Alpha Bank first-half profits grow strongly
Alpha Bank’s normalized first-half after-tax profits – excluding non-recurring operating expenses and related transactions and taxes – reached €357 million, up 77.7% year-on-year, while, for the second quarter alone, they were €195 million, up 20.3% from the first quarter.
Return on tangible equity reached 13.1% in the second quarter and 12% for the half-year as a whole. Fully loaded common equity adopting the Basel III criteria for more resilient banks was at 13.6% for the half-year, 0.6% higher than management forecast, and the total capital ratio was at 18%, 1.6% higher than a year ago.
Alpha’s subsidiaries abroad, in the Balkans, Cyprus and the UK, posted a normalized net profit of €33 million, up from €27 million in the preceding quarter and €20 million in the second quarter of 2022. Net interest income was up by 10% in the second quarter, with net fee and commission income increasing by 3%.
Overall, first-half normalized net profit in Alpha’s international operations “reached €61 million compared to €21 million a year ago with a strong increase in net interest income (+63%) stemming from higher rates and a significant improvement in operational efficiency… contributing 17% to group profits,” the bank said.
Alpha’s strong results, combined with the resilience of the Greek economy, have led its management to revise its profitability and return on tangible equity upward. “Looking ahead, on the back of strong operating momentum in the first half in Greece and the other countries we operate, we are upgrading our profitability guidance for 2023, targeting a return on tangible book value well in excess of 11% (from 10% before), compared to 7.5% in 2022,” said Alpha Bank CEO Vassilios Psaltis.
