Net profits EUR 223 million for the first quarter of 2025, announced today (9.5.2025). Alpha Bank.
In his statements, Alpha Bank’s CEO, Vasilis Psaltis, says that “having closed in 2024 with excellent performance, Alpha Bank maintains its potential in 2025, recording the strongest quarter of profitability in its history, with net profits of 223 million euros in the first quarter of the first quarter. capital of 15.4%. This powerful result puts us on a steady track of achievement, thereby confirming the consistent and targeted implementation of our strategic plan. “
Strong financial performance and steady progress in implementing strategy
As the bank announced, Alpha Bank is on a steady orbit in achieving the goals of its strategic plan, as confirmed by the results of the first quarter 2025. Customized net profit after tax increased by 22% compared to the first quarter 2024, reaching 239.3 million euros:
- The strong line of defense over falling interest rates – the significant increase in revenue from supplies by 16% on an annual basis
- The smoothing of the cost of credit risk that was set at 53 basis points. At the same time, the Group’s capital adequacy was significantly reinforced compared to the corresponding period last year, as the CET1 index stood at 16.3%, higher by 1.6 percentage points, while remained unchanged compared to the fourth quarter, absorbing the provision for distribution of € 50%, € 50%, € 1.6%. Depreciation for DTCs, and the full impact of just 27mb. From Basel IV, which has been in force since January 2025.
- Net credit expansion was reinforced by 0.6 billion euros in the first quarter mainly due to increased business demand, while the portfolio of service loans recorded a 13% increase on an annual basis.
In addition, a significant increase was the customer capital, which was raised by 8% annually, as a result of 12% of the AUMS management (AUMS), while deposits increased by 6.6% on a yearly basis.
Return to shareholders – dividend and stock repurchase program
Alpha Bank’s administration has provided for a dividend distribution of € 111 million in the first quarter, which corresponds to 50% of the profits. It is recalled that Alpha Bank for 2025 will propose a 50% distribution of its published profits of which 75% through the buyback repurchase, confirming confidence in the bank’s prospects and its market valuation.
Strategic acquisition of Axia Ventures – Triple Investment Bank Revenue
It is reported that the recent acquisition of Axia Ventures creates the only fully integrated platform for providing investment banking and capital market services in Greece and Cyprus. As the bank has already announced, investment banking and stock market revenue is expected to triple in the coming years, and is estimated to exceed € 45m from € 10 – 15m euros today. This acquisition is expected to have a positive effect on earnings per share with investment yield more than 20%.
“Following the transactions with Flexfin and Astro Bank earlier in the year, we proceeded to the third acquisition in just four months. We are excited about the acquisition of Axia Ventures, a strategic move aimed at creating the largest platform for investment banking and capital markets in Greece and Cyprus, “commented Vasilis Psaltis.
Highest targets with horizon in 2027
The Group’s management, as noted, expects further acceleration of the Group’s growth dynamics, due to the continuation of strategic acquisitions and the bank’s structural advantages. According to revised forecasts by the end of 2027, Rote is expected to reach 13% (from 12% of the original provision), while profits per share are expected to exceed 45 minutes, from 42 initially estimated.
“In Alpha Bank, our priorities remain clear: expansion and profitability of our loan portfolio, securing generous distributions to shareholders and utilizing excess capital to implement our strategy. We are convinced that we will continue to fulfill these priorities and maximize the value for our shareholders, “Mr Psaltis said in a statement