Alpha Bank Profits Soar – CEO Psaltis Hints at Major Acquisitions

Alpha Bank posted net profits of €943.3 million in 2025, up 44.3% year-on-year, surpassing the targets of its 2023-2025 strategic plan. CEO Vassilis Psaltis highlighted that the bank will use its capital surplus for targeted acquisitions and inorganic growth, signaling significant upcoming moves.

Earnings per share reached €0.36, while the return on tangible equity (RoTE) stood at 13.8%, strengthening investor confidence. Total revenues hit €2.2 billion, with net fee income rising 19% and representing 23% of total revenue, enhancing the diversification of the business model. Despite declining interest rates, net interest income (NII) remained strong at €1.61 billion, maintaining a stable base of recurring income.

The bank proposes a distribution of €519 million, equivalent to 55% of net profits, split equally between dividends and share buybacks, well above the initial guidance of €425 million. The FL CET1 ratio reached 15%, allowing higher shareholder returns while maintaining capital strength.

Operationally, 2025 reflected a widening of pre-provision profits to €1.29 billion, with adjusted net profits of €906.6 million, up 5.4% from 2024, demonstrating the stability of organic profitability.

In Greece, net credit expansion reached €3.5 billion, with record new disbursements of €4.2 billion in Q4, while deposits grew by €4.1 billion, ending the year at €55.1 billion. Asset quality remains controlled, with Non-Performing Exposures at 3.6% and a credit cost of 48 bps for the year.

Strategically, 2025 marked the completion of the three-year plan, with acquisitions of FlexFin, AXIA Ventures, and Astrobank boosting low-capital-intensive, high-fee businesses. The merger of Altius with Universal Life in Cyprus creates the country’s third-largest insurance group, contributing ~2% to earnings per share.

For 2026, management expects an 11% increase in adjusted EPS, focusing on integration of acquisitions and further strengthening recurring revenues. Psaltis emphasized that the capital surplus provides strategic flexibility for inorganic growth in areas such as investment banking, asset gathering, and factoring, as well as consolidating the bank’s position in its core markets.

The upcoming presentation of the 2026-2028 strategic plan at the Investor Day in Q2, although later than competitors, indicates that Alpha Bank has already set in motion initiatives that will mature by mid-year, including potential acquisitions and infrastructure upgrades.

The message is clear: strong profits, higher shareholder distributions, and a growth strategy positioning Alpha Bank for a new phase of expansion and inorganic development.

Source: pagenews.gr