Alpha Bank will offer shares
The fourth largest Greek bank Alpha Bank will offer shares to international investors in a bid to raise additional capital to 1.66 bln. Euro. The procedure is expected to be completed by November 16, reports Reuters. Alpha Bank is one of four systemically important banks in Greece, which has a capital shortage. Its exact size became known after the completion of stress tests by the European Central Bank (ECB). Greek banks did not reach 263 mln. Euros at baseline verification and 2.74 billion. Euros in the most pessimistic.
At the end of last month Alpha Bank announced that it has completed the first nine months of the year with a loss of 838.4 mln. Euros after a year earlier had profit of 129.3 mln. Euros. The loss is the result of increased provisions for bad loans. At the end of September the share of non-performing loans was 36.5% at 33.8% in the first quarter. Around 66% of the ownership of the bank's state rescue fund HFSF.
Piraeus also sells shares
Several days ago, the second largest bank in Greece Piraeus announced that it will issue new shares to 4.9 billion. Euros to fill the capital shortfall discovered during stress tests of the ECB. It is 4.93 billion. Euros in the most pessimistic scenario. Piraeus will also issue convertible securities in volume to 2.04 billion. Euros and convenes an extraordinary general meeting of shareholders on November 15 to approve the plans.
On Monday, a source from the bank told Reuters, he was optimistic that the sale of shares by the financial institution will provide at least 1.6 billion. Euros. Piraeus also announced a loss - 635 mln. Euros for the first nine months of 2015 and an accelerated pace in the growth of bad loans.
In search of additional capital
ECB stress tests showed that Greek banks will need up to 14.4 billion. Euros additional capital to cover the growing number of bad loans. Subprime loans in the balance sheets of the four largest financial institutions increased by 7 billion. To 107 bn. Euros. According to the ECB that is nearly half of all loans granted by the National Bank of Greece, Piraeus, Alpha Bank and Eurobank. The open capital shortage is still less than 25 billion. Earmarked to support banks in the last credit package for Greece, which has a total value of 86 billion. Euro.
The other two major Greek banks - National Bank of Greece and Eurobank, need at worst case scenario of 4.6 billion respectively. And 2.2 bn. Euros. To provide the necessary funds, the largest Greek bank - National Bank of Greece, announced plans for a full sale of its Turkish subsidiary Finansbank.