Earnings release
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CONDENSED INTERIM FINANCIAL INFORMATION FOR THE PERIOD ENDED 30 SEPTEMBER 2024 In accordance with International Accounting Standard 34 (as adopted by the E.U.)
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The Condensed Interim Financial Information for the nine-month period of 2024, as well as the accompanying notes, were approved by the Board of Directors at the meeting held on 12th December 2024 and have been posted on the Bank’s website. Athens, 12 December 2024 THE CHAIRMAN OF THE BOARD OF DIRECTORS THE CHIEF EXECUTIVE OFFICER THE C.F.O. THE DIRECTOR OF FINANCIAL MANAGEMENT IOANNIS G. ZOGRAFAKIS ELENI CH. VRETTOU VASILIKI CH. SKOUBAS EVAGGELOS G. RIZOS ID A00411193 ID No. AB 515487 ID No. ΑΕ 105203 ID No. Ξ 989060
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TABLE OF CONTENTS OF CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION Note Page Interim consolidated income statement ..................................................................................................................................... 4 Interim consolidated statement of comprehensive income ...................................................................................................... 5 Interim statement of financial position ...................................................................................................................................... 6 Interim consolidated statement of changes in equity ................................................................................................................ 7 Interim statement of cash flows .................................................................................................................................................. 9 1. General Information .............................................................................................................................................................. 10 2. Basis of Preparation ............................................................................................................................................................... 11 (2.1) Statement of preparation ......................................................................................................................................................... 11 (2.2) Going concern .......................................................................................................................................................................... 11 (2.3) Accounting policies applicable from 1.1.2024 ........................................................................................................................ 15 (2.4) Accounting Estimates .............................................................................................................................................................. 17 3. Principal accounting policies ................................................................................................................................................ 19 4. Fair value of financial instruments ...................................................................................................................................... 20 5. Capital adequacy .................................................................................................................................................................... 22 6. Operating segments ............................................................................................................................................................... 24 7. Net interest income ............................................................................................................................................................... 25 8. Net commission income ........................................................................................................................................................ 25 9. Operating expenses ............................................................................................................................................................... 26 10. Profit / (loss) from investment portfolio ............................................................................................................................ 27 11. Taxes ..................................................................................................................................................................................... 27 12. Earnings / (Losses) per share – basic and diluted ............................................................................................................. 32 13. Investment securities ........................................................................................................................................................... 34 14. Loans and advances to customers at amortized cost ......................................................................................................... 36 15. Investments in subsidiaries ................................................................................................................................................ 40 16. Investment in associates and joint ventures ...................................................................................................................... 40 17. Intangible assets ................................................................................................................................................................... 41 18. Tangible assets ..................................................................................................................................................................... 41 19. Assets held for sale ............................................................................................................................................................... 41 20. Due to financial institutions ............................................................................................................................................... 42 21. Due to customers ................................................................................................................................................................. 43 22. Debt securities in issue ........................................................................................................................................................ 43 23. Equity ................................................................................................................................................................................... 45 24. Related party transactions .................................................................................................................................................. 47 25. Contingent liabilities and commitments ............................................................................................................................48 25.1 Off balance sheet liabilities and pledged assets ...................................................................................................................... 48 25.2 Tax obligations ........................................................................................................................................................................ 48 25.3 Legal cases ............................................................................................................................................................................... 48 25.4 Other provisions ...................................................................................................................................................................... 48 26.Merger through absorption of Pancreta Bank by Attica Bank and acquisition costs allocation ....................................... 49 27. Reclassification of items ...................................................................................................................................................... 51 28. Events after 30 September 2024 ........................................................................................................................................ 52
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Condensed Interim Financial Information for the period ended on 30th September 2024 The attached Notes (pages 10 to 54) form an integral part of the Condensed Interim Financial Information of 30 September 2024 4 Interim consolidated income statement Group From January 1st to From July 1st to (Amounts in thousand €) Note 30.9.2024 30.9.2023 30.9.2024 30.9.2023 Interest and similar income 121,700 82,528 47,606 32,322 Less: Interest expense and similar expenses (57,052) (30,753) (22,898) (12,654) Net interest income 7 64,648 51,775 24,708 19,668 Fee and commission income 18,638 12,262 7,817 4,791 Less: Fee and commission expense (6,677) (6,327) (3,178) (2,252) Net fee and commission income 8 11,961 5,935 4,639 2,539 Profit / (loss) from financial transactions 10 2,238 2,694 530 826 Profit / (loss) from investment portfolio 10 4,980 3,936 3,168 2,916 Other income / (expenses) 7,997 9,741 778 7,076 Operating income 91,823 74,081 33,822 33,025 Personnel expenses 9 (29,465) (22,851) (12,312) (7,471) General operating expenses 9 (17,669) (20,745) (6,904) (6,429) Depreciation expense 9 (13,228) (11,791) (5,042) (4,070) Total operating expenses (60,362) (55,387) (24,258) (17,971) Profit / (Loss) before tax and provisions 31,460 18,693 9,564 15,054 Provisions for expected credit losses and other impairment 14 (404,728) 2,962 (388,955) (388) Staff leaving expense 9 (535) (4,703) (81) (1,545) Other costs associated with the merger 9 (9,700) 0 (9,700) (1) Results from investments in associates (380) 16 (381) 0 Profit / (loss) before income tax (383,882) 16,968 (389,554) 13,121 Less: income tax 11 40,549 (1,815) 41,060 (3) Profit / (loss) for the period (343,333) 15,154 (348,494) 13,118 Attributable to: Equity owners of the Bank (343,333) 15,154 (348,494) 13,119 Basic earnings / (losses) per share (in €) 12 (8.0838) 0.3568 (10.2503) 0.3859 Diluted earnings / (losses) per share (in €) 12 (8.0822) 0.3568 (9.9550) 0.3859
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Condensed Interim Financial Information for the period ended on 30th September 2024 The attached Notes (pages 10 to 54) form an integral part of the Condensed Interim Financial Information of 30 September 2024 5 Interim consolidated statement of comprehensive income Group From January 1st to From July 1st to (Amounts in thousand €) 30.9.2024 30.9.2023 30.9.2024 30.9.2023 Profit / (loss) for the period after income tax recognized in the Income Statement (343,333) 15,154 (348,494) 13,118 Amounts that may be reclassified in the income statement Financial assets at Fair Value through Other Comprehensive Income (FVOCI) Change in fair value (before tax) (1,617) (335) (1,610) (5,102) Transfer to Income Statement (before Tax) 0 547 0 565 Income Tax 469 (62) 467 1,315 Amounts that will not be reclassified in the Income Statement Actuarial gains / (losses) on defined benefit obligations 70 85 1 0 Income Tax (25) (25) (5) 0 Total other comprehensive income / (expenses) recognized directly in equity, after income tax (1,102) 211 (1,146) (3,221) Total comprehensive income / (expenses), after income tax (344,435) 15,365 (349,640) 9,898 Attributable to: Equity owners of the Bank (344,435) 15,365 (349,640) 9,899
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Condensed Interim Financial Information for the period ended on 30th September 2024 The attached Notes (pages 10 to 54) form an integral part of the Condensed Interim Financial Information of 30 September 2024 6 Interim statement of financial position (Amounts in thousand €) Group Assets Note 30.9.2024 31.12.2023 Cash and balances with Central Bank 221,093 409,423 Due from other financial institutions 65,402 53,430 Derivative financial instruments - assets 47 65 Loans and advances to customers (net of impairment) 14 3,041,686 2,267,892 Investment securities 13 1,025,487 634,404 Investments in associates 16 2,157 2,531 Tangible assets 18 89,763 34,056 Investment property 81,023 34,429 Auction assets 21,300 0 Intangible assets 17 246,615 59,441 Deferred tax assets 11 272,799 146,746 Assets held for sale 19 1,147,301 11,482 Other assets 135,169 120,486 Total Assets 6,349,841 3,774,384 Liabilities Due to financial institutions 20 191,735 8,637 Due to customers 21 5,730,530 3,146,184 Derivative financial instruments - liabilities 635 281 Debt securities in issue 22 147,977 99,938 Defined benefit obligations 7,617 5,100 Other provisions 24,519 18,653 Other liabilities 129,230 49,151 Total Liabilities 6,232,243 3,327,946 Equity Share capital (common shares) 23 2,653 2,501 Share Premium 23 896,112 687,652 Reserves 23 1,200,467 884,390 Retained earnings 23 (1,981,634) (1,128,105) Equity attributable to equity owners of the Bank 117,598 446,438 Total Equity 117,598 446,438 Total Liabilities and Equity 6,349,841 3,774,384
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Condensed Interim Financial Information for the period ended on 30th September 2024 The attached Notes (pages 10 to 54) form an integral part of the Condensed Interim Financial Information of 30 September 2024 7 Interim consolidated statement of changes in equity Group (Amounts in thousand €) Share capital (common shares) Share premium Other reserves Reserves Retained earnings Total equity Balance 1.1.2023 499 152,363 (7,028) 884,539 (1,084,962) (54,590) Results for the period 0 0 0 0 15,154 15,154 Other comprehensive income 0 0 0 0 0 Financial assets measured at fair value through other comprehensive income (FVOCI): Change in fair value 0 0 (335) 0 0 (335) Financial assets measured at fair value through other comprehensive income (FVOCI): net amount transferred to profit or loss 0 0 547 0 0 547 Actuarial gains / (losses) on defined benefit obligations 0 0 85 0 0 85 Income Tax 0 0 (86) 0 0 (86) Total comprehensive income/(expense), after income tax 0 0 211 0 15,154 15,365 Share capital increase issuing common shares 1,753 1,753 Share premium 0 471,594 0 0 0 471,594 Share capital increase expenses 0 0 0 0 (6,532) (6,532) Formation of special reserves of Article 27Α L.4172/2013 0 0 0 63,945 (63,945) 0 Warrants redemption options 0 0 0 (22) 0 (22) Other changes in equity 1,753 471,594 0 63,922 (70,476) 466,793 Balance 30.9.2023 2,252 623,956 (6,817) 948,461 (1,140,285) 427,568 Movements up to 31.12.2023 249 63,695 6,668 (63,922) 12,180 18,870 Balance 31.12.2023 2,501 687,652 (149) 884,539 (1,128,105) 446,438
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Condensed Interim Financial Information for the period ended on 30th September 2024 The attached Notes (pages 10 to 54) form an integral part of the Condensed Interim Financial Information of 30 September 2024 8 Group (Amounts in thousand €) Share capital (common shares) Share premium Other reserves Reserves Retained earnings Total equity Balance 1.1.2024 2,501 687,652 (149) 884,539 (1,128,105) 446,438 Results for the period (343,333) (343,333) Other comprehensive income Financial assets measured at fair value through other comprehensive income (FVOCI): Change in fair value 0.00 0.00 (1,617) 0.00 0.00 (1,617) Actuarial gains / (losses) on defined benefit obligations 0.00 0.00 70 0.00 0.00 70 Income Tax 0.00 0.00 444 0.00 0.00 444 Total comprehensive income/(expense), after income tax 0 0 (1,102) 0 (343,333) (344,435) Equity incorporation of Pancreta Bank 95,105 208,460 72,759 0.00 (181,360) 194,965 Return of share capital increase tax 2021 0.00 0.00 0.00 0.00 384 384 Formation of special reserves of Article 4548/2018 0.00 0.00 0.00 94,953 0.00 94,953 Merger of Pancreta Bank 0.00 0.00 173,376 0.00 (329,219) (155,843) Share capital decrease for statutory reserves (94,828) 0.00 0.00 0.00 0.00 (94,828) Write-off of shares in the context of the merger of Pancreta Bank (125) 0.00 (33,676) 0.00 0.00 (33,801) Income tax 0.00 0.00 9,766 0.00 0.00 9,766 Other changes in equity 153 208,460 222,225 94,953 (510,196) 15,596 Balance 30.9.2024 2,653 896,112 220,975 979,492 (1,981,634) 117,598
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Condensed Interim Financial Information for the period ended on 30th September 2024 The attached Notes (pages 10 to 54) form an integral part of the Condensed Interim Financial Information of 30 September 2024 9 Interim statement of cash flows Group From January 1st to (Amounts in thousand €) 30.9.2024 30.9.2023 Cash flows from operating activities Interest and similar income received 111,880 78,539 Interest expense paid (48,179) (25,557) Dividends received 135 63 Commission received 18,562 12,316 Commission paid (6,677) (6,327) Profit from financial transactions 2,727 775 Other income 3,467 2,825 Cash payments to employees and suppliers (55,409) (46,864) Cash flows from operating activities before changes in operating assets and liabilities 26,505 15,770 Changes in operating assets and liabilities Net (increase) / decrease in financial assets measured at fair value through profit or loss (FVPL) 128,517 (63,448) Net (increase) / decrease in loans and advances to customers (516,319) (69,286) Net (increase) / decrease in other assets 9,553 (20,761) Net increase / (decrease) in amounts due to financial institutions 39,363 (18,635) Net increase / (decrease) in amounts due to customers and similar liabilities (43,920) 25,875 Net increase / (decrease) in other liabilities 13,160 725 Total changes in operating assets and liabilities of the statement of financial position (369,646) (145,531) Total changes in operating assets and liabilities of the statement of financial position (343,141) (129,761) Cash flows from investing activities Purchases of intangible assets (12,100) (8,157) Purchases of tangible assets (3,153) (77) Purchase of financial assets measured at fair value through other comprehensive income (FVOCI) (942,116) (297,134) Sales / redemptions of financial assets measured at fair value through other comprehensive income (FVOCI) 931,353 30,349 Purchase of financial assets measured at amortized cost (9,781) (73,194) Maturity of financial assets measured at amortized cost 4,000 5,936 Merger by absorption of Pancreta Bank, except cash and cash equivalents 201,508 0 Investments in associates (26) 0 Net cash flow from investing activities 169,685 (342,277) Cash flows from financing activities Exercise of warrants under Article 27A N.4172 / 2013 0 (22) Share Capital Increase (0) 473,347 Rent paid on the basis of IFRS 16 (3,286) (2,932) Return of the 2021 capital increase tax 384 (6,532) Taxes received 0 63,945 Net cash flow from financing activities (2,902) 527,805 Net increase / (decrease) in cash and cash equivalents (176,358) 55,767 Cash and cash equivalents at the beginning of the period 462,853 343,552 Cash and cash equivalents at the end of the period 286,495 399,320
