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Alpha Services and Holdings S.A.
Investor Presentation • May 9, 2025
2639_rns_2025-05-09_b9039f24-1200-43cf-93fd-2e66cd12d96a.pdf
Investor Presentation
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Q1 2025 Results
| Key Financial metrics | Q1 2025 | ||
|---|---|---|---|
| Reported profit after income tax | €223.3mn | ||
| Normalized1 profit after tax |
€239.3mn | ||
| Normalized1 Return on tangible book value (RoTBV) | 15.4% | ||
| Fully-loaded Common Equity Tier 1(CET1%) | 16.3% | ||
| Tangible Book Value per Share | €3.07 |
Key takeaways
- Q1 Normalised RoTBV2 at 15.4%, EPS2 at €0.09, 16.3% FL CET1%.
- Net credit expansion of €0.6bn in Q1, with €2.5bn new disbursements in Greece (+32% y/y), driven by Greek business loans. Performing loan balances up +1% q/q and 13% y/y to €33.7bn excluding senior notes. Q1 evolution and strong pipeline reconfirm the outlook for the year.
- Customer funds up +8.1% y/y driven by growth in AuMs growth (+12.1% y/y) and customer deposits (+6.6% y/y). Time deposits at 26% of domestic deposit base, with deposit beta picking up to 24%. In Q1 2025, Customer deposits down €0.7bn q/q to €50.4bn in line with seasonal system outflows with AUM growth of +€0.8bn q/q.
- NPE ratio flat q/q at 3.8%, reflecting benign asset quality flows. CoR at 53bps in Q1.
- FL CET1 at 16.3% post dividend accrual of €111mn, with 71bps from organic capital generation net of the loan growth related RWA increase and a further -27bps from CRR3. Pro forma for remaining RWA relief, FL CET1 stands at 16.9%3 and Total Capital ratio at 22.7%3 .
- Tangible Book Value at €7.2bn, +9.1% higher y/y, or +11% before distributions.
Summary trends
- Net Interest Income at €395.3mn down -2.6% q/q, on account of lower rates and fewer calendar days. Excluding the calendar days effect, NII down by -0.4% q/q or €1.6mn. NII down 6.2% y/y.
- Fees & Commission income amounted to €107.5mn down by -6% q/q, with quarterly trends reflecting seasonality as well as the government measures announced in December; excluding the latter fees would have been down -1.6% q/q. Fees expanded by 11% y/y, or +16% excluding the impact from government measures.
- Recurring costs at €203.6mn in Q1, down -13% q/q due to the seasonal effects. Recurring OPEX up +1.6%, y/y on higher G&As.
- Core PPI stood at €307.8mn, up +2.7% q/q mainly on account of the lower OPEX line, down -4.9% y/y on lower net interest income.
- Cost of Risk at 53bps in Q1, or 30bps excluding servicing fees and securitization expenses reflecting the de-risked portfolio and benign trends in asset quality flows.
- Normalised Profit After Tax of €239mn in Q1 2025, is Reported Profit /(Loss) After Tax of €223mn excluding (a) NPA transactions impact of €12mn, (b) €4mn on other adjustments and tax charge related to the above.
We are raising the bar for our medium-term performance "" "Following a strong end to 2024, Alpha Bank has carried good momentum into 2025. We delivered the strongest ever quarterly net income, amounting to €223 million in the first quarter, which translates into a return on tangible equity (RoTE) of 15.4%. This robust result puts us on track to meet guidance, demonstrating continued focused delivery against our business plan strategy.
These results are underpinned by the strength of our top line. We expect net interest income in 2025 to remain stable, while rates halve from 4% to 2%, reflecting the defensive positioning of our balance sheet and our low sensitivity to rates. As a result, earnings will remain on a solid upward trajectory.
In the first quarter, there has been material uncertainty in the geopolitical arena, which resulted to increased volatility in the markets and an uncertain business environment. The direct impact on the Greek economy though is expected to be very limited; this explains our strong growth trajectory. Our loan book is up 13% year-on-year (y/y), while customer funds have grown by 8%, fueled by AuMs, allowing for further meaningful progress in fee income generation with 11% y/y.
