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June 27, 2022

Provisions growth prompted the fall of Alpha Bank domestic profit

The profit before tax of Alpha Bank in Romania fell 10.1 per cent in the first nine months against the same period of the past year, to EUR 43 M, because of the growth of provisions, reads a report of the Hellenic group, Mediafax informs. The credit portfolio of Alpha Bank on the Romanian market was worth EUR 4.3 bln at the end of September, up 6.5 per cent vs. the end of the first nine months of 2008, the bad loans representing 2 per cent of this total, namely EUR 85 M.

The profit before tax amounted to EUR 47.8 M in January-September 2008. At the end of the past year, the bad loans represented 0.5 per cent of the total credit portfolio of Alpha Bank in Romania, according to a document attached to the quarterly report. “The positive effect of the significant changes made to the prices of the deposits was countered by the growth of the provisions,” the report reads, the Bank arguing in this way the decline of the profit. Alpha Bank Romania set up in the first nine months provisions of EUR 46.5 M, vs. EUR 11 M in the same period of the past year. Alpha Bank market share in Romania in the segment of the credits rose to 8.9 per cent at the end of September, from 7.6 per cent on the same date of the past year, according to the document.

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