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 10 1. General Information Attica Bank S.A. Group, (“the Group”), operates mainly in the financial sector, providing a wide range of financial and banking services to individuals and companies. Apart from the parent company, Attica Bank Group includes three (3) subsidiarie s and two (2) associated companies, which operate in Greece a nd employ 1484 persons as at 30.9. 2024. The num ber of the Bank’s branches as at 30.9.2024 is 86. Attica Bank S.A, (the “Bank”) is the parent company of the Group . “Attica Bank S.A.” is a Societé Anonyme with General Commercial Number 255501000 ( former Registration Number (ARMAE) 6067/06/Β/86/06). The Bank is listed on the Athens Stock Exchange. The address of the Bank's registered office is 3-5 Palaion Patron Germanou, Postal Code 105 61, Athens. The Condensed Interim Financial Statements (the “financial statements”) were approved for issue by the Board of Directors on 12th December 2024. As at the financial statements 30.9.2024 approval date, the Board of Directors’ composition was as follows: Ioannis G. Zografakis Chairman of the Board of Directors, Non-Executive Member Avraam (Minos) E. Moissis*/**/*** Vice-Chairman of the Board of Directors, Non-Executive Member, Representative of Hellenic Financial Stability Fund Eleni C. Vrettou Chief Executive Officer, Executive Member Vasiliki Ch. Skoubas Executive Member Antonios M. Vartholomeos Executive Director, Executive Member Efthymios P. Kyriakopoulos */**/*** Independent Non-Executive Member Maria Ioanna G. Politopoulou **/*** Non-Executive Member Aimilios P. Yiannopoulos */**/*** Independent Non-Executive Member Charikleia N. Vardakari **/*** Independent Non-Executive Member Christos Α. Alexakis Non-Executive Member Despina Ι. Doxaki Non-Executive Member Theodoros S. Karakasis Non-Executive Member Konstantinos – Vasileios G. Adamopoulos * Non-Executive Member * Member of the Audit Committee ** Member of Corporate Governance, Nominations, Human Resources and Remuneration Committee *** Member of the Risk Management Committee The Board of Directors at its meeting of 2 February 2023 accepted the resignations of Mrs. Irini Maragkoudaki, Mr. Markos Koutis and Mr. Patrick Horend. Moreover, on 8 February 2023, the BoD approved the election of Mrs. Vasiliki Skoubas as the new executi ve member in place of a resigned executive m ember Mrs. Irini Maragkoudaki. On 7.6.2023, the Board of Directors accepted the el ection of two new members - Riccardo Lampiris and Marianna Politopoulou, in replacement of the resigned non -executive members, Messrs Mar kos Koutis and Patrick Horend. On 6.7.2023, the meeting of the Board of Directors formed the new Board of Directors of the Bank, as elected by the Regular General Meeting of shareholders held on 6.7.2023 composed as aforementioned. On 20.10.2023, Attica Bank S.A. announced that the independent non -executive member of the BoD, Mr. Michael Kefalogiannis, submitted on 10/10/2023 his resignation letter as a member of the Board of Directors of Attica Bank. The Board of Directors of Attica Bank at its meeting held on the same day elected as its new executive member Ms. Vasiliki (Valerie) Skoubas, father’s name - Christos. It is noted that the aforementioned election meets: i) the provisions of article 5 of Law 4706/2020, regarding the required numbe r of independent members of the BoD, as their number amounts to at least 1/3 of the number of members of the Board of Directors, and ii) the provisions of article 3 par.1.b of Law 4706/2020 regarding adequate representation by gender in the Bank's BoD. Due to the reduction in the number of independent non-executive members and in accordance with Article 9 par. 4 of Law 4706/2020, the number of independent non-executive members of the Board of Directors will be determined by the next General Meeting of the Bank.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 11 Finally, on 04.09.2024, the Board of Directors of Attica Bank accepted the resignation of Mr. Riccardo Lampiris and reconstituted the Corporate Governance, Nominations, Human Resources and Remuneration Committee. Furthermore, a new member, Mr. Antonios Vartholomeos, has been elected and assigned special executive responsibilities as Executive Advisor for the supervision and diligence of the activities of the former Pancretan Bank. The tenor of the aforementioned Board of Directors is that of three y ears, as approved by the 6.7. 2023 resolutions of the Annual General Meeting of the Shareholders until 5.7.2026. The Bank’s share is included in the following indices of the Athens Stock Exchange: Athex All Share Index (DOM). 2. Basis of Preparation (2.1) Statement of preparation The Condensed Interim Financial Information for the third quarter of 2024 has been prepared in accordance with International Accounting Standard 34 “Interim Financial Information” as adopted by the E.U. and should be reviewed in conjunction with the published annual financial statements for the year ended 31 December 2023. The accounting policies, as amended and effective from 1.1.2024 are presented in note 2.3. The amounts included in this Condensed Interim Financial Information are expressed in thousand euro s, unless otherwise mentioned in the respective notes. Comparative figures are adjusted, where necessary, to match the changes in the current period presentation. It should be noted that the items in the interim consolidated statement of financial position and the interim consolidated income statement as of 30.9 .2024 are not comparable with the corresponding items in the comparative period. This is due to the fact that the Bank was merged with Pancreta Bank on September 4, 2024 through full absorption. In particular, with regard to the results for the nine months e nded 2024, the aforementioned merger had a significant impact on net interest income, net commissions, staff remuneration and expenses, general administrative expenses, provisions and taxes. Basis of preparation of Condensed Interim Financial Information (2.2) Going concern The Group has prepared the semiannual financial statements of 30.9 .2024 according to the going concern principle. For the application of this principle, the Management took into account the recent developments in the economic environment and has assessed all the risks arising from the quality of the assets. Moreover, the management makes estimates in order to form projections, in the foreseeable future and for 12 months from the approval date of the financial statements for trends and the economic environment in which the Group operates. In this context, the Management reviewe d the following areas deemed significant to assess the going concern principle. Macroeconomic Environment According to provisional and recent data from ELSTAT, the growth rate of the Greek economy (in volume terms) in the second quarter of 2024 was 2.3% compared to the second quarter of 2023. A slight acceleration in the growth rate was recorded in the second quarter (+1.1% compared to the first quarter of 2024). The GDP growth rate continues to exceed the average growth rate of the euro area (+0.4%). The stabilization of inflationary pressures and volatility in international mo ney markets is encouraging, as inflation increased by 3.1% in October 2024 compared to 3.8% in October 2023. At a monthly level, there is a marginal increase of 0.1%. The Bank of Greece noted that headline inflation is expected to decelerate further to 2.8% in 2024, as all individual data point to decelerating trends, despite the uncertainties created by geopolitical developments. The Bank's management is closely monitoring current market, inflation and interest rate developments, as well as the evolution of the geopolitical crisis in Eastern Europe and the Middle East and its impact on the change in GDP for 2024. As mentioned in th e following paragraphs, the Bank's assets and liabilities are not directly or indirectly exposed to countries where military action is taking place.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 12 On the labour market, the seasonally adjusted unemployment rate was 9.3% in September 2024, compared with 10.7% in September 2023. The number of employed persons increased by 0.1% in September 2024 compared to August, while an increase was observed compared to September 2023 (+1.6%). In 2024, the central government proceeded with 12 bond issues and reissues. After S&P, Fitch, Moody's and DBRS (with the most significant upgrade by DBRS to investment grade) upgraded the credit rating of the Greek economy in 2023, in March 2024 DBRS maint ained its rating at BBB (low) with stable outlook, while one week later Moody's also maintained its rating at Ba1 with stable outlook, one notch below investment grade. In September and October, the agencies maintained their ratings at the same levels. The positive development of the Greek economy depends on the use of European funds to implement investments and strengthen entrepreneurship. Through the National Recovery and Resilience Plan "Greece 2.0", Greece will benefit from a total of €36 billion, fo llowing the positive assessment of the proposal for the revision of the "Greece 2.0" programme by the European Commission in November 2023. Of the total €36 billion, around €18 billion will be in the form of grants from the Recovery and Resilience Fund (RDF) and €18 billion in the form of loans from the Recovery Fund. The package of 4 investments and 7 reforms worth €795 million proposed by G reece under REpowerEU was considered by the European Commission to be fully in line with the objective of affordable, secure and sustainable energy for Europe. In particular, energy efficiency programmes for households, businesses and the public sector, as well as storage systems for renewab le energy, will be financially supported. Leading economic indicators (PMI, business sentiment and confidence, retail sales, etc.) show signs of steady but increasing growth in 2024, with an early estimate by the Bank of Greece for a growth rate of 2.3%. Given the strong base in 2023 and the posit ive signs in the leading indicators mentioned above, there is a high probability that the economy will once again outperform the euro area this year. The main risks for the Greek economy in the period ahead are related to the following factors: 1) The potential future inflationary pressure on the economy, negatively affecting both households and businesses (disposable income and profit margin respectively), 2) The impact of the restrictive policies (fiscal and monetary) recently implemented and expected to continue in the near future, 3) Potential turbulence in the international money and capital markets similar to that caused by the collapse of the banks in America and E urope within 2023; 4) General risks related to climate change, both domestically and globally, damaging infrastructure and components of the primary and secondary production sectors; 5) Developments in the war turmoil in Eastern Europe and the Gaza Strip a nd the possible repercussions in terms of geopolitical stability and the resulting energy crisis. The Group has fully complied with the instructions, guidelines and measures issued by the European Commission and other competent authorities regarding sanctions against the Russian Government. Additionally, the Group has reviewed its direct and indirect exposure to Russia, Belarus, Ukraine and Middle Eastern countries involved in the Gaza conflict and no exposure has been identified. Liquidity In assessing and mitigating the risk of concentration in its deposit base, the Group seeks to diversify its deposit mix, as the concentrati on of funding sources in a sp ecific market or in a few large liquidity providers is a significant risk. Events such as the collapse of markets, exclusion from markets or the withdrawal of large amounts of deposits could cause the Group to experience significant liquidity problems and an increase in funding costs if the sources of liquidity raised are not sufficiently diversified. In this context, the Group seeks to increase and secure its liquidity mainly by expanding its presence in the interbank market and by utilising other diversified sources of liquidity (e.g. issuance of AT1 and/or TIER II bonds, use of derivative products, etc.) The legal merger with Pancreta Bank, completed in early September 2024, was a significant contributing factor in achieving this objective. It should be noted that the Group expects to make minimal use of external funding sources from the ECB in the near future. In particular, it is not expected that the Group will make direct use of the ECB's liquidity borrowing facility, as the Group was not one of the eligible financial institutions to obtain liquidity from the ECB, as till the reporting date, while the capi tal adequacy ratios as at 30.9. 2024 were below the required regulatory thresholds. In order to cover its funding needs, the Bank will rely mainly on its deposits, while in the medium to long term the situation is expected to change given the successful implementation of the Group's business plan and the Capital Restoration Plan, where capital adequacy ratios will be restored above the required regulatory thresholds. In this context, the Group is in the process of applying for an eligibility assessment by the ECB to be able to use its funding programs, as it has a sufficient stock of high quality assets that are eligible by the ECB.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 13 Following the completion of the legal merger (September 2024) and the share capital increase (November 2024), the Group's liquidity has been significantly enhanced, improving its direct liquidity and further expanding its funding lines in the interbank market. As at 30.9.2024, deposit balances increased significantly as a result of the merger, reaching Euro 5.7 billion. The regulatory liquidity ratios LCR and NSFR for the Group at the same date remain above the regulatory minimums (172% and 137% respectively). At the same time, the Bank evaluates potential adverse liquidity scenarios as part of internal and regulatory exercises. The results of the liquidity stress simulation exercises showed that the Bank has sufficient liquidity buffers to cope with potential outflows that could occur in the short and medium term. Capital Adequacy On the basis of the SREP conducted on an annual basis by the Bank of Greece, as of 5 July 2024 the overall capital requirements (“OCR”) that the Issuer needs to maintain on an ongoing basis are defined by the following indicators: • CET1 ratio: 8.70% • Tier 1 ratio: 10.77% and • CAD Ratio: 13.52%. It is noted that the above capital requirements incorporate: (a) the minimum capital requirements of Pillar I of Basel as defined by article 92(1) of EU Regulation 575/2013 of a total of 8% (b) the additional supervisory capital requirements of Pillar II of Basel (“P2R), as defined by article 16(2) of EU Regulation 1024/2013 of a total of 3.02% and (c) a capital buffer (“CCB”) of 2.5% in accordance with article 122 of Law 4261/2014 In this context, the capital adequacy ratios as at the reporting date were below the minimum regulatory requirements in accordance with the provisions of Article 92 of the CRR, mainly due to the increase in credit risk provisions resulting from the inclusi on of NPE portfolios in the HAPS III State Guarantee Program me by Euro 815 million, in combination with the fact that, as at the reporting date, the scheduled share capital increase had not yet been completed. More specifically, the Group's capital adequacy ratios were -8.8% and -8.5% for the CET1 and Tier I ratios and -6.3% for the total capital adequacy ratio. It should be noted that: ▪ the result is attributable to the timing of the actions to clear the Bank's balance sheet of non -performing exposures (NPE) through the state guarantee scheme for the securitisations of credit institutions, "HAPS III". The loss from the two NPE securitisation transactions under the aforementioned programme, Domus and Rhodium, including the estimated transaction costs, was recorded in the 9M results. Subsequently, the share capital increase (SCI) was concluded in t he current quarter. Additionally, the impairment of weighted assets through significant risk transfer (SRT) from the two transactions is also expected to be completed in the current quarter. To ensure the prompt restoration of the superv isory ratios above the required thresholds, the Bank has undertaken the following measures: ▪ The share capital increase of €735 million was completed on 29.11.2024. ▪ A request has been submitted to the Bank of Greece for the early repayment of the TIER 2 subordinated bond, amounting to €100 million, ▪ A notification has been submitted to the Bank of Greece for the conversion of the AT1 bonds issued by PANCRETA into shares of Attica Bank S.A. amounting to € 15 million. As a result, at the reporting date of 30.9. 