BUSINESS

Alpha Bank reverts to profits in Q3

TAGS: Banking

Alpha Bank turned profitable in July-to-September on stronger trading gains compared to the second quarter, and lower credit-loss provisions, Greece’s fourth-largest lender by assets said on Thursday.

Alpha, 11 percent owned by the country’s bank rescue fund HFSF, reported a net profit from continuing operations of 41.1 million euros after a net loss of 52.9 million euros in the second quarter.

The bank’s nonperforming loans ratio dropped to 34.1 percent of its book from 35.6 percent at the end of June.

Provisions for bad debt eased 6 percent quarter-on-quarter to 295 million euros from 314 million euros in the second quarter.

Alpha also said on Thursday it clinched a deal to sell 1 billion euros of Greek small business nonperforming loans with a consortium of funds managed by Apollo Global Management and the IFC.

The bank said the agreed sale price for the NPL portfolio, which is secured mainly by real estate assets, was set at 337.1 million euros or about 33.6 percent of gross book value.

The deal also includes the disposal of repossessed assets of an on-balance sheet gross book value of 56 million euros for 51 million euros.

[Reuters]

Online