Alpha Bank (ALPHA) Q3 2025 earnings summary

Executive summary

• Nine-month profit after tax reached €704 million, up 44% year-over-year, with normalized profit at €677 million and EPS at €0.27, representing 73% of the annual target and a 13.9% normalized return on tangible equity.

• Strategic partnership with UniCredit deepened, with UniCredit increasing its stake to nearly 30%, driving commercial, operational, and systemic benefits, and successful integration of Romanian and Cypriot subsidiaries.

• Fee income grew 14% year-over-year to €349 million, driven by asset and wealth management, lending, and transaction banking, with asset management fees and AUM up 17% year-over-year.

• M&A activity included FlexFIN, AstroBank, and AXIA Ventures, expected to deliver EPS and RoTE accretion at a 60bps capital cost.

• Interim dividend of €111 million to be paid in December, with €352 million accrued for payouts year-to-date and payout ratio accruing at 50%.

Financial highlights

• Net interest income for 9M 2025 was €1,197 million, down 4% year-over-year, but up 1% quarter-over-quarter in Q3; fee income up 14% year-over-year.

• Operating income for Q3 2025 was €523 million, down 5% quarter-on-quarter due to trading losses from a liability management exercise.

• Reported profit after tax for Q3 2025 was €187 million, down 36% quarter-on-quarter due to one-offs; normalized profit was €217 million, flat quarter-on-quarter.

• Performing loans grew 13% year-over-year to €35.7 billion, with customer funds up 9% year-over-year to €74.2 billion.

• Cost of risk at 44-45bps for Q3 and 9M 2025, in line with guidance.

Outlook and guidance

• EPS is guided to grow at a 10% CAGR through 2027, with buybacks potentially increasing CAGR to 14%.

• Full-year reported profit expected to exceed €850 million by over 5%, with revenue guidance at €2.2 billion, NII above €1.6 billion, and fees above €460 million.

• Loan growth guidance maintained at mid to high single digits, supported by strong corporate demand and improving mortgage trends.

• Dividend payout ratio to rise to 50% for 2025, with potential for higher distributions from 2026, subject to regulatory approval.

• Investor Day planned for Q2 2026 to unveil a new three-year business plan.