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On Friday, noting that its loan portfolio remains at a consistently high level, Russia’s Alfa bank reported a net profit for the first half of the year of 52.2 billion rubles ($526 million).
In a press release placed on the bank’s website, it noted that it earned $272 million in the January-March quarter. The bank did not disclose its earnings compared to 2022, when the military action in Ukraine led to a slump in profits.
Alfa Bank’s statement said, “Despite the challenges of the first half of 2022 and a one-time loss, the bank has significantly strengthened its market position in terms of total assets and capital.”
In January-June, net interest income exceeded $1.4 billion, which marked an increase of 84% year-over-year, and net fee and commission income was up 13% to $823 million.
During the reporting period, the assets of the bank increased by 7% to $62 billion, in part as a result of a 17% increase in net loan debt. Corporate loan volume was up 21%, with lending to small and medium businesses increasing by 35% and 22% respectively.
The deposit portfolio of the bank increased by over 7%, due to retail deposits rising 15%.
The bank also reported a 9% increase in customers over the first six months of 2023, with total customers rising to almost 28 million people.
The bank’s press release said, “In 2023, we continue to follow the strategy, as well as actively implement technological innovations, work with machine learning models, and use advanced analytics in business processes.”
Alfa bank was the target of sanctions levied last year by the US against it, and Russia’s biggest lender, Sber, as a result of Moscow’s military operation in Ukraine. Earlier this year, the EU included Alfa bank in its tenth package of sanctions.
Businessmen Mikhail Fridman and Pyotr Aven, the owners of the sanctioned bank, had been reportedly looking to sell their stakes in the bank to get off of the blacklist, however earlier this week, both were added directly to the US sanctions list.
