚΔΗΛΩΣΗΣ
ΣΧΟΛΕΙΟΥ
ΓΙΑ ΕΝΙΣΧΥΣΗ
ΣΥΝΔΕΣΜΟ
Υ
ΓΙΑ ΑΤΟΜΑ
ΜΕ ΑΥΤΙΣΜΟ
ΚΥΠΡΟΥ
(ΣΤΑΘΜΟΣ
ΛΕΥΚΩΣΙΑΣ)
200.00
ΣΤΗΡΙΞΗ
ΕΚΣΤΡΑΤΕΙΑΣ ΠΑΓΚΥΠΡΙΟ
Υ
ΣΥΝΤΟΝΙΣΤΙΚΟ
Υ
ΣΥΜΒΟΥΛΙΟΥ
ΕΘΕΛΟΝΤΙΣΜΟ
Υ
"ΥΙΟΘΕΤΗΣΤΕ
ΜΙΑ ΟΙΚΟΓΕΝΕΙΑ
ΤΑ
ΧΡΙΣΤΟΥΓΕΝΝΑ"
-
ΠΡΟΣΦΟΡΑ
ΔΩΡΟΚΟΥΠΟΝΙΩΝ
1,000.00
ΣΤΗΡΙΞΗ ΕΚΣΤΡΑΤΕΙΑΣ
ΠΣΣΕ OΛΑ ΤΑ
ΠΑΙΔΙΑ
ΜΕ
ΣΧΟΛΙΚΑ
1,000.00
*
Names have
not
been translated
into english.
ΣΤΗΡΙΞΗ
ΕΚΣΤΡΑΤΕΙΑΣ ΠΣΣΕ
'ΥΙΟΘΕΤΗΣΤΕ
ΜΙΑ ΟΙΚΟΓΕΝΕΙΑ
ΤΟ ΠΑΣΧΑ'
1,000.00
ΣΥΛΛΟΓΟΣ
ΓΟΝΕΩΝ &
ΚΗΔΕΜΟΝΩΝ ΝΟΗΤΙΚΑ
ΥΣΤΕΡΟΥΝΤΩΝ
ΑΤΟΜΩΝ ΠΡΟΤΥΠΟ
ΕΙΔΙΚΟ ΟΙΚΟΤΡΟΦΕΙΟ
«ΟΙ ΑΓΙΟΙ
ΑΝΑΡΓΥΡΟΙ»
150.00
ΣΥΛΛΟΓΟΣ
ΕΘΕΛΟΝΤΙΚΩΝ
ΔΥΝΑΜΕΩΝ
ΔΑΣΟΠΡΟΣΤΑΣΙΑΣ
& ΔΙΑΣΩΣΗΣ
ΚΑΡΥΣΤΟΥ
34,305.00
ΣΥΛΛΟΓΟΣ
ΕΘΕΛΟΝΤΙΚΩΝ
ΔΥΝΑΜΕΩΝ
ΔΑΣΟΠΡΟΣΤΑΣΙΑΣ
ΚΑΙ
ΔΙΑΣΩΣΗΣ
ΠΡΟΚΟΠΙΟΥ
34,305.00
ΣΥΛΛΟΓΟΣ
ΦΙΛΩΝ
ΑΜΕΡΙΚΑΝΙΚΗΣ
ΓΕΩΡΓΙΚΗΣ
ΣΧΟΛΗΣ
52,000.00
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
454
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
ΣΥΛΛΟΓΟΣ
ΦΙΛΩΝ ΚΑΡΚΙΝΟΠΑΘΩΝ ΠΑΙΔΙΩΝ - Η ΣΤΟΡΓΗ
800.00
ΣΥΜΜΕΤΟΧΗ
ΟΜΑΔΑΣ ΠΑΙΔΙΩΝ
ΣΕ ΠΑΓΚΟΣΜΙΟ
ΔΙΑΓΩΝΙΣΜΟ
ΧΟΡΟΥ
100.00
ΣΥΝΔΕΣΜΟΣ
ΑΙΤΩΛΟΑΚΑΡΝΑΝΩΝ
