Alpha Bank reports higher Q1 profits on the back of rising interest income

Athens-listed Alpha Bank on Monday reported a 24-percent increase in its first-quarter net profits, mostly based on higher interest income from repeated ECB hikes last summer.

Greece’s third-largest lender by market value said net profits reached 162 million euros, up from 131 million euros in the corresponding first quarter of 2022.

Net interest income rose by an annual 50.7 percent over the January-March period, reaching 423.6 million euros.

CEO Vassilis Psaltis said the start of the year was particularly strong and helped the bank to strengthen its capital base.

“At the end of the first quarter, our CET1 capital was at 12.8 percent and our total capital ratio at 17.0 percent…Our solid operating performance in the first quarter was underpinned by a 6.4 percent uplift in our net interest income, as, based on our traditional strength in commercial banking, we continued pricing our asset side with risk-adjusted discipline. On the liability side, we witnessed a moderate shift of our individual clients to time deposits but also to exploring our expanding investment product offering. Recurring operating expenses were visibly reduced while the quarter also saw the successful implementation of a Voluntary Separation Scheme, whereby circa 500 staff have signed up,” Psaltis said in a statement.