Following a recommendation of the Hellenic Capital Market Commission, Eurobank Ergasias SA (hereinafter «Bank») informs the investment community of the following:
a) According to the published consolidated financial statements of 31.3.2015 of the Bank, the Common Equity Tier 1 ratio (CET1) on the risk weighted assets of the Bank amounted to 14.2%, the Tier 1 ratio 1 (Tier 1) to 14.2%, and the capital adequacy ratio (CAD) to 14.5%. Currently the Bank is not in a position to estimate reliably the impact on its capital adequacy ratios from the imposed capital restrictions, which is one, amongst others, of the objectives of the upcoming Comprehensive Assessment (CA) carried out under the aegis of the European Central Bank (ECB). The said CA is expected to take into account the combined effect of i) an Asset Quality Review (AQR) – by reviewing the quality of Bank’s assets, including the adequacy of asset and collateral valuation and related provisions and ii) a Stress Test (ST) – to examine the resilience of the Bank’s balance sheet to stress test scenarios.
b) As of June 30, 2015, the Bank’s funding from the Eurosystem financing facilities was €32.7 bn. (31.3.2015: €29 bn.), out of which €22.9 bn. (31.3.2015: €19.9 bn.) involved funding from the ELA, as a result of deposit withdrawals and reduction of wholesale secured funding. It is noted that from 30.6.2015 until today these figures have not materially changed.
c) Currently the Bank is not in a position to estimate reliably the impact from the imposed capital restrictions on the level of the non-performing loans, which is expected to be assessed at the upcoming CA, based on the assumptions to be set by the competent authorities. In addition, the Bank is not currently in a position to provide reliable information regarding the level of the net deferred tax assets of 30.6.2015, since the preparation of the financial statements of 30.6.2015 is in progress. In this context, an exercise on the recoverability of the deferred tax is underway, based on updated business plans. However it is noted that, as stated in the Bank's published consolidated financial statements of 31.3.2015, 82.12% of the net deferred tax assets of 31.3.2015 (i.e. €3,225 mil. out of a total €3,927 mil.) refer to losses resulted from the Group’s participation in the PSI+ and the Greek’s state debt buyback program (€1,200 mil.), which are subject to thirty years amortization from year 2012 and onwards, as well as to temporary differences arising from loan impairment (€2,025 mil.), that can be utilized in future periods with no specified time limit.
d) The preparation of the CA has already initiated in cooperation with the competent supervisory authorities, which is expected to be completed by the end of 2015. Following its completion, the Bank will consider its next actions.
Finally, it is noted that the Bank will inform the investment community of any further significant developments regarding the above according to the law’s provisions.