“We are entering the final stretch of 2026 from a position of strength.”
With this statement, Vassilis Psaltis, Chief Executive Officer of Alpha Bank, captured the message behind the Greek lender’s nine-month financial results: stronger profitability, accelerating business growth and a more diversified revenue model.
Alpha Bank reported adjusted profit after tax of €778.5 million, representing a 14.2% year-on-year increase, while quarterly net interest income reached its highest level in almost nine years.
The results underline the bank’s progress in expanding its loan portfolio, strengthening its wealth management business and generating additional revenue from investments and targeted acquisitions.
They also provide the financial backdrop for a significant strategic milestone: Alpha Bank’s Investor Day on November 5, 2026, when Psaltis will present the group’s priorities through 2030.
Psaltis: “The Third Quarter Confirmed the Momentum of Our Business Model”
Commenting on the results, Psaltis emphasized the combination of organic growth, strategic acquisitions and balance sheet resilience.
“From a financial performance perspective, the third quarter confirmed the momentum of our business model, further strengthened by the contribution of our recent acquisitions and the continued resilience of our balance sheet, allowing us to enter the final stretch of 2026 from a position of strength,” he said.
The numbers support the bank’s assessment of its operating performance.
Adjusted profit after tax increased to €778.5 million, compared with €681.5 million during the corresponding period of 2025.
Return on tangible book value (RoTBV) reached 14.5% for the nine-month period, rising to 15.5% in the third quarter.
Reported profit after tax amounted to €763.3 million, an increase of 15.5% year on year, while net profit attributable to the bank‘s shareholders reached €766.1 million.
The distinction between adjusted and reported earnings is important, as the two measures reflect different accounting treatments and adjustments.
Nevertheless, both indicators point to improved profitability during the period.
Net Interest Income Reaches Its Highest Quarterly Level in Almost Nine Years
One of the standout developments was the acceleration in net interest income.
During the third quarter, Alpha Bank generated €472.2 million in net interest income, compared with €436.4 million in the previous quarter.
This represents an 8.2% quarter-on-quarter increase and, according to management, the bank’s strongest quarterly performance in almost nine years.
For the first nine months of 2026, net interest income reached €1.325 billion, up 10.7% from approximately €1.197 billion in the corresponding period last year.
The increase was primarily driven by the expansion of the performing loan portfolio and a stronger contribution from the bank’s bond holdings.
Management indicated that performance so far has exceeded its initial expectations.
For Alpha Bank, the development is particularly significant because it demonstrates the contribution of balance sheet growth to recurring earnings.
Fee Income Jumps 32% as Revenue Diversification Gains Momentum
Beyond interest income, Alpha Bank recorded substantial growth in fees and commissions.
Fee income rose 32.2% year on year to €482.7 million during the nine-month period.
Excluding dividends received from PRODEA, the increase stood at 25.4%, reflecting the contribution of core banking services, investment products and wealth management activities.
Fees now account for approximately one-quarter of the group’s operating income.
This is a significant component of the business model being developed under Psaltis, as the bank seeks to diversify its income streams beyond traditional lending.
The asset management business delivered its highest quarterly revenue performance on record, exceeding €40 million in the third quarter.
Cards and payments also made a positive contribution.
The expansion of these businesses reflects the bank’s investment in activities capable of generating recurring revenues while broadening its customer relationships.
Lending Expansion Reaches €2.6 Billion
Alpha Bank’s profitability was accompanied by strong lending growth.
Net credit expansion reached €2.6 billion during the first nine months of 2026, while performing loans increased to €40.4 billion.
The performing loan portfolio grew 13.1% year on year, maintaining a double-digit expansion rate.
In the third quarter alone, new loan disbursements reached €3.1 billion, while net credit expansion amounted to approximately €400 million.
The figures highlight the bank’s growing financing activity within the Greek economy.
Alpha Bank also reported that it remains on track to meet the upgraded lending guidance announced during the second quarter.
For the bank’s earnings outlook, loan growth is particularly relevant because it supports the expansion of interest-generating assets.
Customer Assets Climb to €88.1 Billion
The bank also reported a substantial increase in customer funds.
Total customer assets reached €88.1 billion, representing 19% year-on-year growth.
Deposits rose 13.3% to €59.9 billion, compared with approximately €52.9 billion a year earlier.
Meanwhile, assets under management increased by 32%, reflecting the expansion of the group’s investment and wealth management activities.
