ASPIS BANK reported impressive profit growth in Q12006, with profit before tax increased by 68% to 4.2 million against 2.5 million, and profit after tax and minority interest increased by 40% to 3.2 million against 2.3 million in Q1 2005. Strong profit growth is the outcome of continuous improvement in efficiency, and particularly active operating cost containment which contributed significantly to profit growth: operating costs amounted to 18 million, down by 3% compared to Q1 2005. This, in combinat ion with a 7% increase in operating income, led to a further improvement by 8 percentage points of the ?cost to income? ratio compared to Q1 2005.

The development of the ASPIS BANK Group's core business areas contributed significantly to the bottom line results. Loans and advances to customers net of provisions increased by 13% Y-o-Y. More specifically, on an annual basis, loans to enterprises grew by 13% and loans to households, including mortgage loans, by 14%. Furthermore, mortgage loan disbursements grew by 35% in Q12006 compared to the respective quarter in 2006. At the end of Q1 2006 the loan portfolio breakdown was the following: Loans to households accounted for 56% and loans to enterprises accounted for 44%. Total assets were essentially maintained at YE2005 levels, but grew 9% on an annual basis.

Customer deposits remain the main funding source. ASPIS BANK, capitalizing its high liquidity, maintained customer deposits near their YE 2005 level of 1,593 million. On an annual basis due to customers increased by 7%. Total group equity increased by 5% compared to YE 2005 and by 16% compared to Q1 2005 to 120 million.

Loans continued to be the main source of income, driving net interest income growth of 19%, and other operating income growth by 40%. Despite a net commission income decrease by 13%, due to a decrease of commission income relating to an RMBS completed in November 2003, overall operating income, derived from sustainable and recurring sources of income, increased by 7% and reached 23 million.

Management's continuous effort to contain operating costs continued to yield results as indicated by their 3% decrease ( 18 million against 19 million in Q1 2005). An even greater decrease was achieved in administrative expenses, which fell by 11% ( 7 million against 8 million in Q12005).