Profits increase for Greek banks Alpha and Piraeus
Alpha Bank and Piraeus Bank on Friday reported a jump in profits for the first nine months of 2023, as higher rates boosted net interest income and bad loans declined.
Alpha Bank, Greece’s fourth-largest lender by market value, reported net earnings of 491 million euros, up 59% from the first nine months of 2022.
Its net interest income increased 45.8% to €1.34 billion, as the margin rose to 2.3% from 1.7% a year earlier.
Alpha Bank said last month that Italian bank UniCredit would become its biggest investor by buying a 9% stake owned by Greece’s bank bailout fund.
“[It is] the first investment by a large European strategic player in the Greek banking sector since the onset of the sovereign debt crisis over a decade ago,” said Alpha Bank’s Chief Executive Vasilis Psaltis.
Alpha Bank’s nonperforming loan exposure ratio (NPE) fell to 7.2% of its total loan portfolio from 7.6% at the end of September last year.
It plans to reduce it to 4% by 2025.
Piraeus, 27% owned by the country’s bank rescue fund, reported adjusted earnings of €721 million for the nine-month period, up from €331 million a year earlier.
Its net interest income jumped 59% to €1.46 billion, while its NPE ratio fell to 5.5% of total loans from 8.8% at the end of September 2022. [Reuters]
