Alpha Bank income boosted by AstroBank acquisition in Cyprus

Alpha Bank reported net profits of €943.3 million for 2025 and announced a €519 million distribution to shareholders, marking what the lender described as a decisive year for its strategy and growth trajectory.

“The 2025 was a decisive year for Alpha Bank, marking the successful completion of the three-year strategic plan that began in 2023,” said CEO Vassilis Psaltis.

“In this three-year period, and especially in 2025, we exceeded all our strategic and financial targets, while completing a series of acquisitions that strengthen our capabilities, accelerate our strategy and place the group on a path of long-term growth,” he added.

During the fourth quarter, net interest income reached €413.3m, increasing by 3 per cent quarter-on-quarter, primarily due to the acquisition of AstroBank.

On a recurring basis, net interest income was positively affected by the higher contribution from loans despite reduced lending margins, while for the full year 2025 it declined by 2 per cent year-on-year.

The return on tangible equity based on adjusted profit after tax stood at 13.1 per cent in the fourth quarter of 2025, with adjusted earnings per share reaching €0.36 and the FL CET1 ratio standing at 15 per cent.

The bank recorded a record level of new disbursements in Greece amounting to €4.2 billion in the fourth quarter, representing a 40 per cent increase quarter-on-quarter and a 4 per cent rise year-on-year.

In the fourth quarter, net credit expansion amounted to €1.3bn, reflecting increased demand for loans mainly from businesses despite high repayment levels, while for the full year 2025 net credit expansion reached €3.5bn.

“Our commercial momentum remained strong, with net credit expansion reaching €3.5bn, mainly driven by financing to businesses, confirming Alpha Bank’s role as the bank of choice for the business community in our core markets, Greece and Cyprus,” Psaltis said.

Customer funds increased by 11.5 per cent year-on-year, driven by an 8 per cent annual rise in deposits, or 4 per cent excluding AstroBank, as well as a strong 21 per cent increase in assets under management, mainly in equities, which rose 28 per cent year-on-year, and mutual funds, also up 28 per cent year-on-year.

“Deposits increased by €4.1bn, of which €2.2bn came from AstroBank, substantially strengthening our balance sheet,” he said.

“Net fee income increased by 19 per cent year-on-year and accounted for 23 per cent of our total revenues, highlighting the growing diversification of the group’s revenue sources,” he added.

“This performance was reinforced by strong activity in transaction banking and the further acceleration of our initiatives in asset management, where we recorded €1.3bn in net sales and €2bn in inflows into mutual funds,” he continued.

The group’s non-performing exposure ratio stood at 3.6 per cent, almost unchanged compared with the third quarter.

The cost of credit risk stood at 58 basis points in the fourth quarter, reflecting stable asset quality.

The FL CET1 ratio remained at 15 per cent, taking into account a provision for a dividend distribution of €165m, supported by a positive contribution of 52 basis points from the quarter’s organic profitability.

The economic outlook in the bank’s core markets of Greece and Cyprus remains favourable, underpinned by strong macroeconomic fundamentals.

At the same time, the strategic partnership with UniCredit continues to deepen, creating new opportunities in advisory services, investment banking, trade finance, cash management, treasury services, international syndicated loans and wealth and asset management.

“We enter 2026 from a position of strength,” Psaltis said.

“The consistent implementation of our strategic plan, our expanded regional presence and our cooperation with UniCredit lay a strong foundation for the next phase of our growth,” he added.

“In this context, we look forward to hosting in the second quarter of 2026 the Investor Day, where we will present the key pillars and targets that will define the next stage of Alpha Bank’s course,” he said.

“The past three years of disciplined execution have brought us to the forefront of the sector and we continue with the same momentum into a new chapter, remaining committed to creating sustainable value for shareholders and all stakeholders,” he concluded.