Table of Contents
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the month of November, 2014
National Bank of Greece S.A.
(Translation of registrants name into English)
86 Eolou Street, 10232 Athens, Greece
(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.]
Form 20-F x Form 40-F o
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.]
Yes o No x
[If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ]
Table of Contents
National Bank of Greece S.A.
Group and Bank
Interim Financial Statements
30 September 2014
November 2014
Independent Auditors Review Report
on the interim financial report for the period ended 30 September 2014
TRANSLATION
REVIEW REPORT ON INTERIM FINANCIAL INFOMATION
To the Shareholders of NATIONAL BANK OF GREECE S.A.
Introduction
We have reviewed the accompanying condensed separate and consolidated statement of financial position of NATIONAL BANK OF GREECE S.A. (the Bank) and its subsidiaries (the Group) as of 30 September 2014, the related condensed separate and consolidated statements of income and comprehensive income, changes in equity and cash flows for the nine month period then ended, as well as the selective explanatory notes, which together comprise the condensed interim financial information. Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with International Financial Reporting Standards as adopted by the European Union and apply to Interim Financial Reporting (International Accounting Standard IAS 34). Our responsibility is to express a conclusion on this condensed interim financial information based on our review.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information is not prepared, in all material respects, in accordance with IAS 34.
Marousi, 6 November 2014
The Certified Public Accountant
Beate Randulf
Reg. No. SOEL: 37541
Hadjipavlou Sofianos & Cambanis S.A.
Fragoklisias 3a & Granikou Str.
GR 151 25 Marousi
Reg. No. SOEL: E120
3
Table of Contents
Statement of Financial Position
as at 30 September 2014
|
|
|
|
Group |
|
Bank |
|
million |
|
Note |
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash and balances with central banks |
|
|
|
5,450 |
|
5,910 |
|
1,308 |
|
2,195 |
|
Due from banks |
|
|
|
3,140 |
|
2,847 |
|
3,736 |
|
3,478 |
|
Financial assets at fair value through profit or loss |
|
|
|
2,032 |
|
3,087 |
|
1,661 |
|
2,411 |
|
Derivative financial instruments |
|
|
|
5,032 |
|
3,671 |
|
3,847 |
|
2,581 |
|
Loans and advances to customers |
|
7 |
|
68,276 |
|
67,250 |
|
44,393 |
|
46,327 |
|
Investment securities |
|
|
|
16,345 |
|
17,477 |
|
12,143 |
|
13,470 |
|
Investment property |
|
|
|
880 |
|
535 |
|
6 |
|
|
|
Investments in subsidiaries |
|
|
|
|
|
|
|
6,994 |
|
8,216 |
|
Equity method investments |
|
|
|
144 |
|
143 |
|
10 |
|
7 |
|
Goodwill, software and other intangible assets |
|
8 |
|
1,761 |
|
1,709 |
|
107 |
|
111 |
|
Property and equipment |
|
|
|
2,050 |
|
1,766 |
|
245 |
|
263 |
|
Deferred tax assets |
|
5 |
|
3,690 |
|
2,414 |
|
3,498 |
|
2,189 |
|
Insurance related assets and receivables |
|
|
|
831 |
|
721 |
|
|
|
|
|
Current income tax advance |
|
|
|
511 |
|
441 |
|
475 |
|
435 |
|
Other assets |
|
|
|
2,945 |
|
2,758 |
|
2,080 |
|
2,259 |
|
Non-current assets held for sale |
|
9 |
|
224 |
|
201 |
|
255 |
|
255 |
|
Total assets |
|
|
|
113,311 |
|
110,930 |
|
80,758 |
|
84,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Due to banks |
|
10 |
|
18,300 |
|
27,897 |
|
16,602 |
|
26,473 |
|
Derivative financial instruments |
|
|
|
4,897 |
|
3,029 |
|
4,399 |
|
2,559 |
|
Due to customers |
|
11 |
|
66,904 |
|
62,876 |
|
46,784 |
|
45,290 |
|
Debt securities in issue |
|
12 |
|
3,904 |
|
2,199 |
|
896 |
|
810 |
|
Other borrowed funds |
|
12 |
|
2,059 |
|
1,607 |
|
862 |
|
102 |
|
Insurance related reserves and liabilities |
|
|
|
2,539 |
|
2,404 |
|
|
|
|
|
Deferred tax liabilities |
|
|
|
99 |
|
53 |
|
|
|
|
|
Retirement benefit obligations |
|
|
|
276 |
|
530 |
|
228 |
|
487 |
|
Current income tax liabilities |
|
|
|
11 |
|
46 |
|
|
|
|
|
Other liabilities |
|
|
|
2,642 |
|
2,407 |
|
988 |
|
2,093 |
|
Liabilities associated with non-current assets held for sale |
|
9 |
|
11 |
|
8 |
|
|
|
|
|
Total liabilities |
|
|
|
101,642 |
|
103,056 |
|
70,759 |
|
77,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
14 |
|
2,414 |
|
2,073 |
|
2,414 |
|
2,073 |
|
Share premium account |
|
14 |
|
14,060 |
|
11,975 |
|
14,057 |
|
11,972 |
|
Less: treasury shares |
|
14 |
|
(1 |
) |
(2 |
) |
|
|
|
|
Reserves and retained earnings |
|
|
|
(5,634 |
) |
(6,935 |
) |
(6,472 |
) |
(7,662 |
) |
Equity attributable to NBG shareholders |
|
|
|
10,839 |
|
7,111 |
|
9,999 |
|
6,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
749 |
|
683 |
|
|
|
|
|
Preferred securities |
|
|
|
81 |
|
80 |
|
|
|
|
|
Total equity |
|
|
|
11,669 |
|
7,874 |
|
9,999 |
|
6,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities |
|
|
|
113,311 |
|
110,930 |
|
80,758 |
|
84,197 |
|
Athens, 6 November 2014
THE CHAIRMAN |
|
THE CHIEF EXECUTIVE OFFICER |
|
THE DEPUTY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER |
|
|
|
|
|
GEORGIOS P. ZANIAS |
|
ALEXANDROS G. TOURKOLIAS |
|
PAULA N. HADJISOTIRIOU |
The notes on pages 12 to 35 form an integral part of these financial statements
4
Table of Contents
Income Statement
for the period ended 30 September 2014
|
|
|
|
Group |
|
Bank |
|
|
|
|
|
9 month period ended |
|
9 month period ended |
|
million |
|
Note |
|
30.9.2014 |
|
30.9.2013 |
|
30.9.2014 |
|
30.9.2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and similar income |
|
|
|
3,949 |
|
4,167 |
|
1,797 |
|
1,877 |
|
Interest expense and similar charges |
|
|
|
(1,641 |
) |
(1,786 |
) |
(614 |
) |
(820 |
) |
Net interest income |
|
|
|
2,308 |
|
2,381 |
|
1,183 |
|
1,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee and commission income |
|
|
|
590 |
|
590 |
|
180 |
|
167 |
|
Fee and commission expense |
|
|
|
(185 |
) |
(196 |
) |
(166 |
) |
(175 |
) |
Net fee and commission income |
|
|
|
405 |
|
394 |
|
14 |
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earned premia net of reinsurance |
|
|
|
423 |
|
404 |
|
|
|
|
|
Net claims incurred |
|
|
|
(362 |
) |
(354 |
) |
|
|
|
|
Earned premia net of claims and commissions |
|
|
|
61 |
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net trading income / (loss) and results from investment securities |
|
|
|
(110 |
) |
38 |
|
(124 |
) |
(19 |
) |
Net other income / (expense) |
|
|
|
(3 |
) |
(21 |
) |
(32 |
) |
(27 |
) |
Total income |
|
|
|
2,661 |
|
2,842 |
|
1,041 |
|
1,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
|
|
(846 |
) |
(976 |
) |
(429 |
) |
(535 |
) |
General, administrative and other operating expenses |
|
|
|
(556 |
) |
(583 |
) |
(252 |
) |
(246 |
) |
Depreciation and amortisation on investment property, property & equipment and software & other intangible assets |
|
|
|
(149 |
) |
(157 |
) |
(58 |
) |
(65 |
) |
Amortisation and write-offs of intangible assets recognised on business combinations |
|
|
|
(4 |
) |
(16 |
) |
|
|
|
|
Finance charge on put options of non-controlling interests |
|
|
|
(3 |
) |
(4 |
) |
(3 |
) |
(4 |
) |
Credit provisions and other impairment charges |
|
4 |
|
(1,115 |
) |
(987 |
) |
(785 |
) |
(631 |
) |
Share of profit / (loss) of equity method investments |
|
|
|
1 |
|
2 |
|
|
|
|
|
Profit / (loss) before tax |
|
|
|
(11 |
) |
121 |
|
(486 |
) |
(478 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit / (expense) |
|
5 |
|
1,222 |
|
140 |
|
1,313 |
|
256 |
|
Profit / (loss) for the period |
|
|
|
1,211 |
|
261 |
|
827 |
|
(222 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
35 |
|
(1 |
) |
|
|
|
|
NBG equity shareholders |
|
|
|
1,176 |
|
262 |
|
827 |
|
(222 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings / (losses) per share - Basic and diluted |
|
6 |
|
|
0.39 |
|
|
0.30 |
|
|
0.28 |
|
|
(0.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Athens, 6 November 2014
THE CHAIRMAN |
|
THE CHIEF EXECUTIVE OFFICER |
|
THE DEPUTY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER |
|
|
|
|
|
GEORGIOS P. ZANIAS |
|
ALEXANDROS G. TOURKOLIAS |
|
PAULA N. HADJISOTIRIOU |
The notes on pages 12 to 35 form an integral part of these financial statements
5
Table of Contents
Statement of Comprehensive Income
for the period ended 30 September 2014
|
|
|
|
Group |
|
Bank |
|
|
|
|
|
9 month period ended |
|
9 month period ended |
|
million |
|
Note |
|
30.9.2014 |
|
30.9.2013 |
|
30.9.2014 |
|
30.9.2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit / (loss) for the period |
|
|
|
1,211 |
|
261 |
|
827 |
|
(222 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income / (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities, net of tax |
|
|
|
1 |
|
(107 |
) |
(25 |
) |
(11 |
) |
Currency translation differences, net of tax |
|
|
|
142 |
|
(806 |
) |
|
|
|
|
Cash flow hedge, net of tax |
|
|
|
(14 |
) |
23 |
|
|
|
|
|
Total of items that may be reclassified subsequently to profit or loss |
|
|
|
129 |
|
(890 |
) |
(25 |
) |
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income / (expense) for the period, net of tax |
|
15 |
|
129 |
|
(890 |
) |
(25 |
) |
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income / (expense) for the period |
|
|
|
1,340 |
|
(629 |
) |
802 |
|
(233 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
37 |
|
(3 |
) |
|
|
|
|
NBG equity shareholders |
|
|
|
1,303 |
|
(626 |
) |
802 |
|
(233 |
) |
Athens, 6 November 2014
THE CHAIRMAN |
|
THE CHIEF EXECUTIVE OFFICER |
|
THE DEPUTY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER |
|
|
|
|
|
GEORGIOS P. ZANIAS |
|
ALEXANDROS G. TOURKOLIAS |
|
PAULA N. HADJISOTIRIOU |
The notes on pages 12 to 35 form an integral part of these financial statements
6
Table of Contents
Income Statement
for the period ended 30 September 2014
|
|
Group |
|
Bank |
|
|
|
3 month period ended |
|
3 month period ended |
|
million |
|
30.9.2014 |
|
30.9.2013 |
|
30.9.2014 |
|
30.9.2013 |
|
|
|
|
|
|
|
|
|
|
|
Interest and similar income |
|
1,322 |
|
1,369 |
|
571 |
|
641 |
|
Interest expense and similar charges |
|
(525 |
) |
(597 |
) |
(185 |
) |
(268 |
) |
Net interest income |
|
797 |
|
772 |
|
386 |
|
373 |
|
|
|
|
|
|
|
|
|
|
|
Fee and commission income |
|
200 |
|
185 |
|
59 |
|
58 |
|
Fee and commission expense |
|
(61 |
) |
(70 |
) |
(54 |
) |
(60 |
) |
Net fee and commission income |
|
139 |
|
115 |
|
5 |
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
Earned premia net of reinsurance |
|
139 |
|
100 |
|
|
|
|
|
Net claims incurred |
|
(115 |
) |
(82 |
) |
|
|
|
|
Earned premia net of claims and commissions |
|
24 |
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net trading income / (loss) and results from investment securities |
|
(48 |
) |
(23 |
) |
(39 |
) |
(39 |
) |
Net other income / (expense) |
|
11 |
|
17 |
|
(23 |
) |
(1 |
) |
Total income |
|
923 |
|
899 |
|
329 |
|
331 |
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
(292 |
) |
(320 |
) |
(143 |
) |
(171 |
) |
General, administrative and other operating expenses |
|
(198 |
) |
(190 |
) |
(103 |
) |
(81 |
) |
Depreciation and amortisation on investment property, property & equipment and software & other intangible assets |
|
(51 |
) |
(53 |
) |
(19 |
) |
(21 |
) |
Amortisation and write-offs of intangible assets recognised on business combinations |
|
(1 |
) |
(5 |
) |
|
|
|
|
Credit provisions and other impairment charges |
|
(397 |
) |
(397 |
) |
(282 |
) |
(268 |
) |
Share of profit / (loss) of equity method investments |
|
1 |
|
1 |
|
|
|
|
|
Profit / (loss) before tax |
|
(15 |
) |
(65 |
) |
(218 |
) |
(210 |
) |
|
|
|
|
|
|
|
|
|
|
Tax benefit / (expense) |
|
59 |
|
(16 |
) |
98 |
|
16 |
|
Profit / (loss) for the period |
|
44 |
|
(81 |
) |
(120 |
) |
(194 |
) |
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
14 |
|
|
|
|
|
|
|
NBG equity shareholders |
|
30 |
|
(81 |
) |
(120 |
) |
(194 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings / (losses) per share - Basic and diluted |
|
|
0.01 |
|
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Athens, 6 November 2014
THE CHAIRMAN |
|
THE CHIEF EXECUTIVE OFFICER |
|
THE DEPUTY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER |
|
|
|
|
|
GEORGIOS P. ZANIAS |
|
ALEXANDROS G. TOURKOLIAS |
|
PAULA N. HADJISOTIRIOU |
The notes on pages 12 to 35 form an integral part of these financial statements
7
Table of Contents
Statement of Comprehensive Income
for the period ended 30 September 2014
|
|
|
|
Group |
|
Bank |
|
|
|
|
|
3 month period ended |
|
3 month period ended |
|
million |
|
Note |
|
30.9.2014 |
|
30.9.2013 |
|
30.9.2014 |
|
30.9.2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period |
|
|
|
44 |
|
(81 |
) |
(120 |
) |
(194 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income / (expense): |
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities, net of tax |
|
|
|
(63 |
) |
(11 |
) |
(23 |
) |
(23 |
) |
Currency translation differences, net of tax |
|
|
|
31 |
|
(429 |
) |
|
|
|
|
Cash flow hedge, net of tax |
|
|
|
32 |
|
5 |
|
|
|
|
|
Total of items that may be reclassified subsequent to profit or loss |
|
|
|
|
|
(435 |
) |
(23 |
) |
(23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(expense) for the period, net of tax |
|
|
|
|
|
(435 |
) |
(23 |
) |
(23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income/(expense) for the period |
|
|
|
44 |
|
(516 |
) |
(143 |
) |
(217 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
14 |
|
|
|
|
|
|
|
NBG equity shareholders |
|
|
|
30 |
|
(516 |
) |
(143 |
) |
(217 |
) |
Athens, 6 November 2014
THE CHAIRMAN |
|
THE CHIEF EXECUTIVE OFFICER |
|
THE DEPUTY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER |
|
|
|
|
|
GEORGIOS P. ZANIAS |
|
ALEXANDROS G. TOURKOLIAS |
|
PAULA N. HADJISOTIRIOU |
The notes on pages 12 to 35 form an integral part of these financial statements
8
Table of Contents
Statement of Changes in Equity - Group
for the period ended 30 September 2014
|
|
Attributable to equity holders of the parent company |
|
Non-controlling |
|
|
|
|
|
Share capital |
|
Share premium |
|
|
|
Available -for-sale |
|
Currency |
|
Net |
|
Cash |
|
Defined |
|
Other reserves |
