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B. Psaltis: ‘Strong profitability and support of the economy are the goals of Alpha Bank’

In Alpha Bank’s financial achievements, mainly the achievement of a single-digit non-performing exposure (NPA) ratio already in the first half of 2022, the reduction of expenses and the significant improvement in the return on equity capital, as well as the significant progress in corporate governance issues and ESG, says the Group’s managing director, Vassilis Psaltis, in his message to shareholders ahead of the general meeting on Friday, July 22.

The message posted on LinkedIn is a brief and comprehensive presentation of the significant progress made by the Bank’s new management team over the last three years, as well as the main goals that remain to be achieved, within the framework of the Group’s strategic plan.

In the video, the four main priorities set by the Bank’s Management in 2019 are analyzed, i.e. the consolidation of the balance sheet, the renewal of the operating model, the development of operations and the improvement of corporate governance, which, as Mr. Psaltis states, have led Alpha Bank to achieve a double-digit rate of Return on Equity, in line with the average of European banks.

In particular, reference is made to the leaps and bounds of progress that have been made on the front of the reduction of ACEs, resulting in the achievement of a single-digit ACE Group Index at the end of the first half of 2022. “The sale of approximately 22 billion euros of ACEs in total, despite the pandemic, demonstrates the correct and meticulous planning and the great executive abilities of our team”, notes Mr. Psaltis in his message, making a special mention of Project Galaxy, “which was named ‘deal of the year for 2021’ in Europe”.

Great progress has also been achieved in increasing the Bank’s efficiency, through the renewal of its operating model, “continually improving its performance, with the aim of 2024 for the Group’s Cost-to-Income Ratio to reach 45%”. Equally important is the performance in the implementation of the Transformation, with Alpha Bank “focusing on developing its digital capabilities and training thousands of customers in the new digital solutions, directing them to digital networks, where an impressive 94% of cash transactions take place “.

Credit expansion and strategic alliances

In his message, Mr. Psaltis makes special reference to the support provided by the Bank to businesses and households, noting that the portfolio of serviced loans increased by 8.7 billion euros, compared to the low levels of the first quarter of 2019 , thanks to healthy credit expansion in Greece and Romania. “We acted proactively, raising development funds in 2021 and using them immediately, through the financing of flagship investments, mainly in the sectors of infrastructure, energy, tourism and shipping,” he notes characteristically.

At the same time, the CEO of the Group refers to the strategic alliances with international partners, “such as the conclusion of a long-term agreement for the provision of bancassurance products with Generali, the Joint Venture in the field of payments with Nexi and the Joint Venture for loan management with Davidson Kempner”. which create new business development possibilities for Alpha Bank, and concludes that, despite unfavorable macroeconomic conditions, in 2022, the Bank aims for a Return on Equity of 6%, as a basis for achieving its medium-term goals.

Governance and Corporate Culture

In his short message, Mr. Psaltis makes special reference to the progress made in the field of Corporate Governance and the wider ESG agenda, confirming the intention of the Management Team to emphasize the change in the Bank’s culture. “Our Board of Directors has a high level of independence, diversification and focus on ESG issues, improving the Bank’s performance on the ISS ESG Quality Score by 5 notches since 2019,” he notes characteristically, adding that Alpha Bank aspires “to be the employer of choice for talents with high potential but also for competent Greeks who wish to repatriate and contribute to the further acceleration of the transformation of the Bank”.

Source: Capital

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