Alpha Bank Albania swings to first-half loss on higher provisions.

By bne IntelliNews August 31, 2011
The Albanian arm of Greek Alpha Bank posted a pre-tax loss of EUR 3.8mn in the first half of 2011, compared to a EUR 4.1mn profit a year ago, the Greek bank said in a report. The deterioration resulted from a 42.8% y/y drop in operating income that fell to EUR 7.4mn due to higher provisions for impairment losses. The bank cut its operating expenses by 7.4% y/y to EUR 7mn but the decrease was insufficient to offset a rise in impairment losses that more than tripled to EUR 4.1mn. The non-performing loans ratio rose by 4.6pps y/y to 10.6% as of end-June. Lending decreased by 21.4% y/y to EUR 413mn, with business loans declining by 25.6% y/y to EUR 287mn and consumer credits down by 17.6% y/y to EUR 9mn. Consequently, the bank's share on the loan market fell to 8.6% at end-June 2011 from 14.9% a year ago. Deposits at the bank increased by 10.1% y/y to EUR 431mn. Alpha Bank Albania has 379 employees and operates a network of 47 branches throughout the country.

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