|
|
|
Interests & |
|
|
|
million |
|
Ordinary shares |
|
Preference shares |
|
Ordinary shares |
|
Preference shares |
|
Treasury shares |
|
securities reserve |
|
translation reserve |
|
investment hedge |
|
flow hedge |
|
benefit plans |
|
&Retained earnings |
|
Total |
|
Preferred securities |
|
Total |
|
Balance at 1 January 2013 |
|
4,780 |
|
1,358 |
|
2,943 |
|
383 |
|
|
|
198 |
|
(1,212 |
) |
(457 |
) |
(6 |
) |
(168 |
) |
(10,103 |
) |
(2,284 |
) |
242 |
|
(2,042 |
) |
Other Comprehensive Income/ (expense) for the period |
|
|
|
|
|
|
|
|
|
|
|
(107 |
) |
(762 |
) |
|
|
23 |
|
|
|
(42 |
) |
(888 |
) |
(2 |
) |
(890 |
) |
Profit / (loss) for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
262 |
|
262 |
|
(1 |
) |
261 |
|
Total Comprehensive Income / (expense) for the period |
|
|
|
|
|
|
|
|
|
|
|
(107 |
) |
(762 |
) |
|
|
23 |
|
|
|
220 |
|
(626 |
) |
(3 |
) |
(629 |
) |
Share capital increase |
|
953 |
|
|
|
9,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,029 |
|
|
|
10,029 |
|
Reduction of par value per share |
|
(5,014 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,014 |
|
|
|
|
|
|
|
Share capital issue costs |
|
|
|
|
|
(239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(239 |
) |
|
|
(239 |
) |
Repurchase of preference shares |
|
|
|
(4 |
) |
|
|
(189 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
74 |
|
(119 |
) |
|
|
(119 |
) |
Issue and repurchase of preferred securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54 |
|
54 |
|
(91 |
) |
(37 |
) |
Acquisitions, disposals & share capital increases of subsidiaries/equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13 |
) |
(13 |
) |
(Purchases)/ disposals of treasury shares |
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
Balance at 30 September 2013 |
|
719 |
|
1,354 |
|
11,780 |
|
194 |
|
(1 |
) |
91 |
|
(1,974 |
) |
(457 |
) |
17 |
|
(168 |
) |
(4,741 |
) |
6,814 |
|
135 |
|
6,949 |
|
Movements to 31 December 2013 |
|
|
|
|
|
1 |
|
|
|
(1 |
) |
16 |
|
(323 |
) |
|
|
13 |
|
37 |
|
554 |
|
297 |
|
628 |
|
925 |
|
Balance at 31 December 2013 and at 1 January 2014 |
|
719 |
|
1,354 |
|
11,781 |
|
194 |
|
(2 |
) |
107 |
|
(2,297 |
) |
(457 |
) |
30 |
|
(131 |
) |
(4,187 |
) |
7,111 |
|
763 |
|
7,874 |
|
Other Comprehensive Income/ (expense) for the period |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
138 |
|
|
|
(14 |
) |
|
|
2 |
|
127 |
|
2 |
|
129 |
|
Profit / (loss) for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,176 |
|
1,176 |
|
35 |
|
1,211 |
|
Total Comprehensive Income / (expense) for the period |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
138 |
|
|
|
(14 |
) |
|
|
1,178 |
|
1,303 |
|
37 |
|
1,340 |
|
Share capital increase |
|
341 |
|
|
|
2,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,500 |
|
|
|
2,500 |
|
Share capital issue costs |
|
|
|
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(74 |
) |
|
|
(74 |
) |
Acquisitions, disposals & share capital increases of subsidiaries/equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
(2 |
) |
30 |
|
28 |
|
(Purchases)/ disposals of treasury shares |
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
Balance at 30 September 2014 |
|
1,060 |
|
1,354 |
|
13,866 |
|
194 |
|
(1 |
) |
108 |
|
(2,159 |
) |
(457 |
) |
16 |
|
(131 |
) |
(3,011 |
) |
10,839 |
|
830 |
|
11,669 |
|
The notes on pages 12 to 35 form an integral part of these financial statements
9
Table of Contents
Statement of Changes in Equity - Bank
for the period ended 30 September 2014
|
|
Share capital |
|
Share premium |
|
|
|
Available for sale |
|
Currency |
|
Defined |
|
Other reserves & |
|
|
|
|
|
Ordinary |
|
Preference |
|
Ordinary |
|
Preference |
|
Treasury |
|
securities |
|
translation |
|
benefit |
|
retained |
|
|
|
million |
|
shares |
|
shares |
|
shares |
|
shares |
|
shares |
|
reserve |
|
reserve |
|
plans |
|
earnings |
|
Total |
|
Balance at 1 January 2013 |
|
4,780 |
|
1,358 |
|
2,942 |
|
383 |
|
|
|
44 |
|
|
|
(145 |
) |
(13,292 |
) |
(3,930 |
) |
Other Comprehensive Income/ (expense) for the period |
|
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
|
|
|
|
(11 |
) |
Profit /( loss) for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(222 |
) |
(222 |
) |
Total Comprehensive Income / (expense) for the period |
|
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
|
|
(222 |
) |
(233 |
) |
Share capital increase |
|
953 |
|
|
|
9,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
10,029 |
|
Share capital reduction of par value |
|
(5,014 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,014 |
|
|
|
Share capital issue costs |
|
|
|
|
|
(240 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(240 |
) |
Repurchase of prefernce shares |
|
|
|
(4 |
) |
|
|
(189 |
) |
|
|
|
|
|
|
|
|
74 |
|
(119 |
) |
Balance at 30 September 2013 |
|
719 |
|
1,354 |
|
11,778 |
|
194 |
|
|
|
33 |
|
|
|
(145 |
) |
(8,426 |
) |
5,507 |
|
Movements to 31 December 2013 |
|
|
|
|
|
|
|
|
|
|
|
11 |
|
|
|
25 |
|
840 |
|
876 |
|
Balance at 31 December 2013 & at 1 January 2014 |
|
719 |
|
1,354 |
|
11,778 |
|
194 |
|
|
|
44 |
|
|
|
(120 |
) |
(7,586 |
) |
6,383 |
|
Other Comprehensive Income/ (expense) for the period |
|
|
|
|
|
|
|
|
|
|
|
(25 |
) |
|
|
|
|
|
|
(25 |
) |
Profit / (loss) for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
827 |
|
827 |
|
Total Comprehensive Income / (expense) for the period |
|
|
|
|
|
|
|
|
|
|
|
(25 |
) |
|
|
|
|
827 |
|
802 |
|
Share capital increase |
|
341 |
|
|
|
2,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,500 |
|
Share capital issue costs |
|
|
|
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(74 |
) |
Merger through absorption of subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
388 |
|
388 |
|
Balance at 30 September 2014 |
|
1,060 |
|
1,354 |
|
13,863 |
|
194 |
|
|
|
19 |
|
|
|
(120 |
) |
(6,371 |
) |
9,999 |
|
The notes on pages 12 to 35 form an integral part of these financial statements
10
Table of Contents
Cash Flow Statement
for the period ended 30 September 2014
|
|
Group |
|
Bank |
|
|
|
9-month period ended |
|
9-month period ended |
|
million |
|
30.09.2014 |
|
30.09.2013 |
|
30.09.2014 |
|
30.09.2013 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Profit / (loss) before tax |
|
(11 |
) |
122 |
|
(486 |
) |
(478 |
) |
Adjustments for: |
|
|
|
|
|
|
|
|
|
Non-cash items included in income statement and other adjustments: |
|
1,357 |
|
1,244 |
|
879 |
|
625 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortisation on property & equipment, intangibles and investment property |
|
153 |
|
173 |
|
58 |
|
65 |
|
Amortisation of premiums /discounts of investment securities, loans-and-receivables and borrowed funds |
|
(65 |
) |
(24 |
) |
(32 |
) |
(51 |
) |
Credit provisions and other impairment charges |
|
1,166 |
|
1,057 |
|
784 |
|
633 |
|
Provision for employee benefits |
|
15 |
|
20 |
|
7 |
|
11 |
|
Share of (profit) / loss of equity method investments |
|
(1 |
) |
(2 |
) |
|
|
|
|
Finance charge on put options of non-controlling interests |
|
3 |
|
4 |
|
3 |
|
4 |
|
Dividend income from investment securities |
|
(3 |
) |
(1 |
) |
(30 |
) |
(24 |
) |
Net (gain) / loss on disposal of property & equipment and investment property |
|
(4 |
) |
(3 |
) |
|
|
|
|
Net (gain) / loss on disposal of subsidiaries / interest without loss of control |
|
|
|
|
|
12 |
|
|
|
Net (gain) / loss on disposal of investment securities |
|
(82 |
) |
(172 |
) |
(20 |
) |
(123 |
) |
Interest from financing activities and results from repurchase of debt securities in issue |
|
140 |
|
109 |
|
41 |
|
26 |
|
Valuation adjustment on instruments designated at fair value through profit or loss |
|
63 |
|
96 |
|
63 |
|
86 |
|
Negative goodwill |
|
(2 |
) |
|
|
|
|
|
|
Costs directly related to acquisition of subsidiaries |
|
|
|
(6 |
) |
|
|
(6 |
) |
Other non-cash operating items |
|
(26 |
) |
(7 |
) |
(7 |
) |
4 |
|
|
|
|
|
|
|
|
|
|
|
Net (increase) / decrease in operating assets: |
|
(3,950 |
) |
4,969 |
|
383 |
|
5,443 |
|
Mandatory reserve deposits with Central Bank |
|
(334 |
) |
(644 |
) |
129 |
|
(11 |
) |
Due from banks |
|
(495 |
) |
1,556 |
|
(265 |
) |
709 |
|
Financial assets at fair value through profit or loss |
|
751 |
|
1,693 |
|
447 |
|
1,922 |
|
Derivative financial instruments assets |
|
(1,360 |
) |
84 |
|
(1,266 |
) |
618 |
|
Loans and advances to customers |
|
(2,191 |
) |
2,462 |
|
1,165 |
|
2,293 |
|
Other assets |
|
(321 |
) |
(182 |
) |
173 |
|
(88 |
) |
|
|
|
|
|
|
|
|
|
|
Net increase / (decrease) in operating liabilities: |
|
(3,498 |
) |
(7,383 |
) |
(6,212 |
) |
(7,784 |
) |
Due to banks |
|
(8,116 |
) |
(7,520 |
) |
(8,390 |
) |
(8,201 |
) |
Due to customers |
|
2,547 |
|
2,268 |
|
539 |
|
2,210 |
|
Derivative financial instruments liabilities |
|
1,807 |
|
(1,495 |
) |
1,797 |
|
(1,482 |
) |
Retirement benefit obligations |
|
(269 |
) |
(26 |
) |
(266 |
) |
(17 |
) |
Insurance related reserves and liabilities |
|
135 |
|
(37 |
) |
|
|
|
|
Income taxes paid |
|
(115 |
) |
(156 |
) |
(34 |
) |
(60 |
) |
Other liabilities |
|
513 |
|
(417 |
) |
142 |
|
(234 |
) |
Net cash from / (for) operating activities |
|
(6,102 |
) |
(1,048 |
) |
(5,436 |
) |
(2,194 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Acquisition of subsidiaries, net of cash acquired |
|
(54 |
) |
159 |
|
|
|
199 |
|
Participation in share capital (increase)/decrease of subsidiaries |
|
|
|
|
|
(6 |
) |
|
|
Disposals of subsidiaries, net of cash disposed |
|
|
|
|
|
|
|
|
|
Disposal of equity method investments |
|
(1 |
) |
|
|
|
|
|
|
Dividends received from investment securities & equity method investments |
|
8 |
|
7 |
|
30 |
|
1 |
|
Purchase of property & equipment, intangible assets and investment property |
|
(695 |
) |
(160 |
) |
(37 |
) |
(30 |
) |
Proceeds from disposal of property & equipment and investment property |
|
8 |
|
7 |
|
|
|
|
|
Purchase of investment securities |
|
(3,625 |
) |
(6,924 |
) |
(701 |
) |
(275 |
) |
Proceeds from redemption and sale of investment securities |
|
5,458 |
|
6,960 |
|
2,413 |
|
931 |
|
Net cash (used in) / provided by investing activities |
|
1,099 |
|
49 |
|
1,699 |
|
826 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Share capital increase |
|
2,500 |
|
1,079 |
|
2,500 |
|
1,079 |
|
Repurchase of preference shares |
|
|
|
(119 |
) |
|
|
(119 |
) |
Proceeds from debt securities in issue and other borrowed funds |
|
4,265 |
|
2,174 |
|
743 |
|
|
|
Repayments of debt securities in issue, other borrowed funds and preferred securities |
|
(2,496 |
) |
(2,488 |
) |
|
|
(90 |
) |
Acquisition of additional shareholding in subsidiaries |
|
(273 |
) |
(7 |
) |
(273 |
) |
|
|
Disposal of shareholdings in subsidiaries without of loss of control |
|
(3 |
) |
|
|
(3 |
) |
|
|
Proceeds from disposal of treasury shares |
|
61 |
|
27 |
|
|
|
|
|
Repurchase of treasury shares |
|
(60 |
) |
(29 |
) |
|
|
|
|
Share capital issue costs |
|
(74 |
) |
(239 |
) |
(74 |
) |
(239 |
) |
Net cash from/ (for) financing activities |
|
3,920 |
|
398 |
|
2,893 |
|
631 |
|
Effect of foreign exchange rate changes on cash and cash equivalents |
|
35 |
|
(103 |
) |
25 |
|
(24 |
) |
Net increase / (decrease) in cash and cash equivalents |
|
(1,048 |
) |
(704 |
) |
(819 |
) |
(761 |
) |
Cash and cash equivalents at beginning of period |
|
4,255 |
|
4,167 |
|
3,498 |
|
3,524 |
|
Cash and cash equivalents at end of period |
|
3,207 |
|
3,463 |
|
2,679 |
|
2,763 |
|
The notes on pages 12 to 35 form an integral part of these financial statements
11
Table of Contents
Notes to the Financial Statements
Group and Bank
NOTE 1: General information
National Bank of Greece S.A. (hereinafter NBG or the Bank) was founded in 1841 and its shares have been listed on the Athens Exchange since 1880 and on the New York Stock Exchange (since 1999) in the form of ADRs. The Banks headquarters are located at 86 Eolou Street, Athens, Greece, (Reg. 6062/06/B/86/01), tel.: (+30) 210 334 1000, www.nbg.gr. By resolution of the Board of Directors the Bank can establish branches, agencies and correspondence offices in Greece and abroad. In its 174 years of operation the Bank has expanded on its commercial banking business by entering into related business areas. National Bank of Greece and its subsidiaries (hereinafter the Group) provide a wide range of financial services including retail and commercial banking, asset management, brokerage, investment banking, insurance and real estate at a global level. The Group operates in Greece, Turkey, UK, South East Europe (SEE) which includes Bulgaria, Romania, Albania, Serbia and FYROM, Cyprus, Malta, Egypt and South Africa.
The Board of Directors consists of the following members:
The Non-Executive Chairman of the Board of Directors |
|
|
Georgios P. Zanias |
|
Economist, Professor, Athens University of Economics and Business |
|
|
|
Executive Members |
|
|
The Chief Executive Officer |
|
|
Alexandros G. Tourkolias |
|
|
|
|
|
The Deputy Chief Executive Officers* |
|
|
Dimitrios G. Dimopoulos |
|
|
Paul K. Mylonas |
|
|
Paula N. Hadjisotiriou |
|
|
|
|
|
Non-Executive Members** |
|
|
Stavros A. Koukos |
|
Employees representative, Chairman of Federation of Greek Banks Employees (OTOE) |
Efthymios C. Katsikas |
|
Employees representative |
Petros N. Christodoulou |
|
Banker |
|
|
|
Independent Non-Executive Members *** |
|
|
Stefanos C. Vavalidis |
|
Former member of the Board of Directors, European Bank for Reconstruction & Development (EBRD) |
Alexandra T. Papalexopoulou - Benopoulou |
|
Member of the Board of Directors, TITAN Cement S.A. |
Petros K. Sabatacakis |
|
Economist |
Dimitrios N. Afendoulis **** |
|
Economist |
Spyridon J. Theodoropoulos |
|
Chief Executive Officer, Chipita S.A. |
|
|
|
Greek State representative |
|
|
Alexandros N. Makridis |
|
Chairman of the Board of Directors & Managing Director of Chryssafidis S.A. |
|
|
|
Hellenic Financial Stability Fund representative |
|
|
Charalampos A. Makkas |
|
Economist |
* On 26 June 2014, Messrs. Dimitrios G. Dimopoulos, Paul K. Mylonas and Mrs. Paula N. Hadjisotiriou were elected as Deputy Chief Executive Officers of the Banks Board of Directors.
