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Alpha Bank: First Quarter 2018 Profit after Tax at Euro 65.2 million

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Alpha Bank reported profits in the first quarter of 2018 as strong trading gains offset higher provisions for loan impairments and weaker net interest income. Group deposits stood at Euro 35.9 billion at the end of March 2018, up by Euro 2.8 billion y-o-y and Euro 1 billion in Q1 2018. 

“In the first quarter of 2018, we delivered a profitable performance, despite headwinds on Net Interest Income and elevated Cost of Risk charge. Our funding profile significantly improved as we continued towards the elimination of ELA support, while we reduced the stock of non-performing exposures outperforming our set business plan targets. Following the successful Stress Test results, confidence in the banking sector is steadily improving, while economic recovery gradually gains momentum as the completion of the 3rd Economic Adjustment Programme in August 2018 paves the way for a gradual return to normality. Alpha Bank as the stand out Greek Bank for its sector-leading capital position has the ability to play an active and constructive role to support the country’s economic recovery and provide to the business sector the necessary credit for healthy growth” Alpha Bank’s CEO, Demetrios P. Mantzounis stated. 

Main Highlights according to the press release: 

- Strong capital position with Common Equity Tier 1 ratio (CET 1) at 18.3%; Tangible Book Value the highest among Greek banks at Euro 7.9 billion.
- Robust performance in ECB’s 2018 Stress Test exercise. Alpha Bank registered the highest ending capital position among Greek systemic Banks for year-end 2020 under both baseline and adverse scenarios of 20.4% and 9.7%, respectively. No capital plan was required.
- Continued progress on Asset Quality with NPEs down by Euro 2.8 billion and NPLs down by Euro 3.1 billion in Greece y-o-y. Group NPE cash coverage stable at 50%.
- Group deposits at Euro 35.9 billion at the end of March 2018, up by Euro 2.8 billion y-o-y and Euro 1 billion in Q1 2018. Group deposits up by further Euro 1 billion q-t-d. Loan to Deposit ratio reduced further to 116% in March 2018 vs. 134% a year ago.
- Significant reduction in Eurosystem funding, down by Euro 2.3 billion q-o-q and Euro 9 billion y-o-y. ELA reliance at the end of May 2018 stood at Euro 3 billion, down by Euro 4 billion y-t-d.
- Core Pre-Provision Income at Euro 268.5 million, down by 9.7% y-o-y or Euro 28.8 million, on the back of lower Net Interest Income.
- Trading gains of Euro 186.1 million mainly attributed to gains from our Greek Government Bonds portfolio.
- Impairment losses at Euro 335.8 million in Q1 2018, implying a Cost of Risk (CoR) of 239bps.
- Profit after Tax at Euro 65.2 million vs. Euro 48.1 million in Q1 2017.

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