Posted By Uma Rajagopal
Posted on November 8, 2024
ATHENS (Reuters) -Alpha Bank, Greece’s fourth-largest lender by market value, reported higher net earnings in the January-September period compared to the same period in 2023, on lower provisions and strong interest and fee income.
The company, in which Italian bank UniCredit holds a 9% stake, reported normalised net earnings of 665.8 million euros ($717.93 million) versus a net profit of 571.7 million euros last year.
Net interest income grew 2% year-on-year in the first nine months of the year to 1.243 billion euros, driven by increased lending and higher rates.
Greek lenders have been stabilising after three rounds of recapitalisations and a round of nationalisation after the country was rocked by a financial meltdown in late 2009.
Having cut bad loan ratios, reduced state ownership and returned to profit, the lenders received European Central Bank approval this year to resume dividend payments for the first time in 16 years.
Alpha Bank CEO Vassilios Psaltis raised guidance for 2024 earnings per share to 0.34 euros from 0.33 euros.
The company’s non-performing loan exposure ratio (NPE) dropped to 4.6% of the total loan portfolio from 7.2% at the end of September 2023.
The lender plans to reduce this ratio to under 4% by 2025.
Fees rose by 11.3% year-on-year to 306 million euros.
($1 = 0.9274 euros)
(Reporting by Lefteris Papadimas; Editing by Janane Venkatraman)
