Optima Bank expects Alpha Bank to announce a lucrative first quarter on May 26, with support from increased commission and fee income, trading profits, cost containment and a reduction in loan loss provisions.
On the other hand, net interest income is expected to slow down on the basis of the settlement of NPEs, while the dynamics of the bank’s balance sheet will be in line with market trends and the quality of its assets slightly improved.
In particular, Optima estimates that Alpha Bank will announce a net profit of 102 million euros for its first quarter, after losses of 408 million in the last quarter of 2021 and compared to losses of 282 million in the same period last year.
Operating income is expected to increase by 15% on an annual basis, operating expenses decrease by 16%, as well as provisions for loan losses that will decline by 20%.
Net interest income is expected to reach € 280 million, down 29% year-on-year as a result of risk mitigation, while commission and fee income will be up 27% from last year.
Optima Bank focuses on the outlook for the rest of the year that will be presented by the management of Alpha Bank, especially in terms of basic income, asset quality and balance sheet dynamics in the coming quarters.
He points out that at the present stage the bank’s title is trading at 0.36 of the P / TBV index, with a significant discount of 46% compared to its bonds in Southern Europe and 25% in Greece, while he adds that after the announcement of the results it will proceed to update of its estimates of the target price and its composition.
Source: Capital
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