Its management aims to increase profitability by 25% by 2023. Alfa Bankfocusing on paying dividends to its shareholders, coupled with strengthening its capital base and further reducing indicator overdue loans below 7%.

“Maximizing value for our shareholders remains our core strategy,” said Alfa-Bank Group CEO. Vasilis Psaltisspeaking in the context of informing investors about the results of the previous financial year, during which the group returned to profitabilityrecording a net profit after taxes of 398 million euros.

The bank’s business objectives, according to management, are focused “on growth and value creation by providing financing for business activities with a risk-adjusted return on capital, creating conditions for the payment of dividends.” In this context, management is expected to present an updated business plan in the second quarter of the year with goals for the new year.

Management believes that despite challenges at the macroeconomic level, the achievement of the business plan objectives continues unimpeded, with an increase in non-performing loans, accelerated net interest income growth driven by higher interest rates, diversification of revenue sources through increased fees, further cost reduction, improved quality loan portfolio and organic capital formation. Based on the results, the portfolio of non-performing loans increased by 10% year-on-year, resulting in a net credit expansion of businesses of 2.4 billion euros, which exceeds the target of 2.2 billion euros set for 2022.

Deposits rose by 3.3 billion or 7% compared to last year to 50.2 billion.

The group’s non-performing loan ratio (NPE) stood at 7.8% compared to 13.1% last year, while non-performing loans fell to EUR 3.1 billion (EUR 2.9 billion in Greece). Reduction by 400 million euros. in 2022, at the organic level, reflects, in the opinion of management, sustainable indicators of the quality of the loan portfolio and a reduction in the perimeter of NCOs as a result of their regular servicing. The group’s non-performing risks amounted to 3.1 billion euros, of which 78% are individuals with collateral. Coverage ratio reached 41%.

In 2022, net interest income was $1.3 billion, down 3.8% year-over-year due to a reduction in non-performing loans and sales that took place in 2021. On a quarterly basis, net interest income increased by 17.4% to 398.1. million and is the result of higher interest rates, as well as higher income from securities, which offset the cost of issuing bonds (MREL) and the higher cost of deposits.

On an annualized basis, net fee and commission income remained stable, and, taking into account the separation of card transactions and other one-time income, increased by 9.1%. Operating profit increased by 2.5% compared to the previous year.

Deposits increased by 3.3 billion or 7% year on year to 50.2 billion. high yield.

The CET 1 total capital ratio at full Basel III implementation was 12.5%2, up 120 basis points from the previous year. Stock indices are expected to gain another 60 basis points in 2023 thanks to planned synthetic securitizations. Return on tangible capital (ROTE) was 7%. Operational-level performance is expected to further boost margins to around 9% in 2023.