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Alpha Bank Cyprus reduces size and losses

July 11, 2019 at 7:47am
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Alpha Bank Cyprus continued its strategic size reduction and improvement of indicators in 2018, with losses for the year limited to €18.9 million compared to €86.7 million the year before.

However, total revenue fell by 17.5% to €63.6 million and interest income fell by 21.6% to €50.2 million.

At the same time, total expenses rose by 2.2% to € 55.7 million while the ratio of expenses to income stood at 87.5%.

On the positive side, there is the reduction of the liability allowance from €107.3 million in 2017 to €23.2 million in 2018. This is partly due to the sale of loans with a nominal value of €381 million to a group company.

These moves resulted in non-performing loans falling to 57% of the total from 65.6% a year earlier and the coverage ratio to 55% compared to 51.8%. And through property for loan swaps, the Bank managed to get €5 million worth of assets in 2018. Property acquired through similar transactions in 2017 had a value of €2.3 million.

In terms of deposits, these recorded a small increase of 0.4% and amounted to €2.2 billion. The share capital ratio amounted to 16.6% from 13.8% a year earlier due to the Bank’s capital increase of €44.5 million by the parent company.

Its annual report noted that the Group has expressed interest in participating in the fledgling ‘Estia’ Home Scheme launched by the Republic of Cyprus. And that it is in the process of evaluating third party partnerships for the management of its non-performing loans portfolio. Insiders believe this portfolio will be taken over by Altamira.

At the end of the year, the bank maintained a network of 22 branches which is the same number as in 2017, while a slight increase was recorded in the number of staff – from 662 at the end of 2017 to 681 at the end of 2018.

 

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