2024, and in light of the aforementioned actions, the Group's capital ratios, on a pro forma basis, stand at 13.1% for the CET1 and Tier I ratios and 13.7% for the total TCR ratio, exceeding the minimum required limits, which was the Bank's primary objective.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 14 At the same time, the Bank has carried out an internal exercise including a possible adverse scenario of non - achievement of the estimated operating income and expenses under the Business and Capital Plan for the period up to and including 2027, which cover s the period required for going concern purposes (at least one year from the date of approval of the financial statements). The assumptions are based on the non - achievement of the targets reflected in the Business and Capital Plan and negatively affect figures such as the Group's loan growth, the Group's credit risk, operating income, funding costs and total expenses. After incorporating the adverse scenario, the Bank's capital ratios remain we ll above the regulatory minimum thresholds for the period. Business Plan On 18.7.2024, the Bank was informed in writing by the Hellenic Financial Stability Fund ("HFSF") and Thrivest Holding Ltd ("Thrivest" and jointly the "Shareholders") that a binding agreement ("Shareholders' Agreement") was signed among them regarding the corporate transformation of the Bank (merger through absorption of Pancreta Bank from Attica Bank), " the Merger"). Furthermore, the Share holders have committed to a further investment in the share capital of the credit institution that will arise after the Merger and subject to its completion ("Investment"). The investment in the new credit institution will be implemented in accordance with the specific terms and conditions set out in the Shareholders' Agreement. It will support the implementation of the new bank's business plan and will cover the additional c apital needs arising from the inclusion of non -performing loan portfolios from the two banks in the HAPS III State Guarantee Programme. On 4.9.2024, pursuant to the decision of the Ministry of Development No. 3355626 AP/04.09.2024, the merger with absorption of Pancreta Bank by Attica Bank was completed, in accordance with the provisions of Article 16 of Law No. 2515/1997, the applicable provisions of Law 4601/2019 and the provisions of Law 4548/2018, as well as the provisions of Law 5127/2024, as applicable. The Merger was approved by the resolutions of the General Meetings of Attica Bank and Pancreta Bank. On 6.11. 2024, the share capital increase with cash payment and preemptive rights in favour of existing shareholders was successfully completed, as well as the offering of warrants decided by the Extraordinary General Meeting of the Bank's shareholders on 25.09. 2024, covering the total of 359,469,360 new common registered voting shares of nominal value of €0.05 each and the disposal of all 359,469,360 Warrants. The funds to be raised from the Share Capital Increase stood at total amount of € 672,207,703.20. In particular, 86.94% of the Share Capital Increase was covered by existing shareholders who exercised their subscription rights by paying a total amount of € 584,412,295.28, corresponding to 312,519,944 New Shares. After the exercise of the pre -emption rights, 46,949,416 New Shares and an equal number of Warrants remained unallocated. The unallocated New Shares and the unallocated Warrants were allocated by the Board of Directors of the Bank pursuant to its decision of 05.11.2024, taking into account the provisions of Law 5127/2024, as follows: (a) 5,866,829 New Shares were allocated to the HFSF, (b) 34,665,475 New Shares were allocated to T hrivest, and (c) the remaining 6,417,112 unallocated New Shares were allocated to investment funds managed by Fiera Capital (UK) Limited. Correspondingly, together with unallocated New Shares, an equal number of Warrants were allocated to the above mentioned. Following the above, the final coverage percentage of the Share Capital Increase is 10 0% and the amount of funds raised is € 672,207,703.20. In addition, the entire amount of the Warrants was allocated. On 28.11.2024 the deadline for the exercise of 359,469,360 warrants issued pursuant to the decision of the Extraordinary General Meeting of the Bank's shareholders of 25 September 2024 and the decision of the Board of Directors of the Bank of 8 November 2024 expired. Following the above, the Bank's share capital was increased by € 62,899,767.70 and the Bank raised an equal amount through the exercise of the Warrants. At the same time, in the context of the Bank's non-performing loans reduction strategy and the Shareholders' Agreement signed between the shareholders on 18.7. 2024 and ratified by Law 5127 /2024, on 12.11. 2024, Attica Bank signed a definitive agreement with a legal entity advised by Davidson Kempner Capital Management LP on disposal of 95% of intermediate and low priority bonds of two securitizations secured by two portfolios of non-performing exposures ("NPEs") of a total gross book value of approximately € 3.6 billion. Attica Bank will retain 100% of the senior note , utilising the provisions of the H APS III, and 5% of the mezzanine and junior notes. The total income for Attica Bank reflects the senior bonds and the premium for the mezzanine and the junior notes , representing approximately 35% of the total gross book value of the Domus and Rhodium portfolios. Following the completion of the transaction, Attica Bank is expected to have an NPE ratio below 3%. The transaction is expected to be completed in Q4 2024, subject to necessary approvals.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 15 Synopsis: Based on the above and in particular, taking into account: ▪ the approval of the merger of the two credit institutions, in the context of the implementation of the Shareholders' Agreement, as approved by the Greek Parliament and the competent supervisory authorities, ▪ the completion of the share capital increase of € 735 million under the investment agreement signed between the shareholders on 18.7.2024 and ratified by Law 5127/2024, ▪ the initiation of the securitisation process of NPL portfolios, aiming at a drastic reduction of NPLs and improving both the regulatory ratios and the asset quality of the new Bank through the de-identification of the NPL portfolio. It is noted that the unified financial institution is expected to have an NPE ratio below 3% and the capital adequacy ratios of the new Bank after the capital increase will be above the minimum regulatory thresholds, based also on the agreement with Davidson Kempner for the disposal of two NPL portfolios (Domus and Rhodium), of a total gross book value of approximately € 3,6 billion. ▪ achieving recurring operating profitability before provisions in the first three quarters of 2024 ▪ the Bank's remarkable credit expansion standing at € 795 million with a focus on financing for SMEs and freelancers as well as retail banking customers, The Board of Directors of the Bank estimates that, at least for the next 12 months from the date of approval of the financial statements and in the context of the merger, the conditions for the application of the going concern principle for the preparation of the financial statements are met. (2.3) Accounting policies applicable from 1.1.2024 The accounting policies applied by the Group for the preparation of the condensed interim financial statements are in accordance with those presented in the published annual financial statements for the year ended 31.12.2023, taking into consideration the amendments of the standards and new interpretations as issued by the International Accounting Standards Board (IASB) and adopted by the European Union and applied from 1.1.2024: Amendments to IFRS 16 “Leases: Lease Liability in a Sale and Leaseback” (effective for annual periods starting on or after 01.01.2024) In September 2022, the IASB issued narrow -scope amendments to IFRS 16 “Leases” which add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction. A sale and leaseback is a transaction for which a company sells an asset and leases that same asset back for a period of time from the new owner. IFRS 16 includes requirements on how to account for a sale and leaseback at the date the transaction takes place. However, IFRS 16 had not specified how to measure the transaction when reporting after that date. The issued amendments add to the sale and leaseback requirements in IFRS 16, thereby supporting the consistent application of the Accounting Standard. These amendments will not change the accounting for leases o ther than those arising in a sale and leaseback transaction. The amendments do not affect the consolidated Financial Statements. The above have been adopted by the European Union with effective date of 1.1.2024. Amendments to IAS 1 “Classification of Liabilities as Current or Non -current” (effective for annua l periods starting on or after 1.1.2024) The amendments clarify the principles of IAS 1 for the classification of liabilities as either current or non‐current. The amendments clarify that an entity’s right to defer settlement must exist at the end of the reporting period. The classification is not affected by management’s intentions or the counterparty’s option to settle the liability by transfer of the entity’s own equity instruments. Also, the amendments clarify that only covenants with which an entity m ust comply on or before the reporting date will affect a liability’s classification. The amendments require a company to disclose information about these covenants in the notes to the financial statements. The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with early adoption permitted. The amendments do not affect the consolidated Financial Statements. The above have been adopted by the European Union with effective date of 1.1.2024.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 16 Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”: Supplier Finance Arrangements (effective for annual periods starting on or after 1.1.2024) In May 2023, the International Accounting Standards Board (IASB) issued Supplier Finance Arrangements, which amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The new amendments require an entity to provide additional dis closures about its supplier finance arrangements. The amendments require additional disclosures that complement the existing disclosures in these two standards. They require entities to provide users of financial statements with information that enable the m a) to assess how supplier finance arrangements affect an entity’s liabilities and cash flows and b) to understand the effect of supplier finance arrangements on an entity’s exposure to liquidity risk and how the entity might be affected if the arrangemen ts were no longer available to it. The amendments to IAS 7 and IFRS 7 are effective for accounting periods on or after 1 January 2024. The amendments do not affect the consolidated Financial Statements. The above have been adopted by the European Union with effective date of 1.1.2024. New Standards, Interpretations, Revisions and Amendments to existing Standards that have not been applied yet or have not been adopted by the European Union The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), but their application has not started yet or they have not been adopted by the European Union. Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability” (effective for annual periods starting on or after 1.1.2025) In August 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 21. The Effects of Changes in Foreign Exchange Rates that require entities to provide more useful information in their financial statements when a currency cannot be exchanged into another currency. The amendments introduce a definition of currency exchangeability and the process by which an entity should assess this exchangeability. In addition, the amendments provide guidance on how an entity should estimate a spot exchange rate in cases where a currency is not exchangeable and require additional disclosures in cases where an entity has estimated a spot exchange rate due to a lack of exchangeability. The amendments to IAS 21 are effective for accounting periods on or after 1 January 2025. The Group will examine the impact of the above on its Financial Statements. The above have not been adopted by the European Union. IFRS 9 & IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” (effective for annual periods starting on or after 1.1.2026) In May 2024, the International Accounting Standards Board (IASB) issued amendments to the Classification and Measurement of Financial Instruments which amended IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures”. Specifically, the new amendments clarify when a financial liability should be derecognised when it is settled by electronic payment. Also, the amendments provide additional guidance for assessing contractual cash flow characteristics to financial assets with features rela ted to ESG -linked feuatures (environmental, social, and governance). IASB amended disclosure requirements relating to investments in equity instruments designated at fair value through other comprehensive income and added disclosure requirements for financ ial instruments with contingent features that do not relate directly to basic lending risks and costs. The amendments are effective from annual reporting periods beginning on or after 1 January 2026. The Group will examine the impact of the above on its Fi nancial Statements. The above have not been adopted by the European Union. Annual Improvements to IFRSs (effective for annual periods starting on or after 1.1.2026) In July 2024, the IASB issued the Annual Improvements to IFRS Accounting Standards-Volume 11 addressing minor amendments to five Standards. The amendments included in the Annual Improvements relate to:IFRS 1 ‘First -time Adoption of International Financial Reporting Standards’: Hedge Accounting by a First -time Adopter, IFRS 7 ‘Financial Instruments: Disclosures’: Gain or loss on derecognition, Disclosure of differences between the fair value and the transaction price, Disclosures on credit risk, IFRS 9 ‘Financial Instruments’: Derecognition of lease liabilities, Transaction price, IFRS 10 ‘Consolidated Financial Statements’: Determination of a ‘de facto agent’, IAS 7 ‘Statement of Cash Flows’ - Cost Method. The above amendments are effective for accounting periods on or after 1 January 2026. The Group will examine the impact of the above on its Financial Statements. The above have not been adopted by the European Union.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 17 IFRS 18 “Presentation and Disclosure in Financial Statements” (effective for annual periods starting on or after 1.1.2027) In April 2024 the International Accounting Standards Board (IASB) issued a new standard, IFRS 18, which replaces IAS 1 ‘Presentation of Financial Statements’. The objective of the Standard is to improve how information is communicated in an entity’s financ ial statements, particularly in the statement of profit or loss and in its notes to the financial statements. Specifically, the Standard will improve the quality of financial reporting due to a) the requirement of defined subtotals in the statement of profit or loss, b) the requirement of the disclosure about management -defined performance measures and c) the new principles for aggregation and disaggregation of information. The Group will examine the impact of the above on its Financial Statements. The above have not been adopted by the European Union. IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (effective for annual periods starting on or after 1.1.2027) In May 2024 the International Accounting Standards Board issued a new standard, IFRS 19 “Subsidiaries without Public Accountability: Disclosures”. The new standard allows eligible entities to elect to apply IFRS 19 reduced disclosure requirements instead of the disclosure requirements set out in other IFRS. IFRS 19 works alongside other IFRS, with eligible subsidiaries applying the measurement, recognition and presentation requirements set out in other IFRS and the r educed disclosures outlined in IFRS 19. This simplifies the preparation of IFRS financial statements for the subsidiaries that are in -scope of this standard while maintaining at the same time the usefulness of those financial statements for their users. Th e amendments are effective from annual reporting periods beginning on or after 1 January 2027. The Group will examine the impact of the above on its Financial Statements. The above have not been adopted by the European Union. (2.4) Accounting Estimates The preparation of Interim Consolidated Condensed Financial Information of the Group requires the Management to make judgments, to use estimates and assumptions that effect the application of accounting policies and reported amounts of Assets and Liabilities, Income and Expense. Actual results may differ from those estimations. Regarding the going concern principle, the estimates of the Management are the same as those adopted in the preparation of the Annual Consolidated Financial Statements and are analyz ed in note 2.2. The significant assumptions adopted by the Group to estimate certain accounting figures and the sources of uncertainty affecting these estimates are consistent with those adopted under the preparation of the Annual Standalone and Consolidated Financial Statements for the year ended 31 December 2023, with the following update: • Impairment losses of financial instruments Following the completion of the legal merger of Attica Bank with Pancreta Bank and given that the operational merger of the two banks has not been fully completed, the application of a separate methodology for the calculation of impairment provisions continued and the separate results were consolidated. In particular, the valuation of the held -for-sale portfolio, in application of IFRS 5, was performed taking into account its fair value less costs to sell. In application of the regulatory framework and the guidance of IFRS 9, models for calculating expected credit losses were used, incorporating: ▪ an unbiased and probability -weighted amount that is determined by evaluating a range of possible outcomes; ▪ the time value of money; and ▪ reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. The calculation of collective impairment provisions is carried out by estimating the relevant credit risk parameters based on the type and characteristics of the separate portfolios.