Alpha Bank A E reports 8.7% revenue decline in 2015
03 Mar 2016 • About Alpha Bank A E (
$ACBD) • By InTwits
Alpha Bank A E reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alpha Bank A E is a company in decline: 2015 revenue growth was -8.7%, 5 years revenue CAGR was -3.2%
- Alpha Bank A E has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's in pair with industry average of 3.2%.
- CAPEX is quite volatile: 108 in 2015, 79.8 in 2014, 209 in 2013, 62.2 in 2012, 62.0 in 2011
- The company has unprofitable business model: ROIC is at -5.0%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alpha Bank A E ($ACBD) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,270 | 3,456 | 4,274 | 3,745 | 3,419 | -8.7% |
| Net Income | -3,810 | -1,082 | 2,922 | -330 | -1,372 | 315.9% |
Balance Sheet
|
|---|
| Cash | 2,104 | 1,437 | 1,688 | 2,019 | 1,730 | -14.3% |
| Short Term Debt | 20,765 | 25,215 | 18,225 | 15,693 | 24,800 | 58.0% |
| Long Term Debt | 2,189 | 732 | 783 | 1,524 | 401 | -73.7% |
Cash flow
|
|---|
| Capex | 62 | 62 | 209 | 80 | 108 | 35.0% |
Ratios
|
|---|
| Revenue growth | 6.1% | -19.1% | 23.7% | -12.4% | -8.7% | |
| Net Income Margin | -89.2% | -31.3% | 68.4% | -8.8% | -40.1% | -31.3% |
| CAPEX, % of revenue | 1.5% | 1.8% | 4.9% | 2.1% | 3.1% | 1.0% |
| ROIC | 0.2% | -4.2% | 6.8% | -2.8% | -5.0% | -2.2% |
| ROE | -100.6% | -80.4% | 64.4% | -4.1% | -16.5% | -12.3% |
Revenue and profitability
The company's Revenue decreased on 8.7% in 2015.
Net Income marign dropped on 31.3 pp from -8.8% to -40.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.1%. Alpha Bank A E showed small growth in CAPEX/Revenue of 1.4 pp from 1.8% in 2012 to 3.1% in 2015. For the last three years the average CAPEX/Revenue was 3.4%.
Return on investment
The company operates at negative ROIC (-5.01%) and ROE (-16.46%). ROIC decreased on 2.2 pp from -2.8% to -5.0% in 2015. ROE dropped on 12.3 pp from -4.1% to -16.5% in 2015.
Leverage (Debt)
Debt jumped on 46.4% in 2015 while cash dropped on 14.3% in 2015.
Appendix 1: Peers in Banks
Below you can find Alpha Bank A E benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kazkommertsbank JSC ($KKB) | | | 6.0% | 16.3% | 41.4% |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 37.6% | 23.7% | 18.9% | 26.8% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 14.9% | 4.8% | 19.7% | 25.3% |
| Mcb Bank Ltd ($MCBS) | | 3.0% | -1.7% | 19.4% | 22.4% |
| Turkiye Is Bankasi ($TIBD) | | 20.9% | 0.3% | 15.7% | 15.8% |
| |
|---|
| Median (35 companies) | 8.1% | 10.2% | 4.2% | 12.1% | 3.7% |
|---|
| Alpha Bank A E ($ACBD) | | -19.1% | 23.7% | -12.4% | -8.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Diamond Bank ($DBPA) | | 8.2% | 7.9% | 6.0% | 6.7% |
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 4.1% | 5.1% | 3.8% | 4.5% | 6.0% |
| Royal Bank Of Scotland Group ($RBS) | | 5.8% | 2.7% | 4.1% | 4.6% |
| |
|---|
| Median (33 companies) | 2.4% | 2.4% | 2.7% | 2.1% | 2.4% |
|---|
| Alpha Bank A E ($ACBD) | 1.5% | 1.8% | 4.9% | 2.1% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | 30.3% |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | 14.9% |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | 12.6% |
| Axis Bank ($AXB) | 10.2% | 9.6% | 8.9% | 9.1% | 8.8% |
| Bank Audi S.A.L. ($BQAD) | 13.5% | 13.2% | 9.2% | 8.9% | 8.3% |
| |
|---|
| Median (35 companies) | 7.1% | 6.4% | 5.3% | 4.5% | 3.3% |
|---|
| Alpha Bank A E ($ACBD) | 0.2% | -4.2% | 6.8% | -2.8% | -5.0% |
