Alpha Bank Romania financial results for the first quarter of 2022

The first quarter of 2022 was full of challenges, determined by both domestic and international developments, which impacted Romania’s economic growth. Even in this challenging environment, the evolution of Alpha Bank Romania has registered a positive dynamic:

Alpha Bank Romania’s loan portfolio increased by approximately 6.1% compared to the first quarter of the previous year, the financing granted to legal entities increasing by approximately 3.5%;

Operating profit reached EUR 5.6 million, up from EUR 2.3 million in the first quarter of 2021, as a result of positive revenue dynamics and efficient management of operating costs.

The first quarter of 2022 brought a high level of uncertainty and was marked by unpredictable events both domestically and internationally. Even in these conditions, Alpha Bank Romania has continued its policy of supporting the business environment by actively participating in the programs carried out by the Romanian Government in 2022: APIA, Agro IMM Invest, IMM Invest and Noua Casa.

The volume of new loans granted in the 1st quarter of 2022 to the segment of large companies registered an increase of about 30% compared to the same period of the previous year, while in the segment of SMEs the increase was over 20%.

During the same period, the Bank strengthened its position in the area of payment solutions for merchants, the turnover of these through Alpha Bank Romania registering an increase of 33% compared to the 1st quarter of 2021. Alpha Bank Romania offers merchants complete payment solutions, from traditional POS and e-commerce solutions to Alpha PhonePOS, the first banking application launched in the Romanian market which transforms an Android mobile device into a POS terminal.

For individuals, Alpha Bank Romania has diversified its range of investment products offered to Customers by launching on the Romanian market three new ESG (Environmental, Social, Governance) mutual funds that are part of Alpha (LUX) Global Funds, managed by Alpha Asset Management A.E.D.A.K. During the same period, the volume of mortgage loans granted increased by 28% year-on-year.

In the context of the war in Ukraine, the Bank launched a no-fee current account package for essential banking services for Ukrainian refugee citizens in Romania. The “Speranța” (Hope) package, in Ukrainian Надія (Nadiya), includes a current account in RON, a current account in foreign currency (EUR or USD depending on the Customer’s preference) and a debit card in RON.

At the same time, Alpha Bank Romania supported humanitarian actions for Ukrainian refugees through the “Save the Children” organization.

Financial results

At the end of the first quarter of 2022, the loan portfolio of Alpha Bank Romania was over approximately EUR 2.8 billion, while Customer deposits reached almost EUR 2.7 billion.

The total revenues increased by 19% compared to the same period last year, while fee revenues increased by approximately 20%. The revenue development coupled with efficient management of the operating costs, generated an operating profit of EUR 5.6 million.

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