Our capital position is equally robust, with organic capital generation of 71 basis points, bringing our CET1 ratio to 16.3% in Q1. Additionally, we have increased our dividend accrual to 50% of 2025 profits, or €111 million for this quarter, demonstrating our commitment to shareholder returns. The pace of capital generation and our strong capital position mean that we are able to comfortably fund both an acceleration in loan growth as well as more generous distributions, while providing us with strategic flexibility to enhance shareholder value.
Following on from the transactions with FlexFin and Astro Bank earlier in the year, we delivered our third inorganic venture in just four months. We are very excited with the acquisition of AXIA Ventures, a strategic move that will create the market leading integrated investment banking and capital markets platform in Greece and Cyprus. This partnership will triple our revenue from investment banking and securities services, from €10-15 million per annum to over €45 million, and is projected to be EPS accretive, with an ROI north of 20%.
Unlocking value with these bolt-on acquisitions allows us to raise the bar for our medium-term performance. By 2027, we now expect EPS to exceed 45 cents, a 7% increase from prior guidance, with RoTE climbing by one full percentage point to approximately 13%. Our structural advantages defensive net interest income, growing loan volumes, and expanding fee income - position us well to deliver sustained earnings growth of 11% annually beyond 2025.
At Alpha Bank, our priorities remain clear: funding profitable loan growth, ensuring generous shareholder distributions, and deploying excess capital to accelerate our strategy implementation. We are confident to continue delivering on these priorities and maximizing shareholder value.
Vassilios Psaltis, CEO
Key Financial Data
| P&L Group (€mn) | Q1 2024 | Q1 2025 | YoY (%) | Q4 2024 | Q1 2025 | QoQ (%) |
|---|---|---|---|---|---|---|
| Net Interest Income | 421.6 | 395.3 | (6.2%) | 405.7 | 395.3 | (2.6%) |
| Net fee & commission income | 96.8 | 107.5 | 11.1% | 114.4 | 107.5 | (6.0%) |
| Core banking income | 518.4 | 502.9 | (3.0%) | 520.1 | 502.9 | (3.3%) |
| Income from financial operations | 31.2 | 47.3 | 51.5% | 43.5 | 47.3 | 8.6% |
| Other income | 5.7 | 8.6 | 52.0% | 13.9 | 8.6 | (38.1%) |
| Operating Income | 555.2 | 558.7 | 0.6% | 577.5 | 558.7 | (3.3%) |
| Operating Core Income |
524.0 | 511.5 | (2.4%) | 534.0 | 511.5 | (4.2%) |
| Staff Costs | (87.3) | (88.2) | 1.0% | (97.3) | (88.2) | (9.4%) |
| General Administrative Expenses | (71.9) | (80.4) | 11.7% | (91.9) | (80.4) | (12.5%) |
| Depreciation & Amortization | (41.3) | (35.1) | (15.0%) | (45.0) | (35.1) | (22.1%) |
| Recurring Operating Expenses | (200.5) | (203.6) | 1.6% | (234.2) | (203.6) | (13.0%) |
| Excluded items | (3.3) | 0.0 | (100.0%) | (4.7) | 0.0 | (100.0%) |
| Total Operating Expenses | (203.8) | (203.6) | (0.1%) | (238.9) | (203.6) | (14.8%) |
| Core Pre-Provision Income |
323.6 | 307.8 | (4.9%) | 299.8 | 307.8 | 2.7% |
| Pre-Provision Income | 351.5 | 355.1 | 1.0% | 338.6 | 355.1 | 4.9% |
| Impairment Losses on loans | (67.8) | (51.6) | (23.8%) | (63.2) | (51.6) | (18.3%) |
| Other items4 | (4.3) | 4.0 | … | (5.1) | 4.0 | … |