ΟΣΙΟΣ
ΕΥΓΕΝΙΟΣ
Ο ΑΙΤΩΛΟΣ
1,000.00
ΣΥΝΔΕΣΜΟΣ ΒΑΓΟΝΙ
ΑΓΑΠΗΣ
- ΠΡΟΣΦΟΡΑ
ΔΩΡΟΚΟΥΠΟΝΙΩΝ
ΣΤΟ
ΠΛΑΙΣΙΟ ΤΩΝ
ΧΡΙΣΤΟΥΓΕΝΝΩΝ
1,000.00
ΣΥΝΔΕΣΜΟΣ
ΓΟΝΕΩΝ
Α' ΔΗΜΟΤΙΚΟΥ
ΣΧΟΛΕΙΟΥ
ΑΓΙΟΥ
ΔΟΜΕΤΙΟΥ
100.00
ΣΥΝΔΕΣΜΟΣ
ΓΟΝΕΩΝ ΔΗΜΟΣΙΟΥ
ΝΗΠΙΑΓΩΓΕΙΟΥ
ΑΡΑΔΙΠΠΟΥ
Γ'
50.00
ΣΩΜΑ ΟΜΟΤΙΜΩΝ ΚΑΘΗΓΗΤΩΝ
ΕΘΝΙΚΟ ΚΑΠΟΔΙΣΤΡΙΑΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ
ΑΘΗΝΩΝ
1,000.00
ΤΕΧΝΗΣ
ΠΟΛΙΤΕΙΑ
ΑΣΤΙΚΗ
ΜΗ ΚΕΡΔΟΣΚΟΠΙΚΗ
ΕΤΑΙΡΕΙΑ
3,000.00
ΤΜΗΜΑ
Γ.Α.Κ. ΜΕΣΣΗΝΙΑΣ
2,000.00
ΤΟ
ΧΑΜΟΓΕΛΟ ΤΟΥ
ΠΑΙΔΙΟΥ
900.00
ΤΟΠΙΚΗ
ΔΙΟΙΚΟΥΣΑ
ΕΠΙΤΡΟΠΗ
ΠΑΡΑΡΤΗΜΑΤΟΣ
ΕΛΕΠΑΠ
ΑΓΡΙΝΙΟ
250.00
ΤΣΟΜΩΚΟΣ
ΔΗΜΟΣΙΕΣ
ΣΧΕΣΕΙΣ ΑΕ
6,000.00
ΥΠΟΣΤΗΡΙΚΤΗΣ ΣΥΝΕΔΡΙΟΥ
10TH BANKING
FORUM &
FINTECH EXPO
- IMH
C.S.C. LTD
3,000.00
ΦΑΡΙΣ
ΚΟΙΝΩΦΕΛΗΣ
ΕΠΙΧΕΙΡΗΣΗ
ΔΗΜΟΥ
ΚΑΛΑΜΑΤΑΣ
10,000.00
ΦΕΣΤΙΒΑΛ
ΚΙΝΗΜΑΤΟΓΡΑΦΟΥ
ΘΕΣΣΑΛΟΝΙΚΗΣ
90,000.00
ΦΙΛΟΠΡΟΟΔΟΣ
ΟΜΙΛΟΣ ΤΟ
ΓΑΥΡΙΟ
2,500.00
ΦΙΛΟΠΤΩΧΟΣ
ΑΔΕΛΦΟΤΗΤΑ
ΠΑΝΑΓΙΑΣ
ΧΡΥΣΟΠΟΛΙΤΙΣΣΑΣ,
ΛΑΡΝΑΚΑ
500.00
ΦΛΟΓΑ
ΣΥΛΛΟΓΟΣ
ΓΟΝΙΩΝ ΠΑΙΔΙΩΝ
ΜΕ ΝΕΟΠΛΑΣΜΑΤΙΚΕΣ
ΑΣΘΕΝΕΙΕΣ
11,400.00
ΧΡΙΣΤΙΑΝΙΚΗ
ΕΝΩΣΗ
ΑΓΡΙΝΙΟΥ
1,500.00
ΧΡΙΣΤΙΑΝΙΚΟΣ
ΣΥΝΔΕΣΜΟΣ
ΓΥΝΑΙΚΩΝ
Ι.Ν.
