EGNATIA BANK Group showed significant growth in the first quarter 2006. At Group level, Loans and Advances to Clients increased by 18,7% reaching 2.580,7 million compared to 2.176,7 million during the equivalent period last year. The Bank's policy of greater penetration in the mortgages and corporate loans areas resulted in the significant rise of these portfolios (+84% and +38% respectively).
Total Client Deposits, during the first quarter 2006, reached 2.785,2 million, compared to 2.340,1 million in the first quarter 2005 - an increase of 19,0%. The Loan-to-Deposit ratio remained at 92,7%.
The Group's Total Assets reached 3.474,3 million - an increase of 27,0% ( 2.736,6 million in the first quarter 2005).
Operating Income amounted to 37,4 million compared to 34,4 million marking an increase of 8,7%. To this increase there has been a contribution by the Group's Net Commission Income, that reached 12,1 million compared to 7,9 million as at 31/3/2005 (grown by 54,10%). The Group's subsidiaries capitalizing on favourable conditions in the capital markets, marked a significant contribution to the increase in net commission income.
The operational growth of the Group carried on with the expansion of the Branch Network in both Greece and Romania as well as with the creation of new subsidiaries. Group's Total Operating Expenses, influenced by the operational growth, reached 26,4 million (compared to 23,0 million, an increase of 15,0%). Despite this increase, the Operating Expenses to Operating Income ratio showed resilience remaining at 70,6% (compared to 70,4% in 2005).
Group's Net Position as at 31/3/2006 amounted to 255,1 million compared to 221,6 million on 31 March 2005 (an increase of 15,1%) retaining the Capital Adequacy Ratio at a high level of 12,24% on 31/3/2006 (compared to 11,25% in the first quarter 2005).
Despite the fact that EGNATIA BANK in the fist quarter 2006 made significantly higher loan provisions for credit risk and impairment losses amounting to 10,0 million compared to 3,7 million during the equivalent period in 2005, Group Profit before Taxes reached 3,7 million compared to 7,5 million in the first quarter 2005. Accordingly, the Group's after Tax Profit amounted to 2,6 million compared to 5,4 million in the first quarter 2005.
Today, following the strategic alliance with Marfin Financial Group, great opportunities are ahead for EGNATIA BANK, as it now belongs to a powerful and dynamic Group claiming a leading position in South Eastern Europe and targeting an international presence in Greece.
Further to the interplay of the synergies ahead of us, we bear confidence in the acceleration of our growth rates and enhancement of our Bank's profitability.