Alpha Bank once again delivered strong performance in the first half of the year and second quarter, posting profits of €517 million and €293.7 million respectively. The estimated dividend distribution amounts to €259 million for the first half, based on the bank’s performance to date, of which €147 million is the dividend resulting from second quarter performance. Of this €259 million, €111 million will be paid as an interim dividend in the coming months.
Alpha Bank: €517M profit in H1, €111M dividend in Q4
Alpha Bank CEO Vasilis Psaltis, speaking about UniCredit’s recent increase in its shareholding to 20%, emphasized that it highlights the dynamics and long-term prospects of their partnership. Both organizations recognize the strategic importance of this collaboration and view it as a major competitive advantage, which they intend to fully leverage for the benefit of their shareholders and customers.
Key developments at Alpha Bank
- The return on tangible equity based on adjusted net income after taxes was 13.5% in Q2 2025, adjusted earnings per share reached €0.19, while the FL CET1 ratio reached 15.7%.
- Net credit expansion in Greece reached €0.9 billion in Q2, with disbursements of €2.8 billion in Greece (+33% year-on-year), mainly to businesses and to a lesser extent to individuals. The Group’s performing loans portfolio, excluding senior preferred bonds, increased by 1.4% or €0.5 billion on a quarterly basis and reached €34.9 billion (+14.5% year-on-year).
- Customer funds strengthened by 8.8% year-on-year, due to deposit growth of 6.5% year-on-year and assets under management (AUMs) growth of 15.2%. Group deposits increased by €0.9 billion quarterly or 1.9%. Time deposits as a percentage of the bank’s domestic deposits reached 24%, down 2 percentage points quarterly, with the deposit rate beta remaining unchanged at 24%.
- The Group’s non-performing exposures ratio was 3.5%, down 20 basis points, as a result of non-organic NPE management actions. Credit risk cost was 39 basis points in Q2 2025.
- The FL CET1 ratio reached 15.7% taking into account the provision for dividend distribution of €147 million, as a result of a positive 40 basis point contribution from quarterly organic profitability, including the impact from RWA increases resulting from credit expansion. Taking into account the positive impact on risk-weighted assets (RWAs) from planned NPE transactions, the FL CET1 ratio was 16.2% and the total capital adequacy ratio reached 21.9%
- The bank’s tangible book value reached €7.5 billion, up 11.5% year-on-year, or 14.4% excluding dividend payments.
- In July, the bank successfully completed a €500 million Tier II bond issuance, which attracted exceptionally high investor interest, while the acceptance rate of the liability management exercise was 72%. The credit spread of the issuance was 193 basis points, achieving the lowest recorded credit spread for a subordinated Tier II issuance by a Greek bank.
Results overview
- In Q2, net interest income reached €399.3 million, up 1% compared to the previous quarter, as lower contribution from loans was offset by improved deposit and funding costs. In H1 2025, net interest income decreased by 4.6% year-on-year.
- Net fee and commission income reached €121.6 million in Q2, up 13% quarterly as a result of business loan origination fees and higher card and payment fees. In H1 2025, fee income increased by 16% year-on-year.
- In Q2 2025, recurring operating expenses reached €214.2 million, up 5.2% compared to Q1, due to higher staff costs and general expenses. In H1 2025, recurring operating expenses increased by 1.4% year-on-year, mainly due to higher general expenses.
- Core banking income strengthened by 3.6% quarterly as a result of enhanced performance in net fee income and resilient net interest income performance (+1%).
- In Q2 2025, credit risk cost was 39 basis points, while H1 was 45 basis points.
- Adjusted net income after taxes, which reached €221 million in Q2 2025, is defined as net income after income tax of €294 million excluding:
- the impact of NPE transactions of €77 million and
- other adjustments resulting from recognition of additional deferred tax assets and other post-model adjustments for credit risk coverage as well as related taxes of €150 million.
Psaltis: “Alpha Bank is not just on the right track, it’s accelerating!”
Alpha Bank CEO Vasilis Psaltis stated that “during the second quarter of 2025, Alpha Bank once again delivered strong performance, based on consistent implementation of our plan and strategic foresight. We moved early to ensure we exceed our annual targets and, with confidence in the bank’s trajectory, revised our earnings per share (EPS) estimate upward by 2%.
Despite challenges from gradual interest rate deceleration, net interest income showed resilience, increasing 1% quarterly to €399 million. Core revenue sources remained strong, with fee income rising 13% to €122 million. Meanwhile, we continued disciplined cost management, effectively containing our operating expenses.”
Vasilis Psaltis continued: “Our balance sheet continues to evolve according to our strategic plan. We maintain strong commercial momentum, achieving net credit expansion of €0.9 billion, deposit growth also of €0.9 billion, and assets under management inflows of €0.5 billion. Our capital position remains strong, with the CET1 ratio at 15.7%, ensuring flexibility to support further growth and implement strategic initiatives.
This overall momentum allows us to record after-tax profits of €517 million in the first half of the year – an amount corresponding to 60% of our annual target – of which €259 million is intended for dividend distribution, achieving a return on tangible equity of 14.2%. The second quarter of 2025 was also marked by significant strategic milestones. Our partnership with Hellenic Post will substantially enhance financial inclusion for individuals and businesses, as specialized Alpha Bank products will be available through the nationwide Hellenic Post network.”
He added: “Meanwhile, our strategic partnership with UniCredit is gaining increasing momentum. We successfully completed the merger of our activities in Romania, establishing a leading market position, while the distribution of onemarkets mutual funds continued its upward trajectory, with investment interest exceeding €600 million. UniCredit’s recent increase in its shareholding in our share capital to 20% highlights the dynamics and long-term prospects of our partnership. Both organizations recognize the strategic importance of this collaboration and view it as a major competitive advantage, which we intend to fully leverage for the benefit of our shareholders and customers.
In June, we proceeded with organizational restructuring of the Group, aiming to simplify our structure, enhance innovation, and further improve our operational efficiency, so that the bank remains agile and continues to optimally capitalize on emerging opportunities. I would like to warmly thank all our Alpha Bank colleagues for their dedication and contribution to this important step forward.
In conclusion, Vasilis Psaltis said: “Looking ahead, Alpha Bank is not just on the right track – it’s accelerating! With strong fundamentals, implementation discipline, and the right strategic partnerships, we are positioned to lead the new era of banking in Greece. We enter the second half of the year with strong momentum and confidence, fully committed not only to achieve but to exceed our targets, setting new standards of quality and effectiveness. With projected annual earnings per share growth of around 9% through 2027, our goal remains clear: to create long-term, sustainable value for customers, shareholders, and society.”
See HERE the complete Alpha Bank financial results report.
