Alpha Bank determined to turn the page of its NPL problem

Alpha Bank’s management has designed a strategy to reduce its NPL (Nonperforming Loans) problematic stockpile and transform the group so that it can «turn the page,» the lender’s CEO Vassilis Psaltis told Kathimerini, stressing that the Greek economy is on a steady growth path and that the international investment community is regaining faith in the country’s prospects.

In the same interview, Psaltis notes that the time has come to make up for the ground lost during the crisis, explaining that Alpha Bank will be at «forefront of this national effort, securing credit to households and businesses of €14 bn by 2022

A few weeks ago, the bank introduced Galaxy, the largest portfolio of NPLs in Greece to date which is set for securitization in 2020. And, according to the CEO, this plan «reflects Alpha Bank’s commitment to leave the problems of the crisis behind and “become a bank once again,” reasserting its leading role as a financier of households, businesses and the Greek economy».

«This is not just the most significant securitization of nonperforming exposures in Greece, but the third largest in Europe», Psaltis stressed, adding that this transaction will allow Alpha to reduce its NPE rate from 44% in 2019 « to below 20% in 2020 and eventually to a single-digit rate in 2022. The percentage of NPLs in default for more than 90 days will fall below 5% in 2022».

«We are decisively proceeding to a cleanup of our balance sheet in order to devote all our energy to what we are doing really well, which is banking and financing the economy», Alpha’s CEO asserted. However, he reckons that the «we are doing it now, not only because we have the experience and capital strength to aim high, but also because three crucial conditions are now being met: Supervisory authorities are urging similar initiatives, a dramatic improvement in macroeconomic figures has been recorded, one that brings our country to the very center of investment interest, and thirdly, Hercules, the Greek asset protection scheme, has been activated».

Original Story: Ekathimerini | Evgenia Tzortzi 
Photo: Alpha Bank site
Edition: Prime Yield