Net sales of investment and asset management products reached €400 million during the third quarter and €1.1 billion since the beginning of the year.
That performance has already exceeded the bank’s full-year 2026 guidance for net sales.
The growth in deposits and managed assets provides Alpha Bank with a broader funding and customer relationship base, while also creating opportunities to generate additional fee income.
Psaltis: “We Have Full Confidence in the Bank’s Financial Strength”
Despite continued uncertainty in the international economic environment, Psaltis expressed confidence in Alpha Bank’s financial position.
“Despite the uncertainties that continue to characterize the international macroeconomic environment, we have full confidence in the financial strength of the Bank,” he said.
“Our capital position remains strong, our provisioning is prudent, and our funding base is solid and diversified.”
The bank’s capital indicators provide further context.
Its Common Equity Tier 1 (CET1) ratio stood at 14.5%, increasing by 20 basis points compared with the previous quarter.
Organic capital generation reached 124 basis points during the nine-month period.
A new synthetic securitization contributed an additional 17 basis points to CET1 during the third quarter.
The total capital adequacy ratio stood at 19.3%.
These figures illustrate the bank’s ability to generate capital internally while continuing to expand its business.
Operating Efficiency and Asset Quality
Alpha Bank maintained a cost-to-income ratio of approximately 38% for the nine-month period, improving to 36% in the third quarter.
Operating income increased by 13.5% to €1.848 billion.
Total operating expenses reached €701.9 million, up 12.7% year on year.
Pre-provision profit increased by 14% to €1.146 billion, while core pre-provision profit rose 18.7%.
The bank’s non-performing exposure (NPE) ratio stood at 3.8% at the end of September.
Cost of risk was 42 basis points for the nine-month period and 43 basis points in the third quarter.
Together, these indicators show the relationship between lending growth, operating profitability and the credit risk profile of the loan portfolio.
€124 Million Interim Dividend Planned for Early December
Alpha Bank’s earnings performance is also supporting shareholder distributions.
The bank continues to accrue for distributions equivalent to 55% of reported profits.
The cumulative amount earmarked for distributions reached €421 million during the first nine months of 2026.
Of that amount, approximately €124 million is expected to be distributed as an interim dividend in early December.
The planned payment represents an immediate milestone for shareholders, while the broader distribution policy reflects management’s approach to balancing capital generation, business growth and shareholder returns.
The final distribution process remains subject to the applicable requirements and corporate procedures.
Psaltis Sees Greece in a Strong Position Within Europe
The Alpha Bank CEO also linked the group’s growth outlook to the broader performance of the Greek economy.
“Greece is currently in an advantageous position compared with much of Europe, with strong fiscal performance, a continued decline in public debt and an ever-expanding pipeline of investment projects,” Psaltis said.
He argued that these conditions support the bank’s medium-term growth prospects.
“These conditions reinforce our conviction that the foundations for Alpha Bank’s next phase of growth are already firmly established.”
His comments reflect management’s expectation that economic activity, investment demand and corporate financing will remain important drivers of banking sector growth.
The expansion of lending and investment services represents a central part of Alpha Bank’s strategy to capitalize on those opportunities.
Investor Day on November 5: Psaltis Prepares the Next Chapter
The next major event on Alpha Bank’s calendar is its Investor Day on November 5, 2026.
The presentation will outline the group’s strategic priorities through 2030, providing investors with a clearer picture of management’s plans for future growth, profitability and shareholder value creation.
The event follows the unveiling of Alpha Bank’s new corporate identity in October and comes as the bank moves into the next stage of its business transformation.
Psaltis highlighted the significance of the upcoming presentation.
“Next week, at Investor Day, we will present our strategic priorities through 2030,” he said.
“The financial performance reflected in these results, together with the new identity we unveiled in October, provides us with a solid foundation to open the next chapter in Alpha Bank’s journey.”
He concluded with a forward-looking message to investors:
“We have much to share about the future and look forward with great interest to the dialogue we will have on November 5.”
With adjusted nine-month profit approaching €800 million, net interest income at an almost nine-year quarterly high and double-digit growth in performing loans, Alpha Bank enters its upcoming strategy presentation with measurable progress across its core business indicators.
The November 5 Investor Day will now be the opportunity for Psaltis and his management team to explain how the bank intends to build on that performance and translate its current momentum into longer-term growth through 2030.
Source: pagenews.gr