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Alpha Bank Q1 profit up YOY despite higher loan impairments

Alpha Bank AE reported a year-over-year increase in its first-quarter after-tax profit attributable to shareholders, to €65.2 million from €48.1 million.

Net interest income for the period slipped to €443.8 million from €482.5 million a year ago, but net fee and commission income increased to €84.4 million from €75.7 million. Income from financial operations also rose on a yearly basis to €186.1 million from €33.5 million.

Impairment losses on loans amounted to €335.8 million, 36.1% higher than the year-ago €246.8 million. The bank noted that it was affected by higher individual charges on corporates, as well as an increased collective impairment on the retail lending portfolio.

The first-quarter net interest margin was 3.0%, compared to 2.9% in the year-ago period. It also recorded a recurring cost-to-income ratio of 49.9% in the period, down from 51.4% in the prior quarter but up from 48.2% a year earlier.

The group nonperforming loan ratio ticked up to 35.2% as of March-end from 34.9% a quarter earlier. Its NPL coverage ratio was 73%, while its total coverage ratio, including collateral, was 128%.

The nonperforming exposures ratio, which includes more categories of debt, was 51.8% at the end of March.

Alpha Bank's common equity Tier 1 ratio was 18.3% at March 31, flat compared with three months earlier and up from 17.1% at March 31, 2017.