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 18 The use of models shall determine the values of the variables necessary for the calculation and the quantitative effects of the macroeconomic scenarios taken into account in the calculation of ECLs. The main macroeconomic variables incorporated in the scenarios are the GDP growth rate, the evolution of the main ASE index, the unemployment rate, the growth rate of Producer Price Index (PPI), the rate of change of the Consumer Price Index (CPI) and the rate of change of Private Consumption. The sources for the quarterly price comparison are the European Central Bank - ECB (September 2024), the European Commission - ECFIN (May 2024) for the Eurozone and the Bank of Greece – BoG (October 2024) for Greece. The Residential Real Estate Price Index (RRE) and the Commercial Real Estate Price Index (CRE) are taken into account for the revaluation of the properties that form the cover of the exposures under review, according to the latest bulletin of the National Bank of Greece (October 2024). The following table presents the forecast of the factors variation for the next three (3) years, from 2024 to 2027.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 19 3. Principal accounting policies The accounting policies and methods of calculation followed by the Group for the preparation of the condensed interim financial information for the period ended 30 September, 2024, are consistent with those applied under the preparation of the most recent standalone and consolidated financial statements (31 December 2023), except for adoption of new standards and interpretations referred to in note 2.3 and effective for annual periods beginning on or after 1 January 2024 as well as the following accounting policies adopted in the context of the merger of Attica Bank with Pancreta Bank. Business Combinations Acquisition method Business acquisitions within the scope of IFRS 3 are be accounted for using the acquisition method. The consideration paid in a business combination is measured at fair value, calculated as the sum of the fair values, at the acquisition date, of the assets contributed by the Group, the liabilities assumed by the Group to the former owners of the acquiree and the equity securities issued by the Group in exchange for control of the acquiree. Expenses relating to the acquisition are recognized in the income statement when incurred. At the acquisition date, assets acquired and liabilities assumed are recorded at their fair value at the acquisition date: ▪ deferred tax assets and obligations and liabilities or assets relating to employee benefits are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively, ▪ assets (or groups of assets to be disposed of) classified as held for sale in accordance with IFRS 5 Non- current Assets Held for Sale and Discontinued Operations are accounted for in accordance with this standard. Goodwill Goodwill is recorded as the excess of the sum of the consideration paid, the amount of any non -controlling interest in the acquiree and the fair value of any previous interest in the acquiree, and the net value, at the acquisition date, of the assets acqui red and liabilities assumed. If, on review, the net value at the acquisition date of the assets acquired and liabilities assumed exceeds the sum of the consideration paid, any non - controlling interest in the acquiree and the fair value of any previous inte rest in the acquiree, the difference is directly recognized in the income statement. Provisional accounting If for some amounts relating to the initial recognition of a business combination the values have not been finalized by the date of the financial statements for the period in which the business combination took place, the Group records provisional values for those amounts. The provisional amounts are adjusted, or additional assets or liabilities are recognized, to take into account new information about facts and circumstances existing at the acquisition date that, if known, would affect the amounts recognized at that date. Acquisition finalization period adjustments result from new information obtained during the acquisition finalization period (which shall not exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. Auction assets Auction assets include the real estate the Bank acquired in full or partial satisfaction of its receivables. Such real estate includes the items that do not meet the requirements of IAS 40, which are sold in the regular course of business. Real estate items as current assets are accounted for in accordance with the provisions of IAS 2 "Inventories" and are measur ed at the lower of cost and net realizable value which is the estimated selling price less selling expenses. Real estate inventories as current assets are derecognized from the statement of financial position when they are disposed of. The gain/(loss) arising on disposal of such items is determined as the difference between the net realizable value and the carryi ng amount of the real estate. This difference is recognized in the income statement.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 20 4. Fair value of financial instruments The following table presents the carrying amount as well as the fair values of financial instruments (financial assets and liabilities) not measured at fair value in the Condensed Interim Statement of Financial Position. Fair value of Statement of Financial Position items Group Carrying amount Fair value Financial Assets 30.9.2024 31.12.2023 30.9.2024 31.12.2023 Due from other financial institutions 65,402 53,430 65,402 53,430 Loans and advances to customers (net of impairment) 3,041,686 2,267,892 3,039,058 2,266,437 Investment securities measured at amortized cost 771,476 309,327 741,578 295,653 Carrying amount Fair value Financial Liabilities 30.9.2024 31.12.2023 30.9.2024 31.12.2023 Due to other financial institutions 191,735 8,637 191,735 8,637 Due to customers 5,730,530 3,146,184 5,739,723 3,134,628 Debt securities in issue 147,977 99,938 147,977 99,938 Fair value of amounts due from and due to other financial institutions carried at amortized cost does not differ substantially from the corresponding carrying value, as the maturity for the majority of them is less than one month. The fair value of investment securities at amortized cost is calculated based on active market prices. The fair value of loans and advances to customers and due to customers is calculated by discounting the expected future cash flows (inflows and outflows correspondingly). The interest rates used to discount cash flows for loans and customer liabilities were based on the yield curve. The fair value reflects the estimates at the date of the preparation of the condensed interim consolidated financial statements. These estimates are subject to, among others, adjustments depending on the prevailing market conditions at the date of measurem ent. These calculations represent the most suitable estimates of the Management and are based on particular assumptions. Taking into account the fact that these calculations incorporate uncertainties, it is probable that the fair values might not represent the price at which such financial instruments could actually be sold for or settled with in the future. Financial instruments which are measured at fair value or their fair value is disclosed, are classified in the following three levels based on the lowest information source used for the estimation of their fair value: • Level 1: active market prices (not adjusted) for the respective assets and liabilities • Level 2: inputs which are directly or indirectly observable • Level 3: resulting from non-observable inputs used in valuation models In cases where the fair value differs from the transaction price at the time of the initial recognition of financial instruments, the difference is recognized directly in profit and loss only when the instrument is measured based on inputs related to levels 1 and 2. In cases where it is measured based on inputs related to level 3, the difference arising on init ial recognition is not recognized directly in profit and loss but it may be recognized subsequently provided that the instrument’s measurement is based on observable inputs and after taking into account the nature of the instrument as well as the length of time. Level 2 includes inputs which do not meet the requirements for classification in level 1 but they are observable, either directly or indirectly. These inputs are: • Active market prices for similar assets or liabilities. • Other observable inputs for the asset or liability under measurement, such as: - Interest rate and yield curves; - Implied volatility - Credit margins
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 21 The principal methods used for the measurement of fair value in level 2 are the reference to the current fair value of a reasonably similar instrument, the discounting method and the options pricing models. Non observable inputs are included in level 3. Non observable inputs used for the measurement of fair value include correlations, long -term volatility measures, expected cash flows, discount rates, credit margins and other parameters related to specific tr ansactions and determined by the Group. The principal methods used for the measurement of fair value in level 3 are the discounting method, the multipliers and the options pricing models. Moreover: - The fair value of non-listed shares as well as shares not quoted in an active market is determined based on the Group’s estimations regarding the future profitability of the issuer after taking into account the expected growth rate of its operations as wel l as the weighted average rate of capital return which is used as a discount rate. Given that these parameters are mainly non-observable, the valuation of these shares is classified into level 3. - Level 3 also includes debt instruments not quoted in an active market due to lack of liquidity, e.g. in cases where the issuer is under liquidation. In these cases, the expected cash flows from the debt instruments are determined by the Group based on their collectability. At every reporting date, the Group assesses alternative methods for determining non -observable inputs, estimates their effect on the fair value calculation and ultimately selects non -observable inputs which are consistent with current market conditions and with methods it uses for fair value measurement. The table below depicts the hierarchy of financial instruments measured at fair value at every financial statements preparation date based on the quality of inputs used for the estimation of fair value . Group 30.9.2024 Level 1 Level 2 Level 3 Total Financial assets measured at fair value through other comprehensive income (FVOCI) 196,663 0 684 197,347 Investment securities measured at fair value through profit or loss 51,386 0 5,277 56,664 Derivative financial instruments - assets 0 47 0 47 Derivative financial instruments - liabilities 0 635 0 635 31.12.2023 Level 1 Level 2 Level 3 Total Financial assets measured at fair value through other comprehensive income (FVOCI) 178,582 0 684 179,266 Investment securities measured at fair value through profit or loss 145,955 0 0 145,955 Derivative financial instruments - assets 0 65 0 65 Derivative financial instruments - liabilities 0 281 0 281
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 22 5. Capital adequacy The Group’s Capital, Liquidity and Market Risks Division monitors capital adequacy at regular time intervals and submits the results of its calculations on a quarterly basis to the Bank of Greece that acts as the supervisory authority for all Credit Institutions. The Capital Adequacy Ratio is defined as the ratio of regulatory equity capital to assets and off-balance sheet items, weighted by the risk they incorporate. Tier 1 capital ratio is defined as the ratio of Tier 1 (Tier 1) capital to risk weighted assets (on and off balance sheet) while the ratio Common Equity Tier 1 (CET 1) is defined in a similar way. According to Regulation 575/2013 and Bank of Greece’s Credit and Insuran ce Committee Decision 114 / 4.8.2014 banks are required, to meet the following minimum capital ratios on both a standalone and a consolidated basis: Common Equity Tier 1 (CET 1) 4.5%, Tier 1 capital ratio (TIER 1) 6% and total capital adequacy ratio (Total Capital Ratio) 8%. It is noted that the above Decision abolished Bank of Greece’s Executive Committee Act 13/28. 3.2013 and provides for transitional amendments regarding the implementation of regulatory capital reductions for Common Equity Tier 1 (CET 1) capital. More specifically, deduction of deferred tax assets which are based on future profitability will be gradually implemented by 2024. Based on the decision 506/1/5.7.2024 issued by the Bank of Greece, the Bank is obliged to keep a minimum ratio of Total SREP Capital Requirements of 11.02%, which is comprised of the 8% as defined by article 92 of CRR, plus 3.02% for the additional supervisory capital requirements (Pil lar II Requirements – P2R) upon the result of the Supervisory Review and Evaluation Process (SREP). Additionally to the above mentioned capital requirements and based on article 122 of Law 4261/2014, the Bank is obliged to maintain a capital security buffer of 2.5%, the maintenance of which is evaluated taking into consideration the current prevailing conditions. Also, based on the SREP conducted annually by the Bank of Greece, as of 5 July 2024 the total capital requirements ("OCR") that the Issuer should maintain on an ongoing basis are defined by the following indicators: ▪ CET1 ratio: 8.70% ▪ Tier 1 ratio: 10.77% and ▪ CAD ratio: 13.52%. It is noted that the above capital requirements incorporate: (a) the Basel Pillar I minimum capital adequacy requirements as set out in Article 92(1) of EU Regulation No 575/2013, totaling 8%, (b) the additional capital requirements of Basel Pillar II ("P2R"), as set out in Article 16(2) of EU Regulation No. 1024/2013 of a total amount of 3.02% and (c) the capital conservation buffer of Law 4261/2014 of 2.5% In this context, the capital adequacy ratios as at the reporting date were below the minimum regulatory requirements in accordance with the provisions of Article 92 of the CRR, mainly due to the increase in credit risk provisions resulting from the inclusion o f NPE portfolios in the HAPS III State Guarantee Programme by €815 million in combination with the fact that, as at the reporting date, the planned share capital increase had not yet been completed. As at 30.9.2024, the capital adequacy ratios are as follows: Group Description 30.9.2024 31.12.2023 Common equity Tier 1 (CET 1) ratio -8.8% 12.8% Tier 1 ratio -8.5% 12.8% Total Capital Adequacy Ratio -6.3% 16.6% It should be noted that: ▪ the result is attributable to the timing of the actions to clear the Bank's balance sheet of non -performing exposures (NPE) through the state guarantee scheme for the securitisation o f credit institutions, "HAPS III". The loss from the two NPE securitisation transactions under the aforementioned programme, Domus
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 23 and Rhodium, including the estimated transaction costs, was recorded in the 9M results. Subsequently, the share capital increase (SCI) was concluded in the current quarter. Additionally, the impairment of weighted assets through significant risk transfer (SRT) from the two transactions is also expected to be completed in the current quarter. To ensure the prompt restoration of the supervisory ratios above the requisite thresholds, the Bank has taken the following measures: ▪ The share capital increase of €735 million was completed on 29.11.2024. ▪ A request has been submitted to the Bank of Greece for the early repayment of the TIER 2 subordinated bond, amounting to €100 million, ▪ A notification has been submitted to the Bank of Greece for the conversion of the AT1 bonds issued by PANCRETA into shares of Attica Bank S.A. amounting to €15 million. Therefore, for the reporting date of 3 0.9.2024, and given the above, the pro -forma capital ratios are set out below as follows: Group Description 30.9.2024 31.12.2023 Common equity Tier 1 (CET 1) ratio 13.1% 12.8% Tier 1 ratio 13.1% 12.8% Total Capital Adequacy Ratio 13.7% 16.6%