ΘΕΟΥ
ΑΓΙΑΣ
ΣΟΦΙΑΣ
ΣΤΡΟΒΟΛΟΥ
200.00
ΧΡΙΣΤΙΑΝΙΚΟΣ
ΣΥΝΔΕΣΜΟΣ
ΙΕΡΟΥ ΝΑΟΥ
ΑΓΙΟΥ
ΓΕΩΡΓΙΟΥ
ΑΓΛΑΝΤΖΙΑΣ
500.00
ΧΡΙΣΤΟΥΓΕΝΝΙΑΤΙΚΗ
ΕΚΔΗΛΩΣΗ
ΓΙΑ ΤΑ
ΠΑΙΔΙΑ
ΤΗΣ
ΠΑΙΔΙΚΗΣ
ΣΤΕΓΗΣ
'ΣΤΕΓΗΣ ΤΗΣ
ΕΛΠΙΔΑΣ'
ΤΟΥ
HOPE FOR
CHILDREN
2,090.47
ΨΥΧΙΑΤΡΙΚΟ
ΝΟΣΟΚΟΜΕΙΟ
ΑΤΤΙΚΗΣ
"ΔΡΟΜΟΚΑΪΤΕΙΟ"
Ν.Π.Δ.Δ..
4,500.00
2,297,485.98
ΔΩΡΕΕΣ ΣΕ
ΦΥΣΙΚΑ ΠΡΟΣΩΠΑ ()
ΦΟΡΕΑΣ - ΕΠΩΝΥΜΙΑ
ΕΥΡΩ
ΠΙΑΓΚΟΥ
ΑΤΤΙΚΗ
1,000.00
ΓΡΗΓΟΡΗΣ
ΠΟΛΥΧΡΟΝΙΔΗΣ
10,000.00
11,000.00
DONATIONS
OF
FIXED
ASSETS
Name*
Amounts before
taxes
100o ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΑΘΗΝΩΝ
0.20
101o ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΘΕΣΣΑΛΟΝΙΚΗΣ
0.11
10ο ΓΕΝΙΚΟ
ΛΥΚΕΙΟ ΗΡΑΚΛΕΙΟΥ
0.11
10ο ΝΗΠΙΑΓΩΓΕΙΟ ΘΕΣΣΑΛΟΝΙΚΗΣ
0.07
11o ΝΗΠΙΑΓΩΓΕΙΟ
ΙΛΙΟΥ
0.08
12ο ΝΗΠΙΑΓΩΓΕΙΟ ΠΑΛΑΙΟΥ
ΦΑΛΗΡΟΥ
0.11
13ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΑΓΡΙΝΙΟΥ
0.15
13ο ΝΗΠΙΑΓΩΓΕΙΟ ΓΛΥΦΑΔΑΣ
0.05
14ο ΓΥΜΝΑΣΙΟ ΘΕΣΣΑΛΟΝΙΚΗΣ
0.13
14ο ΓΥΜΝΑΣΙΟ ΠΕΙΡΑΙΑ
0.18
14ο ΗΜΕΡΗΣΙΟ ΓΥΜΝΑΣΙΟ ΑΘΗΝΩΝ
0.14
14ο ΝΗΠΙΑΓΩΓΕΙΟ
ΑΛΕΞΑΝΔΡΟΥΠΟΛΗΣ
0.05
16ο ΓΕΝΙΚΟ
ΛΥΚΕΙΟ
ΘΕΣΣΑΛΟΝΙΚΗΣ
0.18
17ο
ΓΥΜΝΑΣΙΟ ΠΕΡΙΣΤΕΡΙΟΥ
0.14
17ο
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΘΕΣΣΑΛΟΝΙΚΗΣ
0.13
1o ΓΕΛ ΧΟΛΑΡΓΟΥ
0.15
1o ΓΥΜΝΑΣΙΟ
ΑΓ.
