Band George Georgiopoulos
ATHENS, 26 Aug (Reuters) – Alfa Bank ACBr.AT, one of the four largest banks in Greece, began to profit in the second quarter due to a reduction in reserves for potential losses.
Alfa Bank reported on Thursday a net profit of € 95.7 million ($ 112.55 million) for the April-June period, recovering from a net loss of € 282.2 million in the first quarter and its first quarterly profit from third quarter of last year.
The bank said that loan impairment provisions decreased by 68.1% qoq to € 124.6 million in the second quarter.
Alpha, which is 9% owned by the Greek bailout fund HFSF, completed the second largest securitization of bad loans in Europe in June and is continuing its plan to further reduce non-performing loans on its balance sheet.
“We are promoting multiple transactions worth more than € 8 billion in Greece and Cyprus even ahead of schedule with the goal of reaching the group’s NPE ratio of 7% by 2022,” CEO Vasilisa Psaltis said in a statement.
The group’s non-performing loan ratio (NPE) was 26.1% at the end of June, up from 42.8% at the end of the first quarter.
Its CEO said the bank’s Tier 1 capital adequacy ratio for the bank’s core capital was 14.8% following the completion of the Galaxy Project securitization and a € 800 million capital increase in July, which means the bank is in a good position to increase its lending. portfolio.
“The strong recovery in tourism and the timely influx of the first RRF (Recovery and Resilience) funds give us confidence that Greece is back on a growth path again,” said Psaltis.
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(Reporting by George Georgiopoulos; editing by Susan Fenton)
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