Greece's Alpha Bank Jan-Sept Pre-tax Profit from SEE Operations Falls 59.2% to 48.6 Mln Euro

The results for SEE in the report cover Alpha Bank's operations in Cyprus, Romania, Bulgaria, Serbia, Albania and Macedonia. The bank's combined deposit portfolio in the six countries fell by an annual 2.2% to 6.085 billion euro at end-September, while loans increased by 5.3% to 11.349 billion euro, Alpha Bank said in a statement.

The bank's half-year operating income in SEE increased by 7.0% to 385 million euro and operating expenses rose by 7.1% to 222.3 million euro.

In Romania, profit before tax reached 43 million euro in January-September, down 10.1% from a year earlier. The bank’s profit in Romania was lower because the positive effect from the significant re-pricing of the deposits was counterbalanced by the increase in impairment charges, the statement said.

“As part of our commitment to the prospects of the Romanian economy we have entered into a medium term club transaction with the Romanian State where Alpha Bank’s participation amounted to Euro 300 million,” it also said.

Alpha Bank's loans in Romania reached 4.3 billion euro at the end of September, up 6.5% on the year. The bank had 200 branches in Romania at the end of September.

In Bulgaria, Alpha Bank’s deposits increased by 39% and its loans rose by 3.0%. The bank had 120 branches in the country.

“Our Network of 120 Branches has reached nationwide coverage since the end of 2008, a size that should allow us to develop our deposit gathering capabilities as the network matures,” the statement said.

In Serbia the bank had 167 branches and a market share of 6.4% in terms of loans.

“The country is experiencing a severe slowdown in economic activity and as a result our operating income dropped by 30.5% in the nine month period of 2009 compared to the corresponding period last year,” the statement said.

In Albania, the bank's profit before tax reached 7.9 million euro. The loans rose by 31.7% on the year to 535 million euro. The deposits fell by 10.8% to 385 million euro.

In Macedonia, where the bank has 25 branches, its activity has been negatively impacted by the economic slowdown witnessed mostly in costs and impairment charges, albeit from a low base. Loans fell by 15% on the year to 131 million euro through September, while deposits decreased by 32% to 60million euro.

Alpha Bank recorded an yearly fall of 39.3% to 344.7 million euro in its group consolidated net profit in the first nine months of 2009.

($=0.6667 euro)