ASPIS BANK has strongly increased its profitability for the 1st half of 2006, as profit before tax increased by 61%, amounting to 7.4m against 4.6m, and profit after tax and minority interest increased by 44%, amounting to 5.85m against 4.06m in the corresponding period of 2005. The increased profitability stems from the growth of the operating profits by 9%to 45.6m, with a parallel containment of operating costs , which showed only a slight 3%, increase YOY and amounted to 32.6m.
The results are based on the continued development of the financial results ASPIS Bank's main activities. Loans and advances to customers net of provisions increased by 11% YOY and amounted to 1.710m. At the end of the 1st half of 2006 the loan portfolio breakdown was the following: Loans to households accounted for 56% and loans to enterprises accounted for 44%. Total assets grew 10% on an annual basis.
The Bank's main funding source is customer deposits, which increased by 11% YTD, amounting to 1.747m, an increase of 12% YOY. Total group equity increased by 7% YTD and 14% YOY, amounted to 122,7m.
Overall operating income was 45,6m, increased by 9% based on sustained and repeatable sources. More specifically, net interest income rose 8% accompanied by a concurrent increase in net commission income by 12%. Other operating income increased by 51% further enhancing the operational result of the bank for the half-year 2006.
The efficiency ratio (operational expenses /operational income) remained stable at the YE2005 level of 80%, a 5-percentage point improvement.
The Chairman and Managing Director, Mr. Constantine Karatzas, based on the positive results of ASPIS BANK for the half-year 2006, stated: "The course of ASPIS BANK to date is consistent with the goals we have set and the strategy we follow. It is my belief that, further strengthened with the inflow of new capital from the upcoming increase of the share capital, we will achieve even stronger growth of profitability in the foreseeable future".
ASPIS BANK, based on the decision taken at the Extraordinary General Meeting of Shareholders on 24 July 2006, will proceed with a capital increase via cash injection, with pre-emptive rights in favour of existing Shareholders on a basis of 3 new shares for every 10 existing shares. A total of 14,649,093 new common registered shares shall be issued at an offer price of Euro 3,60 each. The total funds raised will amount to Euro 52,736,734.80. The precise dates for the exercise period shall be communicated via future announcement. .