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Alpha Bank

Alpha Bank A.E.
Αλφα Τράπεζα Α.Ε.
Anonymi Etairia
Traded asAthexALPHA
OTC Pink: ALBKY
IndustryFinancial services
Founded1879
Headquarters,
Number of locations
671 total branches(Q1 2017) (457 branches in Greece)
Key people
Vasileios Rapanos (Chairman)
Demetrios Mantzounis (CEO)
ProductsRetail
Investment
Corporate Banking
Asset Management
RevenueDecrease2.514 billion (2017)[1]
Increase1.293 billion (2017)[1]
Increase€89.50 million (2017)[1]
Total assetsIncrease€62.96 billion (Q2 2019)[1]
Total equityIncrease€9.626 billion (2017)[1]
OwnerHellenic Financial Stability Fund (11.00%)[2]
Number of employees
Decrease 11,358(Greece:8,208, Abroad:3,150) (Q3 2018)
SubsidiariesAlpha Bank Cyprus Ltd
Alpha Bank Romania
Alpha Bank Albania
Alpha Bank London
Alpha Insurance Ltd
Capital ratio16% (CET1 fully loaded Basel III)
Websitewww.alpha.gr

Alpha Bank is the second largest Greek bank by total assets, and the largest by market capitalization of 2.13 billion (as of December 4, 2018). It has a subsidiary and branch in London, England and subsidiaries in Albania, Cyprus and Romania. Founded in 1879, it has been controlled by the Costopoulos family since its inception.[citation needed] Currently Ioannis Costopoulos, grandson of original founder John F. Costopoulos, and nephew of Stavros Costopoulos, foreign minister in the government of Georgios Papandreou, is the honorary chairman.[citation needed] On January 16, 2015, Alpha Bank requested Emergency Liquidity Assistance (ELA) from the Bank of Greece.

History

John F. Costopoulos, Painting by Georgios Jakobides, 1919

In Greece

In 1879, John F. Costopoulos established a small commercial firm in the city of Kalamata. The banking department of the "J.F. Costopoulos" firm changed its name to Bank of Kalamata in 1918. The bank moved its headquarters to Athens and changed its name to Banque de Credit Commercial Hellenique in 1924, and on November 2, 1925, the bank was listed on the Athens Exchange.[3]

The bank changed its name to the Commercial Credit Bank (CCB) in 1947, and this name was changed to Credit Bank (Trapeza Pisteos) in 1972, and to Alpha Credit Bank (ACB) in 1994.

In 1999, ACB acquired 51% of the shares of the Ionian Popular Bank, and absorbed it in 2000. It also changed its name to name to Alpha Bank. An attempted merger between Alpha Bank and the National Bank of Greece fell through in 2002.

In 2012, Alpha Bank called off its merger with Eurobank Ergasias, which had been announced the previous year.[4] The same year, Alpha Bank acquired the Greek department of Emporiki Bank from Credit Agricole for €1.[5] The legal merger was completed on June 28, 2013.[6] On May 31, 2013, the bank proceeded in a successful recapitalization with an over-subscription of the required private-sector participation in the Rights Issue, which resulted in the preservation of Alpha Bank's private character.[7] Alpha Bank also took over the deposits of Cooperative Bank of Dodecanese, Cooperative Bank of Western Macedonia, and Cooperative Bank of Evia in 2013,[8] and acquired the entire share capital of Emporiki Bank.

On March 31, 2014, Alpha Bank successfully completed its €1.2 billion capital increase.[9] The Bank redeemed the total amount of the Hellenic Republic's Preference Shares on April 17, 2014.[10] On October 26, 2014, Alpha Bank announced the successful completion of the European Central Bank's (ECB) Comprehensive Assessment in the Static Adverse Scenario with CET1 8.07% and Capital Surplus of Euro 1.3 billion. Based on the dynamic adverse assumptions, CET1 stands at 8.45% with Capital Surplus of Euro 1.8 billion.[11] Also in 2014, Alpha Bank took over Citibank's Greek retail banking operations.[12]

Alpha Bank requested Emergency Liquidity Assistance (ELA) from the Bank of Greece on January 16, 2015.[13] Its total funding from the ECB (ELA and non-ELA) was €29.9 bn as of September 30, 2015. On July 17, 2015, it sold its Bulgarian branches to Postbank (Bulgaria), the subsidiary of fellow Greek bank Eurobank Ergasias.

Alpha Bank's 2015 end year results are: Risk Weighted Assets:€52.6bn. Total loans: €62 bn (€52.5 bn in Greek loans, €9.5bn in loans abroad). 51.3% are non-performing exposures using the European Banking Authority definition, with a 50% Provision coverage and €31.4 bn in deposits (€26.3 bn in Greek deposits). Loan to deposit ratio=147%. Cost to income ratio=50%.

International expansion

In 1960, the Commercial Credit Bank established a subsidiary in Cyprus that it may later have closed or sold.

The bank started on a program of international expansion, especially in Southeastern Europe, in the early 1990. In 1994, Credit Bank and the European Bank for Reconstruction and Development (EBRD) established Banca Bucureşti in Romania, which commenced operations the following year. Credit Bank owned about 50% of the bank. The ACB also acquired the Commercial Bank of London from the Commercial Bank of Greece (Emporiki Bank) in 1994, and renamed it Alpha Credit Bank London.