** On 20 February 2014, Ioannis C. Giannidis resigned from his position as a non executive member of the Banks Board of Directors.
***On 26 June 2014, Mr Panagiotis - Aristeidis A. Thomopoulos and Mrs Maria A. Frangista resigned from their position as Independent Non-Executive Members of the Banks Board of Directors.
**** On 20 February 2014, Mr Dimitrios N. Afendoulis was elected as a member of the Board of Directors.
Directors are elected by the Banks General Meeting of Shareholders for a maximum term of 3 years and may be re-elected. On 26 June 2014, the Annual General Meeting of the Banks shareholders elected the above Board of Directors which was constituted as a body in its 26 June 2014 meeting. The term of the above members expires at the annual General Meeting of the Banks shareholders in 2016.
Following the decision of the Bank to participate in the Hellenic Republics Bank Support Plan, on 26 February 2009, the Greek State appointed Mr. Alexandros Makridis as its representative on the Banks Board of Directors. Furthermore, on 11 June 2012 the Hellenic Financial Stability Fund (the HFSF) appointed Mr Charalampos Makkas as its representative on the Banks Board of Directors.
These financial statements have been approved for issue by the Banks Board of Directors on 6 November 2014.
12
Table of Contents
Notes to the Financial Statements
Group and Bank
NOTE 2: Summary of significant accounting policies
2.1 Basis of preparation
The condensed interim consolidated financial statements of the Group and the condensed interim separate financial statements of the Bank as at and for the nine month period ended 30 September 2014 (the interim financial statements) have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. These interim financial statements include selected explanatory notes and do not include all the information required for full annual financial statements. Therefore, the interim financial statements should be read in conjunction with the annual consolidated financial statements and the separate financial statements of the Bank as at and for the year ended 31 December 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as endorsed by the European Union (the EU).
The amounts are stated in Euro, rounded to the nearest million (unless otherwise stated) for ease of presentation.
Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current period.
The interim financial statements have been prepared under the historical cost convention, except for available-for-sale financial assets, financial assets and financial liabilities held at fair value through profit or loss and all derivative contracts, which have been measured at fair value.
2.2 Adoption of International Financial Reporting Standards (IFRS)
New standards, amendments and interpretations to existing standards applied from 1 January 2014
In May 2011, a package of five standards on consolidation, joint arrangements, associates and disclosures was issued comprising IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interest in Other Entities, IAS 27 (as revised in 2011) Separate Financial Statements and IAS 28 (as revised in 2011) Investments in Associates and Joint Ventures. Subsequent to the issue of these standards, amendments to IFRS 10, IFRS 11 and IFRS 12 were issued to clarify certain transitional guidance on the first-time application of the standards. In the current year, NBG Group has applied for the first time IFRS 10, IFRS 11, IFRS 12, IAS 27 (as revised in 2011) and IAS 28 (as revised in 2011) together with the amendments to IFRS 10, IFRS 11 and IFRS 12 regarding the transitional guidance. The impact of the application of these standards is set out below.
Impact of the application of IFRS 10
IFRS 10 replaces the parts of IAS 27 Consolidated and Separate Financial Statements that deal with consolidated financial statements and SIC-12 Consolidation Special Purpose Entities. IFRS 10 changes the definition of control such that an investor has control over an investee when a) it has power over the investee; b) it is exposed, or has rights, to variable returns from its involvement with the investee and c) has the ability to use its power to affect its returns. All three of these criteria must be met for an investor to have control over an investee. Previously, control was defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Additional guidance has been included in IFRS 10 to explain when an investor has control over an investee. There was no impact from the adoption of IFRS 10 in the consolidated financial statements.
Impact of the application of IFRS 11
IFRS 11, Joint arrangements focuses on the rights and obligations of the parties to the arrangement rather than its legal form. There are two types of joint arrangements: joint operations and joint ventures. Joint operations arise where the investors have rights to the assets and obligations for the liabilities of an arrangement. A joint operator accounts for its share of the assets, liabilities, revenue and expenses. Joint ventures arise where the investors have rights to the net assets of the arrangement; joint ventures are accounted for under the equity method. Proportional consolidation of joint arrangements is no longer permitted. There was no impact from the adoption of IFRS 11.
Impact of the application of IFRS 12
IFRS 12, Disclosures of interests in other entities includes the disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, and structured entities that are not controlled by the entity. No consequential amendments were made to IAS 34 on issuance of IFRS 12 and, as such, the requirements of IFRS 12 do not directly apply to interim financial statements.
Impact of the application of IAS 27 (2011)
Amended version of IAS 27 now deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements. The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IAS 39 Financial Instruments: Recognition and measurement. There was no impact from the adoption of the amended IAS 27 to the separate financial statements of NBG.
Impact of the application of IAS 28 (2011)
This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. The Standard defines significant influence and provides guidance on how the equity method of accounting is to be applied. It also prescribes how investments in associates and joint ventures should be tested for impairment. There was no impact from the adoption of the amended IAS 28 to the interim financial statements of the Group.
13
Table of Contents
Notes to the Financial Statements
Group and Bank
Impact on the application of IAS 32 Financial Instruments: Presentation (Amendment)
These amendments provide clarifications on the application of the offsetting rules. There was no impact from the adoption of these amendments to the interim financial statements of the Group and the Bank.
Impact on the application of IAS 39 Novation of Derivatives and Continuation of Hedge Accounting (Amendment)
These amendments provide relief from discontinuing hedge accounting when a derivative designated as a hedging instrument is novated to a clearing counterparty and certain conditions are met. The adoption of this amendment has no impact to the interim financial statements.
Impact on the application of IAS 36 (Amendments) Recoverable Amount Disclosures for Non-Financial Assets
These amendments remove the requirement to disclose the recoverable amount of assets or cash-generating units to which a significant amount of goodwill (or intangibles assets with indefinite useful lives) has been allocated in periods when no impairment or reversal has been recognized, to clarify the disclosures required, and to introduce an explicit requirement to disclose the discount rate used in determining impairment (or reversals) where recoverable amount (based on fair value less costs of disposal) is determined using a present value technique. There was no impact from the adoption of these amendments to the interim financial statements of the Group and the Bank.
IFRIC Interpretation 21 Levies (IFRIC 21)
IFRIC 21 clarifies that an entity recognizes a liability for a levy no earlier than when the activity that triggers payment, as identified by the relevant legislation, occurs. It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment occurs over a period of time, in accordance with the relevant legislation. For a levy that is triggered upon reaching a minimum threshold, the interpretation clarifies that no liability should be recognized before the specified minimum threshold is reached. There was no impact from the adoption of this interpretation to the interim financial statements of the Group and the Bank.
2.3 Critical judgments and estimates
In preparing these interim financial statements, the significant estimates, judgments and assumptions made by Management in applying the Groups accounting policies and the key sources of estimation uncertainty were similar to those applied to the annual consolidated and Bank financial statements as at and for the year ended 31 December 2013.
NOTE 3: Segment reporting
NBG Group manages its business through the following business segments:
Retail banking
Retail banking includes all individual customers, professionals, small-medium and small sized companies (companies with annual turnover of up to 2.5 million). The Bank, through its extended network of branches, offers to its retail customers various types of loans, deposit and investment products, as well as a wide range of other traditional services and products.
Corporate & investment banking
Corporate & investment banking includes lending to all large and medium-sized companies, shipping finance and investment banking activities. The Group offers its corporate customers a wide range of products and services, including financial and investment advisory services, deposit accounts, loans (denominated in both euro and foreign currency), foreign exchange and trade service activities.
Global markets and asset management
Global markets and asset management includes all treasury activities, private banking, asset management (mutual funds and closed end funds), custody services, private equity and brokerage.
Insurance
The Group offers a wide range of insurance products through its subsidiary company, Ethniki Hellenic General Insurance Company S.A. (EH) and other subsidiaries in SEE and an associate in Turkey.
International banking operations
The Groups international banking activities, other than its Turkish operations, include a wide range of traditional commercial banking services, such as commercial and retail credit, trade financing, foreign exchange and taking of deposits. In addition, the Group offers shipping finance, investment banking and brokerage services through certain of its foreign branches and subsidiaries.
Turkish banking operations
The Groups banking activities in Turkey through Finansbank and its subsidiaries, include a wide range of traditional commercial banking services, such as commercial and retail credit, trade financing, foreign exchange and taking of deposits.
14
Table of Contents
Notes to the Financial Statements
Group and Bank
Other
Includes proprietary real estate management, hotel and warehousing business as well as unallocated income and expense of the Group (interest expense of subordinated debt, loans to personnel etc.) and intersegment eliminations.
9 month period ended 30 September 2014 |
|
Retail Banking |
|
Corporate & Investment Banking |
|
Global markets & Asset Management |
|
Insurance |
|
International Banking Operations |
|
Turkish Banking Operations |
|
Other |
|
Group |
|
Net interest income |
|
427 |
|
563 |
|
143 |
|
42 |
|
233 |
|
822 |
|
78 |
|
2,308 |
|
Net fee and commission income |
|
54 |
|
69 |
|
(96 |
) |
4 |
|
69 |
|
301 |
|
4 |
|
405 |
|
Other |
|
20 |
|
(42 |
) |
(35 |
) |
82 |
|
5 |
|
(26 |
) |
(56 |
) |
(52 |
) |
Total income |
|
501 |
|
590 |
|
12 |
|
128 |
|
307 |
|
1,097 |
|
26 |
|
2,661 |
|
Direct costs |
|
(349 |
) |
(33 |
) |
(37 |
) |
(78 |
) |
(185 |
) |
(556 |
) |
(44 |
) |
(1,282 |
) |
Allocated costs and provisions(1) |
|
(664 |
) |
(374 |
) |
(13 |
) |
(1 |
) |
(84 |
) |
(220 |
) |
(35 |
) |
(1,391 |
) |
Share of profit of equity method investments |
|
|
|
|
|
(2 |
) |
1 |
|
1 |
|
1 |
|
|
|
1 |
|
Profit / (loss) before tax |
|
(512 |
) |
183 |
|
(40 |
) |
50 |
|
39 |
|
322 |
|
(53 |
) |
(11 |
) |
Tax benefit / (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,222 |
|
Profit for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,211 |
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
|
Profit attributable to NBG equity shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets as at 30 September 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
23,572 |
|
14,162 |
|
11,050 |
|
3,279 |
|
9,563 |
|
26,673 |
|
20,811 |
|
109,110 |
|
Deferred tax assets and Current income tax advance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,201 |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities as at 30 September 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities |
|
38,562 |
|
1,416 |
|
23,613 |
|
2,751 |
|
8,458 |
|
22,278 |
|
4,454 |
|
101,532 |
|
Current income and deferred tax liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110 |
|
Total liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets as at 31 December 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
24,901 |
|
14,115 |
|
16,048 |
|
3,365 |
|
9,505 |
|
23,373 |
|
16,768 |
|
108,075 |
|
Deferred tax assets and Current income tax advance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,855 |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities as at 31 December 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities |
|
37,724 |
|
1,252 |
|
31,758 |
|
2,916 |
|
7,055 |
|
19,641 |
|
2,611 |
|
102,957 |
|
Current income and deferred tax liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99 |
|
Total liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
103,056 |
|
(1) Includes depreciation and amortisation on investment property, property & equipment, software & other intangible assets and amortisation and write-offs of intangible assets recognised on business combinations.
15
Table of Contents
Notes to the Financial Statements
Group and Bank
Breakdown by business segment
9 month period ended 30 September 2013 |
|
Retail Banking |
|
Corporate & Investment Banking |
|
Global markets & Asset Management |
|
Insurance |
|
International Banking Operations |
|
Turkish Banking Operations |
|
Other |
|
Group |
|
Net interest income |
|
471 |
|
516 |
|
(93 |
) |
67 |
|
220 |
|
1,015 |
|
185 |
|
2,381 |
|
Net fee and commission income |
|
59 |
|
62 |
|
(108 |
) |
3 |
|
67 |
|
307 |
|
4 |
|
394 |
|
Other |
|
(2 |
) |
(37 |
) |
98 |
|
80 |
|
13 |
|
43 |
|
(127 |
) |
68 |
|
Total income |
|
528 |
|
541 |
|
(103 |
) |
150 |
|
300 |
|
1,365 |
|
62 |
|
2,843 |
|
Direct costs |
|
(424 |
) |
(35 |
) |
(41 |
) |
(72 |
) |
(193 |
) |
(614 |
) |
(58 |
) |
(1,437 |
) |
Allocated costs and provisions(1) |
|
(887 |
) |
(270 |
) |
532 |
|
(11 |
) |
(97 |
) |
(239 |
) |
(314 |
) |
(1,286 |
) |
Share of profit of equity method investments |
|
|
|
|
|
(2 |
) |
3 |
|
1 |
|
|
|
|
|
2 |
|
Profit / (loss) before tax |
|
(783 |
) |
236 |
|
386 |
|
70 |
|
11 |
|
512 |
|
(310 |
) |
122 |
|
Tax benefit / (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
140 |
|
Profit for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
262 |
|
Non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
Profit attributable to NBG equity shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
263 |
|
(1) Includes depreciation and amortisation on investment property, property & equipment, software & other intangible assets and amortisation and write-offs of intangible assets recognised on business combinations
NOTE 4: Credit provisions and other impairment charges
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
30.9.2013 |
|
30.9.2014 |
|
30.9.2013 |
|
a. Impairment charge for credit losses |
|
|
|
|
|
|
|
|
|
Due from banks |
|
|
|
1 |
|
|
|
|
|
Loans and advances to customers |
|
1,091 |
|
746 |
|
771 |
|
420 |
|
Other Greek State exposure |
|
|
|
(20 |
) |
|
|
(20 |
) |
|
|
1,091 |
|
727 |
|
771 |
|
400 |
|
b. Impairment charge for securities |
|
|
|
|
|
|
|
|
|
AFS and loans-and-receivables debt securities |
|
|
|
(60 |
) |
|
|
(64 |
) |
Impairment of Eurobank |
|
|
|
265 |
|
|
|
265 |
|
Equity securities |
|
|
|
12 |
|
|
|
3 |
|
|
|
|
|
217 |
|
|
|
204 |
|
c. Other provisions and impairment charges |
|
|
|
|
|
|
|
|
|
Impairment of investment property, property and equipment, software & other intangible assets and other assets |
|
5 |
|
9 |
|
|
|
3 |
|
Impairment of goodwill / Investment in subsidiaries and equity method investments |
|
|
|
4 |
|
|
|
|
|
Legal and other provisions |
|
19 |
|
30 |
|
14 |
|
24 |
|
|
|
24 |
|
43 |
|
14 |
|
27 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
1,115 |
|
987 |
|
785 |
|
631 |
|
NOTE 5: Tax benefit /(expense)
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
30.9.2013 |
|
30.9.2014 |
|
30.9.2013 |
|
|
|
|
|
|
|
|
|
|
|
Current tax |
|
(11 |
) |
(86 |
) |
7 |
|
16 |
|
Deferred tax |
|
1,233 |
|
226 |
|
1,306 |
|
240 |
|
Tax benefit / (expense) |
|
1,222 |
|
140 |
|
1,313 |
|
256 |
|
The nominal corporation tax rate for the Bank for 2014 and 2013 is 26%.
The unaudited tax years of the Groups equity method investments and subsidiaries are presented in Note 19.
