by assets, has released a revised three year business plan which
commits the bank to achieve a net profit of at least €1.4 billion
($2.1 billion) by 2010 and an average CAGR per share growth of 23
percent for 2007-2010, up from the 20 percent target disclosed in
its April 2007 plan. It expects return on equity to rise to 30
percent from its current level of 28 percent.
The bank also said its
international division will be targeted to contribute 30 percent of
group profit by 2010, up from its current 25 percent, enabling the
bank to raise its estimate for pre-tax profit contribution from
south-eastern Europe to €550 million by the end of the decade from
€400 million.
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Speaking at a presentation in London on 16 January, the bank’s
chief executive, Dimitris Mantzounis, said: “Two years into the
Agenda 2010 implementation we feel increasingly confident of Alpha
Bank’s capacity to exceed its 10 percent market share target in
south-eastern Europe and continue strengthening its leading
position in the Greek market.
“Following strong uptake of our retail and corporate banking
proposition in south-eastern Europe, which has delivered impressive
new loan and deposit balances across the region in 2007, we will
increase our network investment to double our current footprint and
reach over 1,500 [branches] by 2010.”
In Greece, the bank plans to open a further 125 branches to
increase its network to 536 units by 2010 and will press on with an
overhaul of its consumer finance product range as well as promoting
new bancassurance products developed with French insurer Axa.
In its domestic market in the period to 2010, Alpha is targeting a
CAGR for mortgages, consumer credit and small business earnings of
20 percent, 28 percent and 25 percent respectively (see
table). It is looking to raise its Greek consumer credit
market share from its current 12.8 percent to 15.5 percent by the
end of the decade, to close the gap on rivals National Bank of
Greece and Eurobank (with market shares of 16.8 percent and 25.2
percent respectively).
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By GlobalDataBut while Greece – where Alpha Bank has a 15 percent market share
in loans – currently provides 88 percent of the bank’s pre-tax
profits, the bank has been expanding rapidly in south-eastern
Europe, mainly in Romania, Bulgaria, Serbia and Cyprus.
The bank reported €3.6 billion in new loans across south-eastern
Europe in 2007, increasing total balances at the end of 2007 to
€7.6 billion, and expects to achieve a total loans target of €18
billion by 2010. CEO Mantzounis said the bank will also add 240
more branches than originally planned, to reach 1,010 units in the
region by 2010.
Alpha reported a strong set of results for the third quarter of
2007, with net profit of €216 million up 29.3 percent year-on-year.
Loans were up 26.2 percent year-on-year, driven by 18 percent
growth in Greece and a 76 percent increase in south east Europe
compared with the same period last year.
