Alpha Bank sees profit before tax plummet by 77 percent to EUR 5.4 mln on H1

Newsroom 30/08/2011 | 11:49

The Romanian subsidiary of the Greek Alpha bank posted an operating income of EUR 93.1 million for the first semester of 2011, which is a 20 percent decrease to the similar period of 2010. Meanwhile, operating expenses gained 2.8 percent in the first semester of 2011, reaching EUR 46.7 million. The bank’s profit before tax dropped by 77 percent year-on-year, to EUR 5.4 million.

The loans volume for Alpha bank decreased by 15.3 percent to EUR 3.51 billion in the first half of 2011. Mortgages were up by 6 percent to EUR 851 million. However, consumer credit decreased by 13.8 percent to EUR 267 million, while corporate loans also went down by 21 percent to EUR 2.39 million. The deposits volume registered a 4 percent decrease to EUR 1.34 billion. Alpha Bank Romania holds a 6.9 percent share of the local loan market share and reported that the non-performing loan ratio reached 8.4 percent in the first six months of 2011.

Alpha Bank operates 165 branches and has 2.419 employees in the Romanian offices. Alpha Bank and Eurobank EFG are expected to merge by mid-December 2011, forming the third largest banking group in Romania.