Alpha Bank (ALPHA) Q4 2024 earnings summary

Executive summary

• Normalized profit after tax for FY 2024 reached €861 million, up 9% year-over-year, with reported profit at €654 million and return on tangible equity at 14%, surpassing business plan targets.

• EPS and return on tangible equity have doubled over two years, with normalized EPS at €0.35 and capital generation exceeding targets.

• Strategic priorities and partnerships, including UniCredit, have driven profitability, digitalization, and competitive positioning.

• Dividend payments resumed after 16 years, with €281 million accrued for 2024 and a payout ratio of 43%, 75% via buyback.

• Strategic acquisitions of Flexfin and AstroBank expanded international presence and product offering.

Financial highlights

• FY 2024 normalized profit after tax: €861 million (+9.3% y/y); reported profit: €654 million (+6% y/y); total revenues: €2.2 billion (+5% y/y).

• Net interest income was €1.65 billion (-0.7% y/y); fee and commission income grew 12% to €420 million.

• Performing loans increased 12% year-over-year to €33.3 billion; customer funds up 14% to €69.5 billion.

• Cost-income ratio improved to 38.6%; pre-provision income rose 4% to €1,352 million; impairment losses dropped 24% to €236 million.

• NPE ratio down to 3.8% (from 6.0%), with coverage at 53% and cost of risk at 63 bps.

Outlook and guidance

• 2025 guidance targets revenues above €2.2 billion, cost-income ratio around 39%, and cost of risk at 50 bps.

• EPS expected to grow by 6% per annum, reaching at least €0.42 by 2027, with a 50% payout ratio from 2025 onward.

• Loan growth projected to exceed €2 billion annually, with fee income CAGR above 9% for 2026-2027.

• CET1 ratio to remain stable in 2025, growing to 17% by 2027; payout ratio to increase to at least 50%.

• Asset quality expected to remain strong, with NPE ratio below 3% and cost of risk at 50 bps by 2027.