Alisa Bank - Fairly decent first half
Alisa Bank’s H1 profitability was slightly better than anticipated, with PTP at EUR 0.4m (Evli EUR 0.1m). Total income was below our expectations but lower expected and realized credit losses made up for the difference. Profits in H2 expected to increase from H1.
- Total income during H1/23 amounted to EUR 8.4m (Evli EUR 9.5m). Net interest income amounted to EUR 7.4m (Evli EUR 7.8m) and net fee and commission income to EUR 0.8m (Evli EUR 1.7m).
- In H1 the volume of funding in corporate financing increased 19% y/y, driven by invoice financing, while the credit portfolio in consumer customers remained at previous year levels.
- The loan portfolio (before expected credit losses) at the end of H1 amounted to EUR 170.3m (163.8m) and the deposits amounted to EUR 241.7m (246.8m).
- The pre-tax profit during H1 amounted to EUR 0.4m (Evli EUR 0.1m). Although the total income fell short of our estimates, the impairment of receivables was lower than expected at EUR -2.2m (Evli -3.7m). Total OPEX was quite in line with expectations.
- Earnings per share amounted to EUR 0.00 compared with our estimate of EUR 0.00.
- CET1 and the CET1 ratio amounted to EUR 17.7m and 12.0% and total capital ratio to 15.5%
- The cost / income ratio amounted to 69%.
- Outlook for 2023: The bank’s profits in H2 are expected to increase from H1. The result before non-recurring items is estimated to be positive in 2023. Total capital adequacy target set at 16%. Aim to strengthen own capital during H2.