The Hellenic Financial Stability Fund (HFSF) announces the issuance of its interim
Financial Statements for the three month period ended March 31, 2015.
The key points of the interim financial statements are:
A. The Fund’s financial performance
- Interest income: During the 3 month period ended March 31, 2015 the interest
income amounted to € 9.3m versus € 18.9m in the respective period of 2014.
The decrease in interest income was due to the re-delivery of the EFSF Notes on
27/02/2015. The balance in 2015, except from the coupons of EFSF Notes,
includes the accrued proceeds from the cash management account with Bank
of Greece (BoG) amounted to € 258k. - Personnel expenses: During the 3 month period ended March 31, 2015 the
personnel expenses amounted to € 838k versus € 654k in the respective period
of 2014. The increase is due to the increase of the number of personnel. The
average number of employees for the 3 month period ended March 31, 2015
was 32, while during the respective period of 2014 was 23. - General administrative and other operating expenses: During the 3 month
period ended March 31, 2015 the operating expenses decreased to € 528k from
€ 797k in the respective period of 2014. - Result from financial instruments at fair value through profit or loss (FVTPL):
The result from financial instruments at FVTPL amounted to € 4,426m loss in
the 3 month period ended 31/03/2015 versus € 1,428m gain in the respective
period of 2014. The result in the first quarter of 2015 pertains to a) the
revaluation loss of the Fund’s shareholdings in the systemic banks and the sales
of shares due to the exercise of warrants (Q1 2015: € 5,058m loss versus Q1
2014: € 2,503m gain) and b) the revaluation gain of the warrants (Q1 2015:
€ 632m gain versus Q1 2014: € 1,075m loss). - One-off expense: The one-off expense relates to the pre-subscription fee amounted to € 555.6m, which was paid in December 2012 by the systemic banks that have received capital support from HFSF. On 19/03/2015, according to the article 35 L. 4320/2015, HFSF contributed this amount to the Hellenic Republic and the relevant accruals amounted to € 555.9m in total.
- Cash and balances with banks: As of March 31, 2015 the account amounted to
€ 344m versus € 670m as of December 31, 2014. The movement of the balance in the 3 month period ended March 31, 2015 pertains to inflows of € 231m and
outflows € 557m. Pursuant to the provisions of par. 4 art.3 of L.3864/2010, as
amended by the art. 35 L.4320/2015, the Fund was obliged to place 90% of its
available cash amounting to €309.4m in a cash management account with BoG. - Investment securities: Following a ministerial decision of 26/02/2015 (FEK B’ 292/26.02.2015) and in accordance with the Master Financial Assistance Facility Agreement signed on 15/03/2012 as amended and in alignment with the Eurogroup statement of 20/02/2015, the HFSF proceeded with the re-delivery of the EFSF Notes, with nominal value of € 10.9bn to the EFSF on 27/02/2015.
- Financial assets at fair value through profit or loss: As of March 31, 2015 the
market value of the Fund’s equity portfolio of the four systemic banks’
amounted to € 6.6bn versus € 11.6bn as of December 31, 2014. This has been
increased to € 7.5bn in June 26, 2015. - Receivables from banks under liquidation: As of March 31, 2015 receivables
amounted to € 2,334m. - Capital: Following the re-delivery of the EFSF Notes on 27/2/2015, the HFSF
proceeded with the reduction of its paid in capital by the amount of € 10.9bn.
As of March 31, 2015 HFSF’s capital amounted to € 38.8bn.
B. Significant events in 2015 per systemic bank
Alpha Bank:
- In February 2015 the HFSF provided its consent to Alpha’s BoD to proceed
with the merge by absorption of Diners Club of Greece with the Bank, which
was completed in June 2015. - In June 2015 Alpha’s fourth warrants exercise took place. There were 13,800
warrants exercised and 102,239 shares exchanged and the Fund received
€49,034. Following the exercise the HFSF shareholding in Alpha remained at
66.2%.
Eurobank:
- In February 2015 the HFSF provided its consent to Eurobank’s BoD to proceed with management changes following the resignations of the President of the BoD, Mr. Panagiotis Thomopoulos and the CEO, Mr. Christos Megalou. The Board decided to elect Mr. Nikolaos Karamouzis as President and Mr. Fokion Karavias as CEO.
National Bank of Greece:
- In January 2015 the HFSF provided its consent to NBG to proceed with the
reverse merger of Pangaea REIC with MIG REIC. Pangaea REIC owns 96.94%
of the share capital and voting rights of MIG REIC. The proposed merger has
been proposed to take place in consolidating the assets and liabilities of the
above mentioned companies. - In March 2015 the HFSF provided its consent to NBG’s BoD to proceed with
management changes following the resignations of the Chairman of the BoD
Mr. Georgios Zanias and the CEO Mr. Alexandros Tourkolias. The BoD decided to elect Mrs. Louka Katseli as the Chairman of the BoD and
Mr. Leonidas Fragkiadakis as CEO.
Piraeus Bank:
- In April 2015 the BoG announced its decision, in the context of the
resolution procedure provided for in Law 4261/2014, to transfer the assets
and liabilities of Panellinia Bank to Piraeus, following an offer by the latter,
which had been authorized by HFSF. - In June 2015 the HFSF provided its consent to Piraeus to dispose its stake inPiraeus Bank Egypt, its Egyptian subsidiary, to Al Ahli Bank of Kuwait.
The full report of the Fund’s interim financial statement can be found at the
following link:
“Interim Financial Statements for the period ended 31 March 2015”