Alpha Bank profit up 10.9%, meets forecasts

Alpha Bank, Greece's third-largest lender by market value, said first-half group net profit rose 10.9 percent to 414 mln euros, in line with market expectations.
Analysts in a recent Reuters poll had forecast average net earnings of 414 mln euros. The year-on-year comparison excludes an extraordinary gain of 82 mln from the sale of Alpha's insurance arm last year to French insurer AXA.
"In the difficult environment of the first half, Alpha's profitability remained solid as we continued our re-pricing in addition to acquiring profitable new business in Greece and making further inroads in southeast Europe," Alpha's Chief Executive Dimitris Mantzounis said.
Alpha Bank, also present in Romania, Bulgaria, Serbia, Albania, Cyprus and Ukraine, said operations in southeast Europe contributed 16.4 percent to group pretax profit.
The bank said net interest income grew 19.3 percent to 898 mln euros, with net interest margin improving by 20 basis points to 3.2 percent.
The bank's loan portfolio grew 27.8 percent to 46.8 bln euros. There were 2.4 bln euros of new loans in the second quarter — 1.0 bln in Greece and 1.2 bln in southeast Europe.
The cost to income ratio rose to 35.2 percent from 31.9 percent because of accelerated expansion in southeast Europe. But Alpha's portfolio credit quality remained high with non-performing loans improving to 3.5 percent.
Chairman Yannis Costopoulos said: 'The bank delivered robust operating results across Greece and southeastern Europe weathering the continuing turmoil in the credit markets. Our business model provides for sustainable liquidity and capital generation dynamics.'