Alpha Bank: Vote of confidence from international investment houses in the wake of the second quarter results

The analysts of major investment houses characterize Alpha Bank’s second quarter results as stronger than the estimates, highlighting the correct handling and appropriate actions of the Bank’s Management. Positive comments in today’s reports highlight the achievement of a single-digit NPL ratio (NPL) six months earlier than originally planned, the dynamic growth in Net Interest Income and the significantly improved quality of profitability.

JP Morgan makes special mention of the upturn in Net Interest Income “which came in at levels well above expectations as a result of continued strong credit expansion of €1.7bn for the half, which may well exceed target of the Bank’s Management for a net credit expansion of 2.2 billion euros in 2022”. Also, the firm’s analysts emphasize that the achievement of a single-digit MEA Index is a milestone in the Group’s transformation process, while they comment very positively on the possibility that the Return on Tangible Equity will exceed the initial target of 6% for the year.

For its part, Citi reports that “the Bank’s actual net credit expansion in the second quarter is greater than the 0.7 billion euros officially recorded and stands at 1.3 billion euros, as it includes an amount of 0.6 billion . euro, which has been made available to the other banks in the form of a syndicated loan”. The house confirms that Alpha Bank continues to be at the top of the market in business financing.

Also, AXIA Ventures highlights the ability with which the Bank’s Management achieves its strategic goals. In particular, it states that the upward revision of the target for net credit expansion of 2.7 billion euros (against the initial target of 2.2 billion euros) and the higher Net Interest Income (1.2 billion euros against 1.15 billion initially) will contribute to achieving or even exceeding the Bank’s RoTBV target of 6% in 2022. Analysts also note that further improvement in profitability is expected in 2023 due to increased lending, the positive impact of higher Euribor and the positive contribution of the RRF, as well as the reduction of non-recurring costs.

At the same time, the rest of the houses in today’s reports refer to the positive results with headlines, such as Wood & Co stating that “Alpha Bank’s image is positive across the spectrum of its activity”, while Morgan Stanley notes “Above from market estimates Alpha Bank’s results with upgraded targets for 2022”. Finally, the Pantelakis Securities report is titled “According to Alpha Bank Q2 estimates, 2022 RoTE 6% target likely to be exceeded.”

Source: Capital

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