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Introduction & Market Context
Alpha Bank (AT:ACBr) (ATHENS:ACBB) has unveiled its Q2 2025 results in an investor presentation dated August 1, 2025, showcasing strong financial performance and strategic initiatives aimed at sustaining growth through 2027. The Greek lender, currently trading at €2.925 per share, has reported significant profit growth for the first half of 2025 while reinforcing key partnerships to enhance its market position.
The presentation comes after Alpha Bank’s Q1 2025 results, which showed the company achieving 28% of its annual profit target early in the year. The bank’s stock has shown strong momentum with a 54% price return over the past six months, according to previous earnings reports, though it has experienced some volatility amid broader market uncertainties.
H1 2025 Financial Performance
Alpha Bank reported robust financial results for the first half of 2025, with reported profit after tax reaching €517 million, representing a substantial 60% year-over-year increase. Normalized profit after tax stood at €460 million, up 5% compared to the same period last year.
The bank achieved a return on tangible equity of 14.2% on a normalized basis (11.7% reported), while earnings per share reached €0.19 normalized (€0.21 reported). Despite a 5% year-over-year decline in net interest income to €795 million, fee income grew impressively by 16% to €229 million.
As shown in the following performance highlights slide, Alpha Bank maintained strong asset quality with an NPE ratio of 3.5% and a cost of risk of 45 basis points:
The bank’s capital position remains solid with a fully loaded CET1 ratio of 15.7% (16.2% pro-forma), slightly down from the 16.3% reported in Q1 2025. Performing loans increased by 15% year-over-year, accelerating from the 13% growth reported in the previous quarter, while customer funds grew by 9%.
Alpha Bank has accrued a 50% payout of H1 2025 reported profit, amounting to €259 million, with €111 million proposed as an interim payment in Q4. The organic capital generation was strong at 111 basis points, contributing to a 14% year-over-year growth in tangible book value.
Strategic Partnerships
ELTA Partnership for Nationwide Financial Inclusion
Alpha Bank announced a strategic partnership with ELTA (Hellenic Post) to expand financial inclusion across Greece. This initiative will leverage ELTA’s extensive network of 1,100 service points to deliver a comprehensive suite of financial services, targeting over 1 million citizens, particularly in rural, island, and underserved urban areas.
As illustrated in the following slide, the partnership will significantly expand Alpha Bank’s physical footprint to more than 1,400 locations:
The collaboration aims to transform ELTA branches into modern financial hubs offering daily banking services, including account opening, deposits, and payments, as well as exclusive access to Alpha Bank’s product suite. Services will be rolled out gradually starting in the second half of 2025, with initial setup costs described as small and shared among partners.
UniCredit Partnership Reinforced
Alpha Bank has also strengthened its partnership with UniCredit, which has increased its shareholding to approximately 20%. The collaboration spans wealth and asset management as well as wholesale banking services.
As detailed in the following slide, the partnership has already yielded significant results:
In wealth and asset management, onemarkets Funds launched in 2024 have accumulated approximately €605 million in distributed funds. The banks have collaborated on five private placements with structured notes and three AlphaLife Unit Link product issuances.
On the wholesale banking front, the partnership has facilitated letters of guarantee and letters of credit exceeding €200 million in 2024 and 2025 year-to-date. Additionally, approximately €300 million of approved lending for international syndications has been arranged since the partnership began, along with about €650 million in bilateral exchange of euro payments.
The partnership is further expanding through the combination of both banks’ respective subsidiaries in Romania, demonstrating a deepening strategic alliance.
Growth Outlook and EPS Projections
Alpha Bank outlined its structural advantages that are expected to drive earnings growth through 2027. These include dynamic management of interest rate sensitivity, significant potential from structural growth dynamics, and further upside from balance sheet and franchise positioning.
The bank highlighted that the pace of growth has been maintained above the €2 billion mark, with significant expansion in large corporates and SMEs segments. Strong demand dynamics, coupled with lower rates reducing repayments, are contributing to this growth trajectory.
As illustrated in the following slide, Alpha Bank’s strategic initiatives are expected to drive continued earnings growth:
The bank’s investments in corporate solutions are bearing fruit, with accelerated growth in transaction banking and investment banking. Increasing growth and penetration in wealth management, further supported by the UniCredit partnership, are also contributing to the positive outlook.
Alpha Bank projects a 5% EPS growth in 2025, followed by a 12% EPS CAGR for 2026-2027. The following chart illustrates the expected EPS trajectory:
The bank forecasts an EPS of €0.38 for 2025, approximately 4% above the consensus estimate of €0.35. For 2027, Alpha Bank projects an EPS of €0.46, compared to the consensus estimate of €0.44. The EPS CAGR between 2024 and 2027 is expected to reach 15% including buyback effects, or 9% excluding buyback effects.
Capital Allocation Strategy
Alpha Bank outlined its capital allocation strategy for 2025-2027, focusing on creating and returning value to shareholders through three main channels:
The strategy prioritizes organic growth in wholesale and retail segments in Greece and Cyprus, supported by increasing ordinary payouts over the 2025-2027 period. For excess capital, the bank plans to implement share buybacks and extraordinary dividends, or potentially pursue bolt-on acquisitions that meet strict criteria.
These criteria include accelerating delivery on the bank’s strategy, maintaining the distribution policy, achieving a return on investment exceeding 15%, and ensuring that any acquisition is ROCET accretive and EPS accretive within 2-3 years.
Conclusion
Alpha Bank’s Q2 2025 presentation demonstrates strong financial performance with a 60% year-over-year increase in reported profit after tax for the first half of 2025. The bank’s strategic partnerships with ELTA and UniCredit position it for sustained growth, while its capital allocation strategy focuses on creating and returning value to shareholders.
With projections of 5% EPS growth in 2025 and a 12% EPS CAGR for 2026-2027, Alpha Bank appears well-positioned to maintain its growth trajectory. The bank’s focus on expanding its physical footprint, enhancing its wealth management and wholesale banking capabilities, and maintaining strong capital ratios suggests a solid foundation for future performance.
Investors will be watching closely to see if Alpha Bank can deliver on its ambitious growth targets amid evolving market conditions and macroeconomic challenges in the Eurozone.
Full presentation:
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