The Group has recognised a deferred tax asset of 3,690 million of which 3,498 million relates to the Bank. As of 30 September 2014 the Bank performed a thorough revision of its assessment regarding the recoverability of its deferred tax asset, taking into account the actual performance in the nine month period of 2014, the declining growth rate of loans past due for more than 90 days, the reduction in customer deposits cost, the successful share capital increase in May 2014, the successful fund raising through borrowing during the period, the reduction in funding from the
16
Table of Contents
Notes to the Financial Statements
Group and Bank
Eurosystem ,the decrease in operating expenses, mainly due to VRS, the improved performance of the Bank compared to previous years and the fact that, per the IMF, current recession and GDP forecast are significantly better than in 2013 and the uncertainty regarding the Greek economy has decreased. Taking into consideration the above, Management prepared analytical financial projections up to the end of 2016 and used its best estimates regarding the growth assumptions thereafter to reach the conclusion that the deferred tax asset recognised, as at 30 September 2014, for the Group and the Bank is considered realizable.
NOTE 6: Earnings / (losses) per share
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
30.9.2013 |
|
30.9.2014 |
|
30.9.2013 |
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period attributable to NBG equity shareholders |
|
1,176 |
|
262 |
|
827 |
|
(222 |
) |
Plus: gain on redemption of preferred securities, net of tax |
|
|
|
54 |
|
|
|
|
|
Earnings/(losses) for the period attributable to NBG ordinary shareholders |
|
1,176 |
|
316 |
|
827 |
|
(222 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding for basic and diluted EPS |
|
2,986,991,523 |
|
1,050,337,545 |
|
2,987,369,246 |
|
1,050,513,231 |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(losses) per share - Basic and diluted |
|
0.39 |
|
0.30 |
|
0.28 |
|
(0.21 |
) |
NOTE 7: Loans and advances to customers
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
Mortgages |
|
21,757 |
|
22,505 |
|
18,005 |
|
18,558 |
|
Consumer loans |
|
9,058 |
|
8,633 |
|
4,769 |
|
4,881 |
|
Credit cards |
|
4,962 |
|
5,691 |
|
1,330 |
|
1,396 |
|
Small business lending |
|
6,682 |
|
6,360 |
|
4,102 |
|
4,274 |
|
Retail lending |
|
42,459 |
|
43,189 |
|
28,206 |
|
29,109 |
|
Corporate and public sector lending |
|
35,271 |
|
32,914 |
|
23,850 |
|
24,356 |
|
Total before allowance for impairment on loans and advances to customers |
|
77,730 |
|
76,103 |
|
52,056 |
|
53,465 |
|
Less: Allowance for impairment on loans and advances to customers |
|
(9,454 |
) |
(8,853 |
) |
(7,663 |
) |
(7,138 |
) |
Total |
|
68,276 |
|
67,250 |
|
44,393 |
|
46,327 |
|
Included in the Groups loans and advances to customers, as at 30 September 2014, are mortgage loans and corporate loans designated at fair value through profit or loss amounting to 48 million (31 December 2013: 76 million). The Bank has no loans and advances to customers designated at fair value through profit or loss.
As at 30 September 2014, corporate and public sector lending for the Group and the Bank includes a loan to the Greek state of 6,324 million (31 December 2013: 5,959 million). The whole agreement with the Greek state relating to this loan also includes an embedded derivative that has been bifurcated and accounted for as a separate derivative.
17
Table of Contents
Notes to the Financial Statements
Group and Bank
NOTE 8: Goodwill, software and other intangible assets
Under Goodwill, software and other intangible assets of the Group, amounting to 1,761 million, an amount of 1,426 million relates to goodwill.
Subsequent to initial recognition, goodwill is stated at cost, as established at the date of acquisition less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of impairment testing. The allocation is made to those cash-generating units that are expected to benefit from the business combination in which the goodwill arose. The assessment of goodwill for impairment requires the use of certain assumptions and estimates, which management believes are reasonable and supportable in the existing market environment and commensurate with the risk profile of the assets valued. However, different ones could be used which would lead to different results.
The Group assesses goodwill for possible impairment annually or more frequently if there are indications for impairment. The assessment involves estimating whether the carrying amount of the goodwill remains fully recoverable. When making this assessment the Group compares the carrying value of the CGU to which the goodwill is allocated to its recoverable amount, which is the higher of fair value less cost to sell and value in use. Fair value is estimated by reference to market value, if available, or is determined by a qualified evaluator or pricing model. Determination of a fair value and value in use requires management to make assumptions and use estimates. If the recoverable amount is less than the carrying amount, an irreversible impairment loss is recognized, and the goodwill is written down by the excess of the carrying amount of the unit over its recoverable amount.
As at 30 September 2014, from the total goodwill of 1,426 million, the CGU to which significant goodwill of 1,246 million has been allocated, is the Turkish operations and the goodwill relates to the acquisition of Finansbank. The remaining amount of goodwill relates to certain subsidiaries which do not account for a significant amount of goodwill on an individual basis. The Group, as at 31 December 2013, adopted a value in use (VIU) test for this CGU, based upon managements latest five year forecasts, long-term growth rates based on the respective country GDP rates adjusted for inflation and risk discount rates based on observable market long-term government bond yields and average industry betas adjusted for an appropriate risk premium based on independent analysis.
The key assumptions used to estimate the fair value of the Turkish operations CGU, as at 31 December 2013, were the terminal growth rate of 5.5% (2012: 5.2%) which was based on published analyzes of investment houses, pre-tax discount rate of 19.0% (2012: 19.6%) which was calculated based on the average cost of the capital of the banking sector in Turkey, as published by investment houses, terminal net interest margin of 5.2% (2012: 5.8%), terminal cost to income ratio of 46.1% (2012: 47.1%) and terminal provisions coverage ratio of 71.2% (2012: 77.0%) which were based on economical forecasts of the Bank. Based on this assessment, no impairment to the carrying amounts of goodwill and brand names relating to the acquisition of Finansbank is required. This conclusion does not change if reasonably possible changes in key assumptions are applied.
NOTE 9: Non-current assets held for sale and liabilities associated with non-current assets held for sale
Assets held for sale mainly comprise Astir Palace Vouliagmenis S.A and Astir Marina Vouliagmenis S.A.
Specifically, on 10 February 2014, JERMYN STREET REAL ESTATE FUND IV L.P. (JERMYN) was nominated as Preferred Investor with regards to the international open competitive process in relation to the acquisition of a majority of the share capital of Astir Palace Vouliagmenis S.A (the Process). Further to the transaction approval by the Council of Audit on 5 June 2014, the Sale and Purchase Agreement for the abovementioned transaction was executed on 17 September 2014 between NBG, the Hellenic Republic Asset Development Fund S.A. (HRADF) in their capacity as sellers, Apollo Investment Hold Co in its capacity as the buyer, and JERMYN in its capacity as Guarantor. Apollo Investment Hold Co is an SPV, 100% owned by JERMYN. The transaction is expected to be completed post the fulfilment of the relevant conditions precedent. These include, among others, the issuance and publication of the applicable Special Public Real Estate Area Development Plan in the Government Gazette. Upon completion of the Process, it is expected that Astir Palace Vouliagmenis S.A. will cease to be a subsidiary undertaking of the Bank. Based on the above, the assets and liabilities of Astir Palace Vouliagmenis S.A. and Astir Marina Vouliagmenis S.A. (an 100% subsidiary of Astir Palace Vouliagmenis S.A.) were reclassified in accordance with IFRS 5 Non-current assets held for sale and discontinued operations.The cost of investment in Astir classified as assets held for sale on the Banks Statement of Financial Position is 255 million.
18
Table of Contents
Notes to the Financial Statements
Group and Bank
Analysis of Astir Palace Vouliagmenis S.A. and Astir Marina Vouliagmenis S.A. assets and liabilities
|
|
Group |
|
|
|
30.09.2014 |
|
Intangible and tangible assets |
|
184 |
|
Deferred tax assets |
|
1 |
|
Other |
|
17 |
|
Total assets |
|
202 |
|
|
|
|
|
Current income tax liabilities |
|
1 |
|
Retirement benefit obligations |
|
1 |
|
Other |
|
9 |
|
Total liabilities associated with assets held for sale |
|
11 |
|
In December 2013, the Bank entered into a binding pre-agreement to dispose of its 100% participation on its subsidiary Grand Hotel Summer Palace S.A. and classified the subsidiary as held for sale. As of 30 September 2014, since the criteria for the classification are no longer met because the disposal has not taken place and as a result the pre-agreement is no longer valid, the Bank and the Group ceased to classify the subsidiary as held for sale. The assets and liabilities of the subsidiary, for the current and the comparative periods, were reclassified to the corresponding line items of the statement of financial position from the lines Non-current assets held for sale and Liabilities associated with non-current assets held for sale of the Group and the Bank (i.e. tangible assets 11 million, deferred taxes 5 million, other assets 4 million and other liabilities 1 million (investment in subsidiaries 7 million for the Bank). The reclassification of the Grand Hotel Summer Palace S.A. subsidiary out of assets held for sale had no effect on the results and equity of the Group and the Bank for the current and prior periods.
NOTE 10: Due to banks
Due to Banks includes the Banks funding from the Eurosystem. During the nine month period ended 30 September 2014 the Banks funding was reduced from 20.7 billion at 31 December 2013 to 10.7 billion.
NOTE 11: Due to customers
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
Deposits: |
|
|
|
|
|
|
|
|
|
Individuals |
|
48,066 |
|
46,884 |
|
34,899 |
|
34,352 |
|
Corporate |
|
13,501 |
|
11,842 |
|
7,062 |
|
7,429 |
|
Government and agencies |
|
4,954 |
|
3,561 |
|
4,455 |
|
2,930 |
|
Other |
|
383 |
|
589 |
|
368 |
|
579 |
|
Total |
|
66,904 |
|
62,876 |
|
46,784 |
|
45,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
Deposits: |
|
|
|
|
|
|
|
|
|
Savings accounts |
|
17,614 |
|
17,717 |
|
15,627 |
|
15,737 |
|
Current & Sight accounts |
|
8,387 |
|
8,082 |
|
6,113 |
|
6,260 |
|
Time deposits |
|
38,689 |
|
35,893 |
|
22,891 |
|
22,181 |
|
Other deposits |
|
569 |
|
572 |
|
538 |
|
532 |
|
|
|
65,259 |
|
62,264 |
|
45,169 |
|
44,710 |
|
Securities sold to customers under agreements to repurchase |
|
1,262 |
|
23 |
|
1,247 |
|
1 |
|
Other |
|
383 |
|
589 |
|
368 |
|
579 |
|
|
|
1,645 |
|
612 |
|
1,615 |
|
580 |
|
Total |
|
66,904 |
|
62,876 |
|
46,784 |
|
45,290 |
|
Included in due to customers are deposits, which contain one or more embedded derivatives. The Group has designated such deposits as financial liabilities at fair value through profit or loss. As at 30 September 2014, these deposits amount to 12 million (2013: 282 million) for both the Group and the Bank.
19
Table of Contents
Notes to the Financial Statements
Group and Bank
NOTE 12: Debt securities in issue and other borrowed funds
The major debt securities in issue and other borrowed funds issued from 1 January 2014 to 30 September 2014 are as follows:
On 9 April 2014, Finansbank issued TL 311 million Dibs plus 1.15% floating rate notes, maturing in March 2015.
On 25 April 2014, Finansbank issued USD 500 million senior unsecured bonds fixed rate notes, maturing in April 2019, bearing an interest rate of 6.25%.
On 30 April 2014, the NBG Finance Plc issued a 750 million senior unsecured bond guaranteed by the Bank, maturing on 30 April 2019, bearing an interest rate of 4.375% and a yield of 4.50% at the time of pricing.
On 30 April 2014, Finansbank issued TL 500 million 10.87% fixed rate notes, matured in October 2014.
On 4 June 2014, Finansbank issued TL 223 million Dibs plus 1.15% floating rate notes, maturing in April 2015.
On 16 July 2014, Finansbank issued TL 148 million Dibs plus 0.80% floating rate notes, matured in October 2014.
On 11 August 2014, Finansbank issued TL 210 million Dibs plus 0.80% floating rate notes, maturing in November 2014.
On 11 August 2014, NBG Pangaea REIC issued 238 million Euribor plus 485 bps floating rate notes, maturing in July 2019.
On 29 August 2014, Finansbank issued TL 223 million Dibs plus 0.80% floating rate notes, maturing in November 2014.
On 3 September 2014, Finansbank issued TL 204 million Dibs plus 1.00% floating rate notes, maturing in September 2015.
On 23 September 2014, Finansbank issued TL 124 million Dibs plus 0.60% floating rate notes, maturing in December 2014.
The major debt securities in issue and other borrowed funds issued after 30 September2014 are as follows:
On 1 October 2014, Finansbank issued TL 138 million Dibs plus 1.20% floating rate notes, maturing in October 2015.
NOTE 13: Contingent liabilities, pledged, transfers of financial assets and commitments
a. Legal proceedings
The Group is a defendant in certain claims and legal actions arising in the ordinary course of business. For the cases for which an accrual has not been recognized, Management is unable to estimate the possible losses because the proceedings may last for many years, many of the proceedings are in early stages, there is uncertainty of the likelihood of the final result, there is uncertainty as to the outcome of pending appeals and there are significant issues to be resolved. However, in the opinion of Management, after consultation with its legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated or separate statement of financial position, income statement and cash flow statement. However, at 30 September 2014 the Group and the Bank have provided for cases under litigation the amounts of 69 million and 57 million respectively (2013: 70 million and 60 million respectively).
b. Pending tax audits
Tax authorities have not yet audited all subsidiaries for certain financial years and accordingly their tax obligations for those years may not be considered final. Additional taxes and penalties may be imposed as a result of such tax audits; although the amount cannot be determined, it is not expected to have a material effect on the consolidated or separate statement of financial position of the Group and the Bank. The Bank has been audited by the tax authorities up to and including the year 2008. The financial years 2009 and 2010 are currently being audited by the tax authorities. The financial years 2011, 2012 and 2013 were audited by the independent auditor, Deloitte Hadjipavlou Sofianos & Cambanis S.A., in accordance with article 82 of Law 2238/1994. The tax audit certificates for the years 2011, 2012 and 2013 were unqualified and issued on 27 July 2012, 27 September 2013 and 10 July 2014, respectively. Based on article 6 of Ministerial Decision 1159/22.7.2011, the year 2011 is considered final for tax audit purposes and 2012 & 2013 financial years will be considered final for tax audit purposes 18 months after the issue of the tax audit certificates during which period, the tax authorities are entitled to re-examine the tax books of the Bank. For the subsidiaries and associates regarding unaudited tax years refer to Note 20.
c. Credit commitments
In the normal course of business, the Group enters into a number of contractual commitments on behalf of its customers and is a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These contractual commitments consist of commitments to extend credit, commercial letters of credit and standby letters of credit and guarantees. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the conditions established in the contract. Commercial letters of credit ensure payment by the Bank to a third party for a customers foreign or domestic trade transactions, generally to finance a commercial contract for the shipment of goods. Standby letters of credit and financial guarantees are conditional commitments issued by the Group to guarantee the performance of a customer to a third party. All of these arrangements are related to the normal lending activities of the Group. The Groups exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and commercial and standby letters of credit is represented by the contractual nominal amount of those instruments. The Group uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.
20
Table of Contents
Notes to the Financial Statements
Group and Bank
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
|
|
|
|
|
|
|
|
|
|
Commitments to extend credit* |
|
9 |
|
10 |
|
9 |
|
10 |
|
Standby letters of credit and financial guarantees written |
|
6,524 |
|
5,665 |
|
3,673 |
|
3,856 |
|
Commercial letters of credit |
|
894 |
|
593 |
|
496 |
|
332 |
|
Total |
|
7,427 |
|
6,268 |
|
4,178 |
|
4,198 |
|
* Commitments to extend credit at 30 September 2014 include amounts, which cannot be cancelled without certain conditions being met at any time and without notice, or for which automatic cancellation due to credit deterioration of the borrower is not allowed . Such commitments are used in the Risk Weighted Assets calculation for capital adequacy purposes under regulatory rules currently in force. The total agreements to extend credit at 30 September 2014 are 14,351 million (2013: 12,327 million) and 5,414 million for the Bank (2013: 4,174 million)
d. Assets pledged
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
Assets pledged as collateral |
|
12,771 |
|
16,884 |
|
11,292 |
|
15,020 |
|
As at 30 September 2014, the Group and the Bank have pledged mainly for funding purposes with the Eurosystem, other central banks and financial institutions, the following instruments:
· trading and investment debt securities of 12,184 million (Bank: 10,705 million); and
· loans and advances to customers amounting to 587 million (Bank: 587 million).
