Alpha Bank on Thursday reported after tax profits of 12.3 million euros in the first half of 2018. The bank said it retained a sector leading capital position with Common Equity Tier 1 ratio (CET 1) at 18.5%; Tangible Book Value at 7.8 billion euros.
– Continued improvement in liquidity with Group deposits up by 1.2 billion euros q-o-q, to 37.1 billion at the end of June 2018. Deposits in Greece up by further 0.9 billion euros q-t-d. Loan to Deposit ratio for the Group reduced further to 111% in June 2018 vs. 132% a year ago.
– Significant reduction in Eurosystem funding down by 2 billion euros q-o-q. At the end of August 2018, liquidity drawn from ECB maintained at 3.1 billion despite ECB’s waiver suspension, while ELA further reduced to 1.1 billion euros. ELA reduction y-t-d at 5.9 billion euros.
– Continued progress on Asset Quality with NPEs down by 2.4 billion euros and NPLs down by 2.3 billion in Greece y-o-y. Group NPE cash coverage stable at 50%, while including collateral coverage stands at 105%.
– Pre-Provision Income at 802.7 million euros, up by 25.8% y-o-y, on the back of strong trading gains.
– Trading income in Q2 2018 of 77.5 million euros, mainly attributed to realisation of gains from our Greek Government. Bonds portfolio. Total trading income for H1 2018 at 263.6 million euros.
– Impairment losses on loans at 649.5 million euros in H1 2018, implying a Cost of Risk (CoR) of 232bps over gross loans.
– Profit Before Tax at 103.2 million euros for H1 2018.
– Income Tax for the Group stood at 91 million euros in H1 2018, mainly affected by higher taxable compared to accounting profits.
– Profit After Tax stood at 12.3 million in H1 2018.
Commenting on the resultsAlpha Bank’s CEO, Demetrios P. Mantzounis, “We have delivered a strong Operational Performance so far in 2018, enabling us to absorb increased provisions as we implement our NPE reduction plan. We kept intact our sector-leading capital position, while our liquidity profile significantly improved, as we witnessed strong deposit inflows in Greece and we have moved closer to the full elimination of ELA support. Our 3.1 billion euros funding line in ECB was successfully maintained, despite the resulting suspension of waiver on Greek Government Bonds which were replaced with other eligible collateral. Greece’s exit from the 3rd Economic Adjustment Programme marks an important milestone for the economy. We have an opportunity to take advantage of the positive expectations for Greece, as the economy embarks on a growth path and capitalise on our membership in the Eurozone. It is essential that structural reforms continue to fully recover confidence in the Greek economy, lowering the borrowing costs for the Greek State and support the successful return to international capital markets.”