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 24 6. Operating segments Group (Amounts in thousand €) Retail Banking Corporate Banking Treasury Total From 1st January to 30th September 2024 Net income - interest (1,152) 54,257 11,543 64,648 - commission (1,937) 13,814 84 11,961 - trading results and other income 2,139 10,257 2,817 15,214 Net Total Income (950) 78,328 14,445 91,823 Result from investments in associates (53) (259) (67) (380) Profit / (Loss) before income tax (298,913) (88,348) 3,379 (383,882) Income tax 40,549 Profit / (Loss) for the period (343,333) Other segment items Provisions for expected credit losses and other impairment (283,236) (121,575) 83 (404,728) Depreciation expense (2,140) (8,837) (2,251) (13,228) Total Assets 30.9.2024 1,149,955 3,434,901 1,764,986 6,349,841 Total Liabilities 30.9.2024 (4,470,499) (1,342,655) (419,089) (6,232,243) Group (Amounts in thousand €) Retail Banking Corporate Banking Treasury Total From 1st January to 30th September 2023 Net income - interest 1,921 40,139 9,715 51,775 - commission (3,186) 9,111 10 5,935 - trading results and other income 2,119 12,319 1,932 16,371 - intersegment results 17 35 (51) 0 Net Total Income 871 61,604 11,606 74,081 Results from investments in associates 4 9 3 16 Profit / (Loss) before income tax (9,652) 22,572 4,048 16,968 Income tax (1,815) Profit / (Loss) for the period 15,154 Other segment items Provisions for expected credit losses and other impairment 6,734 (6,928) 3,156 2,962 Depreciation expense (3,085) (6,487) (2,219) (11,791) Total Assets 31.12.2023 505,499 2,078,390 1,190,494 3,774,384 Total Liabilities 31.12.2023 (2,082,172) (1,145,555) (100,219) (3,327,946)
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 25 7. Net interest income Net interest income amounted to €64 .6 million, displaying a significant increase of 24. 9% compared to the corresponding period of 2023. The increase is due to a 69% increase in interest income from loans and receivables to customers as a consequence of increases in interest rates on floating rate loans , the general increase in the Bank's exposure base as well as the increase in the factoring portfolio that came from Pancreta Factors in the context of the merger with Pancreta Bank. In addition, it is noted that excluding the interest income of €6.5 million recorded by the Bank during the comparative period from the Omega and Metexelixis securitization bonds, interest income from investment portfolio bonds increased by 22%. These were partially offset by the higher cost of financing the Bank's operations by 1 04% compared to the comparative period in 2023, as a result of the adjustment of interest rates on deposit products. 8. Net commission income The Group's net commission income amounted to €11.9 million, displaying a significant increase of €6 million (or 101.5% on a percentage basis) compared to the same period last year. The increase in net fee and commission income by €6.4 million in the nine month period of 2024 was mainly driven by fees for issuing letters of guarantee and fees for arranging and managing bond loans. On the contrary , the increase in fees and commissions expenses by €0.4 million (or 5.5% on a percentage basis) compared to the comparative period had a negative impact. This was almost entirely due to commissions paid to Visa clearing agencies and the reactivation of the Bank's cooperation with the Mastercard clearing agency for the provision of debit card services to individuals and businesses, in the context of the merger.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 26 9. Operating expenses (Amounts in thousand €) Group Description 30.9.2024 30.9.2023 Salaries and wages (22,241) (16,840) Social security contributions (defined contribution plans) (4,709) (3,735) Other charges (1,473) (1,383) Defined benefit plan expenses (607) (582) Other provisions for post employment benefits obligations (434) (311) Personnel Expenses (29,465) (22,851) Personnel Expenses Security and cleaning expenses (1,252) (1,256) Telecommunication and service utility expenses (2,223) (2,044) Printing and stationery expenses (97) (144) Advertising, promotion, donations, memberships and grants expenses (1,355) (2,013) Non - embedded taxes and insurance premium expenses (1,964) (1,825) Third party fees and expenses (3,905) (6,959) Teiresias systems expenses (511) (675) Repair and maintenance expenses (4,184) (3,782) Travelling expenses (542) (513) Other expenses (1,635) (1,534) General Operating Expenses before provisions (17,669) (20,745) Staff leaving expense (535) (4,703) Other costs associated with the merger (9,700) 0 Non requerring Operating Expenses (10,235) (4,703) Depreciation of tangible assets (962) (1,060) Amortization of intangible assets (9,011) (7,791) Amortization of right of use asset (3,256) (2,940) Depreciation Expense (13,228) (11,791) Total Operating Expenses (70,597) (60,090) Number of employees Group 30.9.2024 30.9.2023 The average number of employees is: 684 583 The number of employees is: 1,484 571
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 27 The average number of the Group's employees during the current period was 1,476 employees, compared to 583 employees in the comparative period. Staff remuneration and expenses in the closing period amounted to €29.4 million, increased by 28.94% compared to the corresponding period in 2023, mainly due to the provision of €1.5 million for the payment of the performance incentive for 2024 under the staff incentive plan and the payroll costs due to the merger with Pancreta Bank. As regards to general operating expenses, they display a decrease of 14.8% versus the comparative period. The decrease is mainly due to (a) non-payment of contributions to the Deposit & Investment Guarantee Fund and the Resolution Fund due to achievement of the target level as set by the Single Resolution Fun d and (b) the charge effective in the comparative period of non-recurring expenses of €1.4 million, relating to actions and projects in connection with the implementation of the transformation of the Bank. 10 . Profit / ( loss ) from investment portfolio The results of financial and investmen t portfolio operations as at 30.9. 2024 show a significant improvement and amount to a profit of approximately €7.2 million compared to €6.6 million in the comparative period. This improvement results mainly from the increase in the gain on the sale of bonds (€6.2 million compared to €1.4 million at 30.9.2023) and is partially offset by a decrease in the gains on the valuation of the bond and equity portfolio (gain of €207 thousand compared to €1.14 million at 30.9.2023). 11 . Taxes The income tax for the period ended 30.9.2024 was calculated based of the review of the items and nature of revenues and expenses, in accordance with the effective tax provisions. As regards to the temporary differences between tax and accounting base, a deferred tax has been calculated in accordance with IAS 12. The Group’s deferred tax is calculated, using the balance sheet method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates that have been enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or deferred tax liability is settled. If the tax rate changes at the year that deferred tax asset is realized or deferred tax liability i s settled, then the difference is recognized in the income statement, except from the temporary tax differences that are recorded directly in Equity. Article 93 of Law 4605/01. 4.2019 "Alignment of Greek legislation with the European Parliament and Council Directive (EU) 2016/943 of 08.06.2016 on the protection of undisclosed know -how and business information (confidential commercial data) against unlawful acquisition, use and di sclosure (EEL 157, 15.06.2016) - Measures for accelerating the work of the Ministry of Economy and other provisions" states that: • The credit balances of fiscal years 2008 and 2010 up to 2012 that arose from withheld taxes on specially taxed income are transferred and will be offset at the time when income tax is incurred in proportion to that tax. This net -off procedure also includes any amounts refunded by virtue of court decisions, creating an obligation to return them to the Greek State at the time, proportionally to the amount of the income tax recognized. • The credit balances that arose under Law 4046/2012 and have not been offset after the end of the five-years period from their recognition, w ill be offset starting from 1. 1.2020 in ten equal annual installments with any tax liability of the banks. Based on the above, the Bank's receivables from the Greek State from withheld taxes amount to approximately €4.9 million and relate to the financial years 2011, 2012 and 2013 (i.e. the years 2010, 2011 and 2012) and will be offset, as mentioned above. An amount of €2.46 million has been offset out of the total credit amount of €4.9 million. Pursuant to the provisions of Article 27A of Law 4172/2013 and in accordance with the accounting result after tax for years 2020, 2021 and 2022, the Bank activated the provisions in question, giving rise to the amount of the final settled tax assets from the Greek State of €151,854,439.86 (collected on 6 August 2021), €22,817,998.42 (collected on 18 July 2022) and €63,944,501.88 (collected on 24 July 2023) respectively. Collecting the amount in question has definitely eliminated the deferred tax assets guaranteed by the Greek State. Following this and in accordance with the last paragraphs of par. 1 of article 27 A of Law 4172/2013, the Bank submitted on 19.1.2024 a request to the Supervisory Authority to be excluded from the special framework of
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 28 these provisions. The Supervisory Authority by the decision of the Credit and I nsurance Committee No. 493/8/8.2.2024 approved the termination of the inclusion in the special framework of the provisions of Article 27 A of Law No. 4172/2013. On 24 July, 2023, following the resolutions of the Regular General Meeting held on 6 July, 2023, as well as in accordance with the relevant articles of the CA 28/06.07.2021, as amended by the CA 34/25 -08-2021, the Bank collected the amount corresponding to 100% of the final and cleared tax assets f rom the State, i.e. €63,944,501.88. In accordance with the provisions of the CA 28/06.7.2021 as amended by the CA 34/ 25.8.2021, a special -partial tax audit was conducted by the Audit Authority for Large Enterprises. The audit was completed on 20.9.2023, verifying a refund of €896,073.36. The Bank proceeded with reservations to the payment of the said amount and lodged an appeal. In the context of the Agreement for the creation of the fifth banking pillar in Greece, with the merger, by absorption of the former Pancreta Bank by Attica Bank, with the explicit provision of the specific law 5127/2024, the immediate exclusion from the r egime of article 27 A' of law 4172/2013 is defined. The former Pancreta Bank was included in the special framework under article 27 A of Law 4172/2013, by decision of its General Meeting in March 2016. The amount of the deferred tax asset (provision), reco rded in the balance sheet and financial statements of the Bank, as at 31.12.2023, stands at €44.4 million and refers to 29% tax on the temporary differences of the accumulated provisions against credit risk, accounted for until 30 June 2015, and the deferred tax on the remaining amount of the debit difference resulting from the impairment of the G reek government bond (paragraph 3, article 27A of Law 4172/2013). The legislator considers de-inclusion a necessary condition for the immediate and during the development of the individual stages of implementation of the creation of the fifth pillar. This will ensure that the provision of the former Pancreta Bank does no t become a final and liquidated claim of the new Bank, in its capacity as universal successor and at the expense of the Greek State, to offset the loss that will arise within the transitional period of transformation (2024). The loss resulting from the securitisation of non-performing assets and the inclusion of the relevant portfolio in the Hercules III State guarantee programme as a sub -stage for the creation of the fifth pillar. In light of the above, and in accordance with the final subparagraphs of paragraph In accordance with Article 27A of Law 4172/2013, the Bank submitted a request to the Supervisory Authority on 31.7.2024 to be excluded from the special framework of these provisions. The Supervisory Authority has approved the termination of the inclusion of the provisions of Article 27A of Law 4172/2013 in the special framework, as per the decision of the Credit and Insurance Committee No. 5177/700/29.8.2024.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 29 The table below presents the income tax which was recognized directly to equity: Group (Amounts in thousand €) 30.9.2024 30.9.2023 Description Before income tax Income tax After income tax Before income tax Income tax After income tax Amounts reclassified in income statement Financial assets at fair value through other comprehensive income (FVOCI) (1,617) 469 (1,148) 212 (62) 151 Write-off of shares in the context of the merger of Pancreta Bank (33,676) 9,766 (23,910) - - - Amounts not reclassified in income statement Change in actuarial gains / (losses) of defined benefit obligations 70 (25) 46 85 (25) 61 Total (35,222) 10,210 (25,012) 297 (86) 211
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 30 The following table presents the income tax recognized in the income statement for the period: (Amounts in thousand €) Group Description 30.9.2024 30.9.2023 Current income tax 58 (190) Deferred income tax 40,491 (1,624) Total 40,549 (1,815) The deferred tax is as follows: (Amounts in thousand €) Group Deferred tax 30.9.2024 30.9.2023 Difference in book value of tangible assets (1,668) 7 Contingent liabilities provisions 14 0 Revaluation of investment property (639) (156) Allowance for impairment of loans 41,141 (70,956) Allowance for impairment of off balance sheet items (24) 702 Allowance for impairment of financial assets (24) (915) Tax losses carried forward, other temporary differences and write offs 1,576 69,679 Pension and other benefits after retirement 116 15 Deferred tax assets 40,491 (1,624)
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 31 The following table presents deferred tax assets and liabilities in the interim statement of financial position: (Amounts in thousand €) Group Description 30/09/2024 31/12/2023 Provisions for credit losses 219,168 85,470 Impairment of financial assets at fair value through other comprehensive income (FVOCI) (1,386) (1,393) Off balance sheet items 2,222 2,246 Impairment of other financial assets (146) (122) Tax losses carried forward and other temporary differences 76,322 66,715 Pension and other benefits after retirement 1,819 1,479 Deferred Tax Assets 297,985 154,395 Revaluation of intangible assets (18,761) (8,493) Revaluation of tangible assets (6,786) (1,427) IFRS16 (289) (214) Pension and other benefits after retirement 651 2,484 Deferred Tax Liabilities (25,186) (7,649) Net Deferred Tax Assets 272,799 146,746
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 32 12 . Earnings / (Losses ) per share – basic and diluted Basic earnings / (losses) per share are calculated by dividing the net profit / (loss) for the period, attributable to the ordinary shareholders of the Bank, by the weighted average number of the Bank's ordinary shares in issue during the period. The following corporate transactions have been taken into account for the above calculation: - The merger between Attica Bank and Pancreta Bank which was approved by the GEMI on 4.9.2024 - The merger and simultaneous reduction of the total number of shares of the Bank at a ratio of one (1) new ordinary share for one hundred (100) existing ordinary shares of the Bank (reverse split) which were admitted to trading on ATHEX on 21.10.2024 Group (Amounts in thousand €) 1.1 - 1.1 - 1.7 1.7 Description 30.9.2024 30.9.2023 30.9.2024 30.9.2023 Profit / (Loss) for the year attributable to equity owners of the Bank (343,333) 15,154 (348,494) 13,119 Profit / (Loss) for the year attributable to ordinary equity owners of the Bank (343,333) 15,154 (348,494) 13,119 Weighted average number of ordinary shares during the year 42,471,890 42,471,890 33,998,456 33,998,456 Weighted average number of shares during the year (8.0838) 0.3568 (10.2503) 0.3859
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 33 Adjusted earnings / (losses) per share are calculated by adjusting the weighted average number of existing ordinary shares du ring the period taking into account the potentially issued ordinary shares. The Bank has 17,049 shares of this category, which woul d result from the conversion of the Convertible Subordinated Note 2015 (TIER I) (Note 22) Group (Amounts in thousand €) 1.1 - 1.1 - 1.7 1.7 Description 30.9.2024 30.9.2023 30.9.2024 30.9.2023 Profit / (Loss) for the year attributable to equity owners of the Bank (343,333) 15,154 (338,561) 13,119 Profit / (Loss) for the year attributable to ordinary equity owners of the Bank (343,333) 15,154 (338,561) 13,119 Weighted average number of ordinary shares during the year 42,474,975 42,474,975 33,998,456 33,998,456 Adjustment for potential TIER 1 convertible bond securities 4,956 0 10,524 0 Weighted average number of shares during the year 42,479,931 42,474,975 34,008,980 33,998,456 Earnings / (Losses) per share - diluted (in €) (8.0822) 0.3568 (9.9550) 0.3859