Additionally to the amounts in the table above, the Bank has pledged for funding purposes with the Eurosystem:
· floating rate notes of 12,873 million, issued under the government-guaranteed borrowing facility provided by Law 3723/2008 (pillar II) and held by the Bank,
· Greek government bonds of 2,109 million obtained from Public Debt Management Agency under the provisions of Law 3723/2008 (pillar III), collateralized with customers loans.
In addition to the pledged items presented in the table above, as at 30 September 2014, the Group and the Bank have pledged an amount of 322 million included in due from banks with respect to a guarantee for the non-payment risk of the Hellenic Republic.
e. Operating lease commitments
|
|
Group |
|
Bank |
|
|
|
30.09.2014 |
|
31.12.2013 |
|
30.09.2014 |
|
31.12.2013 |
|
|
|
|
|
|
|
|
|
|
|
No later than 1 year |
|
93 |
|
91 |
|
86 |
|
87 |
|
Later than 1 year and no later than 5 years |
|
270 |
|
261 |
|
315 |
|
307 |
|
Later than 5 years |
|
118 |
|
129 |
|
1,426 |
|
1,475 |
|
Total |
|
481 |
|
481 |
|
1,827 |
|
1,869 |
|
The major part of operating lease commitments of the Bank relates to the operating lease rentals to NBG Pangaea Reic, a real estate investment company of the Group. The leases typically run for a period of up to 25 years, with an option to renew the lease after the period. The Bank has waived its statutory right to terminate the leases, as provided by the Greek Commercial Leases Law, for 15 or 25 years, depending on the property and subject to a flexibility mechanism.
NOTE 14: Share capital, share premium and treasury shares
The total number of ordinary shares as at 30 September 2014 and 31 December 2013 was 3,533,149,631 and 2,396,785,994 respectively, with a nominal value of 0.30 Euro.
On 10 May 2014, the extraordinary general meeting of the Banks shareholders approved the share capital increase by 2,500 million by issuing 1,136,363,637 ordinary shares of a par value of 0.30 Euro per share, through cancellation of the pre-emptive rights for existing shareholders, which was completed on 13 May 2014. The subscription price was set at 2.20 Euro per share as it was determined by the international book-building process outside Greece to institutional and other eligible investors.
On 12 May 2014, the Board of Directors certified that 2,500 million was covered in cash. From the amount of 2,500 million, 341 million was credited to the share capital while the remaining 2,159 million less expenses was credited to the share premium account.
21
Table of Contents
Notes to the Financial Statements
Group and Bank
Share Capital Total
Following the above, the total paid-up share capital and share premium of the Group, as at 30 September 2014 are as follows:
|
|
Group |
|
|
|
# of shares |
|
Par value |
|
Share capital |
|
Share premium |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares |
|
3,533,149,631 |
|
0.30 |
|
1,060 |
|
13,866 |
|
14,926 |
|
Non-cumulative, non-voting, redeemable preference shares |
|
12,639,831 |
|
0.30 |
|
4 |
|
194 |
|
198 |
|
Redeemable preference shares in favour of the Greek State |
|
270,000,000 |
|
5.00 |
|
1,350 |
|
|
|
1,350 |
|
Total share capital |
|
|
|
|
|
2,414 |
|
14,060 |
|
16,474 |
|
Treasury shares
Following the restrictions of Law 3723/2008 regarding the Hellenic Republics Bank Support Plan, the Bank possesses no treasury shares. At a Group level, the treasury shares transactions are conducted by NBG Securities S.A. As at 30 September 2014, the treasury shares transactions are summarized as follows:
|
|
Group |
|
|
|
No of shares |
|
million |
|
At 1 January 2013 |
|
1,076 |
|
|
|
Purchases |
|
10,167,100 |
|
47 |
|
Sales |
|
(9,770,521 |
) |
(45 |
) |
At 31 December 2013 |
|
397,655 |
|
2 |
|
|
|
|
|
|
|
Purchases |
|
21,842,038 |
|
60 |
|
Sales |
|
(21,923,505 |
) |
(61 |
) |
At 30 September 2014 |
|
316,188 |
|
1 |
|
NOTE 15: Tax effects relating to other comprehensive income / (expense) for the period
|
|
9 month period ended |
|
9 month period ended |
|
|
|
30.9.2014 |
|
30.9.2013 |
|
Group |
|
Gross |
|
Tax |
|
Net |
|
Gross |
|
Tax |
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealised gains / (losses) for the period |
|
88 |
|
(20 |
) |
68 |
|
(174 |
) |
9 |
|
(165 |
) |
Less: Reclassification adjustments included in the income statement |
|
(80 |
) |
13 |
|
(67 |
) |
43 |
|
15 |
|
58 |
|
Available-for-sale securities |
|
8 |
|
(7 |
) |
1 |
|
(131 |
) |
24 |
|
(107 |
) |
Currency translation differences |
|
142 |
|
|
|
142 |
|
(806 |
) |
|
|
(806 |
) |
Cash flow hedge |
|
(18 |
) |
4 |
|
(14 |
) |
29 |
|
(6 |
) |
23 |
|
Total of items that may be reclassified subsequently to profit or loss |
|
132 |
|
(3 |
) |
129 |
|
(908 |
) |
18 |
|
(890 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income / (expense) for the period |
|
132 |
|
(3 |
) |
129 |
|
(908 |
) |
18 |
|
(890 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 month period ended |
|
9 month period ended |
|
|
|
30.9.2014 |
|
30.9.2013 |
|
Bank |
|
Gross |
|
Tax |
|
Net |
|
Gross |
|
Tax |
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealised gains / (losses) for the period |
|
(5 |
) |
|
|
(5 |
) |
(127 |
) |
|
|
(127 |
) |
Less: Reclassification adjustments included in the income statement |
|
(20 |
) |
|
|
(20 |
) |
116 |
|
|
|
116 |
|
Available-for-sale securities |
|
(25 |
) |
|
|
(25 |
) |
(11 |
) |
|
|
(11 |
) |
Total of items that may be reclassified subsequently to profit or loss |
|
(25 |
) |
|
|
(25 |
) |
(11 |
) |
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income / (expense) for the period |
|
(25 |
) |
|
|
(25 |
) |
(11 |
) |
|
|
(11 |
) |
22
Table of Contents
Notes to the Financial Statements
Group and Bank
NOTE 16: Related party transactions
The nature of the significant transactions entered into by the Group with related parties during the 9-month period ended 30 September 2014 and 2013 and the significant balances outstanding at 30 September 2014 and 31 December 2013 are presented below.
a. Transactions with members of the Board of Directors and management
The Group and the Bank entered into transactions with the members of the Board of Directors, the General Managers and the members of the Executive Committees of the Bank, the key management of other Group companies, as well as with the close members of family and entities controlled or jointly controlled by those persons.
All loans granted to related parties (i) were made in the ordinary course of business, (ii) were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and (iii) did not involve more than the normal risk of collectability or present other unfavourable features, except for the following transactions:
The Bank grants loans to its employees on preferential terms compared to customers that are not employees. This policy, which is common practice for banks in Greece, applies only to employees and not to close members of family and entities controlled by them. The preferential terms mainly refer to a lower fixed interest rate of 2.12% for mortgage loans, while collateral is required as in the ordinary course of business. As such, certain General Managers and members of the Executive Committees of the Bank have taken loans with reduced interest rate of total amount 6 million as of 30 September 2014 (31 December 2013: 6 million).
The list of the members of the Board of Directors of the Bank is presented under Note 1.
As at 30 September 2014, loans, deposits and letters of guarantee, at Group level, amounted to 106 million, 18 million and 15 million respectively (31 December 2013: 88 million, 12 million and 16 million respectively), whereas the corresponding figures at Bank level amounted to 105 million, 8 million and 15 million (31 December 2013: 87 million, 4 million and 16 million respectively).
Total compensation to related parties amounted to 13 million (30 September 2013: 14 million) for the Group and to 5 million (30 September 2013: 4 million) for the Bank, mainly relating to short-term benefits.
b. Transactions with subsidiaries, associates and joint ventures
Transactions and balances between the Bank, its subsidiaries, associates and joint ventures are set out in the table below. At a Group level, only transactions and balances with associates and joint ventures are included, as transactions and balances with subsidiaries are eliminated on consolidation.
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
14 |
|
8 |
|
3,437 |
|
3,799 |
|
Liabilities |
|
41 |
|
35 |
|
3,690 |
|
4,151 |
|
Letters of guarantee, contingent liabilities and other off balance sheet accounts |
|
8 |
|
8 |
|
2,940 |
|
3,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9 month period ended |
|
9 month period ended |
|
|
|
30.9.2014 |
|
30.9.2013 |
|
30.9.2014 |
|
30.9.2013 |
|
|
|
|
|
|
|
|
|
|
|
Interest, commission and other income |
|
28 |
|
26 |
|
95 |
|
95 |
|
Interest, commission and other expense |
|
7 |
|
6 |
|
160 |
|
154 |
|
c. Transactions with other related parties
The total receivables of the Group and the Bank from the employee benefits related funds as at 30 September 2014 amounted to 638 million (31 December 2013: 582 million).
The total payables of the Group and the Bank to the employee benefits related funds as at 30 September 2014, amounted to 155 million and 80 million respectively (31 December 2013: 134 million and 62 million respectively).
d. Transactions with HFSF
In the context of Law 3864/2008 regarding the recapitalization of the Greek banks and subject to a pre-subscription agreement, the HFSF, which is considered by the Bank to be a related party as defined in IAS 24, had contributed an amount of 9,756 million EFSF bonds as an advance for the participation in the Banks share capital increase that was completed in June 2013.
An amount of 1,079 million was covered by private investors. The HFSF contribution in the share capital increase eventually amounted to 8,677 million and the excess amount out of the advance was returned to the HFSF. Furthermore, the Bank paid 90 million to HFSF as underwriting fees.
23
Table of Contents
Notes to the Financial Statements
Group and Bank
NOTE 17: Acquisitions, disposals and other capital transactions
On 20 March 2014, NBG Pangaea REIC acquired 100% of mutual fund PicassoFondo Comune di Investimento Immobiliare Speculativo di Tipo Chiuso Riservato ad Investitori Qualificati (PicassoClosed End Real Estate Investment Fund Reserved to Qualified Investors). PicassoFondo owns building offices of a total area of 33 thousand sq.m., which are located in Rome and Milan. The consideration of the acquisition amounted to 38 million of which 37 million was paid in cash and 1 million was recognised as payable. The acquisition was part of NBG Pangaea REIC investment policy and within the normal course of its business in order to increase its presence in the real estate market.
The following table summarises the fair value of assets and liabilities acquired of PicassoFondo as of the date of acquisition which is 20 March 2014.
|
|
20.03.2014 |
|
ASSETS |
|
|
|
Due from banks |
|
1 |
|
Investment property |
|
76 |
|
Other assets |
|
2 |
|
Total assets |
|
79 |
|
|
|
|
|
LIABILITIES |
|
|
|
Due to banks |
|
38 |
|
Other liabilities |
|
2 |
|
Total liabilities |
|
40 |
|
Net assets |
|
39 |
|
Source: Unaudited financial information
On 24 April 2014, the dissolution of our 100% subsidiary, CPT Investments Ltd was completed.
On 24 April 2014 the Bank disposed of its participation (35%) in the associate AKTOR FACILITY MANAGEMENT S.A. for a consideration of 1 million.
On 19 June 2014, the Board of Directors of the Bank and Ethniki Kefalaiou S.A., a wholly owned subsidiary of the Bank, agreed the merger of the two companies through absorption of the latter by the Bank. The merger date was agreed to be 31 May 2014.
On 12 August 2014, NBG Pangaea REIC purchased 11,654,011 shares in MIG REAL ESTATE REIC (MIG) which represents 82.81% of MIGs total paid-up share capital and voting rights. The consideration transferred amounted to 33 million which consisted of cash of 12 million and of 3,348,651 new redeemable common shares issued by NBG Pangaea REIC of fair value 21 million. The following table summarises the fair value of assets and liabilities acquired of MIG as of the date of acquisition which is 12 August 2014.
|
|
12.08.2014 |
|
ASSETS |
|
|
|
Due from banks |
|
3 |
|
Investment property |
|
52 |
|
Other assets |
|
2 |
|
Total assets |
|
57 |
|
|
|
|
|
LIABILITIES |
|
|
|
Due to banks |
|
12 |
|
Other liabilities |
|
2 |
|
Total liabilities |
|
14 |
|
Net assets |
|
43 |
|
Proportionate share of non controlling interests |
|
7 |
|
Source: Unaudited financial information
On 22 October 2014, NBG Pangaea REIC completed its mandatory tender offer to the shareholders of MIG, and acquired 1,951,053 shares (13.86%) of MIGs share capital at 3.10 Euro per share, increasing its stake in MIG to 96.67%.
On 23 September 2014 NBG disposed of its 100% subsidiary ANTHOS PROPERTIES S.A.
On 26 September 2014 NBG acquired the 5% of the voting common shares of its Turkish bank subsidiary Finansbank A.S. from International Finance Corporation (IFC) pursuant to an exercise by IFC of its put option right in accordance with the agreement between NBG and IFC dated 29 March 2007. The total consideration paid amounted to USD 343 million calculated in accordance with the pricing formula set out in the aforementioned agreement.
On 22 October 2014, the Board of Directors of Finansbank resolved to proceed with an increase of up to TL 715 million in the paid-in capital of Finansbank, with cancellation of pre-emption rights of existing shareholders, by means of a public offering of newly-issued shares.
NOTE 18: Capital adequacy
Quantitative measures established by regulation to ensure capital adequacy require the Group and the Bank to maintain minimum amounts and ratios, determined on a risk-weighted basis, of capital (as defined) to assets, certain off-balance sheet items, and the notional credit equivalent arising from the total capital requirements against market risk. In June 2013, the European Parliament and the Council of Europe issued a new Directive 2013/36/EU and Regulation (EU) No 575/2013, (known as CRD IV), which incorporate the key amendments that have been proposed by the Basel Committee for Banking Supervision (known as Basel III). The new regulations have been directly applicable to all EU Member States since 1 January 2014, but some changes under CRD IV will be implemented gradually, mainly between 2014 and 2019.
CRD IV revised the definition of regulatory capital and its components at each level. It also proposed a minimum Common Equity Tier I (CET1) Ratio of 4.5%, Tier I Ratio of 6.0% and total ratio of 8%. According to Bank of Greece Credit and Insurance Committees decision 114/4.8.2014, the above minimum capital requirements were set for Greek banks.
On 6 March 2014 BoG announced the results of the BlackRock stress-test exercise as extended by BoG, and BoGs very conservative assessment of the pre-provision income of the draft restructuring plan. BoG assessed the 3.5 years capital requirements (using 30 June 2013 as relevant reference date) at 2,185 million, with the bulk stemming from an extremely pessimistic and loss-making stressed scenario for Finansbank. The Bank presented a capital plan to the Bank of Greece, describing the actions it intends to take to address the capital shortfall, within the timing and other constraints set in April 2014 by BoG. The Bank of Greece approved this plan on April 11, 2014. This capital plan included the completed share capital increase of 2.5 billion (see Note 14) and certain capital actions amounting to 1,040 million.
24
Table of Contents
Notes to the Financial Statements
Group and Bank
The capital adequacy ratios for the Group and the Bank, according to the CRD IV transitional provisions in 2014, are presented in the table below:
|
|
Group |
|
Bank |
|
|
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
|
|
|
|
Pro-forma* |
|
|
|
Pro-forma* |
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 |
|
15.8 |
% |
10.5 |
% |
24.0 |
% |
15.3 |
% |
Tier I |
|
15.8 |
% |
10.5 |
% |
24.3 |
% |
15.3 |
% |
Total |
|
15.9 |
% |
10.6 |
% |
24.8 |
% |
15.8 |
% |
(*) The 31.12.2013 figures have been calculated on a pro-forma basis in accordance with E.U. Regulation 575/2013.