| Profit/ (Loss) Before Income Tax | 279.4 | 307.4 | 10.0% | 270.3 | 307.4 | 13.7% |
| Income Tax | (78.2) | (71.9) | (8.1%) | (69.1) | (71.9) | 4.0% |
| Profit/ (Loss) after income tax | 201.3 | 235.6 | 17.0% | 201.3 | 235.6 | 17.0% |
| Impact from NPA transactions5 | (5.4) | (12.1) | … | (19.2) | (12.1) | (37.3%) |
| Profit/ (Loss) after income tax from | (80.5%) | |||||
| discontinued operations | 19.3 | 3.8 | (5.2) | 3.8 | … | |
| Other adjustments | (2.9) | (3.9) | 37.2% | (11.9) | (3.9) | (66.8%) |
| Reported Profit/ (Loss) After Income Tax | 212.2 | 223.3 | 5.2% | 164.9 | 223.3 | 35.4% |
| 6 Normalised Profit After Tax |
222.4 | 239.3 | 7.6% | 195.8 | 239.3 | 22.2% |
| Balance Sheet Group | 31.03.2024 | 30.06.2024 | 30.09.2024 | 31.12.2024 | 31.03.2025 | YoY (%) |
|---|---|---|---|---|---|---|
| Total Assets | 73,130 | 73,492 | 74,629 | 72,075 | 73,146 | 0.0% |
| Net Loans | 36,316 | 35,824 | 36,892 | 39,050 | 39,388 | 8.5% |
| Securities | 16,334 | 17,233 | 17,364 | 17,650 | 18,069 | 10.6% |
| Deposits | 47,254 | 48,189 | 49,745 | 51,032 | 50,363 | 6.6% |
| Shareholders' Equity | 7,084 | 7,191 | 7,268 | 7,473 | 7,652 | 8.0% |
| Tangible Book Value | 6,619 | 6,734 | 6,821 | 7,036 | 7,223 | 9.1% |
| Key Ratios Group | Q1 2024 | H1 2024 | 9M 2024 | FY 2024 | Q1 2025 |
|---|---|---|---|---|---|
| Profitability | |||||
| Net Interest Margin (NIM) | 2.3% | 2.2% | 2.2% | 2.2% | 2.2% |
| Cost to Income Ratio (Recurring) | 36.1% | 37.6% | 37.9% | 38.6% | 36.4% |
| Capital | |||||
| FL CET1 | 14.6% | 14.8% | 15.5% | 16.3% | 16.3% |
| FL Total Capital Ratio | 19.0% | 19.0% | 20.9% | 21.9% | 21.9% |
| Liquidity | |||||
| Loan to Deposit Ratio (LDR) | 77% | 74% | 74% | 77% | 78% |
| LCR | 184% | 192% | 190% | 203% | 199% |
| Asset Quality | |||||
| Non-Performing Loans (NPLs) | 1,205 | 894 | 945 | 933 | 937 |
| Non-Performing Exposures (NPEs) | 2,223 | 1,708 | 1,721 | 1,491 | 1,509 |
| NPL ratio (%) | 3.2% | 2.4% | 2.5% | 2.4% | 2.3% |
| NPE ratio (%) | 6.0% | 4.7% | 4.6% | 3.8% | 3.8% |
Business Update
The Greek economy is expected to sustain its growth momentum in 2025, driven by robust private consumption and growth in investment. The main sources of uncertainty currently stem from geopolitical tensions and rising trade protectionism. The imposition of tariffs poses both direct and indirect risks to Greece's external sector. While the direct impact is limited, given the low share of Greek exports to the United States, the indirect effects, stemming from the potential slowdown in Greece's main trading partners, are likely to be more significant in the outer years should the tariff uncertainty persist.
The Bank remains focused on delivering its business plan, with earnings growth (+22% y/y) despite rate headwinds in Q1 and healthy capital buffers providing a cushion against potential turbulence. We continue to grow our loan book and customer funds and to position the business to maximize the recurring value we can create for our shareholders. Moreover, the prospects for recurring profitability have improved following a series of bolt-on acquisitions, with their cumulative impact leading to an upgrade of our 2027 EPS guidance to >€0.45 (+7% from >€0.42), reported ROTE jumping to circa 13% (+1pp from c12%) and capital remaining above 16%.
