Alpha Bank (ALPHA) Q2 2025 earnings summary

Executive summary

• H1 2025 profit after tax reached €517 million, up 60% year-over-year, with normalized profit at €460 million and return on tangible equity at 14.2%.

• Interim dividend of €111 million to be distributed in Q4, with €259 million accrued YTD, representing 60% of annual guidance and a 50% payout accrual.

• Strategic partnerships with Hellenic Post and UniCredit expanded the footprint, revenue streams, and cross-border operations, supporting financial inclusion.

• UniCredit increased its stake to over 20%, enhancing commercial and operational synergies, especially in asset management, advisory, and international business.

• Group-wide reorganization and merger by absorption of Alpha Services and Holdings S.A. completed in June 2025.

Financial highlights

• Q2 2025 reported profit after tax was €294 million (+31% q/q), with normalized profit at €221 million.

• Net interest income for H1 2025 was €795 million, down 5% y/y, but up 1% sequentially in Q2; fee income grew 16% y/y to €229 million.

• Operating income for H1 2025 was €1,110 million (+1% y/y); operating expenses stable at €418 million.

• Performing loans up 15% y/y and 1% q/q; customer funds up 9% y/y and 2.7% q/q.

• Fully loaded CET1 ratio at 15.7% (16.2% pro-forma); tangible book value up 14% y/y.

Outlook and guidance

• EPS guidance upgraded by 2% for 2025 and beyond, with expected annual EPS growth of 9% through 2027.

• Revenue for 2025 expected to exceed €2.2 billion, with a better mix from fee income offsetting NII pressures.

• Cost of risk guidance reduced to 45 bps for 2025 and going forward.

• Capital expected to remain above 15% for the year, with strong capital generation and ordinary payout set at 50%.

• ROTE expected at ~13% in 2027, with cumulative capital generation over €3 billion for 2025-2027.