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 34 13 . Investment securities Investment securities measured at fair value through profit or loss Group (Amounts in thousand €) 30.9.2024 31.12.2023 Government Bonds 36,943 139,551 Greek Government Bonds 14,152 325 Foreign Government Bonds 1,832 0 Greek Government T-Bills 20,959 139,226 Corporate Bonds 730 771 Credit institutions 590 542 Non-financial corporations 139 229 Bonds 37,673 140,321 Listed shares - (Domestic) 6,342 0 Listed shares - (Foreign) 7,372 5,634 Non-Listed Shares - (Domestic) 5,277 0 Shares 18,991 5,634 Investment securities measured at fair value through profit or loss 56,664 145,955 Investment securities measured at amortized cost Group (Amounts in thousand €) 30.9.2024 31.12.2023 Government Bonds 582,987 181,140 Greek Government Bonds 547,801 150,496 Foreign Government Bonds 35,186 30,644 Corporate Bonds 188,917 128,456 Credit institutions 98,120 87,102 Non-financial corporations 90,797 41,354 Expected credit losses (427) (412) Investment securities measured at amortized cost 771,476 309,183
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 35 Investment securities measured at fair value through other comprehensive income (FVOCI) Group (Amounts in thousand €) 30.9.2024 31.12.2023 Government Bonds 147,518 144,584 Greek Government Bonds 90,608 113,260 Foreign Government Bonds 52,667 31,324 Greek Government T-Bills 309 0 Foreign Government T-Bills 3,935 0 Corporate Bonds 47,806 32,857 Credit institutions 42,507 28,420 Non-financial corporations 5,299 4,437 Bonds 195,324 177,442 Listed shares - (Domestic) 1,330 1,133 Listed shares - (Foreign) 9 8 Non-Listed Shares - (Domestic) 684 684 Shares 2,023 1,824 Investment securities measured at fair value through other comprehensive income (FVOCI) 197,347 179,266
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 36 14. Loans and advances to customers at amortized cost (Amounts in thousand €) Group Description 30.9.2024 31.12.2023 Credit cards 22,935 46,343 Consumer loans 104,344 230,525 Mortgages 292,868 400,154 Other 0 5,157 Loans to individuals 420,147 682,179 Loans to corporate entities 2,635,461 2,569,631 Public sector 21,288 20,505 Net investment in finance lease 35,447 211,444 Loans and advances to customers (before impairment) 3,112,344 3,483,760 Expected Credit Losses (70,658) (1,215,868) Loans and advances to customers (net of impairment) 3,041,686 2,267,892 Following the approvals of the competent supervisory authorities, the Bank of Greece and the Competition Commission, as well as the Extraordinary General Meetings of Attica Bank and Pancreta Bank, and the subsequent decision of the Ministry of Development and its publication in the GEMI, the legal merger was completed with the absorption of Pancreta Bank by Attica Bank on 3.9.2024. Prior to this, an application was submitted for the inclusion of portfolios of non-performing loans of total book value €3.6 billion (Domus & Rhodium), as well as for the inclusion of the high-priority bonds of the securitization in the "HAPS III" state guarantee programme of a total value of €1.1 billion. This is part of a wider strategy to reduce the non-performing loans of the two banks, as set out in the Shareholders' Agreement signed on 18.7.2024 and subsequently ratified by Law 5127/2024. The transaction is expected to be completed during Q4 2024, subject to customary approvals. In view of the above, the Bank has transferred this portfolio to Assets held for sale (Note 19). The movement of expected credit losses for the nine month period of 2023 as well as the respective movements up to 31.12.2023 are as follows: Movement of expected credit losses Group (Amounts in thousand €) (Stage 1) (Stage 2) (Stage 3) Total Opening balance as at 1.1.2023 (5,134) (9,213) (392,207) (406,553) Expected credit risk losses and losses reversals for the nine month period of 2023 1,347 3,483 (2,604) 2,226 Transfer of accumulated provisions to Assets held for sale 0 5,639 235,043 240,682 Write offs during the nine month period of 2023 0 0 1,769 1,769 Movements between stages (1,292) (12,577) 13,869 0 Expected Credit Losses 30.09.2023 (5,079) (12,668) (144,130) (161,876)
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 37 Movements for the period 1.10.2023 - 31.12.2023 Expected credit risk losses and losses reversals during the last quarter of 2023 (6,517) 3,556 1,115 (1,846) Recognition of provisions for exchange of bonds for Omega & Metexelixis loans (1) (77,854) (974,330) (1,052,185) Write offs during the last quarter of 2023 1 0 37 39 Movements between stages (390) 5,697 (5,306) 0 Expected Credit Losses 31.12.2023 (11,985) (81,268) (1,122,614) (1,215,868) The movement of expected credit losses for the six month period of 2024 is as follows: Movement of expected credit losses Group (Amounts in thousand €) (Stage 1) (Stage 2) (Stage 3) Total Opening balance as at 1.1.2024 (11,985) (81,268) (1,122,614) (1,215,868) Provision formed from the transfer of the Pancreta Bank portfolio (6,655) (3,717) (516,577) (526,949) Rhodium portfolio provision formed as part of PPA 0 0 (410,785) (410,785) Expected credit risk losses and losses reversals for 2024 (10,450) 74,606 (469,276) (405,120) Write offs during 2024 2 308 14,901 15,211 Movements between stages 2,978 (29,391) 26,413 0 Transfer of accumulated provisions to Assets held for sale 11,204 37,185 2,424,464 2,472,853 Expected Credit Losses 30.09.2024 (14,907) (2,278) (53,473) (70,658) The credit loss provisions for the first semester of 2024 and 2023 are as follows: (Amounts in thousand €) Group Description 30/09/2024 30/09/2023 (Impairment charge) / Reversal of impairment charge on loans and advances to customers (404,895) 2,226 (Impairment charge) / Reversal of impairment charge on off balance sheet items 84 (2,420) Fair value results of financial assets measured at fair value through other comprehensive income (FVOCI) (1) (113) Impairment charge / (Reversal of impairment charge) on financial assets measured at amortized cost 85 3,269 Total (404,728) 2,962
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 38 Loans and advances to customers at amortized cost Group 30.9.2024 (Amounts in thousand €) 12 month expected credit losses (Stage 1) Lifetime expected credit losses of non impaired assets (Stage 2) Lifetime expected credit losses of impaired assets (Stage 3) Carrying amount Retail Loans Gross carrying amount 391,039 12,329 16,780 420,148 Expected credit losses (1,533) (585) (7,056) (9,174) Carrying amount 389,505 11,744 9,724 410,973 Corporate Loans Gross carrying amount 2,465,395 38,911 166,602 2,670,908 Expected credit losses (13,334) (1,693) (46,195) (61,222) Carrying amount 2,452,060 37,218 120,407 2,609,685 Public Sector Loans Gross carrying amount 20,771 0 517 21,288 Expected credit losses (39) 0 (223) (262) Carrying amount 20,732 0 294 21,026 Loans and advances to customers Total Gross carrying amount 2,877,205 51,240 183,899 3,112,344 Total expected credit losses (14,907) (2,278) (53,473) (70,658) Total Carrying Amount 2,862,298 48,962 130,426 3,041,686
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 39 Group 31.12.2023 (Amounts in thousand €) 12 month expected credit losses (Stage 1) Lifetime expected credit losses of non impaired assets (Stage 2) Lifetime expected credit losses of impaired assets (Stage 3) Carrying amount Retail Loans Gross carrying amount 145,444 25,388 511,346 682,179 Expected credit losses (926) (1,025) (243,153) (245,104) Carrying amount 144,518 24,364 268,193 437,075 Corporate Loans Gross carrying amount 1,072,578 236,362 1,472,136 2,781,076 Expected credit losses (10,891) (80,244) (879,461) (970,596) Carrying amount 1,061,687 156,118 592,675 1,810,480 Public Sector Loans Gross carrying amount 20,505 0 0 20,505 Expected credit losses (169) 0 0 (169) Carrying amount 20,336 0 0 20,336 Loans and advances to customers Total Gross carrying amount 1,238,527 261,750 1,983,483 3,483,760 Total expected credit losses (11,985) (81,268) (1,122,614) (1,215,869) Total Carrying Amount 1,226,541 180,482 860,868 2,267,892 The reduction in provisions for impairment compared to the previous financial year ended 31 December 2023 is primarily due to the transfer of the accumulated provisions of the non -performing loans portfolio to "Assets held for sale" (Note 19) in anticipation of the upcoming securitization and the inclusion of the senior notes of the securitization in the HAPS III State Guarantee Programme.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 40 15. Investments in subsidiaries (Amounts in thousand €) 30.9.2024 Company Name Country of incorporation Number of shares Ownership % Equity Acquisitio n Cost Carrying amount Attica Bancassurance Agency S.A. Greece 10,000 100% 5,789 100 100 Pancreta Factors S.A. Greece 12,000,000 100% 6,592 6,000 6,377 Pancreta Renewables S.A. Greece 250 98% (29) 122 0 Investment in subsidiaries 6,222 16 . Investment in associates and joint ventures The companies of the Group, consolidated under the equity method are Zaitech Innovation Venture Capital Fund I and EOS Hellenic Renaissance Fund II (“EHRF II”). The Bank and the New Economy Development Fund (TA.NE.O) are main unit holders of Zaitech I while the Bank holds a 0.46% participating interest in EOS Hellenic Renaissance Fund II. Taking into account the nature of the investments, control is exercised join tly by the unit holders. As a result, the Group’s investments are measured using the equity method of accounting (IAS 28). Zaitech Innovation Venture Capital Fund I Zaitech Innovation Venture Capital Fund I aims to invest in innovative capital companies that have a registered and effective head office in Greece, preferably in companies operating in the food, beverage, retail, organic, industrial, energy, telecommunica tion and IT sectors. The activities’ location of the company does not differ from its headquarters. The subsidiary, “Attica Ventures S.A.”, in which the Bank is a shareholder of 10%, has been appointed as the management company for the closed-end mutual fund Zaitech I. The acquisition cost for Bank’s investments in Zaitech Fund I as at 30.9.2024 amounted to €2,532 thousand. It is noted that the valuation of the venture capital fund holdings is carried out in accordance with the guidelines of the European Private Equity & Venture Capital Association – EVCA and the provisions of L. 4141/2013. A loss on the valuation of the companies of approximately €380 thousand has been recorded in the consolidated income statement for the period as a result of the above participation. EOS Hellenic Renaissance Fund II EOS Hellenic Renaissance Fund II aims to invest in financially sound SMEs and small mid -cap companies with high growth potential. EHRF II as a general growth fund will invest in all sectors, with 50% allocation to F&B and 50% to other sectors, namely logis tics and transportation, selective industrial, selective consumer and retail, digital and technology - fintech (in development stage). The fund is managed by EOS Capital Partners AIFM. The Bank's acquisition cost as at 30.9. 2024 in respect of the EOS Hellenic Renaissance Fund II ("EHRF II") amounted to Euro 6.4 thousand and relates to the first instalment of the Bank's total hold ing of €1 million. As of 30.9.2024, no investments have been made. The following table presents Attica Bank's investments in associates for both the current and comparative periods: 30.9.2024 Company Name (Amounts in thousand €) Country of Incorporation % Participation Acquisition Cost Zaitech Innovation Venture Capital Fund I Greece 50% 2,151 EOS HELLENIC RENAISSANCE FUND II Luxembourg 0% 6
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 41 31.12.2023 Company Name (Amounts in thousand €) Country of Incorporation % Participation Acquisition Cost Zaitech Innovation Venture Capital Fund I Greece 50% 2,531 17 . Intangible assets Intangible assets of the Group mainly comprise software programs, which as at 30.9.2024 amounted to €246.5 million compared to €59.4 million as at 31.12.2023. In the context of the merger, the Bank recognized goodwill of €126.7 million, core deposit i ntangible ("CDI") value of €44.5 million and customer relationship value of €2.2 million (Note 26). 18 . Tangible assets The Group’s items of property, plant and equipment are used by the Bank and Group companies either for operational or for managerial purposes. The net book value for these assets as at 30.9. 2024 amounted to €89.7 million compared to the amount o f €34.1 million as at 31.12. 2023 at the Group level mainly due to the incorporation of the assets of Pancreta Bank amounting to Euro 60.7 million. During the first nine months of 2024, real estate items were transferred to investment property and assets held for sale of €12,598 thousand. 19 . Assets held for sale Assets held for sale In the context of the initiatives recorded in the Business Plan 2022 -2025, the Group has initiated the process of selling a portfolio of properties that were either classified under the "Investment property" category or had been reclassified in the category "Investment property” within the nine month period of 2024 as they were no longer used by the Group for its operations. The fair value for 13 properties was revalu ed on the basis of binding offers, increasing their value by €5.4 million, which was recognized as income and included in "Other income / expenses". The Group has classified in its Assets Held -for-sale, investment properties which are immediately available for sale. Their disposal has been approved by the relevant governing bodies and is expected to be completed in stages over the next 12 months. In the nine month period of 2024, 7 properties of total value €5,917 million were sold for a consideration of €5,988 million. The gain on sale of €71 thousand was recognized as income and is included in the category "Other income / expenses". It should be noted that at 30.9.2024 a property item of fair value €750 thousand was transferred to investment property, as 12 months have passed since its classification as held for sale. The total value of properties held for sale as at 30.09.2024 amounts to €22.8 million. Loans and receivables from clients held for sale In accordance with the Shareholders' Agreement dated 18 July 2024 between the Hellenic Financial Stability Fund and Thrivest Holding Ltd (collectively, the "Shareholders"), the Bank has initiated the necessary steps to implement the specific provisions of the Agreement and the Shareholders' commitments for capital strengthening. The new credit institution resulting from the merger between Attica Bank and Pancreta Bank ("The New Bank") has been established for the purpose of implementing the business plan of the New Bank and to cover the additional capital needs that will arise from the inclusion of portfolios of non-performing loans of the two banks in the HAPS III State Guarantee Programme.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 42 Following the approvals of the competent supervisory authorities, the Bank of Greece and the Competition Commission, as well as the Extraordinary General Meetings of Attica Bank and Pancreta Bank, and the subsequent decision of the Ministry of Development and its publication in the GEMI, the legal merger was completed with the absorption of Pancreta Bank by Attica Bank on 3.9.2024. Prior to this, an application was submitted for the inclusion of portfolios of non -performing loans of total book value €3.6 billion (Domus & Rhodium), as well as for the inclusion of the senior notes of the securitization in the "HAPS III" State Guarantee Programme of a total value of €1.1 billion. On 12.11.2024, Attica Bank announced that it has signed a definitive agreement with a legal entity advised by Davidson Kempner Capital Management LP on disposal of 95% of the intermediate and low priority bonds of two securitizations secured by two portfolios of non -performing loans of a total gross book value of approximately Euro 3.6 billion. Attica Bank will retain 100% of the high-priority bonds, utilising the provisions of the Hercules III Credit Institutions Securitisation Guarantee Programme, and 5% of the intermediate and low-priority bonds. The transaction is implemented in the context of the Bank's strategy to reduce its non - performing exposures and the investment agreement signed between the shareholders on 18.7. 2024 and ratified by Law 5127/2024. The total income for Attica Bank reflects the senior notes and the premium for the mezzanine and junior , representing approximately 35% of the total gross book value of the Domus and Rhodium portfolios. Following the completion of the transaction, Attica Bank is expected to have an NPE ratio below 3%. The transaction is expected to be completed in Q4 2024, subject to necessary approvals. Following the above and in the context of the application of IFRS 5, the Bank has classified the portfolio of non-performing loans of a total book value of €3.6 billion as assets held for sale as at 30.9.2024. (Amounts in thousand €) Group Description 30.9.2024 Loans to individuals 718,858 Loans to corporate entities 2,698,384 Public sector 639 Net investment in finance lease 179,467 Loans and advances to customers (before impairment) 3,597,348 Expected Credit Losses (2,472,853) Loans and advances to customers (net of impairment) 1,124,495 20. Due to financial institutions (Amounts in thousand €) Group Description 30.9.2024 31.12.2023 Sight deposits 32,595 8,637 Liabilities to other credit institutions 73,749 0 Repurchase transactions (Repos) 85,391 0 Due to financial institutions 191,735 8,637 In the current period, liabilities to credit institutions amounted to €191.7 million marking a significant increase compared to 31.12.2023, which is due to the completion of temporary assignment transactions (Repos) from July 2024 (amounting to €46.2 million on 30.9.2024) and the inclusion of the funds of Pancreta Bank (Repos €39.2 million, Liabilities to the European Investment Bank of €73.7 million).
