Greek Alpha Bank and EFG Eurobank post losses in Romania in 2012

Greek lenders Alpha Bank and EFG Eurobank, the majority shareholder in Romanian bank Bancpost, together posted losses of some EUR 57 million in Romania last year, according to their recently published financial results. Alpha Bank posted a pre-tax loss of EUR 21.9 million on the local market in 2012, according to the lender’s results, while EFG Eurobank’s loss in Romania amounted to EUR 35.2 million. Alpha Bank’s non-performing loans ratio went up from 10.3 percent in 2011 to 13.8 percent last year, while the bank’s loans in Romania dropped 7.9 percent in 2012 compared to the previous year, to some EUR 3 billion. The operating income also had a year-on-year decrease of 14.7 percent, to some EUR 152 million, while the operating expenses dropped 7.4 percent, to EUR 85.6 million. Alpha Bank currently has 150 branches in Romania and over 2,000 employees. EFG Eurobank’s operating income on the local market dropped 17.4 percent in 2012 compared to the previous year, to some EUR 201 million, while the operating expenses also had a year-on-year decrease of 6.5 percent. EFG Eurobank’s assets in Romania amounted to some EUR 4 billion at the end of 2012, down 6.1 percent over 2011, while the value of the bank’s total loans went down 2.3 percent last year, to EUR 2.9 billion. The two banks were supposed to merge last year, after their parent banks agreed on a merger, but the deal was canceled. Irina Popescu, irina.popescu@romania-insider.com (photo source: Sxc.hu)