In 1998 ACB established a branch in Tirana, Albania, and followed that with three more branches. In the same year it acquired 82.5% of Lombard NatWest Bank in Cyprus and renamed it Alpha Bank Cyprus Ltd. In 1999 ACB acquired 65% of Kreditna Banka, Skopje, in North Macedonia.(see Alpha Bank Skopje).

Banca Bucureşti changed its name to Alpha Bank Romania (ABR) in 2000. Banca Monte dei Paschi di Siena took a 5% share in the bank, and Alpha Bank’s share became 63%. ABR itself acquired a 12.5% stake in Victoria Bank (est. 1989), the largest private bank in Moldova. In 2002 ACB acquired the minority stake and became the sole shareholder in Alpha Bank Skopje, accounting for 100% of its share capital. Alpha Bank acquired 88.64% stake in Serbian Jubanka and changed its name to Alpha Bank Beograd, and then to Alpha Bank Srbija in early 2005.

Alpha Bank also has an extensive branch network in Bulgaria, the foundation of which it inherited from Ionian and Popular Bank, which entered in 1994 with a representative office in Sofia.

In August 2007, the Turkish Banking Regulatory and Supervisory Agency blocked Alpha Bank's move to buy a 50% share in Alternatifbank (Abank) citing Alpha Bank not meeting the terms of Article 8 of Turkey's banking law. The article covers the financial strength, track record and personal history of a bank's board of directors [14] On March 27, 2008, Alpha Bank reached a deal to buy a majority stake in newly established OJSC Astra Bank[15] in Ukraine as part of plans to expand in the region. Alpha Bank agreed to buy 90% of Astra Bank for €9 million. Astra Bank became insolvent in March 2015, and in July 2015 it was acquired 100% by Agro Holdings (Ukraine) Limited (a company owned by the US-based NCH Capital).[16]

Alpha Bank has a branch in London and a finance company, and ran Alpha Finance US, in New York, which no longer exists.[17]

Other

Listing on the Athens Exchange

The company is listed on the Athens Exchange with the stock symbol ALPHA; the ISIN is GRS015013006.[3] As of August 11, 2015, the number of securities outstanding and the number of securities listed is 12769059858 (around 12.7 billion).[3]

The stock is one of the 25 stocks in the FTSE/Athex Large Cap index (August 11, 2015).[18]

See also

References

  1. ^ a b c d e "Archived copy" (PDF). Archived from the original (PDF) on May 18, 2018. Retrieved May 18, 2018.CS1 maint: archived copy as title (link)
  2. ^ "Archived copy". Archived from the original on January 12, 2016. Retrieved January 10, 2016.CS1 maint: archived copy as title (link)
  3. ^ a b c "ALPHA Stock Overview". Athens Exchange Group. August 11, 2015. Archived from the original on September 24, 2015. Retrieved August 11, 2015.
  4. ^ Alkman Granitsas, Stelios Bouras and Nektaria Stamouli. (March 14, 2012). "2nd UPDATE: Greece's Alpha Bank To Call Off Merger With Eurobank". The Wall Street Journal. Dow Jones & Company.CS1 maint: uses authors parameter (link)
  5. ^ Fabio Benedetti-Valentini and Elisa Martinuzzi (October 17, 2012). "Credit Agricole Exits Greece Taking Profit Hit on Unit". Bloomberg. Archived from the original on October 19, 2012.
  6. ^ "Nine Month 2014 Results: Profit after Τax at Euro 110.5 million". www.londonstockexchange.com. Archived from the original on November 7, 2014. Retrieved November 4, 2014.
  7. ^ "Greek Alpha Bank hits recap target, rights issue oversubscribed- sources". reuters.com. Archived from the original on June 9, 2013. Retrieved May 31, 2013.
  8. ^ "Alpha Bank SA undertakes the deposits of three Cooperative Banks". Reuters. December 8, 2013. Archived from the original on September 25, 2015.
  9. ^ "Alpha Bank buys back in full 940m euro worth of preference shares". marketall.eu. Archived from the original on February 27, 2015. Retrieved April 17, 2014.
  10. ^ "3rd Quarter Results". announce.ft.com. Archived from the original on February 27, 2015. Retrieved November 4, 2014.
  11. ^ "Alpha Bank to buy Citi's Greek retail assets". ft.com. Archived from the original on February 27, 2015. Retrieved June 13, 2014.
  12. ^ "Greece's Eurobank, Alpha Bank Ask Central Bank for Emergency Liquidity Assistance". Wall Street Journal. January 16, 2015. Archived from the original on January 16, 2015. Retrieved January 16, 2015.
  13. ^ "Turkish regulator blocks bank sale". Financial Times. August 10, 2007. Retrieved January 16, 2015.
  14. ^ "Greece's Alpha Bank to buy Ukraine's Astra Bank". Reuters. March 27, 2008. Archived from the original on January 25, 2010. Retrieved February 20, 2012.
  15. ^ Merge and Acquire Archived December 22, 2015, at the Wayback Machine, The Ukrainian Week (9 October 2015)
  16. ^ "Alpha Finance US Corporation". linkedin.com. Retrieved May 13, 2011.
  17. ^ "FTSE/Athex Large Cap Index composition". Athens Exchanges Group. August 10, 2015. Archived from the original on September 24, 2015. Retrieved August 11, 2015.

External links