Alpha Bank Romania First Half 2023 financial results highlights: Strong lending activity to support the Romanian economy

In an economic context with multiple challenges, Alpha Bank Romania remained a trustworthy partner of its customers and of the Romanian economy, while strengthening its position in the market:

• The net loan portfolio grew 10% compared to the same period last year driven by the financing of legal entities – both large companies and SMEs;

• Profit after tax reached EUR 23 million on strong commercial activity and efficient risk management;

• Financial results were accompanied by high levels of regulatory capital and liquidity, significantly above regulatory thresholds, thus maintaining the bank’s solid profile.

During the first half of the year, Alpha Bank Romania continued its strong commercial activity, driven by increased SME lending and activity in the large companies’ area.

With an experienced corporate banking team, the bank provides its customers with complex products and services tailored to the specifics of each company’s business sector. As a result, Alpha Bank Romania strengthened its position in the market of syndicated loans and structured financing, intensifying its activity in both segments. The stock of loans granted to large companies recorded an annual increase of 18% with a focus on sustainable projects financing.

Alpha Bank Romania continued to actively participate in all programs run by the Romanian Government aimed at developing the business environment: IMM Invest, Agro IMM Invest, IMM Prod, Garant Construct, Rural Invest, Innovation, Woman Manager and Start-Up Nation.

At the same time, the bank provides financing to farmers based on the subsidies from the Agency for Payments and Intervention in Agriculture (APIA), within the Single Area Payment Scheme (SAPS).

New funding provided to SMEs in H1 2023 recorded a growth of 39% versus the same period of last year, marking the best performance since 2011.

In May, to support the local entrepreneurial environment and to diversify the existing product portfolio, Alpha Bank Romania launched a new lending product dedicated to SMEs – the General Business Needs Loan, for which no supporting documents are required.

The bank consolidated its position as a top player in the area of payment solutions for merchants, with the volume of payments processed through POS, Tap to Phone and e-commerce solutions reaching a historic high level, up 29% compared to the same period last year.

Alpha Bank Romania continued to invest in digital transformation, both to offer a superior digital experience to customers and to automate and digitalize internal processes. Individual customers can now open accounts at Alpha Bank Romania 100% online through the digital onboarding platform, without the need for a video call. The technical platform that supports the entire process integrates the most advanced technologies for identifying persons remotely by using biometric tools while account opening can occur at any time, 24 hours a day and 7 days a week.

In June, Alpha Bank Romania launched, together with Groupama, an extended version of the “Travel all Seasons” travel insurance, which offers remote medical support through the IntreabaMedic (AskDoctor) telemedicine service. The new version brings expansions in the coverage of the risks related to the practice of seasonal sports and valid coverages including for trips in the territory of Romania. At the same time, the benefits for members of the insured person’s family have been extended, as they can enjoy the chosen coverages even if they are not traveling together.

Also, six new Gold centers were opened in Bucharest, Galați, Bacău, Râmnicu Vâlcea and Constanța, with the network dedicated to Alpha Gold Personal Banking members reaching 28 centers.

At the same time, Alpha Bank Romania continued to support culture and community involvement by being a partner of the Performing Arts Market and the Volunteer Program at the 30th edition of the Sibiu International Theatre Festival (SITF). The bank also continued to promote the growth of financial education by being involved in a series of programs dedicated to pre-university students.

Financial results

At the end of June 2023, the net loan portfolio of Alpha Bank Romania reached EUR 3.02 billion, marking a 10% increase compared to the first half of the previous year, while customer deposits amounted to EUR 3.04 billion, growing by 13.6% versus the same period of last year.

The bank’s total assets reached EUR 4.35 billion at the end of June, increasing by 9% compared to the same period of the previous year.

Profit after tax reached EUR 23 million, reflecting strong commercial activity and effective risk management.

About Alpha Bank Romania

Alpha Bank Romania is a member of Alpha Bank Group, one of the largest banking and financial groups in Greece. The international activities of the Group are extended, in addition to Romania, to the United Kingdom, Luxemburg and Cyprus.

Alpha Bank Romania is a financial institution ranked among the top 10 banks in the country, with universal banking operations. A systemic bank, with a national presence of almost 30 years, Alpha Bank Romania offers a wide range of modern services and products for individuals, as well as for SMEs and the corporate segment.

Alpha Bank Romania is one of the financial institutions that innovated the banking sector in Romania, being the first bank to launch on the local market an application that transforms an Android mobile device into a POS terminal. It was also the first bank that issued covered bonds in Romania in 2019 after having introduced in 2001 on the market the first housing loan.

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