The Alfa-Bank banking group reported IFRS-based net profit of 38 billion rubles for the first quarter of 2023. These figures come from the interim financial statements prepared by the holding company under international standards. On the other hand, the bank’s net profit calculated under Russian accounting standards for the same period stood at 27 billion rubles. Profitability was evident across all core lines of business, including retail, small and medium enterprises, and large corporate segments.
The financial update notes ongoing expansion in the bank’s revenue streams across key sectors. Net interest income rose by one and a half times compared with the first quarter of 2022. The customer base continued to grow, with retail clients reaching 26.5 million in the first quarter of 2023, including one million new customers. The bank also reported that the small and medium-sized enterprise segment reached 1.4 million customers in its client base.
Asset growth was visible in both individual and corporate loan portfolios. Net loan debt increased by six percent in the quarter under banking standards, with momentum seen in lending across SME and corporate portfolios. Notably, the fastest expansion occurred in loans to small and medium-sized businesses, which rose by about twelve percent in the quarter. In the retail segment, collateralized mortgage lending showed the strongest growth, expanding roughly six percent in the period.
The credit portfolio is described as high quality, with provisions on net costs trending lower versus the same period a year earlier. The bank continues to meet obligations to holders of Eurobonds whose rights are registered within the Russian payment system. At the same time, coupon accruals are maintained for holders whose Eurobond rights are recognized in the international payment infrastructure.
The financial statements emphasize solid liquidity across the group. Sufficient cash, securities, and other liquidity resources remain available to fulfill obligations in a timely manner. This readiness underscores the bank’s ability to support ongoing operations and strategic initiatives while maintaining resilience in changing market conditions.
Overall, the first quarter reflects a period of robust performance for Alfa-Bank, highlighted by strong revenue growth, expanding client reach, diversified loan activity, and stable liquidity. The combination of these factors supports a positive trajectory for the bank as it navigates evolving market dynamics and regulatory environments. Stakeholders can anticipate continued emphasis on risk management, portfolio quality, and prudent balance sheet management as the year progresses, with the objective of sustaining profitability and capital strength.