On 23 July 2014, the European Commission announced the approval of the Banks restructuring plan (the Restructuring Plan) as submitted to the EC by the Ministry of Finance on 25 June 2014. This Restructuring Plan includes, inter alia, the sale of a minority stake in Finansbank, the sale of the Astir hotel complex, and the sale of 100% of NBGI (Private Equity).
Article 27A, issued on 17 October 2014 (Law 4303/2014, DTC Law) allows, under certain conditions, and from 2016 onwards Credit Institutions to convert Deferred Tax Assets (DTAs) arising from Private Sector Initiative (PSI) losses and accumulated provisions for credit losses on loans existing at 31 December 2014 to a receivable (Tax Credit) from the Greek State. The main condition is the existence of an accounting loss of a respective year, starting from accounting year 2015 and onwards. The Tax Credit is offsettable against income taxes payable. The non-offset part of the Tax Credit is immediately recognized as a receivable from the Greek State. In such case the Bank will issue conversion rights for an amount of 110% of the Tax Credit receivable in favour of the Greek State and create a specific reserve for an equal amount. Common shareholders have pre-emption rights on these rights. The reserve will be capitalised with the issuance of common shares in favour of the Greek State. This new legislation allows Credit Institutions to treat such DTAs as not relying on future profitability according to CRD IV, and as a result such DTAs are not deducted from CET1, hence improving their capital position.
On 16 October 2014 the Board of Directors of the Bank decided to convene an extraordinary General Shareholders meeting on 7 November 2014 to resolve upon the inclusion of the Bank in the DTC Law. In order for the Bank to exit the provisions of the DTC Law it requires regulatory approval and a General Shareholders meeting resolution.
As of 1 November 2014, all systemic Eurozone banks are under the direct supervision of the European Central Bank (ECB) (Single Supervision Mechanism SSM). Before ECB assumed its supervisory responsibilities, NBG as all systemic European banks were subject to an EU-wide Comprehensive Assessment including an Asset Quality Review (AQR) and Stress Test with 31 December 2013 as the reference date, whose results were announced on 26 October 2014. The AQR and Baseline Stress Test required a mimimum CET1 Ratio of 8% and the Adverse Stress Test a minimum CET1 Ratio of 5.5%.
The Adverse Dynamic Balance Sheet stress test, which is based on NBGs approved Restructuring Plan resulted in a CET1 ratio of 8.9%, and a capital surplus of 2.0 billion. In line with ECBs guidelines, NBG will submit on 7 November 2014 as a capital plan the above approved Adverse Dynamic Balance Sheet scenario and the additional 2014 profitability, which result in a capital surplus of more than 2.0 billion and no further capital action is required.
The detailed results of the Comprehensive Assessement are presented below:
Comprehensive Assessment Results (1)
|
|
Reported (2) |
|
Static |
|
Dynamic |
|
|
|
2013 |
|
2016 |
|
2014 (3) |
|
2016 |
|
2016 |
|
|
|
|
|
Baseline |
|
Adverse |
|
Baseline |
|
Baseline |
|
Adverse |
|
CET1 (4) |
|
6,058 |
|
3,260 |
|
(246 |
) |
8,030 |
|
9,486 |
|
5,325 |
|
RWAs (4) |
|
56,685 |
|
56,730 |
|
57,940 |
|
60,303 |
|
58,626 |
|
60,001 |
|
CET1 (%) (4) |
|
10.7 |
% |
5.7 |
% |
(0.4 |
)% |
13.3 |
% |
16.2 |
% |
8.9 |
% |
Minimum Threshold (4) |
|
|
|
8.0 |
% |
5.5 |
% |
8.0 |
% |
8.0 |
% |
5.5 |
% |
Capital surplus/ (shortfall) (4) |
|
|
|
(1,278 |
) |
(3,433 |
) |
3,206 |
|
4,796 |
|
2,025 |
|
Capital surplus/ (shortfall) post 2.5 billion share capital increase |
|
|
|
1,222 |
|
(933 |
) |
3,206 |
(5) |
4,796 |
(5) |
2,025 |
(5) |
9-month 2014 pre-provision income and actions completed (refer below) (6) |
|
|
|
|
|
1,172 |
|
|
|
|
|
|
|
Capital surplus including profitability and actions by September 2014 (6) |
|
|
|
|
|
239 |
|
|
|
|
|
|
|
(1) Comprehensive Assessment (CA) incorporates AQR, Stress Test
(2) Figures as of 31/12/2013, calculated according to CRD IV, with transitional provisions as of 1.1.2014
(3) The lowest capital level over the period of 3 years, i.e. 31.12.2014
(4) Numbers derived from the EU-wide Comprehensive Assessment published on 26 October 2014
(5) The Dynamic scenario already includes the share capital increase
(6) This information is outside the scope of the review performed by our auditors on the Interim Financial Statements
The Adverse Static Balance Sheet stress test resulted in a capital shortfall of 933 million after the capital increase completed in May 2014. This shortfall has already been covered by NBGs pre-provision income and actions completed by 30 September 2014 amounting to 1,172 million. Taking into account the above, the shortfall under the Static Adverse scenario of 933 million now becomes a surplus of 239 million. The above figures do not take into account the capital benefit created by the new DTC Law, described above.
The 9-month 2014 pre-provision income and actions completed include:
(a) 400 million higher pre-provision income, being the difference between the 9-month period ended 30 September 2014 actual pre-provision income based on unaudited/unreviewed financial information prepared in accordance with regulatory reporting rules (FINREP), compared to the estimated pre-provision income included in the Static Adverse scenario (estimated on a pro-rata basis, using the full year 2014 estimated amount),
(b) 251 million being the impairment recognized in the Static Adverse scenario on the Greek government bonds received by the Bank in the context of Pillar I of Law 3723/2008, which were fully repaid during the 9-month period ended 30 September 2014,
(c) 349 million, being the estimated saving from the voluntary exit scheme completed on 31 December 2013 by NBG for the remaining period up to 31 December 2016, which had not been taken into account in the Static Adverse scenario, and
(d) 172 million, being the capital benefit expected to derive from the disposal of Astir Palace Vouliagmenis S.A (see Note 9).
25
Table of Contents
Notes to the Financial Statements
Group and Bank
NOTE 19: Fair value of financial assets and liabilities
a. Financial instruments not measured at fair value
The table below summarises the carrying amounts and the fair values of those financial assets and liabilities that are not presented on the Groups and the Banks statement of financial position at fair value and the fair value is materially different from the carrying amount.
Financial instruments not measured at fair value - Group
|
|
Carrying |
|
Fair |
|
Carrying |
|
Fair |
|
|
|
amounts |
|
values |
|
amounts |
|
values |
|
|
|
30.9.2014 |
|
30.9.2014 |
|
31.12.2013 |
|
31.12.2013 |
|
|
|
|
|
|
|
|
|
|
|
Financial Assets |
|
|
|
|
|
|
|
|
|
Loans and advances to customers |
|
68,228 |
|
67,532 |
|
67,174 |
|
66,483 |
|
Held-to-maturity investment securities |
|
1,473 |
|
1,610 |
|
1,237 |
|
1,270 |
|
Loans-and-receivables investment securities |
|
10,337 |
|
9,900 |
|
11,955 |
|
11,507 |
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
Due to customers |
|
66,892 |
|
66,911 |
|
62,594 |
|
62,535 |
|
Debt securities in issue |
|
3,008 |
|
3,102 |
|
1,389 |
|
1,377 |
|
Other borrowed funds |
|
2,059 |
|
2,056 |
|
1,607 |
|
1,602 |
|
Financial instruments not measured at fair value - Bank
|
|
Carrying |
|
Fair |
|
Carrying |
|
Fair |
|
|
|
amounts |
|
values |
|
amounts |
|
values |
|
|
|
30.9.2014 |
|
30.9.2014 |
|
31.12.2013 |
|
31.12.2013 |
|
|
|
|
|
|
|
|
|
|
|
Financial Assets |
|
|
|
|
|
|
|
|
|
Loans and advances to customers |
|
44,393 |
|
43,776 |
|
46,327 |
|
45,749 |
|
Held-to-maturity investment securities |
|
963 |
|
1,069 |
|
902 |
|
965 |
|
Loans-and-receivables investment securities |
|
10,046 |
|
9,628 |
|
11,660 |
|
11,183 |
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
Due to customers |
|
46,772 |
|
46,768 |
|
45,008 |
|
45,030 |
|
Other borrowed funds |
|
862 |
|
764 |
|
102 |
|
43 |
|
The following methods and assumptions were used to estimate the fair values of the above financial instruments at 30 September 2014 and 31 December 2013:
The carrying amount of cash and balances with central banks, due from and due to banks as well as accrued interest, approximates their fair value.
Loans and advances to customers: The fair value of loans and advances to customers is estimated using discounted cash flow models. The discount rates are based on current market interest rates offered for instruments with similar terms to borrowers of similar credit quality.
Held-to-maturity investment securities and loans-and-receivables investment securities: The fair value of held-to-maturity and loans and receivables investment securities is estimated using market prices, or using discounted cash flow models based on current market interest rates offered for instruments with similar credit quality.
Due to customers: The fair value for demand deposits and deposits with no defined maturity is determined to be the amount payable on demand at the reporting date. The fair value for fixed-maturity deposits is estimated using discounted cash flow models based on rates currently offered for the relevant product types with similar remaining maturities.
Debt securities in issue: Fair value is estimated using market prices, or if such are not available, using a discounted cash flow analysis, based on current market rates of similar maturity debt securities.
Other borrowed funds: Fair value of other borrowed funds is estimated using market prices, or if such are not available, either based on the prices with which the issuers completed tender offers with respect to these or similar instruments, or discounted cash flow analysis based on the Groups current incremental borrowing rates for similar types of borrowings arrangements.
b. Financial instruments measured at fair value
The tables below present the fair values of those financial assets and liabilities presented on the Groups and the Banks statement of financial position at fair value by fair value measurement level at 30 September 2014 and 31 December 2013:
26
Table of Contents
Notes to the Financial Statements
Group and Bank
Financial instruments measured at fair value - Group
|
|
Fair value measurement using |
|
Total asset/ liability at |
|
As at 30 September 2014 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Fair value |
|
Assets |
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
154 |
|
1,863 |
|
15 |
|
2,032 |
|
Derivative financial instruments |
|
2 |
|
5,002 |
|
28 |
|
5,032 |
|
Loans and advances to customers designated as at fair value through profit or loss |
|
|
|
|
|
48 |
|
48 |
|
Available-for-sale investment securities |
|
2,523 |
|
1,894 |
|
48 |
|
4,465 |
|
Insurance related assets and receivables |
|
281 |
|
225 |
|
11 |
|
517 |
|
Total |
|
2,960 |
|
8,984 |
|
150 |
|
12,094 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Due to customers designated as at fair value through profit or loss |
|
|
|
12 |
|
|
|
12 |
|
Derivative financial instruments |
|
1 |
|
4,895 |
|
1 |
|
4,897 |
|
Debt securities in issue designated as at fair value through profit or loss |
|
|
|
896 |
|
|
|
896 |
|
Liabilities relating to unit-linked investment contracts |
|
|
|
193 |
|
|
|
193 |
|
Other liabilities |
|
6 |
|
|
|
|
|
6 |
|
Total |
|
7 |
|
5,996 |
|
1 |
|
6,004 |
|
|
|
Fair value measurement using |
|
Total asset/ liability at |
|
As at 31 December 2013 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Fair value |
|
Assets |
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
333 |
|
2,730 |
|
24 |
|
3,087 |
|
Derivative financial instruments |
|
1 |
|
3,649 |
|
21 |
|
3,671 |
|
Loans and advances to customers designated as at fair value through profit or loss |
|
|
|
|
|
76 |
|
76 |
|
Available-for-sale investment securities |
|
2,463 |
|
1,710 |
|
46 |
|
4,219 |
|
Insurance related assets and receivables |
|
301 |
|
70 |
|
11 |
|
382 |
|
Total |
|
3,098 |
|
8,159 |
|
178 |
|
11,435 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Due to customers designated as at fair value through profit or loss |
|
|
|
282 |
|
|
|
282 |
|
Derivative financial instruments |
|
4 |
|
3,023 |
|
2 |
|
3,029 |
|
Debt securities in issue designated as at fair value through profit or loss |
|
|
|
810 |
|
|
|
810 |
|
Liabilities relating to unit-linked investment contracts |
|
|
|
64 |
|
|
|
64 |
|
Other liabilities |
|
2 |
|
250 |
|
|
|
252 |
|
Total |
|
6 |
|
4,429 |
|
2 |
|
4,437 |
|
Financial instruments measured at fair value - Bank
|
|
Fair value measurement using |
|
Total asset/ liability at |
|
As at 30 September 2014 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Fair value |
|
Assets |
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
94 |
|
1,552 |
|
15 |
|
1,661 |
|
Derivative financial instruments |
|
2 |
|
3,817 |
|
28 |
|
3,847 |
|
Available-for-sale investment securities |
|
54 |
|
684 |
|
7 |
|
745 |
|
Total |
|
150 |
|
6,053 |
|
50 |
|
6,253 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Due to customers designated as at fair value through profit or loss |
|
|
|
12 |
|
|
|
12 |
|
Derivative financial instruments |
|
1 |
|
4,397 |
|
1 |
|
4,399 |
|
Debt securities in issue designated as at fair value through profit or loss |
|
|
|
896 |
|
|
|
896 |
|
Total |
|
1 |
|
5,305 |
|
1 |
|
5,307 |
|
27
Table of Contents
Notes to the Financial Statements
Group and Bank
|
|
Fair value measurement using |
|
Total asset/ liability at |
|
As at 31 December 2013 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Fair value |
|
Assets |
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
205 |
|
2,182 |
|
24 |
|
2,411 |
|
Derivative financial instruments |
|
1 |
|
2,559 |
|
21 |
|
2,581 |
|
Available-for-sale investment securities |
|
130 |
|
380 |
|
7 |
|
517 |
|
Total |
|
336 |
|
5,121 |
|
52 |
|
5,509 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Due to customers designated as at fair value through profit or loss |
|
|
|
282 |
|
|
|
282 |
|
Derivative financial instruments |
|
4 |
|
2,553 |
|
2 |
|
2,559 |
|
Debt securities in issue designated as at fair value through profit or loss |
|
|
|
810 |
|
|
|
810 |
|
Other liabilities |
|
|
|
250 |
|
|
|
250 |
|
Total |
|
4 |
|
3,895 |
|
2 |
|
3,901 |
|
Transfers from Level 1 to Level 2
No transfers of financial instruments from Level 1 to level 2 occurred in 2014 and 2013.
Level 3 financial instruments
Level 3 financial instruments at 30 September 2014 include:
(a) Derivative products, which are valued using valuation techniques with significant unobservable inputs, including certain correlation products, such as correlation between various interest indices or correlation between various currencies. They also include products where implied volatility represents a significant input and derivatives for which the CVA is based on significant unobservable inputs and the amount of the CVA is significant relative to the total fair value of the derivative.
(b) Securities at fair value through profit or loss and available-for-sale securities, which are price-based, and the price is obtained from the issuers of the securities.
(c) Available-for-sale non-marketable equity securities, which are valued by independent evaluators based on inputs such as earnings forecasts, comparable multiples of Economic Value to EBITDA and other parameters which are not market observable. Additionally it includes, Private equity investments, the prices of which are determined by the price of the most recent investment. Available-for-sale investments also include debt securities whose fair value is determined by the value of the underlying collateral.
(d) Loans which are carried at fair value through profit or loss and which are valued using discounted cash flow valuation techniques incorporating unobservable credit spreads.
(e) In other assets, Investments on behalf of policyholders who bear the investment risk (unit linked products) include debt securities issued by foreign financial institutions, for which there is no active market available and the valuation is based on prices obtained from issuers.
The table below presents a reconciliation of all Level 3 fair value measurements for the period ended 30 September 2014 and 31 December 2013, including realized and unrealized gains/(losses) included in the income statement and statement of other comprehensive income.
Transfers into or out of Level 3
The Group conducts a review of the fair value hierarchy classifications on a quarterly basis. For the period ended 30 September 2014 transfers from Level 2 into Level 3 include derivative instruments for which the bilateral CVA adjustment is significant to the base fair value of the respective instruments.
