Alpha Bank Reports €517 Million Net Profit in H1 2025
The second quarter alone saw net earnings of €293.7 million, a 31.5% increase compared to the same period last year. These figures reflect the bank’s strong operating momentum and its ability to navigate a changing interest rate environment with resilience.
The bank’s return on tangible book value reached 13.5%, while its Common Equity Tier 1 (CET1) capital adequacy ratio stood at 15.7%, underlining its solid financial position. During the quarter, Alpha Bank successfully issued a €500 million Tier II subordinated bond, attracting strong demand and securing the lowest credit spread ever achieved by a Greek bank for such an instrument.
Domestically, Alpha Bank continued to support lending activity, achieving net credit expansion of €900 million in Greece in the second quarter. Total loan disbursements reached €2.8 billion, a 33% increase year-on-year, primarily directed toward businesses. The performing loan portfolio increased by 1.4% quarter-on-quarter, totaling €34.9 billion. At the same time, customer deposits grew by €900 million, or 1.9%, reaching €51.3 billion—an annual increase of 6.5%. Assets under management also saw significant growth, rising 15.2% year-on-year.
Net interest income remained robust at €399.3 million in the second quarter, up 1% from the previous quarter, despite a gradual easing of interest rates. Net fee and commission income rose by 13% to €121.6 million. Operating expenses increased moderately by 5.2%, reaching €214.2 million, largely due to higher staff compensation and general administrative costs.
Credit risk costs continued to decline, with the cost of risk falling to 39 basis points. The non-performing exposure (NPE) ratio improved to 3.5%, and the NPE coverage ratio increased to 57%. Including collateral, the total coverage ratio reached 132%, indicating continued improvement in asset quality.
Strategically, Alpha Bank took major steps to expand its market reach and strengthen its international positioning. A new partnership with Hellenic Post (ELTA) is set to broaden financial access across Greece, enabling distribution of Alpha Bank’s specialized products through ELTA’s extensive national network. Simultaneously, the bank deepened its alliance with Italy’s UniCredit, which increased its equity stake to 20%. This partnership is seen as a long-term strategic move with potential to yield significant mutual benefits, positioning Alpha Bank as a key player in Southeastern Europe.
The bank also finalized the merger of its operations in Romania, reinforcing its presence in that market. Its onemarkets Fund continued to perform strongly, attracting over €600 million in investments, demonstrating growing investor confidence in Alpha Bank’s asset management capabilities.
In a statement, CEO Vassilios Psaltis emphasized the bank’s strategic discipline and operational strength, noting that consistent execution allowed the bank to exceed expectations and revise its full-year earnings per share (EPS) estimate upward by 2%. Psaltis highlighted the resilience of net interest income, the continued rise in fee-based revenues, and Alpha Bank’s commitment to cost efficiency. The bank maintained a dynamic commercial presence, achieving €900 million in both credit and deposit growth, alongside €500 million in new assets under management. With a CET1 ratio at 15.7%, Alpha Bank remains well-capitalized to fund its ongoing growth and strategic initiatives.
Of the €517 million in net profits recorded in the first half of the year, €259 million are earmarked for dividend distribution, representing a 14.2% return on tangible equity. Psaltis also pointed to key milestones such as the partnership with ELTA, the deepening ties with UniCredit, and a corporate reorganization launched in June to simplify the group’s structure and boost innovation and operational efficiency.
Looking ahead, Psaltis expressed strong confidence in the bank’s trajectory. He stated that Alpha Bank is not just on the right path—it is accelerating—poised to lead Greece’s banking sector into a new era. With projected annual EPS growth of 9% through 2027, the bank aims to deliver sustainable, long-term value for its customers, shareholders, and society.
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