Alpha Bank (ALPHA) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered robust profitability with reported profit after tax at €182 million and normalized profit at €221 million, both down year-over-year due to one-off items such as restructuring and voluntary separation scheme costs.

• Net interest income rose 5.3% year-over-year to €416.3 million, and fee services income surged 29% year-over-year to €140 million, reflecting strong top-line growth.

• Asset quality remained solid with a stable NPE ratio at 3.7% and cost of risk at 44 basis points.

• Fully loaded CET1 ratio stood at 14.7%, supporting a payout accrual of 55% of reported profit, subject to regulatory approval.

• Strategic M&A activity, including acquisitions in Cyprus, investment banking, and wealth management, is expected to drive further EPS and ROTE accretion.

Financial highlights

• Net interest income: €416.3 million (+0.7% q/q, +5.3% y/y); fee services income: €140 million (+2.7% q/q, +29% y/y).

• Operating income grew 7% year-over-year to €587 million; recurring operating expenses were €229 million (+14.6% y/y).

• Normalized profit after tax was €221 million, down 5.7% year-over-year due to restructuring costs and provisions.

• Tangible book value increased 10% year-over-year; customer funds rose 11% year-over-year to €82 billion.

• Return on tangible equity (ROTE) reached 12.6% (normalized), with EPS at €0.08 (normalized).

Outlook and guidance

• Full-year profit guidance of €950 million and EPS of €0.40 reaffirmed, with normalized earnings expected to grow 11% in 2026.

• Operating income guidance above €2.4 billion; fee income guidance above €600 million for the year.

• Strategic focus on universal banking, scaling wealth management, leveraging partnerships, and efficiency-driven growth.

• Integration of recent acquisitions is a focus, with full synergy benefits expected from 2027.

• Updated strategic roadmap to be presented at Investor Day in H2 2026.