ASPIS BANK reported strong profit growth for the 9-month period of 2006, achieving a 31% yoy increase of profit after tax and minority interest, which grew to Euro7.8m against Euro 5.9m, and a 22% yoy increase of profit before tax to Euro 9.8m against Euro 8.1m. Strong profitability is the outcome of operating income growth by 3% to Euro 67m, in combination with operating cost containment, which was contained at levels similar to those of the respective period of 2005.
Enhanced profitability is supported by the continuous expansion of ASPIS BANK Group''s core business activities. Loans and advances to customers, net of impairment, increased by 14 % on an annual basis to Euro 1.75 bil. At the end of September 2006 the loan portfolio breakdown was the following: Loans to households accounted for 61% and loans to enterprises accounted for 39%. Total assets grew by 11% on an annual basis.
The Bank''s main funding source is customer deposits, accounting for 77% of total liabilities & equity. Customer deposits increased by 9.5% ytd and by 17% yoy to Euro1.72m. Total group equity increased by 8% ytd and by 13% yoy to Euro 124m.
Loan growth continued to drive net interest income growth by 6% on an annual basis. Simultaneously, net commission income and other operating income increased by 5% and 43% respectively, further strengthening operating profit for the 9-month period of 2006. Operating income, supported by sustainable and recurring sources of income, increased by 3% and reached Euro67 million.
Further to the revenue growth, containment of operating expenses at Euro55m, levels similar to those at 30.9.2005, was a key driver of bottom line results. More specifically, administrative expenses decreased by 6% and depreciation and staff expenses increased by 5% as a result of investment in infrastructure and expansion of operations. As a result, the efficiency ratio (operating expenses /operating income) improved by 2 percentage points relative to the respective period of 2005 to 82%.
The exercise period of the preemption right to participate in the share capital increase of ASPIS BANK is in effect from November 13 2006 to November 27 2006. The aforementioned rights issue of Euro52,736,734.80m was resolved by the Extraordinary General Meeting of Shareholders of the Bank, which was held on July 24 2006.