Transfers from Level 2 into Level 3 for the year ended 31 December 2013 include loans at fair value through profit or loss, private equity investments classified as available for sale, for which the price of the most recent investment, available to value these companies is more than a year old and derivative instruments for which the bilateral CVA adjustment is significant to the base fair value of the respective instruments.
The main transfer out of Level 3 relates to debt securities in issue which, as at 30 June 2013, were valued based, primarily, on market observable CDS data and are no longer valued based on the price with which the Bank completed a tender offer.
28
Table of Contents
Notes to the Financial Statements
Group and Bank
Reconciliation of fair value measurements in Level 3 Group
|
|
2014 |
|
|
|
Financial assets at fair value through profit or loss |
|
Net Derivative financial instruments |
|
Available- for-sale investment securities |
|
Insurance related assets and receivables |
|
Loans and advances to customers designated as at Fair Value through profit or loss |
|
Balance at 1 January |
|
24 |
|
19 |
|
46 |
|
11 |
|
76 |
|
Gain / (losses) included in Income statement |
|
18 |
|
(8 |
) |
1 |
|
|
|
1 |
|
Gain / (losses) included in OCI |
|
|
|
|
|
1 |
|
|
|
|
|
Purchases |
|
|
|
3 |
|
|
|
|
|
|
|
Settlements |
|
(27 |
) |
|
|
|
|
|
|
(28 |
) |
Transfer into/ (out of) level 3 |
|
|
|
13 |
|
|
|
|
|
|
|
Balance at 30 September |
|
15 |
|
27 |
|
48 |
|
11 |
|
49 |
|
|
|
2013 |
|
|
|
Financial assets at fair value through profit or loss |
|
Net Derivative financial instruments |
|
Available- for-sale investment securities |
|
Insurance related assets and receivables |
|
Loans and advances to customers designated as at Fair Value through profit or loss |
|
Debt securities in issue designated as at fair value through profit or loss |
|
Balance at 1 January |
|
33 |
|
8 |
|
95 |
|
11 |
|
|
|
600 |
|
Gain / (losses) included in Income statement |
|
7 |
|
16 |
|
11 |
|
|
|
(36 |
) |
56 |
|
Gain / (losses) included in OCI |
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
Purchases |
|
|
|
|
|
14 |
|
|
|
|
|
|
|
Settlements |
|
(16 |
) |
(13 |
) |
(96 |
) |
|
|
(69 |
) |
|
|
Transfer into/ (out of) level 3 |
|
|
|
8 |
|
26 |
|
|
|
181 |
|
(656 |
) |
Balance at 31 December |
|
24 |
|
19 |
|
46 |
|
11 |
|
76 |
|
|
|
Reconciliation of fair value measurements in Level 3 Bank
|
|
2014 |
|
|
|
Financial assets at fair value through profit or loss |
|
Net
Derivative financial instruments |
|
Available-for-sale investment securities |
|
Balance at 1 January |
|
24 |
|
19 |
|
7 |
|
Gain / (losses) included in Income statement |
|
18 |
|
(8 |
) |
1 |
|
Purchases |
|
|
|
3 |
|
|
|
Settlements |
|
(27 |
) |
|
|
|
|
Transfer into/ (out of) level 3 |
|
|
|
13 |
|
|
|
Balance at 30 September |
|
15 |
|
27 |
|
8 |
|
|
|
2013 |
|
|
|
Financial assets at fair value through profit or loss |
|
Net Derivative financial instruments |
|
Available- for-sale investment securities |
|
Debt securities in issue designated as at fair value through profit or loss |
|
Balance at 1 January |
|
33 |
|
19 |
|
70 |
|
600 |
|
Gain / (losses) included in Income statement |
|
7 |
|
5 |
|
11 |
|
56 |
|
Gain / (losses) included in OCI |
|
|
|
|
|
(3 |
) |
|
|
Settlements |
|
(16 |
) |
(13 |
) |
(71 |
) |
|
|
Transfer into/ (out of) level 3 |
|
|
|
8 |
|
|
|
(656 |
) |
Balance at 31 December |
|
24 |
|
19 |
|
7 |
|
|
|
Gains and losses included in the income statement have been reported in Net trading income / (loss) and results from investment securities except for bonds amortisation of premium / discount which amounts to Nil for the period ended 30 September 2014 and to 1 million, for the year ended 31 December 2013
29
Table of Contents
Notes to the Financial Statements
Group and Bank
which has been reported in Net interest income at Bank and Group level.
Changes in unrealised gains/ (losses) included in the income statement of financial instruments measured at fair value using significant unobservable inputs (level 3) relating to financial assets at fair value through profit or loss, net derivative financial instruments and loans and advances to customers amount for the period ended 30 September 2014 for the Group to Nil, Nil and Nil respectively (31 December 2013: Nil, 5 million and (36) million respectively). Changes in unrealised gains/ (losses) included in the income statement of debt securities in issue for 2013 amount to Nil.
At Bank level changes in unrealised gains/ (losses) included in the income statement of financial instruments measured at fair value using significant unobservable inputs (level 3) relating to financial assets at fair value through profit or loss and net derivative financial instruments, for the period ended 30 September 2014 amount to Nil and Nil respectively (31 December 2013: Nil and 5 million respectively). Changes in unrealised gains/ (losses) included in the income statement of debt securities in issue for 2013 amount to Nil.
Valuation Process and Control Framework
The Group has various processes in place to ensure that the fair values of its assets and liabilities are reasonably estimated and has established a control framework which is designed to ensure that fair values are validated by functions independent of the risk-taker. To that end, the Group utilizes various sources for determining the fair values of its financial instruments and uses its own independent functions to validate these results where possible.
Fair values of debt securities are determined either by reference to prices for traded instruments in active markets, to external quotations or widely accepted financial models, which are based on market observable or unobservable information where the former is not available, as well as relevant market-based parameters such as interest rates, option volatilities, currency rates, etc., and may also include a liquidity risk adjustment where the Group considers it appropriate.
The Group may, sometimes, also utilize third-party pricing information, and perform validating procedures on this information or base its fair value on the latest transaction prices available, given the absence of an active market or similar transactions. All such instruments, including financial instruments which are subject to material liquidity adjustments are categorized within the lowest level of fair value hierarchy (i.e. Level 3).
Generally, fair values of debt securities, including significant inputs on the valuation models are independently checked and validated by the Middle Office and Risk Management function on a systematic basis.
Fair values of derivatives are determined by Management using valuation models which include discounted cash-flow models, option pricing models or other appropriate models. Adequate control procedures are in place for the validation of these models, including the valuation inputs, on a systematic basis. Middle Office and Risk Management function provide the control valuation framework necessary to ensure that the fair values are reasonably determined, reflecting current market circumstances and economic conditions. Furthermore, over-the-counter derivatives are also compared on a daily basis with counterparties valuations, under the daily collateral management process.
Market Valuation Adjustments
Counterparty credit risk-adjustments are applied to all over-the-counter derivatives. Own credit-risk adjustments are applied to reflect the Groups own credit risk when valuing derivatives. Bilateral credit-risk adjustments consider the expected cash flows between the Group and its counterparties under the relevant terms of the derivative instruments and the effect of the credit-risk profile of the counterparties on the valuation of these cash flows. Where appropriate, we take into consideration the credit-risk mitigating arrangements including collateral agreements and master netting arrangements into estimating own and counterparty credit risk valuation adjustments.
The liquidity risk adjustment reflects, among other things, the illiquid nature of certain financial instruments and the cost that would be incurred to close out certain financial positions of the Group either by unwinding or disposing the actual market risk that the Group has undertaken.
30
Table of Contents
Notes to the Financial Statements
Group and Bank
Quantitative Information about Level 3 Fair Value Measurements 30 September 2014
|
|
Fair |
|
|
|
Significant Unobservable |
|
Range of Inputs |
|
Financial Instrument |
|
Value |
|
Valuation Technique |
|
Input |
|
Low |
|
High |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
15 |
|
Price Based |
|
Price |
|
31.49 |
|
100.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale investment securities |
|
7 |
|
Price Based |
|
Price |
|
93.76 |
|
93.76 |
|
|
|
7 |
|
Collateral Based |
|
Factor of Collateral Realization |
|
0.42 |
|
0.65 |
|
|
|
6 |
|
Comparable Multiples |
|
Multiples on EV/EBITDA |
|
5.50 |
|
7.40 |
|
|
|
27 |
|
Price of Recent Investment |
|
n/a (1) |
|
n/a |
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers designated as at fair value through profit or Loss |
|
48 |
|
Discounted Cash Flows |
|
Credit Spread |
|
200 |
bps |
1500 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Derivatives |
|
20 |
|
Discounted Cash Flows - Internal Model for CVA/DVA |
|
Credit Spread |
|
100 |
bps |
1000 |
bps |
|
|
4 |
|
Discounted Cash Flows |
|
Constant Maturity Swap correlation between different tenors (eg 2yr 10 yr) |
|
87.50 |
% |
94.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other Derivatives |
|
3 |
|
Market Standard Black Scholes Model |
|
FX pair correlation |
|
-10.00 |
% |
93.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Insurance related assets and receivables |
|
11 |
|
Price Based |
|
Price |
|
100.49 |
|
100.49 |
|
(1) Private equity investments of the Group, classified as available for sale, are not traded in active markets. In the absence of an active market we estimate the fair value of these entities, using a market approach and specifically the price of recent investment method. Given the bespoke nature of the analysis in respect of each holding as well as the different financing structure of each entity, is not practical to quote a range of key unobservable inputs.
Quantitative Information about Level 3 Fair Value Measurements 31 December 2013
|
|
Fair |
|
|
|
Significant Unobservable |
|
Range of Inputs |
|
Financial Instrument |
|
Value |
|
Valuation Technique |
|
Input |
|
Low |
|
High |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss |
|
16 |
|
Price Based |
|
Price |
|
26.44 |
|
98.69 |
|
|
|
8 |
|
Price Based |
|
Liquidity Factor Adjustment |
|
40.00 |
% |
40.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale investment securities |
|
7 |
|
Price Based |
|
Price |
|
93.76 |
|
93.76 |
|
|
|
8 |
|
Collateral Based |
|
Factor of Collateral Realization |
|
42 |
% |
65 |
% |
|
|
6 |
|
Comparable Multiples |
|
Multiples on EV/EBITDA |
|
5.50 |
|
7.40 |
|
|
|
25 |
|
Price of Recent Investment |
|
n/a (1) |
|
n/a (1) |
|
n/a (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to customers designated as at fair value through profit or Loss |
|
76 |
|
Discounted Cash Flows |
|
Credit Spread |
|
200 |
bps |
1500 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Derivatives |
|
7 |
|
Discounted Cash Flows - Internal Model for CVA/DVA |
|
Credit Spread |
|
100 |
bps |
1000 |
bps |
|
|
4 |
|
Discounted Cash Flows |
|
Constant Maturity Swap correlation between different tenors (eg 2yr 10 yr) |
|
67.79 |
% |
92.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other Derivatives |
|
5 |
|
Market Standard Black Scholes Model |
|
Index volatility |
|
5.00 |
% |
30.00 |
% |
|
|
3 |
|
Market Standard Black Scholes Model |
|
FX pair correlation |
|
28.00 |
% |
68.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Insurance related assets and receivables |
|
11 |
|
Price Based |
|
Price |
|
100.60 |
|
100.60 |
|
(1) Private equity investments of the Group, classified as available for sale, are not traded in active markets. In the absence of an active market we estimate the fair value of these entities, using a market approach and specifically the price of recent investment method. Given the bespoke nature of the analysis in respect of each holding as well as the different financing structure of each entity, is not practical to quote a range of key unobservable inputs.
31
Table of Contents
Notes to the Financial Statements
Group and Bank
Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs
For structured interest rate derivatives a significant change in the correlation inputs (e.g. the degree of correlation between two different interest rates, or between interest rates and foreign exchange rates) would result in a significant impact to the fair value of the individual instrument; however the magnitude and the direction of the impact depends on whether the Group is long or short the exposure among other factors. Due to the limited exposure the Group has related to these instruments a reasonable change in the above unobservable inputs would not be significant to the Group. Additionally, interest rate derivatives include interest rate swaps for which the bilateral credit risk adjustment is significant in comparison to the fair value. The counterparty credit-risk adjustment in these cases is mainly driven by the internal ratings of the counterparty. A reasonable increase in the credit spread of these entities would result in an insignificant change in the fair value of the Groups financial instruments.
Within other derivatives are derivatives whose valuation is dependent on an FX pair correlation or on the volatility of an index. A reasonable increase in the correlation or the volatility of the index would not result in a material change in the financial instruments fair value for the Group.
For loans and advances to customers which the Group has elected the fair value option, the valuation includes a parameter which is not observable in the market, i.e. the credit spread of the client. A reasonable increase in the respective credit spreads used would not have a significant effect to their fair value for the Group.
