Alpha Bank's 9M 2020 Results: Improved operational performance; Profit After Tax of Euro 130.4 million

Πέμπτη, 26 Νοεμβρίου 2020 11:13
Alpha Bank's 9M 2020 Results: Improved operational performance; Profit After Tax of Euro 130.4 million

Alpha Bank’s CEO, Vassilios Psaltis stated:

“The pandemic continues to induce a significant level of volatility to the economy. Following the decision of our government to enter into a second nation-wide lockdown, relevant news-flow on the effectiveness of vaccines has provided significant underpinning to confidence. In these unprecedented circumstances, we held a steady course in our Project Galaxy, a Euro 10.8 billion NPE securitization, accompanied by the sale of our wholly owned servicer, Cepal Hellas. Despite a most challenging environment, we received two binding offers from international high-quality investors and we selected a preferred bidder, with a view to sign our transaction within the year. Shedding off these legacy assets will transform our balance sheet, as it will reduce our NPLs in Greece by 62%, to Euro 4.8 billion, within our envisaged capital envelope. Our operational transformation and digitalisation are progressing well. The strong support to our Customers, through to October 2020, gets manifested by the outstanding repayment moratoria in Greece of Euro 4.2 billion and by the new loans of Euro 4.6 billion we provided them. Our sound liquidity and capital position, at 18.3%, empower us to play a leading role in supporting our Customers in achieving an early return to normal economic activity. In the nine months, we managed to increase our core pre-provision income by 4% year-on-year, with a continuous focus on our cost base. This resilient performance allowed us to comfortably absorb loan impairments of Euro 737 million, of which circa 40% are Covid-related, thus delivering a profit of Euro 130 million, up by 42% year-on-year. In these extremely challenging conditions, I want to thank our Employees for their commitment and all the hard work they are putting in to service our Customers so that we manage the current difficulties together and we position our Bank to come out as a clear winner from this crisis.”

Main Highlights

Alpha Bank is nearing completion of Project Galaxy, the largest NPE securitisation in Greece

 Galaxy has entered the final stages of the transaction process; following an assessment of the binding offers received, Davidson Kempner European Partners LLP was declared as the preferred bidder. Finalization of the agreement is targeted by year-end, with the transaction completion, anticipated within Q1 2021.

 Post the acquisition of 100% of Cepal, the first independent servicing company in Greece, in July 2020, the Carve-out of Alpha Bank’s NPE Management Unit onto CEPAL will have been completed by the end of this month, ensuring a seamless transition. Employees’ acceptance of their voluntary transfer to CEPAL currently exceeds 90%.

 HAPS-compliant credit pre-ratings have been received and applications for the provision of guarantees by the Greek State, on Senior notes of an amount up to Euro 3.7 billion, have been submitted for Euro 10.8 billion gross book value, securing key financials of the Transaction.

 Post Galaxy, Alpha Bank’s NPL ratio in Greece will be reduced to 13%1 over total loans, while its NPE ratio will be reduced to 24%1 . 

View Full Press Release

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