Raising the target for net credit expansion to 2.7 billion euros and further reducing the non-performing loan ratio from the single digits of 8.2% reached at the end of the first half of the year “to reach the European average”, said Alfa Bank Managing Director Vassilis Psaltis for 2022 year. within the briefing of analysts following the results of the second quarter.

In the second quarter, profit after tax was 117.3 million euros, and for the half year – 242.7 million euros, and adjusted net profit after tax after the impact of operations from the decrease in bad loans and income from discontinued operations was 73 million euros or 207 million euros in six months.

The positive result is due to net interest income, which increased by 6.9% qoq to 302.7 million euros due to an increase in income from loans and securities, while at the 6-month level, net interest income decreased by 23 0.3% affected by balance sheet consolidation. Net fee and commission income amounted to EUR 100.7 million and is declining by 6.7% quarterly, as, according to the bank, the growth in the first quarter was due to income received from the bank’s participation in project financing.

“Our banking activity continues to develop dynamically by increasing credit expansion for enterprises, which allows Alfa Bank to regain its first place in the financing of entrepreneurship in Greece,” noted Mr. Psaltis, stressing that “in the first half of this year, Alpha Bank supported the Greek economy by issuing €4 billion in new loans, recording a credit expansion of €1.7 billion and achieving 73% of its overall net credit expansion target in 2022.”

For the first time in almost a decade, the group achieved a single-digit NPL ratio of 8.2%.

As the CEO of Alfa-Bank pointed out at an analyst briefing, the strong credit expansion recorded already in the first half of 2022 does not yet include the dynamics of the Recovery Fund, for which all banks are “building” their positions and first results. will be seen from the fourth quarter of the year onwards. However, the group’s target of €2.2 billion in credit expansion is already expected to be exceeded by management’s estimate of €500 million by the end of 2022, with net credit expansion reaching €2.7 billion.

Alpha Bank management is optimistic about the resilience of the Greek economy, as they say our country is “noting a strong recovery in tourism this summer, with good job prospects and positive growth rates above the EU average.”

The group also achieved a single-digit non-performing loan ratio of 8.2% for the first time in almost a decade, which is “a sharp difference from the beginning of 2019, when the corresponding ratio was 48.9%,” said the head of Alfa-Bank.

As the management of Alfa-Bank pointed out, due to completed transactions, the bank paid off the worst part of NCOs, and what remained on its balance sheet is the best part of the problem portfolio. However, as the group’s CEO noted, “the journey is not over yet, but we have the experience and strategic tools to bring the index down to the European average.”

The total capital ratio with full implementation of Basel III (FL CET1) was 11.7% and the bank remains committed, according to management, to “creating value for shareholders and the goals of increasing group profitability, increasing material book value and supervisory capital and remunerating shareholders “.