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 43 21. Due to customers (Amounts in thousand €) Group Description 30.9.2024 31.12.2023 Current accounts 194,283 44,526 Savings accounts 1,269,711 456,982 Term deposits 2,607,281 1,525,228 Blocked 63 5 Deposits of individuals 4,071,338 2,026,741 Sight deposits 753,677 292,555 Term deposits 526,215 343,828 Blocked 1,175 1,188 Deposits of corporations 1,281,066 637,570 Sight deposits 139,615 416,942 Term deposits 179,047 33,607 Public sector deposits 318,663 450,550 Sight deposits 30,163 23,415 Savings accounts 959 1,458 Other deposits 31,123 24,874 Other due to customers 28,340 6,450 Due to customers 5,730,530 3,146,184 22 . Debt securities in issue Issues guaranteed by the Greek State (Law 3723/2008) According to the provisions of article 80 of Law 4484/2017, on 21 December 2018, the Bank issued a subordinated bond (TIER II) for the repayment of preference shares of the Greek State amounting to € 100,199,999.90. Based on the terms of the "Redemption and Coverage Agreement" between the Bank and the Greek State, the capital instruments of Category 2 have a maturity of ten years (until 20 December 2028) and pay a fixed nominal rate of 6.41%. On 21 December 2018 the share capital of the Bank decreased by €100,199,999.90 with the cancellation of 286,285,714 preference shares issued under Law 3723 /2008 and since that date the Greek State does not hold any preference shares of the bank. On 30 September 2024, the aforementioned capital assets amounted to €99.97 million, after the deduction of €0.21 million issuing costs. Subordinated Bond Loan At its meeting on 31.3. 2021, the Board of Directors of Pancreta Bank, in accordance with the provisions of Law 4548/2018, Law 3156/2003 and Regulation EU 575/2013 of the European Parliament and the Council as of 26 July 2013, decided to issue and offer through private placement a subordinated common bond loan with a total nominal value of up to €23.5 million. The loan will have a 7-year maturity from the date of issue and an interest rate of 6%. In this context, 235 single -copy common bonds of nominal value and an issue price of €100,000 each were issued. Only those who met the criteria for qualification as a professional client, as set out in Law 4514/2018, were eligible to participate. The bondholders are not entitled to early redemption of the bonds. The Bank has the right to redeem the bonds early after a period of five years. Prior to the expiry of five years, the Bank may only redeem the bonds in accordance with Article 78, paragraph 4 of Regulation (EU) 575/2013. This requires the prior approval of the Bank of Greece and is subject to the following conditions: a) there is a change in the regulatory classification of these instruments, which would entail their exclusion, possibly from equity or reclassification to lower quality equity, or b ) there is a significant change in the applicable tax treatment of such instruments which the institution demonstrates to the competent authorities and which could not reasonably have been foreseen at the time of their issue. As at 30 September 2024, the outstanding balance of the subordinated bond loan stands at €23.5 million.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 44 Issue of Convertible Subordinated Notes 2015 The Extraordinary General Meeting of Pancreta Bank (then operating as a cooperative) held on 19/11/2015 decided to issue subordinated bonds in accordance with Regulation (EU) No. 575/2013 of the European Parliament and Council of 26 June 2013 on prudential supervision requirements for credit institutions and investment entities. This amendment to Regulation (EU) No. 648/2012 is made in accordance with the provisions of Law 1667/1986 and 3864/2010, as amended by Law 4340/2015. The bonds are convertible into voluntary cooperative units and the amount that can be raised is Euro 30 million. The maturity of the bonds is unlimited and the annual interest rate is 6% to 9% gross. The purpose of the issue was to strengthen Pancreta Bank's capital adequacy ratio and provide liquidity coverage in accordance with Regulation 575/2013. The funds raised were intended for inclusion in the category of Additional Tier 1. These instruments, defined by the Bank of Greece in accordance with Law 4261/2014 and Article 92 of Regulation 575/2013, represent Additional Tier I Capital for Pancreta Bank. On 21.11.2015, the Board of Directors of Pancreta Bank decided to issue bonds (under articles 52 -54 of Regulation 575/2013) convertible into optional cooperative units of up to €30 million through issuing 300 nominal bonds convertible into cooperative units, of nominal value of Euro 100 thousand each, with an unlimited maturity and an annual interest rate of 8%. Following the decision of the Board of Directors on 18/12/2015, coverage was established for the amount of €15.1 million and it was decided to issue 151 bonds. Furthermore, it was decided to issue tranche B bonds for the amount of €14.9 million with the same characteristics, which was neither covered nor implemented. The bonds were issued on 21.12. 2015. Based on the prospectus: (a) The maturity of the bonds was set to be indefinite, with an interest payment period of six months based on a 365-day year. (b) Interest will be paid to bondholders on the last day of each accrual period, with interest accrued annually. The first interest payment will be made twelve (12) months after the date of issuance, with subsequent interest payments on each annual anniversary following the date of issuance. (c) The annual nominal interest rate will be 8% gross, fixed for the entire term, and (d) The Bank reserves the right, at its sole discretion, to cancel at any time the payment of interest and the payment of the relevant coupon for an unlimited period of time and on a non -cumulative basis without this constituting a default. Furthermore, each b ond entitles the bondholder to convert it into cooperative voting shares with voting rights, in accordance with the proportion of votes set out in the Bank's Articles of Association. The option to convert will be available every six months, starting from the date of issuance of the bonds. Alternatively, conversion will be mandatory in the event of a viability event or capital emergency event. A capital emergency event event is defined as a situation where the Bank of Greece determines that conversion of all or part of the bonds into shares is necessary for the viability of the Bank. A capital emergency event occurs in the following cases: a) if there is a reduction in the capital adequacy ratio below the specified minimum acceptable limits or b) if there is a reduction in the CET1 common equity capital ratio below 5.125% or the minimum limit as defined by the Bank of Greece. Issue of Subordinated Notes 2018 On 30.6. 2018, the General Meeting of the shareholders of Pancreta Bank (in its then legal form as a Cooperative) decided to issue registered subordinated bonds (in accordance with Regulation (EU) No. In accordance with Regulation (EU) No 575/2013 of the European Parliament and the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, the Bank may issue bonds up to the amount of Euro 30 million and with a maturity of up to 7 years, with an annual interest rate of up to 7% gross. The objective of the issuance was to reinforce the Bank's core capital and, in particular, the Tier 2 capital ratio, as defined by the Bank of Greece in accord ance with Law 4261/2014 and Articles 63 and 92 of Regulation 575/2013, as amended. At its meeting on 08.11. 2018, the Board of Directors of Pancreta Bank decided to issue 150 nominal bonds of nominal value €100 thousand euros and a total amount of 15 euros. The offering price of each bond was set at €100,000, with a minimum participation amount of one bond, equating to €100,000. The annual nominal interest rate was set at 6.5% gross, fixed for the entire term of the loan. The above issue was partially covered up to the amount of €9.4 million, resulting in the issuance of 94 bonds on 21.12.2018 ("Issue Date"). The main terms of the bonds are summarized below in accordance with the terms set out in the prospectus: (a) The loan term is seven years from the date of issue, with interest paid annually based on a 365 -day year.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 45 (b) Interest will be paid to bondholders on an accrual basis per annum on the last day of each accrual period. The first interest payment will be made twelve (12) months after the date of issuance, with subsequent interest payments on each annual anniversary following the date of issue. (c) The annual nominal interest rate will be 6.5% gross, fixed for the entire term of the bonds. (d) The repayment of the principal of each bond to the beneficiary will be made at maturity, i.e. seven (7) years after the date of issue e) After five (5) years from the date of issue of the bonds, the Bank will have the option to prepay the principal of the bonds without charge upon prior written notification to the bond holder, after obtaining the relevant permission of the Bank of Greece and only if the conditions of Article 78 of Regulation 575/2013 are met. The Bank may also prepay the principal of the bonds free of charge before the five -year period has elapsed, provided that the conditions set out in Article 78(5) of the Regulation are met. 4 of Regulation 575/2013, and (f) the beneficiaries are not entitled to request early redemption of the bond except in the event of the Bank's liquidation or insolvency proceedings. (Amounts in thousand €) Group 30.9.2024 31.12.2023 Description Average Interest Rate Carrying Value Average Interest Rate Carrying Value Subordinated Bond (LOWER TIER II) 6.41% 99,977 6.41% 99,938 Subordinated Bond issued 2015 (renewal 2021) (TIER II) 6.00% 23,500 0 Convertible Bond to shares issued 2015 (TIER I) 8.00% 15,100 0 Subordinated Bond issued 2018 (TIER II) 6.50% 9,400 0 Debt securities in issue 147,977 99,938 23 . Equity (Amounts in thousand €) Group Description 30.9.2024 31.12.2023 Paid up (common shares) 2,653 2,501 Share Capital 2,653 2,501 Share Premium 896,112 687,652 Reserves 1,200,467 884,390 Retained Earnings / (Losses) (1,981,634) (1,128,105) Total Equity 117,598 446,438 Share Capital The Extraordinary General Meeting of shareholders held on 30.12.2022 decided to increase the share capital of the Bank by the amount of €1,753,136.55, through issuing 35,062,731 new common nominal shares of nominal value €0.05 each, with pre-emption right in favor of the existing shareholders of the Bank. The balance between the nominal value of the New Shares and their disposal price, i.e. a total of €471,593,731.95 will be credited to the Bank's equity account "Share Premium". Following the above, the total share capital of the Bank amounts to €2,251,696.05 and is divided into 45,033,921 ordinary, nominal shares of nominal value five cents (€0.05) each. Timely and complete payment of the total amount of the Share Capital Increase was performed in accordance with the provisions of article 20 of Law 4548/2018 and completed on 26.4.2023 and was verified by the Bank's Board of Directors. On 08.11.2023, the Board of Directors decided to capitalize the special reserve amounting to €63,944,501,88 formed in accordance with of the provisions of Article 27A of Law. 4172/2013 and the Act of the Council of Ministers as of 28/6.7.2021, and the incr ease of the Bank's share capital by a nominal value of €249,012.80 by issuing 4,980,256 common shares of nominal value €0.05 each. The positive difference between the amount from the special reserve corresponding to the registered securities, i.e. the amou nt of the redemption value of the securities (as calculated in accordance with par. 2 of Article 27A of Law No. 4172/2013 and Article
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 46 5(1) of the PSA) and the nominal value of the new shares, i.e. a total amount of €63,695,489.08, was credited, in accordance with Article 5(6) of the ACM, to the Bank's equity account "Share premium". The Extraordinary General Meeting of Shareholders, held on 3 September 2024, approved an increase in the Bank's share capital of €95,105,431.00. This was due to the contribution o f the share capital of "PAGRETA BANK S.A." to the Bank, in accordance with Article 16 of Law 2515/1997, with a simultaneous reduction of the Bank's share capital by the amount of €125,346.05. This is due to the cancellation of 2,506,921 shares of the Bank's shares held by of "PAGRETAN BANK S.A.". Following the completion of the merger, the Bank's share capital will amount to €2,653,219.35, divided into 53,064,387 common nominal shares of nominal value of Euro 0.05 each, and the difference between the above amount corresponding to the Bank's share capital after the Merger and the sum of the share capital of the merged companies, amounting to €94,827,574.45, to be transferred to the special reserve under Article 1 of Law 5127 /2024. Following the above, the total share capital of the Bank amounts to two million six hundred and fifty -three thousand two hundred and nineteen Euro and thirty -five cents ( €2,653,219.35) and is divided into fifty -three million sixty four thousand three hundred and eighty seven (53,064,387) common, registered shares of nominal value five cents (€0.05) each. Treasury Shares The Bank held no treasury shares as at 30.9.2024.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 47 24 . Related party transactions (Amounts in thousand €) Group Transactions with related companies 30.9.2024 31.12.2023 Receivables 114,584 51,781 Liabilities 53,996 25,149 Off Balance sheet items 27,753 37,405 1.1 - 1.1 - 30.9.2024 30.9.2023 Income 3,488 727 Expenses 771 698 Transactions with Members of the Management 30.9.2024 31.12.2023 Receivables (Loans) 711 78 Liabilities (Deposits) 1,475 483 1.1 - 1.1 - 30.9.2024 30.9.2024 Income 21 1 Expense 5 2 Salaries and wages 2,013 2,129 Directors' fees 759 552 Total fees of Members of Management 2,772 2,681 Transactions with related parties include: (a) the entity having control over the Bank, i.e. the Hellenic Financial Stability Fund (HFSF), Thrivest Holding LTD, Fund of Engineers and Public Works Contractors (T.M.E.D.E.) and the National Electronic Social Security Agency (e-EFKA) and the financial entities controlled, jointly controlled or significantly influenced by this entity, as well as the key members of this Management and their close relatives (b) the entity having significant influence over the Bank and the financial entities controlled by that entity (c) the key members of the Bank's Management, the members of the Executive Committee, the members of the Audit Committee, the members of the Assets-Liabilities Management Committee as well as their close relatives, and the entities controlled or jointly controlled by the aforementioned persons (d) the Bank's associates and joint ventures (Note 16), and (e) the subsidiaries (Note 15). Transactions of a similar nature are presented on a consolidated basis. All banking transactions carried out with related parties are within the normal scope of business and are conducted at arm’s length, i.e. a) were granted in the course of usual business operations b) were carried under the same terms, including interest rates and collateral, as similar loans granted to third parties in the same period, and c) do not involve a higher than normal degree of credit risk or other unfavorable factors. It is noted that transactions with members of the Board include the transaction balances of the BoD members until the end of their term of office. In particular, the change in salaries and wages of the members of the Management in the closing period versus the comparative period mainly arose from the compensation paid to the resigning members of the Management.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 48 25. Contingent liabilities and commitments 25.1 Off balance sheet liabilities and pledged assets (Amounts in thousand €) Group Description 30.9.2024 31.12.2023 Contingent Liabilities Letters of Guarantee 743,697 513,737 Letters of Credit 0 1,048 Total Contingent Liabilities 743,697 514,786 Undrawn Credit Limits - Up to 1 year maturity 510,615 290,133 - Over 1 year maturity 85,056 25,914 Total Undrawn Credit Limits 595,671 316,047 Total off-balance sheet liabilities and pledged assets 1,339,368 830,833 25.2 Tax obligations Pursuant to the provisions of Article 65 A of Law 4174/2013 from 2011 the statutory auditors and auditing firms that conduct statutory audits in Société Anonyme are required to issue an annual tax certificate on the application of tax provisions to tax items. The certificate is submitted to the company under audit till the submission of its tax returns, at the latest within the first 10 days of the tenth month of the end of the year under audit and electronically to the Ministry of Finance not later than the end of the tenth month of the end of the period under audit. Pursuant to article 56 of Law 4410/ 03.8.2016, in respect of the fiscal years starting as of 1.1.2016 and onwards, the issuance of a tax certificate is optional. However, the Bank intends to continue receiving the tax certificate. The fiscal years up to 31.12.2017 are considered to be tax-deferred. As far as the fiscal year 2023 is concerned, the Bank has received an unqualified conclusion tax compliance certificate as to the audited tax objects. In accordance with the instructions for filing 2023 tax returns, the Group reversed a provision for tax purposes of €1.7 million, crediting the income statement. 25.3 Legal cases The Group records all the litigations filed by third parties against it and examines the possible outcome in cooperation with the Legal Department. When a negative outcome is probable and can be reliably estimated, the Group makes a provision recorded in t he balance sheet account “Provisions for litigious cases” . For the period ended 30.9.2024, based on the Legal Department’s assessment, the estimated amount for the Group’s present obligations arising from cases under litigation is €5,468 thousand (31.12.2023: €5,901 thousand ). 25.4 Other provisions As at 30.9.2024 , the amount of expected credit losses from off b alance sheet items amounts to €19,050 thousand (31.12.2023: €12,752 thousand).
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 49 26 .Merger through absorption of Pancreta Bank by Attica Bank and acquisition costs allocation The approval of the merger with the absorption of Pancreta Bank ("absorbed") by Attica Bank was published in the GEMI on 4 September 2024. The Merger was initiated by a decision of the Boards of Directors of the two banks on 26 July 2024, following the agreement reached on 18 July 2024 between the Hellenic Financial Stability Fund ("HFSF") and Thrivest Holding Ltd ("Thrivest" and jointly refe rred to as the "Shareholders"), in respect of the merger through absorption of Pancreta Bank by Attica Bank in exchange for shares of Attica Bank, and further investment of the Shareholders (the "Investment") in the share capital of the credit institution that would arise following the Merger. The merger between Attica Bank and Pancreta Bank is designed to enhance competition in the financial sector by offering customers a genuine alternative with innovative products, competitive pricing and fair commissions. At the heart of our banking proposition is a commitment to meeting the needs of our customers. The exchange ratio (the "Exchange Ratio") was calculated in accordance with the relative value of the merging entities and was allocated at a ratio of 90% for Attica Bank and 10% for Pancreta Bank, following an analysis and recommendation of the internatio nal independent financial institution UBS, which acted as financial advisor to Attica Bank for the purposes of the Merger. Therefore, the fair and reasonable Exchange Ratio for the shares of Pancreta Bank was proposed to be 0.0292156343836978 new common registered shares of Attica Bank for each one (1) common registered share of Pancreta Bank, with the shareholders of Attica B ank retaining after the Merger the same number of shares they held prior to the Merger. Consequently, the participation ratio of the shareholders of the merging credit institutions in the new share capital of the merged bank, after taking into account the cancellation of the shares held by Pancreta Bank in Attica Bank, amounts to 89.5275695920128% for the shareholders of Attica Bank and 10.4724304079872% for the shareholders of Pancreta Bank. In order to carry out a valuation of the book values of the assets of the two banks and the determination of the fair and equitable consideration and the preparation of a relevant valuation report (fairness opinion), two independent auditing companies were appointed, in accordance with article 10 of Law 4601/2019 and article 6 par. 1 of Law 4601/2019. 5 of Greek Law 2515/1997. According to these reports dated 26 July 2024, the Exchange Ratio proposed by the Boards of Directors of the merging banks falls within the range of the value ratio resulting from the valuations carried out (based on the dividend discount model was considered the most appropriate valuation method) and is therefore fair and reasonable from an economic point of view. The Merger was carried out in accordance with the provisions of the Bank of Greece: (a) the provisions of articles 6-21, 30-34 of Law 4601/2019, (b) the provisions of article 16 of Law 4548/2018 and (d) the provisions of Law 5127/2024 under which the Share holders' Agreement was ratified. In accordance with the above, the Merger was effected by means of an accounting consolidation of the assets and liabilities of the merging entities. As a result of the Merger, 5,557,131 new common registered shares with voting rights and nominal value of €0.05 each were issued. The new total share capital of Attica Bank, after the cancellation of 2,506,921 shares of Attica Bank held by Pancreta Bank, stands at €2,653,219.35, divided into 53,064,387 new common registered shares with voting rights, of nominal value €0.05 each, divided into 47,507,256 shares for Attica Bank shareholders and 5,557,131 shares for former shareholders of Pancreta Bank. The Merger was accounted for using the acquisition method under IFRS 3, whereby the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values at the closing dates. The excess of the purchase price over the fair value of the identifiable net assets acquired has been allocated to goodwill (Note 3).