ΠΑΡΑΣΚΕΥΗΣ
0.03
1o ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΑΓ.ΣΤΕΦΑΝΟΥ
0.23
1o Ε.Ε.Ε.Κ.
ΔΗΛΛΟΥ
ΠΥΛΑΙΑΣ ΧΟΡΤΙΑΤΗ
0.08
1ο ΓΕΝΙΚΟ
ΛΥΚΕΙΟ ΣΑΛΑΜΙΝΑΣ
0.24
*
Names have
not
been translated
into english.
1ο ΓΥΜΝΑΣΙΟ ΠΑΝΟΡΑΜΑΤΟΣ
0.13
1ο ΓΥΜΝΑΣΙΟ
ΠΕΡΙΣΤΕΡΙΟΥ
0.25
2,308,485.98
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
455
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
1ο ΓΥΜΝΑΣΙΟ ΥΜΗΤΤΟΥ
0.29
1ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΑΛΙΒΕΡΙΟΥ
0.14
1ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΜΑΡΑΘΩΝΑ
0.11
1ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΝΕΑΣ ΙΩΝΙΑΣ
0.17
1ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΝΕΑΣ ΜΑΓΝΗΣΙΑΣ
0.23
1ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΤΡΙΚΑΛΩΝ
0.19
1ο ΕΙΔΙΚΟ
ΔΗΜ.ΣΧΟΛΕΙΟ
ΚΕΡΑΤΣΙΝΙΟΥ
0.08
1ο ΕΠΑΛ ΛΑΓΚΑΔΑ
0.09
1ο ΝΗΠΙΑΓΩΓΕΙΟ ΑΝΔΡΑΒΙΔΑΣ
0.08
1ο ΠΡΟΤΥΠΟ
ΓΥΜΝΑΣΙΟ ΙΛΙΟΥ
0.30
21ο ΓΥΜΝΑΣΙΟ
ΑΘΗΝΩΝ
0.11
21ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΚΑΛΛΙΘΕΑΣ
0.10
26ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΑΘΗΝΩΝ
0.15
27ο ΛΥΚΕΙΟ ΑΘΗΝΩΝ
0.15
28o
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΘΕΣΣΑΛΟΝΙΚΗΣ
0.19
28ο ΝΗΠΙΑΓΩΓΕΙΟ ΒΟΛΟΥ
0.07
290 ΜΗΧ/ΝΗΤΟ ΤΑΓΜΑ ΠΕΖΙΚΟΥ ΛΗΜΝΟΥ
0.27
2ο Γ.Ε.Λ.
ΝΕΑΠΟΛΕΩΣ
ΘΕΣΣΑΛΟΝΙΚΗΣ
0.11
2ο ΓΥΜΝΑΣΙΟ
ΠΕΤΡΟΥΠΟΛΗΣ
0.22
2ο ΓΥΜΝΑΣΙΟ ΠΕΥΚΩΝ
0.42
2ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΛΗΞΟΥΡΙΟΥ
0.24
2ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΜΕΣΟΛΟΓΓΙΟΥ
0.14
2ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΝΕΑΠΟΛΕΩΣ
0.14
2ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΣΙΝΔΟΥ
0.13
39ο
ΝΗΠΙΑΓΩΓΕΙΟ ΠΕΡΙΣΤΕΡΙΟΥ
0.09
3o ΕΡΓΑΣΤΗΡΙΑΚΟ
ΚΕΝΤΡΟ
ΑΘΗΝΑΣ
0.22
3ο ΓΥΜΝΑΣΙΟ ΑΓΙΟΥ
ΔΗΜΗΤΡΙΟΥ
0.10
3ο ΓΥΜΝΑΣΙΟ
ΕΥΟΣΜΟΥ
0.12
3ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΜΑΡΚΟΠΟΥΛΟΥ
0.16
3ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΜΕΣΟΛΟΓΓΙΟΥ
0.20
3ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΜΟΥΔΑΝΙΩΝ
0.11
3ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΝΕΑΠΟΛΗΣ
0.18
3ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΝΕΑΣ ΙΩΝΙΑΣ
0.08
3ο
ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΤΡΙΑΝΔΡΙΑΣ
0.13
3ο ΝΗΠΙΑΓΩΓΕΙΟ
ΝΕΑΣ ΣΜΥΡΝΗΣ
0.10
4ο ΓΥΜΝΑΣΙΟ ΙΛΙΟΥ
0.20
4ο ΓΥΜΝΑΣΙΟ
ΩΡΑΙΟΚΑΣΤΡΟΥ
0.20
4ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΚΙΛΚΙΣ
0.11
5
ΓΥΜΝΑΣΙΟ
ΑΛΕΞΑΝΔΡΟΥΠΟΛΕΩΣ
0.25
5 ΓΥΜΝΑΣΙΟ
ΩΡΑΙΟΚΑΣΤΡΟΥ
0.13
57ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΑΘΗΝΩΝ
0.16
57ο ΛΥΚΕΙΟ ΑΘΗΝΩΝ
0.01
5o Ε.Κ Γ'
ΑΘΗΝΑΣ
- ΙΛΙΟΝ
0.20
5ο ΓΕΝΙΚΟ
ΛΥΚΕΙΟ ΚΑΛΑΜΑΡΙΑΣ
0.20
5ο ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΝΕΑΠΟΛΗΣ
0.09
5ο Ε.Κ. ΑΘΗΝΑΣ - Ν. ΦΙΛΑΔΕΛΦΕΙΑΣ
0.48
65ο ΓΥΜΝΑΣΙΟ
ΑΘΗΝΩΝ
0.21
6ΘΕΣΙΟ
ΔΗΜΟΤΙΚΟ
ΞΥΛΟΥΠΟΛΗΣ
0.19
6ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ
ΑΧΑΡΝΩΝ
0.14
6ο ΝΗΠΙΑΓΩΓΕΙΟ ΑΓ.
ΑΝΑΡΓΥΡΩΝ
0.13
70 ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΝΕΑΣ
ΠΕΝΤΕΛΗΣ
0.16
72η
ΜΟΝΑΔΑ
ΕΠΙΣΤΡΑΤΕΥΣΕΩΣ
0.14
7ο
ΝΗΠΑΓΩΓΕΙΟ
ΕΔΕΣΣΑΣ
0.02
8ο ΓΕΛ ΠΕΙΡΑΙΑ
0.10
*
Names have
not
been translated
into english.
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
456
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
94 ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ ΘΕΣΣΑΛΟΝΙΚΗΣ
0.17
96ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΑΘΗΝΩΝ
0.05
9ο ΔΗΜΟΤΙΚΟ ΣΧΟΛΕΙΟ ΑΘΗΝΩΝ
0.34
KENTΡO
AΓΑΠΗΣ ΕΛΕΥΣΙΝΑΣ
0.17
Α. Τ.
ΙΛΙΟΥ
0.29
Α.Σ. ΣΥΛΛΟΓΟΣ
"ΠΕΛΟΨ"
ΠΕΛΟΠΙΟΥ
0.06
Α.Τ.
ΑΓ.
ΑΝΑΡΓΥΡΩΝ
0.10
Α.Τ. ΑΜΑΛΙΑΔΟΣ
0.31
Α.Τ. ΔΙΟΝΥΣΟΥ
0.32
Α.Τ. ΚΟΡΥΔΑΛΛΟΥ
0.02
ΑΓΡΟΤΙΚΟΣ
ΣΥΝΕΤΑΙΡΙΣΜΟΣ
ΗΛΙΔΑΣ
0.11
ΑΘΛΗΤΙΚΟΣ
ΟΜΙΛΟΣ
ΝΗΡΕΥΣ
0.07
Γ.Ε.Λ. ΚΑΠΑΝΔΡΙΤΙΟΥ
0.24
Γ.Ν.
ΠΑΙΔΩΝ ΠΑΤΡΩΝ
ΚΑΡΑΜΑΝΔΑΝΕΙΟ
0.02
Γ.Ν. ΚΟΥΤΛΙΜΠΑΝΕΙΟ
- ΤΡΙΑΝΤΑΦΥΛΛΕΙΟ
0.22
Γ.Ν.Α. ΚΑΤ
0.16
Γ.Ν.Α.