Profitability
Better performance q/q despite top line pressure
- Top line down -2.6% q/q, on account of lower rates and fewer calendar days. Excluding the calendar days effect, NII down by -0.4% q/q or €1.6mn. On a yearly basis NII decreased by -6.2%.
- Fees and commissions down -6.0% q/q, with quarterly trends reflecting seasonality as well as the government measures announced in December; excluding the latter fees would have been down -1.6% q/q. Fees expanded by 11% y/y, or +16% excluding the impact from government measures with strong growth in asset management fees (+53% y/y) and higher revenues from cards and payments and bancassurance.
- Recurring OPEX down 13% q/q reflecting seasonality on lower staff costs, decreased marketing expenses and thirdparty fees, as well as lower depreciation charge. Recurring costs up by 1.6% y/y on higher third party fees, increased IT maintenance costs as well as higher taxes and marketing expenses.
- Cost of Risk at 53bps in Q1, reflecting the de-risked portfolio and benign trends in asset quality flows.
Recurring operating expenses Cost of risk
Core operating income down 4.2% q/q
Lower Net Interest Income q/q on account of lower rates and day count
Net Interest Income in Q1 2025 declined by €10.4mn or 2.6% q/q to €395.3mn mainly on account of an €8.8mn negative calendar days effect. Excluding the calendar days effect, NII decreased by 0.4% q/q or €1.6mn. More specifically, on the asset side, NII from Performing loans decreased by €23.6mn from lower rates, half of which was counterbalanced by the volume increase, while the NPE book contribution was down -€2.1mn q/q. The contribution of the securities portfolio increased by €1.7mn on account of higher volumes. On the liability side, higher average deposit volumes partly offset the repricing benefit, leading to a €6.4mn lower interest expense in the quarter. Lastly, Funding and other NII improved by €17.5mn due to lower rates. On a yearly basis reported NII decreased by 6.2%.
Fees down -1.6% q/q excluding the impact from government measures with robust growth in asset management
Net fee and commission income stood at €107.5mn from €114.4mn in the previous quarter (-6% q/q), despite a higher contribution from asset management and Bancassurance, due to a decrease in fees from cards & payments on account of the government measures announced in December, which had a negative impact of c€5mn in the quarter, alongside seasonally lower loan origination fees. On a yearly basis, Q1 ended up +11% notwithstanding government measures, or +16% excluding the impact from government measures, with strong growth in asset management fees (+53% y/y) and higher revenues from cards and payments and bancassurance.
Income from financial operations came in at €47.3mn in Q1 versus €43.5mn in Q4 2024, on bond portfolio rebalancing.
Other income stood at €8.6mn in Q1 2025.
Recurring OPEX down by 13% q/q
Following a seasonally heavy Q4 2024 in terms of operating expenses, recurring operating expenses improved by 13% q/q to €203.6mn. This reduction reflects lower Staff costs (-€9.1mn), decreased General Expenses (-€11.5mn) mainly driven by lower marketing expenses and third- party fees and a lower depreciation charge (-€9.9mn). On an annual basis, recurring operating expenses increased by 1.6% y/y, due to higher General Expenses mainly related to increased third party fees, higher IT maintenance costs as well as higher taxes and marketing expenses.
Total Operating Expenses stood at €203.6mn, down 14.8% q/q mainly driven by a €4.7mn retrospective adjustment of the useful life of previously capitalised IT expenses registered in the previous quarter. OPEX performance remained flat on a yearly basis.
Cost of Risk at 53bps
The underlying loan impairment charge stood at €29.6mn or 30bps in the quarter, versus €40.9mn in Q4. Servicing fees amounted to €9.4mn vs. €11.4mn in the previous quarter, with securitization expenses at €12.6mn vs €11mn in Q4 2024.