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 50 The purchase consideration transferred for the acquisition of Pancreta Bank through the Merger represents the fair value of the shares issued by Attica Bank. In determining the fair value of the shares issued, the market capitalization method was not taken into account in the valuation of the bank due to the low trading volume of the company's shares and the low level of free shares for trading, but the estimat ed fair value of Attica Bank just before the Merger as calculated in accordance with the fairness opinion was considered to be more representative. This value was determined to be €263,700 thousand and the fair value per share stands at €5.55. Therefore the fair value of the purchase price amounts to €30,846 thousand. The fair value of the assets and liabilities recognized as a result of the Merger and the arising goodwill were as follows: Statement of Financial Position (Amounts in thousand €) Goodwill 126,676 Assets 3.9.2024 Fair value adjustments 3.9.2024 after adjustments Cash and balances with Central Bank 70,126 70,126 Due from other financial institutions 125,119 125,119 Investments in subsidiaries 0 0 Financial assets measured at fair value through profit or loss 39,233 39,233 Financial assets measured at fair value through other comprehensive income (FVOCI) 21,108 (7,890) 13,218 Investment securities at amortized cost 451,452 451,452 Loans and receivables from customers (before provisions) 2,718,754 2,718,754 Less: Provisions (533,662) (410,785) (944,446) Tangible assets 40,772 40,772 Investment property 43,057 43,057 Intangible assets 10,723 10,723 Right of use assets IFRS 16 21,128 (1,127) 20,002 Deferred tax assets 7,795 90,373 98,167 Other assets 41,257 41,257 Auction assets 21,300 21,300 Intangible assets (CDI - Customer relations) 46,700 46,700 Total Assets 3,078,162 (282,729) 2,795,433 Liabilities Due to financial institutions 144,362 144,362 Due to customers 2,628,448 2,628,448 Debt securities in issue 48,000 48,000 Defined benefit obligations 2,054 2,054 Lease liabilities IFRS 16 22,595 (2,593) 20,002 Other liabilities 38,124 38,124 Deferred tax liability 10,274 10,274 Total Liabilities 2,883,582 7,681 2,891,263
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 51 Equity Share capital (common shares) 95,105 Share Premium 208,460 Reserves 72,394 Retained earnings (181,380) Total Equity 194,580 (290,409) (95,830) Total Liabilities and Equity 3,078,162 (282,729) 2,795,433 The arising goodwill is attributed to the synergies resulting from the merger of the two banks and the trained workforce. The income statement for the year has reflected the activity of the absorbed entity for the period 4.9.2024 - 30.9.2024. 27 . Reclassification of items The Group reclassified investment securities per portfolio in order to present the investments in a more detailed manner in the financial statements of the Bank and the Group. The publicized and reclassified statements as at 31 December 2023 are as follows: Investment securities measured at fair value through profit or loss Group 31.12.2023 (Amounts in thousand €) Published figures Reclassification Amounts after reclassification Government Bonds 139,575 (24) 139,551 Corporate Bonds 747 24 771 Investment securities measured at amortized cost Group 31.12.2023 (Amounts in thousand €) Published figures Reclassification Amounts after reclassification Foreign Government Bonds 24,609 6,035 30,644 Greek Government Bonds 150,601 (105) 150,496 Corporate Bonds 134,386 (5,930) 128,456 Investment securities measured at fair value through other comprehensive income (FVOCI) Group 31.12.2023 (Amounts in thousand €) Published figures Reclassification Amounts after reclassification Greek Government Bonds 112,849 412 113,261 Foreign Government Bonds 31,228 96 31,324 Corporate Bonds 33,365 (508) 32,857
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 52 28 . Events after 3 0 September 2024 Shareholders' Investment Agreement Following the decisions of the Extraordinary General Meeting of 25.09.2024 in the context of the Share Capital Increase (AMK), on 14.10.2024, the Bank announced the detailed terms of the SCI. At the same time, on the same date, the Athens Exchange approved admission for listing on the Stock Exchange of 530,644 new common registered shares of the Bank, of nominal value € 0.05 each, replacing the existing 53 ,064,387 common registered shares and was informed about the reduction of the nominal value of the common registered shares with voting rights from €5.00 to €0.05 per share with a corresponding reduction of the share capital by €2,626,687.80, to ensure the formation of a special purpose reserve, according to article 31 par. 2, Law 4548/2018. The last day of trading of the 53,064,387 common registered shares with voting rights of the Bank on the Stock Exchange was set as 15.10. 2024. As of the next business day, 16.10. 2024, listing of the Bank's shares was temporarily suspended. The beneficiaries of the new shares are those registered in the records of the Dematerialized Securities System as holders of the shares on 17.10.2024 (Record Date). Listing of 530,644 new common registered shares with voting rights of the new nominal value of €0.05 per share started on 21.10.2024. At the same time, in the context of discussions with institutional investors who had expressed interest in participating in the current share capital increase of the Bank, Attica Bank received and accepted a commitment from Fiera Capital (UK) Limited for its participation in the Share Capital Increase at an amount of Euro 12 million, through the allocation of a corresponding number of unissued shares. On 06.11.2024, Attica Bank announced the full coverage of the Share Capital Increase of €672,207,703.20. In particular, 86.94% of the Share Capital Increase was covered by existing shareholders who exercised their pre-emption rights by paying a total amount of €584,412,295.28 which corresponds to 312,519,944 New Shares. The same number of Warrants was acquired by existing shareholders who exercised their pre-emption rights. Of the above New Shares: (a) 239,759,595 New Shares were covered by the Hellenic Financial Stability Fund, (b) 31,320,557 New Shares were covered by Thrivest Holding Ltd, (c) 25,619. 382 New Shares were covered by e-EFKA (e-National Social Security Fund) , (d) 5,868,497 New Shares were covered by TMEDE (Engineers and Public Works Contractors Fund) , and (e) 9,951,913 New Shares were covered by the other existing shareholders of the Bank. After the exercise of the pre -emption rights, 46,949,416 New Shares and an equal number of Warrants remained unallocated. The unallocated New Shares and the unallocated Warrants were allocated by the Board of Directors of the Ba nk pursuant to its decision of 5.11.2024, taking into account the provisions of Law 5127/2024, as follows: (a) 5,866,829 New Shares were allocated to the HFSF, (b) 34,665,475 New Shares were allocated to Thrivest, and (c) the remaining 6,417,112 unallocated New Shares were allocated to investment funds managed by Fiera Capital (UK) Limited. Correspondingly, together with unallocated New Shares, an equal number of Warrants were allocated to the above mentioned. Following the above, the Bank's share capital will be increased by €17,973,468 through the issue of 359,469,360 new common nominal shares with voting rights, of nominal value €0.05 each. The difference between the nominal value of the new shares and their issue price, i.e. a total of €654,234,235.20, will be credited to the Bank's equity account "Share premium". On 13.11. 2024, the New Shares were listed on the Main Market of the Athens Stock Exchange. The Bank's shareholder composition was as follows: Shareholders Share capital percentage Hellenic Financial Stability Fund 68.33% THRIVEST HOLDING LTD 18.34 % e-ΕΦΚΑ 7.13% Other Shareholders (<5%) 6.20% TOTAL 100%
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 53 On 08.11. 2024, Attica Bank notified the investment community that pursuant to the decision of the Extraordinary General Meeting of the Bank's shareholders dated 25 September 2024 and the decision of the Bank's Board of Directors dated 8 November 2024, the 359,469,360 Warrants of the Bank were issued and at the same time the special terms and procedure for the exercise of the share purchase titles were announced. On 28 November 2024, the exercise deadline for the 359,469,360 Warrants of the Bank expired and the Bank informed the investment community that during the exercise period of the Warrants, a total of 359,427,364 Warrants were exercised, corresponding to 1,257,995,354 new common registered shares of the Ba nk, with a nominal value of € 0.05 each. Warrants that were not exercised by their beneficiaries during their exercise period ceased to be valid and to grant any rights to their holders. The Hellenic Financial Stability Fund (HFSF) and Thrivest Holding Ltd ("Thrivest") exercised all the Warrants they held. Specifically, the HFSF exercised 90,452,943 Warrants, including 25,619,382 Warrants acquired by transfer from EFKA, paying to the Bank an amount of €15,829,265 for the exercise thereof. Thrivest exercised 246,778,895 Warrants, including 180,792,863 Warrants acquired by transfer from the Hellenic Financial Stability Fund, pursuant to the terms of the Merger and Investment Agreement ratified by article 1 of Law 5127/2024, paying to the Bank for the exercise thereof an amount of €43,186,306.60. Following the above, the Bank's share capital was increased by €62,899,767.70 and the Bank raised an equal amount through the exercise of the Share Purchase Titles. The Bank's share capital, following the issue of the New Shares, amounts to €80,899,767.90, divided into 1,617,995,358 common registered shares of the Bank, of nominal value €0.05 each. Following an adjustment of the capital article of the Bank's Articles of Association by the Board of Directors, in accordance with the provisions of article 58 o f Law 4548/2018, the New Shares were admitted to trading on the Main Market of the Athens Exchange on December 4, 2024. Following the above, the Bank's shareholding structure was as follows: Shareholders Share capital percentage THRIVEST HOLDING LTD 57.46% Hellenic Financial Stability Fund 34.77% Other Shareholders (<5%) 7.77% TOTAL 100% Finally, following the transfer of shares, which took place on 06.12.2024 between Thrivest, HFSF and e- EFKA, the shareholder composition of the Bank is as follows: Shareholders Share capital percentage THRIVEST HOLDING LTD 54.56% Hellenic Financial Stability Fund 36.16% Other Shareholders (<5%) 9.28% TOTAL 100% Domus & Rhodium Portfolio Management On 12.11.2024, Attica Bank announced that it has signed a definitive agreement with a legal entity advised by Davidson Kempner Capital Management LP on disposal of 95% of the mezzanine and junior notes of two securitizations secured by two portfolios of non-performing loans of a total gross book value of approximately Euro 3.6 billion. Attica Bank will retain 100% of the high -priority bonds, utilising the provisions of the HAPS III State Guarantee Programme, and 5% of the mezzanine and junior notes . The transaction is implemented in the context of the Bank's strategy to reduce its non -performing exposures and the investment agreement signed between the shareholders on 18.7.2024 and ratified by Law 5127/2024.
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Condensed Interim Financial Information for the period ended on 30th September 2024 Amounts are presented in thousand euros, unless otherwise stated 54 The total income for Attica Bank reflects the senior notes and the premium for the mezzanine and junior notes, representing approximately 35% of the total gross book value of the Domus and Rhodium portfolios. Following the completion of the transaction, Attica Bank is expected to have an NPE ratio below 3%. The transaction is expected to be completed in Q4 2024, subject to necessary approvals. Conversion of AT1 of former Pancreta Bank On 09.12.2024, Attica Bank announced that during the submission of the regulatory capital adequacy report with a reference date of 30/9/2024 to the Bank of Greece in accordance with the provisions of Law 4261/2014, it was established that the Bank's Common Equity T ier 1 Capital Ratio (CET 1) fell below 5.125%. Consequently, 151 bonds of nominal value of €100,000 each, issued as additional capital instruments of Tier 1, pursuant to articles 52-54 of Regulation (EU) 575/2013, by PANCRETA BANK under its previous legal form as a credit cooperative), were mandatorily converted, which the Bank has substituted automatically and fully and through the merger with absorp tion by the Bank, completed on 4.9. 2024. As a result of the mandatory conversion of the Convertible Bonds, the Bank's share capital increased by €852.45, through the issue of 17,049 new common registered shares of the Bank with voting rights, of nominal value of €0.05 each (the "New Shares"), in favour of the beneficiaries of the Convertible Bonds. The New Shares will be delivered to their holders by crediting their securities accounts in the Dematerialized Securities System. The share capital of the Bank, following the issue of the New Shares, amounts to €80,900,620.35, divided into 1,618,012,407 common registered shares of nominal value of €0.05 each. Following an adjustment of the article of the Bank's Articles of Association by the Board of Directors, in accordance with the provisions of Article 71 par. 4 of Law 4548/2018, the New Shares will be listed for trading on the Main Market of the Athens Exchange. For completeness reasons, it is clarified that the Bank's Common Equity Tier 1 Capital Index (CET 1), which was affected due to loss measurement in view of the securitization of the Bank's non -performing loan (NP L) portfolios under the HAPS III State Guarantee Programme, has been fully restored, following the successful completion of the Bank's recent capital operations (cash share capital increase and share capital increase following the exercise of Warrants). Completion of the first Synthetic Securitization of €220 million portfolio of SME and Large Entities Loans On 12.12.2024, the Bank successfully completed the synthetic securitization of a portfolio of large corporate and SME performing loans of approximately €220 million through the direct issuance of Credit Linked Notes ("CLN") and the sale of the medium senior notes to a legal entity advised by Davidson Kempner Capital Management LP, marking the first Synthetic Securitization in the Greek Capital Market through the direct issuance of the notes by the Credit Institution itself. The transaction has been structured in such a way that it achieves a Significant Risk Transfer ("SRT") and meets the criteria to qualify as a Simple, Transparent and Standardized Transaction ("STS") in order to achieve further mitigation of its Risk Weighted Assets ("RWA"). This reduction is expected to amount to approximately €150 million, thereby strengthening the Bank's capital position by approximately 50 basis points, subject to all the necessary supervisory and regulatory approvals. This first synthetic securitization of the Bank has attracted significant investor interest, confirming the market's confidence in the Bank's strategic plan. This transaction also provides the Bank with an additional effective capital management instrument, while aligning with its business plan to provide new financing and further support the growth of the Greek economy. Changes in the composition of the Board of Directors On 9.12. 2024, the Bank announced that at its meeting held on 6 December 2024 , its Board of Directors accepted the resignation of the Executive Director and Executive Member of the Board of Directors, Mr. Antonios Vartholomeos, with effect from 20.12.2024.