ΚΟΡΓΙΑΛΕΝΕΙΟ -
ΜΠΕΝΑΚΕΙΟ
ΕΕΣ
0.69
ΓΕΝΙΚΟ
ΝΟΣΟΚΟΜΕΙΟ
ΛΗΞΟΥΡΙΟΥ
0.34
ΓΥΜΝΑΣΙΟ
ΚΑΡΥΩΤΙΣΣΑΣ
0.09
Δ/ΝΣΗ
ΑΣΤΥΝΟΜΙΚΩΝ
ΕΠΙΧ.
ΑΤΤΙΚΗΣ-ΥΜΕ
0.27
Δ/ΝΣΗ ΕΙΔΙΚΩΝ
ΑΣΤΥΝΟΜ. ΔΥΝΑΜΕΩΝ
0.02
ΔΗΜΟΣ
ΑΓΙΩΝ
ΑΝΑΡΓΥΡΩΝ
-ΚΑΜΑΤΕΡΟΥ
0.15
ΔΗΜΟΣ
ΑΓΡΙΝΙΟΥ
0.15
ΔΗΜΟΣ
ΑΝΔΡΑΒΙΔΑΣ
ΚΥΛΛΗΝΗΣ
0.04
ΔΗΜΟΣ
ΜΑΝΔΡΑΣ
0.20
ΔΗΜΟΣ
ΠΕΤΡΟΥΠΟΛΗΣ
0.25
ΔΗΜΟΣ
ΠΥΡΓΟΥ
0.11
ΔΗΜΟΣ
ΣΑΛΑΜΙΝΟΣ
0.09
ΔΗΜΟΣΙΟ ΙΕΚ
ΕΙΔΙΚΗΣ ΑΓΩΓΗΣ
0.11
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΑΓ. ΕΥΣΤΡΑΤΙΟΥ
0.15
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΑΦΡΑΤΙΟΥ
ΧΑΛΚΙΔΑΣ
0.16
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΔΟΥΝΕΪΚΩΝ
0.12
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΝΕΑΠΟΛΕΩΣ
ΚΟΖΑΝΗΣ
0.12
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΝΕΑΣ
ΠΕΝΤΕΛΗΣ
0.01
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΣΤΑΜΝΑΣ
0.11
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΧΕΛΙΔΟΝΙΟΥ
0.11
ΔΙΕΥΘΥΝΣΗ
ΕΣΩΤΕΡΙΚΩΝ
ΥΠΟΘΕΣΕΩΝ
0.01
ΔΙΟΙΚΗΤΙΚΟ ΤΜΗΜΑ
ΑΣΦΑΛΕΙΑΣ
0.02
ΔΡΟΜΟΚΑΪΤΕΙΟ
0.23
Ε.Κ.Κ.Ν.Α.-ΣΩΜΑΤΕΙΟ
ΥΠΑΛΛΗΛΩΝ
0.15
ΕΙΔΙΚΟ
ΔΗΜΟΤΙΚΟ
ΣΧΟΛΕΙΟ
ΚΡΕΣΤΕΝΩΝ
0.24
ΕΙΔΙΚΟ
ΣΧΟΛΕΙΟ
(Ε.Ε.Ε.Κ.)
ΙΩΑΝΝΙΝΩΝ
0.16
ΕΙΔΙΚΟ ΣΧΟΛΕΙΟ
ΑΡΓΥΡΟΥΠΟΛΗΣ
0.19
ΕΚΑΒ ΠΥΡΓΟΥ
ΗΛΕΙΑΣ
0.16
ΕΛΛΗΝΙΚΗ ΑΣΤΥΝΟΜΙΑ -
Δ/ΝΣΗ ΠΑΓΙΑΣ
0.18
ΕΝΙΑΙΟ
ΕΙΔ.ΕΠΑΓΓ.