NOTE 20: Group companies
|
|
|
|
Tax years |
|
Group |
|
Bank |
|
Subsidiaries |
|
Country |
|
unaudited |
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NBG Securities S.A. (**) |
|
Greece |
|
2009-2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Ethniki Kefalaiou S.A. (**) |
|
Greece |
|
2010 & 2012-2013 |
|
|
|
100.00 |
% |
|
|
100.00 |
% |
NBG Asset Management Mutual Funds S.A. (**) |
|
Greece |
|
2009-2010 & 2012- 2013 |
|
100.00 |
% |
100.00 |
% |
98.10 |
% |
81.00 |
% |
Ethniki Leasing S.A. (**) |
|
Greece |
|
2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
93.33 |
% |
NBG Property Services S.A. |
|
Greece |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Pronomiouhos S.A. Genikon Apothikon Hellados (**) |
|
Greece |
|
2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBG Bancassurance S.A. (**) |
|
Greece |
|
2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
99.70 |
% |
Innovative Ventures S.A. (I-Ven)(2) |
|
Greece |
|
2005-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
Ethniki Hellenic General Insurance S.A. (**) |
|
Greece |
|
2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Audatex Hellas S.A. |
|
Greece |
|
2010-2013 |
|
70.00 |
% |
70.00 |
% |
|
|
|
|
National Insurance Brokers S.A. |
|
Greece |
|
2010 & 2012-2013 |
|
95.00 |
% |
95.00 |
% |
|
|
|
|
ASTIR Palace Vouliagmenis S.A. (**), (3) |
|
Greece |
|
2006-2010 & 2012-2013 |
|
85.35 |
% |
85.35 |
% |
85.35 |
% |
85.35 |
% |
ASTIR Marina Vouliagmenis S.A.(3) |
|
Greece |
|
2012-2013 |
|
85.35 |
% |
85.35 |
% |
|
|
|
|
Grand Hotel Summer Palace S.A. |
|
Greece |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBG Training Center S.A. |
|
Greece |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Ethnodata S.A.(**) |
|
Greece |
|
2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
KADMOS S.A. |
|
Greece |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
DIONYSOS S.A. |
|
Greece |
|
2010-2013 |
|
99.91 |
% |
99.91 |
% |
99.91 |
% |
99.91 |
% |
EKTENEPOL Construction Company S.A. |
|
Greece |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Mortgage, Touristic PROTYPOS S.A. |
|
Greece |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Hellenic Touristic Constructions S.A. |
|
Greece |
|
2010-2013 |
|
77.76 |
% |
77.76 |
% |
77.76 |
% |
77.76 |
% |
Ethniki Ktimatikis Ekmetalefsis S.A. |
|
Greece |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Ethniki Factors S.A. (**) |
|
Greece |
|
2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBG Pangaea REIC(**) |
|
Greece |
|
|
|
33.39 |
% |
34.00 |
% |
33.39 |
% |
34.00 |
% |
Karela S.A. |
|
Greece |
|
2010-2013 |
|
33.39 |
% |
34.00 |
% |
|
|
|
|
MIG Real Estate REIC(**) |
|
Greece |
|
|
|
27.65 |
% |
|
|
|
|
|
|
FB Insurance Agency Inc (2) |
|
Greece |
|
2012-2013 |
|
99.00 |
% |
99.00 |
% |
99.00 |
% |
99.00 |
% |
Probank M.F.M.C (**) |
|
Greece |
|
2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
95.00 |
% |
95.00 |
% |
Profinance S.A.(**) |
|
Greece |
|
2010 & 2012-2013 |
|
100.00 |
% |
100.00 |
% |
99.90 |
% |
99.90 |
% |
Probank Leasing S.A. (**) |
|
Greece |
|
2012-2013 |
|
84.71 |
% |
84.71 |
% |
84.52 |
% |
84.52 |
% |
NBG Insurance Brokers S.A. (**) |
|
Greece |
|
2010 & 2012-2013 |
|
99.98 |
% |
99.98 |
% |
99.90 |
% |
99.90 |
% |
Anthos Properties S.A. (**) |
|
Greece |
|
|
|
|
|
100.00 |
% |
|
|
100.00 |
% |
Finansbank A.S. (*) |
|
Turkey |
|
2010-2013 |
|
99.81 |
% |
99.81 |
% |
82.23 |
% |
82.23 |
% |
Finans Finansal Kiralama A.S. (Finans Leasing) (*) |
|
Turkey |
|
2009-2013 |
|
98.78 |
% |
98.78 |
% |
29.87 |
% |
29.87 |
% |
Finans Yatirim Menkul Degerler A.S. (Finans Invest) (*) |
|
Turkey |
|
2009-2013 |
|
99.81 |
% |
99.81 |
% |
0.20 |
% |
0.20 |
% |
Finans Portfoy Yonetimi A.S. (Finans Portfolio Management) (*) |
|
Turkey |
|
2009-2013 |
|
99.81 |
% |
99.81 |
% |
0.02 |
% |
0.01 |
% |
Finans Yatirim Ortakligi A.S. (Finans Investment Trust) (*) |
|
Turkey |
|
2009-2013 |
|
81.30 |
% |
81.26 |
% |
5.30 |
% |
5.30 |
% |
IBTech Uluslararasi Bilisim Ve Iletisim Teknolojileri A.S. (IB Tech) (*) |
|
Turkey |
|
2009-2013 |
|
99.81 |
% |
99.81 |
% |
|
|
|
|
Finans Faktoring Hizmetleri A.S. (Finans Factoring) (*) |
|
Turkey |
|
2009-2013 |
|
99.81 |
% |
99.81 |
% |
|
|
|
|
E-Finans Elektronik Ticaret Ve Bilisim Hizmetleri A.S. (E-Finance) (*) |
|
Turkey |
|
2013 |
|
50.90 |
% |
50.90 |
% |
|
|
|
|
NBG Malta Holdings Ltd |
|
Malta |
|
2006-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
NBG Bank Malta Ltd |
|
Malta |
|
2005-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
United Bulgarian Bank A.D. - Sofia (UBB) |
|
Bulgaria |
|
2010-2013 |
|
99.91 |
% |
99.91 |
% |
99.91 |
% |
99.91 |
% |
UBB Asset Management Inc. |
|
Bulgaria |
|
2004-2013 |
|
99.92 |
% |
99.92 |
% |
|
|
|
|
UBB Insurance Broker A.D. |
|
Bulgaria |
|
2007-2013 |
|
99.93 |
% |
99.93 |
% |
|
|
|
|
32
Table of Contents
Notes to the Financial Statements
Group and Bank
|
|
|
|
Tax years |
|
Group |
|
Bank |
|
Subsidiaries |
|
Country |
|
unaudited |
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UBB Factoring E.O.O.D. |
|
Bulgaria |
|
2009-2013 |
|
99.91 |
% |
99.91 |
% |
|
|
|
|
Interlease E.A.D., Sofia |
|
Bulgaria |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Interlease Auto E.A.D. |
|
Bulgaria |
|
2008-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
Hotel Perun Bansko E.O.O.D. |
|
Bulgaria |
|
2012-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
ARC Management Two EAD (Special Purpose Entity) |
|
Bulgaria |
|
2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
NBG Securities Romania S.A. |
|
Romania |
|
2008-2013 |
|
100.00 |
% |
100.00 |
% |
73.12 |
% |
73.12 |
% |
Banca Romaneasca S.A. |
|
Romania |
|
2008-2013 |
|
99.28 |
% |
99.28 |
% |
99.28 |
% |
99.28 |
% |
NBG Leasing IFN S.A. |
|
Romania |
|
2009-2013 |
|
99.33 |
% |
99.33 |
% |
6.43 |
% |
6.43 |
% |
S.C. Garanta Asigurari S.A. |
|
Romania |
|
2003-2013 |
|
94.96 |
% |
94.96 |
% |
|
|
|
|
ARC Management One SRL (Special Purpose Entity) |
|
Romania |
|
2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
Egnatia Properties S.A. |
|
Romania |
|
2009-2013 |
|
27.64 |
% |
|
|
|
|
|
|
Vojvodjanska Banka a.d. Novi Sad (1) |
|
Serbia |
|
2005-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBG Leasing d.o.o. Belgrade |
|
Serbia |
|
2004-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBG Services d.o.o. Belgrade |
|
Serbia |
|
2009-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
Stopanska Banka A.D.-Skopje |
|
F.Y.R.O.M. |
|
2004-2013 |
|
94.64 |
% |
94.64 |
% |
94.64 |
% |
94.64 |
% |
NBG Greek Fund Ltd |
|
Cyprus |
|
2007-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
National Bank of Greece (Cyprus) Ltd |
|
Cyprus |
|
2006-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
National Securities Co (Cyprus) Ltd (2) |
|
Cyprus |
|
|
|
100.00 |
% |
100.00 |
% |
|
|
|
|
NBG Management Services Ltd |
|
Cyprus |
|
2010-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
Ethniki Insurance (Cyprus) Ltd |
|
Cyprus |
|
2011-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
Ethniki General Insurance (Cyprus) Ltd |
|
Cyprus |
|
2011-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
National Insurance Agents & Consultants Ltd |
|
Cyprus |
|
2008-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
The South African Bank of Athens Ltd (S.A.B.A.) |
|
S. Africa |
|
2013 |
|
99.74 |
% |
99.74 |
% |
94.74 |
% |
94.39 |
% |
NBG Asset Management Luxemburg S.A. |
|
Luxembourg |
|
2009-2013 |
|
100.00 |
% |
100.00 |
% |
94.67 |
% |
94.67 |
% |
NBG International Ltd |
|
U.K. |
|
2004-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBGI Private Equity Ltd |
|
U.K. |
|
2004-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
NBG Finance Plc |
|
U.K. |
|
2004-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBG Finance (Dollar) Plc |
|
U.K. |
|
2008-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBG Finance (Sterling) Plc |
|
U.K. |
|
2008-2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBG Funding Ltd |
|
U.K. |
|
|
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
NBGI Private Equity Funds |
|
U.K. |
|
2004-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
Revolver APC Limited (Special Purpose Entity) |
|
U.K. |
|
2013 |
|
|
|
|
|
|
|
|
|
Revolver 2008-1 Plc (Special Purpose Entity) |
|
U.K. |
|
2013 |
|
|
|
|
|
|
|
|
|
Titlos Plc (Special Purpose Entity) |
|
U.K. |
|
|
|
|
|
|
|
|
|
|
|
Spiti Plc (Special Purpose Entity) |
|
U.K. |
|
2012-2013 |
|
|
|
|
|
|
|
|
|
Autokinito Plc (Special Purpose Entity) |
|
U.K. |
|
2012-2013 |
|
|
|
|
|
|
|
|
|
Agorazo Plc (Special Purpose Entity) |
|
U.K. |
|
2012-2013 |
|
|
|
|
|
|
|
|
|
NBGI Private Equity S.A.S. |
|
France |
|
2008-2013 |
|
100.00 |
% |
100.00 |
% |
|
|
|
|
NBG International Holdings B.V. |
|
The Netherlands |
|
2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
CPT Investments Ltd |
|
Cayman Islands |
|
|
|
|
|
100.00 |
% |
|
|
100.00 |
% |
Nash S.r.L. |
|
Italy |
|
2009-2013 |
|
33.39 |
% |
34.00 |
% |
|
|
|
|
Fondo Picasso |
|
Italy |
|
2009-2013 |
|
33.39 |
% |
|
|
|
|
|
|
Banka NBG Albania Sh.a. |
|
Albania |
|
2013 |
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
(*) % of participation includes the effect of put and call option agreements.
(**) The financial years 2011, 2012 and 2013 were audited by the external auditor. The tax audit certificates of years 2011, 2012 and 2013 that were issued were unqualified. The year 2011 is considered final for tax audit purposes and 2012 and 2013 financial years will be considered final for tax audit purposes 18 months after the issue of the tax audit certificates during which period, the tax authorities are entitled to re-examine the tax books. The unaudited tax years prior to 2011 will be audited by the tax authorities.
(1) National Bank of Greece a.d. Beograd which was merged with Vojvodjanska Banka a.d. Novi Sad has been tax audited up to 2000.
(2) Companies under liquidation.
(3) ASTIR Palace Vouliagmenis S.A. and ASTIR Marina Vouliagmenis S.A. have been reclassified to Non-current assets held for sale (see Note 9).
33
Table of Contents
Notes to the Financial Statements
Group and Bank
The Groups and Banks equity method investments are as follows:
|
|
|
|
Tax years |
|
Group |
|
Bank |
|
|
|
Country |
|
unaudited |
|
30.9.2014 |
|
31.12.2013 |
|
30.9.2014 |
|
31.12.2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Social Securities Funds Management S.A. (**) |
|
Greece |
|
2010, 2012 & 201 |
3 |
20.00 |
% |
20.00 |
% |
20.00 |
% |
20.00 |
% |
Larco S.A. (1) |
|
Greece |
|
2009-2013 |
|
33.36 |
% |
33.36 |
% |
33.36 |
% |
33.36 |
% |
Eviop Tempo S.A.(**) |
|
Greece |
|
2009-2010 & 2012-2013 |
|
21.21 |
% |
21.21 |
% |
21.21 |
% |
21.21 |
% |
Teiresias S.A. (**) |
|
Greece |
|
2010 & 2012-2013 |
|
39.93 |
% |
39.93 |
% |
39.93 |
% |
39.93 |
% |
Hellenic Spinning Mills of Pella S.A.(2) |
|
Greece |
|
|
|
20.89 |
% |
20.89 |
% |
20.89 |
% |
20.89 |
% |
Planet S.A. (**) |
|
Greece |
|
1.7.2009-30.6.2010 & 2012-2013 |
|
36.99 |
% |
36.99 |
% |
36.99 |
% |
36.99 |
% |
Pyrrichos Real Estate S.A. |
|
Greece |
|
2010-2013 |
|
21.83 |
% |
21.83 |
% |
21.83 |
% |
21.83 |
% |
Aktor Facility Management S.A. (**) |
|
Greece |
|
|
|
|
|
35.00 |
% |
|
|
35.00 |
% |
SATO S.A.(**) |
|
Greece |
|
2006-2010 & 2012-2013 |
|
23.74 |
% |
|
|
23.74 |
% |
|
|
Olganos S.A. |
|
Greece |
|
|
|
33.60 |
% |
|
|
33.60 |
% |
|
|
Ethniki Insurance and Reinsurance Brokers S.A. |
|
Greece |
|
|
|
40.00 |
% |
|
|
|
|
|
|
Bantas A.S. (Cash transfers and Security Services) |
|
Turkey |
|
2009-2013 |
|
33.27 |
% |
33.27 |
% |
|
|
|
|
Cigna Finans Pension |
|
Turkey |
|
2009-2013 |
|
48.91 |
% |
48.91 |
% |
|
|
|
|
UBB AIG Insurance Company A.D. |
|
Bulgaria |
|
2007-2013 |
|
59.97 |
% |
59.97 |
% |
|
|
|
|
UBB Alico Life Insurance Company A.D. |
|
Bulgaria |
|
2009-2013 |
|
59.97 |
% |
59.97 |
% |
|
|
|
|
Drujestvo za Kasovi Uslugi AD (Cash Service Company) |
|
Bulgaria |
|
2010-2013 |
|
19.98 |
% |
19.98 |
% |
|
|
|
|
(**) The financial years 2011, 2012 and 2013 were audited by the external auditor. The tax audit certificates of years 2011, 2012 and 2013 were issued, whereas 2011 is considered final for tax audit purposes and 2012 and 2013 financial years will be considered final for tax audit purposes 18 months after the issue of the tax audit certificates during which period, the tax authorities are entitled to re-examine the tax books. The unaudited tax years prior to 2011 will be audited by the tax authorities.
(1) From 2010, Larco S.A. has been reclassified to Non-current assets held for sale.
(2) Under liquidation.
NOTE 21: Events after the reporting period
Post balance sheet events are described in the following notes:
· Note 12: Debt securities in issue and other borrowed funds
· Note 17: Acquisitions, disposals and other capital transactions, and
· Note 18: Capital adequacy
NOTE 22: Reclassifications of financial assets
The following table presents the carrying amount by nature of security, as at 30 September 2014 of the financial instruments that were reclassified during 2008 and 2010 and are still held by the Bank and the Group:
|
|
Group |
|
Bank |
|
30 September 2014 |
|
Transferred in 2008 |
|
Transferred in 2010 |
|
Total |
|
Transferred in 2008 |
|
Transferred in 2010 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greek Government bonds |
|
|
|
905 |
|
905 |
|
|
|
905 |
|
905 |
|
Debt securities issued by Greek financial institutions |
|
24 |
|
59 |
|
83 |
|
4 |
|
2 |
|
6 |
|
Debt securities issued by foreign financial institutions |
|
12 |
|
|
|
12 |
|
2 |
|
|
|
2 |
|
Debt securities issued by foreign corporate entities |
|
6 |
|
|
|
6 |
|
|
|
|
|
|
|
Equity securities |
|
14 |
|
|
|
14 |
|
8 |
|
|
|
8 |
|
Mutual funds |
|
3 |
|
|
|
3 |
|
|
|
|
|
|
|
Total |
|
59 |
|
964 |
|
1,023 |
|
14 |
|
907 |
|
921 |
|
The information presented below refers to reclassifications of financial instruments:
34
Table of Contents
Notes to the Financial Statements
Group and Bank
Group
In 2013, the Group reclassified certain bonds of a carrying amount 617 million from available-for-sale into held to maturity as it now intends to hold these bonds until maturity.
In 2010, the Group reclassified certain available-for-sale and trading securities as loans-and-receivables, and certain trading securities to the available-for-sale and held-to-maturity categories. On 30 September 2014, the carrying amount of the securities reclassified in 2010 and still held by the Group, is 964 million. The market value of these securities is 354 million. During the period ended 30 September 2014, 12 million of interest income were recognised. Had these securities not been reclassified, the available-for-sale securities reserve, net of tax, would have been higher by 40 million.
In 2008, the Group reclassified certain available-for-sale and trading securities as loans-and-receivables, and certain trading securities to the available-for-sale and held-to-maturity categories. On 30 September 2014, the carrying amount of the securities reclassified in 2008, which are still held by the Group and have not been reclassified again subsequently, is 59 million. The market value of these securities is 56 million. During the period ended 30 September 2014, 1 million of interest income were recognised. Had these securities not been reclassified, net trading income and results from investments securities for the period ended 30 September 2014 would have been higher by 6 million (4 million net of tax) and the available-for-sale securities reserve would have been higher by 2 million (1 million net of tax).
Bank
In 2010, the Bank reclassified certain available-for-sale and trading securities as loans-and-receivables, and certain trading securities to the available-for-sale and held-to-maturity categories. On 30 September 2014, the carrying amount of the securities reclassified in 2010 and still held by the Group, is 907 million. The market value of these securities is 302 million. During the period ended 30 September 2014, 10 million of interest income were recognised. Had these securities not been reclassified the available-for-sale securities reserve would have been higher by 36 million.
In 2008, the Bank reclassified certain trading securities as loans-and-receivables or available-for-sale. On 30 September 2014, the carrying amount of the securities reclassified in 2008, which are still held by the Bank and have not been reclassified again subsequently, is 14 million. The market value of these securities is 13 million. Had these securities not been reclassified, net trading income and results from investments securities for the period ended 30 September 2014 would have been higher by 1 million.
35
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
National Bank of Greece S.A. |
|
|
|
/s/ Nikolaos Voutychtis |
|
|
|
(Registrant) |
|
|
Date: November 28th, 2014 |
|
|
|
|
Assistant General Manager Group Finance |
|
|
|
/s/ George Angelides |
|
|
|
(Registrant) |
|
|
Date: November 28th, 2014 |
|
|
|
|
Director, Financial Division |
36