Excluding the impact of transactions, Cost of Risk stood at 53bps over net loans vs. 67bps in the previous quarter and 75bps a year ago. Including the impact of transactions, Cost of risk stood at 69bps, with 17bps related to inorganic NPE cleanup (51bps related to inorganic NPE cleanup in Q4).
The total impact of NPA Transactions5 stood at €12.1mn in the quarter, vs. a €19.2mn charge in Q4 2024.
Other impairment losses in Q1 2025 amounted to €2.4mn.
Balance Sheet Highlights
Performing loan book portfolio up +1% q/q
Net credit expansion Performing loan book expansion
New disbursements in Greece stood at €2.5 billion in the quarter, down by €1.5 billion compared to the record high performance in Q4, but up +32% y/y, driven by new originations from corporates, allocated to key sectors including trade, manufacturing, transportation energy and tourism.
The Group's performing loan book (excluding €4.8bn of senior notes) expanded by +1% q/q to €33.7bn. On a yearly basis, performing loans increased by +13%.
Net credit expansion in Greece stood at €0.6bn in Q1 (+€0.5bn y/y), addressing credit demand mainly from businesses.
Customer deposits down -€0.7bn q/q; Deposits up 6.6% y/y
Deposits evolution Group LCR & LDR
The Group's deposits decreased by 1.3% or €0.7bn q/q to €50.4bn, witnessing a reversal of the positive seasonal effect of Q4, in line with system outflows. On an annual basis, the Group's deposit base expanded by €3.1bn or +6.6% reflecting higher core deposits from businesses and households. Deposit inflows alongside solid growth in AuMs of €2.1bn y/y (+12%), resulted in a €5.2bn or +8.1% y/y annual increase in customer funds.
Time deposits stood at 26% of the domestic deposit base. As of Q1, the total stock of domestic deposits had a beta of 24%, vs 22% in Q4 2024, whereas the term deposit pass through reached 64% vs 60% in the previous quarter.
LCR at 199% vs 203% in the previous quarter
As of March 2025, ECB financing stood at €2.8bn in total. The Bank's blended funding cost decreased to 121bps in the quarter, down from 131bps in Q4 2024, mainly attributable to the lower cost of deposits as well as lower wholesale funding costs.
The Group's strong liquidity profile is evidenced by the net Loan-to-Deposit ratio of 78%, while the Group's LCR stood at 199% vs. 203% in the previous quarter, far exceeding regulatory thresholds and management targets.
Asset Quality
Group NPE ratio flat q/q; CoR at 53bps
NPE formation in Greece stood effectively flat q/q, as slightly higher inflows were more than offset by curings, repayments, closing processes and write-offs. In Q1 2025, the NPE stock remained flat at €1.5bn. As a result, the NPE ratio stood at 3.8%, stable versus Q1.
Group NPE Coverage at 50%; NPEs stock flat at €1.5bn
The Group's NPE cash coverage stood at 50% at the end of Q1, while total coverage including collateral reached 125%. The Group NPL coverage ratio stood at 80%, while total coverage including collateral reached 152%.
The coverage ratio reflects the underlying asset mix, with a high bias towards retail secured exposures and a large portion consisting of paying customers. Out of the €1.5bn stock of NPEs for the Group, more than half are mortgages (51% of the stock), with a significant portion of Forborne exposures, less than 90dpd (32% of stock or €0.5bn).
Capital
Strong capital generation to sustain higher payouts; FL CET1 at 16.3%
Capital evolution (q/q)
The Group's Fully Loaded CET 1 Capital base stood at €5.0bn, resulting in a Fully Loaded CET1 ratio of 16.7%, or 16.3% post dividend accrual of 47bps in the quarter including the impact of DTC acceleration. The quarterly move was primarily attributable to a 71bps positive contribution from organic capital generation, a 9bps positive impact from other capital elements, a 5bps negative contribution from transactions and a 27bps impact from the adoption of CRR3.