ΓΥΜΝ-ΛΥΚΕΙΟ
ΑΓΡΙΝΙΟΥ
0.25
ΕΝΟΡΙΑΚΟΣ
ΝΑΟΣ
ΑΓΙΑΣ ΤΡΙΑΔΟΣ
0.01
ΕΠΙΛΕΚΤΗ ΟΜΑΔΑ
ΕΙΔΙΚΩΝ ΑΠΟΣΤΟΛΩΝ
0.02
ΕΣΠΕΡΙΝΟ
ΓΥΜΝΑΣΙΟ
ΑΜΑΛΙΑΔΑΣ
0.05
ΙΕΚ STEAM
ΑΙΓΑΛΕΩ
0.27
ΙΕΡΑ ΜΗΤΡΟΠΟΛΗ
ΣΙΣΑΝΙΟΥ
ΣΙΑΤΙΣΤΗΣ
0.03
ΙΕΡΑ
ΜΗΤΡΟΠΟΛΗ
ΦΘΙΩΤΙΔΟΣ
0.45
Κ.Α.Ο.
ΕΘΝΙΚΟΣ
ΕΛΛΗΝΟΡΩΣΩΝ
0.10
ΚΑΤΑΣΤΗΜΑ
ΚΡΑΤΗΣΗΣ ΚΟΡΥΔΑΛΛΟΥ
0.17
ΛΙΜΕΝΑΡΧΕΙΟ
ΜΕΣΟΛΟΓΓΙΟΥ
0.17
ΛΥΚΕΙΟ
ΤΩΝ
ΕΛΛΗΝΙΔΩΝ
0.02
*
Names have
not
been translated
into english.
DISCLOSURES OF LAW 4374 / 2016
ALPHA BANK
457
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
ΜΗΧΑΝ/ΝΗΤΟ ΤΑΓΜΑ
ΠΕΖΙΚΟΥ
ΛΗΜΝΟΥ
0.38
ΜΟΙΡΑ ΒΑΣΙΚΗΣ ΕΚΠΑΙΔΕΥΣΗΣ
Κ.Ε.Ε.Δ.
0.25
ΜΟΥΣΙΚΟ
ΣΧΟΛΕΙΟ
ΑΘΗΝΑΣ
0.12
ΟΙΚΟΥΜΕΝΙΚΗ
ΟΜΟΣΠΟΝΔΙΑ
0.32
ΟΛΟΗΜΕΡΟ
ΝΗΠΙΑΓΩΓΕΙΟ
ΣΕΡΙΦΟΥ
0.05
ΠΑΝΕΠΙΣΤΗΜΙΟ ΘΕΣΣΑΛΙΑΣ
- ΤΜΗΜΑ
ΦΥΣΙ
0.17
ΠΟΛΙΤΙΣΤΙΚΟΣ
ΚΑΙ
ΕΞΩΡΑΙΣΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ
ΛΙΒΑΝΑΤΩΝ
0.06
ΠΟΛΙΤΙΣΤΙΚΟΣ
ΣΥΛΛΟΓΟΣ ΠΡΟΟΔΟΣ
0.23
ΠΟΛΥΚΛΙΝΙΚΗ Γ.Ν.Α.
Ο ΕΥΑΓΓΕΛΙΣΜΟΣ
0.01
ΠΥΡΟΣΒΕΣΤΙΚΗ
ΥΠΗΡΕΣΙΑ
ΑΓΡΙΝΙΟΥ
0.08
ΠΥΡΟΣΒΕΣΤΙΚΗ
ΥΠΗΡΕΣΙΑ
ΧΑΛΚΙΔΟΣ
0.18
ΠΥΡΟΣΒΕΣΤΙΚΟ
ΚΛΙΜΑΚΙΟ
ΚΑΡΠΑΘΟΥ
0.23
ΠΥΡΟΣΒΕΣΤΙΚΟ
ΚΛΙΜΑΚΙΟ
ΚΡΕΣΤΕΝΑΣ
0.54
Σ.Υ.Ε.Φ.Κ.Κ.Α.
