Alpha Bank Romania Q1 2023 financial results highlights: Balanced financial performance based on sustained commercial activity

In the first quarter of the year, Alpha Bank Romania continued its strategy to support the local economy while maintaining a balanced financial performance based on sustained business activity:

• The net loan portfolio reached EUR 3.02 billion following a significant annual increase of almost 20% of loans granted to legal entities but also a good contribution from the individuals segment;
• Considering the intense commercial activity and efficient risk management, profit after tax reached EUR 11 million;
• Capital and liquidity have remained at elevated levels, significantly above regulatory thresholds.

In the first quarter of the year, Alpha Bank Romania continued to support the growth of the Romanian economy, while maintaining its commitment to be a reliable partner for its customers by investing in improving its products and services.

Strong lending activity in the large corporate segment resulted in more than 16% sales growth over the same period last year. The Bank strengthened its market positioning and consolidated its customer portfolio with leading companies, continuing to support their efforts in adapting to green economy with dedicated financing products. Furthermore, significant transactions have been successfully concluded on the syndication market, providing funding to top corporate players.

The Bank contributed to supporting the business environment through active participation in the programs run by the Romanian Government – IMM Invest, Agro IMM Invest, IMM Prod, Garant Construct, Rural Invest and Innovation.

New funding provided to SMEs in Q1 2023 recorded a consistent growth of 94% versus the same period of last year, marking the best performance in more than a decade.

Alpha Bank Romania also continued to actively participating in the SME Financing Programs, Woman Manager & Start-Up Nation, in order to support equality in the entrepreneurial environment and start-up businesses, along with the Ministry of Entrepreneurship and Tourism.

The focus on providing innovative and secure payment solutions for merchants, both for physical locations and eCommerce, has consolidated the bank’s position as a top player, with the volume of payments processed through POS, Tap to Phone and e-commerce solutions recording in the first quarter a 34% increase compared to Q1 last year.

Alpha Bank Romania continued its digital transformation strategy by investing in the development of lending platforms for individual customers and for small and medium-sized companies. Also, virtual assistant Dana received new capabilities and can automatically process (without human assistance) customer requests for information regarding credit or assist customers in completing a credit request, replacing classic forms with many fields to fill in.

Alpha Bank Romania continued to support culture and community involvement by sustaining the “Néoréalité” tour of the world-renowned composer and pianist Steve Barakatt, who performed for the first time for the Romanian public. The Bank also continued to promote the growth of financial education by engaging in a series of programs addressed to pre-university students.

Financial results

At the end of the first quarter of 2023, the net loan portfolio of Alpha Bank Romania reached EUR 3.02 billion, marking an almost 13% increase compared to the first quarter of the previous year, while customer deposits amounted to EUR 2.96 billion, growing by 9.5% versus the same period of last year.

The bank’s total assets reached EUR 4.4 billion at the end of the first quarter, increasing by 13% compared to the same period of the previous year.

Profit after tax reached EUR 11 million, reflecting a dynamic commercial activity as well as an effective risk management.