Overview of ASPIS BANK Group Financials for Q1 2007:
Profit after tax and minority interest increased by 21% yoy, to EUR 3.9 million.
Operating income increased by 7% to EUR 24.1 million against EUR 22.5 million in Q1 2006.
Net interest income increased by 6% to EUR 14.2 million against EUR 13.5 million in Q1 2006.
Net commission income reached EUR 7 million from EUR 6.8 million in Q1 2006.
The efficiency ratio (operating cost -to- operating income) improved to 74.5%, a decrease by 3 percentage points relative to Q1 2006.
Loans and advances to customers net of impairment increased by 16% yoy, to EUR 1.902 billion.
Deposits increased by 22% yoy, to EUR 1.936 billion.
The ASPIS BANK GROUP, continuing its course of self-reliant organic growth, has improved its performance in Q1 2007 by achieving profit after tax and minority interest of EUR 3.9 million. The increase in group profitability by 21% is a result of growth in all of the Group's activities, as well as cost control efforts and improvements in infrastructure. Core banking activities continued to underpin the Bank's growth, with retail banking continuing to contribute significantly to bottom line results.
Review of Results:
The growth of core banking activities led to the increase of operating income by 7%, to EUR 24.1 million Net interest income and commission income, recurring and steady sources of income, accounted for 88% of total operating income in Q1 2007. Intense competition and the consecutive increases of the ECB basic rate, along with credit expansion to individuals combined for a modest increase of net interest income by 6% to EUR 14.2 million, with the net interest margin remaining at the levels of YE 2006. Loans and advances to customers remained the main source of interest income, and accounted for 88% of interest income. Net commission income increased by 3% to EUR 7 million, deriving mainly from customer financing, asset management and brokerage.
Operating expenses increased by 3% to EUR 17.96 million, a growth rate lower than the equivalent of operating income. Therefore, the efficiency ratio improved by 3 percentage points relative to Q1 2006, and stood at 74.5%.
The increase in profitability was a result of the rapid growth of the ASPIS BANK Group activities, as reflected in the increase of total assets by 18% on an annual basis. The growth rate of loans and advances to customers net of impairment remained at 16% and amounted to EUR 1,902 billion. Loans and advances to households increased by 14%, on an annual basis, accounting for 60% of the loan portfolio. Housing loans increased by 16%, with new mortgage loan disbursements up by 39%.Business loans increased by 18%.
Deposits accounted for 77% of the total liabilities and equity of the ASPIS BANK Group, and continued to be the main source of funding of the Bank's operations. Specifically, the outstanding balance of deposits increased by 22% yoy to EUR 1,936 billion. Group equity increased by 55% yoy to EUR 185.8 million with the return on average equity (after tax & minority interests) standing at 8.5%.
The Chairman and Managing Director of ASPIS BANK, Mr. Constantine Karatzas, referring to the financial results of Q1, stated the following: ASPIS BANK's performance to date is fully aligned with our strategy. Our priorities remain organic growth and the strengthening of the Group's presence in the Banking Sector, despite the intense competition. The new capital inflow from the issue of subordinated guaranteed notes and hybrid securities amounting to EUR 90 million in total, at the beginning of April 2007, further strengthening our capital adequacy, with the resulting capital ratio exceeding 18%, and shall support our efforts for rapid growth of the Bank's activities in the near future.