0.22
ΣΤΑΦΥΛΑ ΕΛΕΝΗ
0.02
ΣΤΕΓΗ
ΘΗΛΕΩΝ
ΑΓΙΟΣ
ΑΛΕΞΑΝΔΡΟΣ
0.25
ΣΥΛΛ.ΠΑΡΑΠΛ/ΚΩΝ
-ΚΙΝΗΤΙΚΑ
ΑΝΑΠΗΡΩΝ
0.13
ΣΥΛΛΟΓΟΣ
ΓΟΝΕΩΝ
ΑΜΕΑ ΣΑΛΑΜΙΝΑΣ
0.01
ΣΥΛΛΟΓΟΣ
ΓΟΝΕΩΝ ΚΑΙ
ΚΗΔΕΜΟΝΩΝ
0.13
ΣΥΛΛΟΓΟΣ
ΕΘΕΛΟΝΤΩΝ
ΠΟΛΙΤΙΚΗΣ
0.09
ΣΥΛΛΟΓΟΣ
ΕΡΑΣ/ΝΩΝ
ΑΣΤΡΟΝΟΜΩΝ
ΦΘΙΩΤΙΔΑΣ
0.15
ΣΥΛΛΟΓΟΣ
ΣΥΝΤΑΞΙΟΥΧΩΝ
ΑΣΤΥΝΟΜΙΚΩΝ
0.09
ΣΧΟΛΗ ΠΕΖΙΚΟ
Υ
ΧΑΛΚΙΔΑΣ
0.20
ΤΜΗΜΑ ΑΣΦΑΛΕΙΑΣ
ΑΜΑΛΙΑΔΑΣ
0.14
ΤΜΗΜΑ
ΑΣΦΑΛΕΙΑΣ
ΚΥΨΕΛΗΣ
0.08
ΤΟΠΙΚΗ
ΚΟΙΝΟΤΗΤΑ
ΠΑΠΑΔΑΤΩΝ
0.14
ΤΟΠΙΚΗ
ΚΟΙΝΟΤΗΤΑ
ΠΑΥΛΟΥ
ΒΟΙΩΤΙΑΣ
0.06
ΥΠΗΡΕΣΙΑ ΕΞΩΤΕΡΙΚΗΣ
ΦΡΟΥΡΗΣΗΣ
0.16
ΥΠΟΔΙΕΥΘΥΝΣΗ
ΤΡΟΧΑΙΑΣ
ΑΘΗΝΩΝ
0.25
ΦΙΛΑΝΘΡΩΠΙΚΟ ΙΔΡΥΜΑ ΑΓΙΑ ΤΑΒΙΘΑ
0.19
ΦΙΛΑΡΜΟΝΙΚΗ
ΜΕΓΑΛΟΠΟΛΗΣ
ΣΑΛΠΙΓΞ
0.15
ΧΕΡΙ-ΧΕΡΙ
ΣΥΛΛΟΓΟΣ ΓΙΑ
ΑΤΟΜΑ
0.17
ΧΡΙΣΤΙΑΝΙΚΗ
ΕΝΩΣΗ
ΑΓΡΙΝΙΟΥ
0.11
25.85
*
Names have
not
been translated
into english.
458
ANNUA
L
F
INANCIA
L
REPORT
The amounts
are presented in
thousands
of Euro unless otherwi
se indicated
Availability
of
Annual
Financial
Report
The Annual
Financial
Report
as at
31.12.2022,
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 Statemen
t
•
The Independent
Auditors’ Report
•
The Annual
Financial Statements of the Company and the Group
are available on
the website
address:
https://www.alphaholdings.gr/en/investor
-relations/group
-results-and
-reporting/
financial-
statements
-bank-and-group.
The Annual
Financial Statements, the Independen
t
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=C8B2FEC7E58944619BDD360219104002
The Annual
Financial Statements of the Company and
Group of Alpha Services and Holdings SA, as at
31.12.2022,
in XHTML
format, as well as the XBRL file
with the appropriate
tagging, on the Conso
lidated Financ
ial Statements are ava
ilable on the
website: https://www.alphaholdings.gr/en/investor-relations/group-results-and-reporting/financial-statements-bank-and-
group.