Accounting for the remaining RWA relief stemming from the Bank's planned transactions, the Group's FL CET 1 Ratio stands higher at 16.9%3 . RWAs at the end of March 2025 amounted to €30.9bn, up by 2% q/q or Euro 0.6 billion mainly as a result of the adoption of CRR3, or €29.7bn pro-forma for remaining RWA relief from NPA transactions including mainly Skyline and Gaia.
International operations
The international operations posted a normalised net profit of €33mn in Q1 2025, versus €29mn in Q1 2024, mainly driven by an increase in total operating income stemming from a higher trading income as well as the lower impairment charges versus Q1 2024. RoTBV stood at 19.1% in Q1 2025. Net interest income was down 15% y/y, with net fee and commission income up by 7%. Recurring operating expenses increased by 21% y/y, due to higher G&As as well as staff costs. Impairments amounted to a €1mn reversal in Q1 2025 versus €4mn a year ago. Net loans stood at €1.6bn (+27% y/y), while deposits increased to €3.6bn (+12% y/y).
Athens, May 9, 2025
Alternative Performance Measures ("APMs")
| Reference number Terms |
Definitions | Relevance of the metric |
Abbreviation | |
|---|---|---|---|---|
| 1 | Accumulated Provisions and FV adjustments |
Sum of Provision for impairment losses for loans and advances to customers, the Provision for impairment losses for the total amount of off balance sheet items exposed to credit risk as disclosed in the Consolidated Financial Statements of the reported period,and the Fair Value Adjustments (10). |
Standard banking terminology |
LLR |
| 2 | Core Banking Income | Sum of Net interest income and Net fee and commission income as derived from the Consolidated Financial Statements of the reported period. |
Profitability metric | |
| 3 | Core deposits | Sum of "Current accounts", "Savings accounts" and "Cheques payable", as derived from the Consolidated Financial Statements of the reported period, taking into account the impact from any potential restatement. |
Standard banking terminology |
Core depos |
| 4 | Core Operating Income | Operating Income (36) less Income from financial operations (19) less management adjustments on | Profitability metric | |
| 5 | Core Pre-Provision | operating income for the corresponding period. Core Operating Income (4) for the period less Recurring Operating Expenses (47) for the period. |
Profitability metric | Core PPI |
| 6 | Income Cost of Risk |
Impairment losses (14) for the period divided by the average Net Loans of the relevant period. Average balances is defined as the arithmetic average of balance at the end of the period and at the end of the previous period. |
Asset quality metric |
(Underlying) CoR |
| 7 | Cost/Assets | Recurring Operating Expenses (47) for the period (annualised) divided by Total Assets (19). | Efficiency metric | |
| 8 | Deposits | The figure equals Due to customers as derived from the Consolidated Balance Sheet of the reported period. |
Standard banking terminology |
|
| 9 | Extraordinary costs | Management adjustments on operating expenses, that do not relate to other PnL items. | Standard banking terminology |
|
| 10 | Fair Value adjustments | The item corresponds to the accumulated Fair Value adjustments for non-performing exposures measured at Fair Value Through P&L (FVTPL). |
Standard banking terminology |
FV adj. |
| 11 | Fully-Loaded Common Equity Tier 1 ratio |
Common Equity Tier 1 regulatory capital as defined by Regulation No 2024/1623 (Full implementation of Basel 3) , divided by total Risk Weighted Assets |
Regulatory metric of capital strength |
FL CET 1 ratio |
| 12 | Gross Loans | The item corresponds to Loans and advances to customers, as reported in the Consolidated Balance Sheet of the reported period, gross of the Accumulated Provisions and FV adjustments (1) excluding the accumulated provision for impairment losses on off balance sheet items, as disclosed in the Consolidated Financial Statements of the reported period. |
Standard banking terminology |
|
| 13 | Impact from NPA transactions |
Management adjustments to income and expense items as a result of NPE/NPA exposures transactions |
Asset quality metric |
|
| 14 | Impairment losses | Impairment losses on loans (16) excluding impairment losses on transactions (17). | Asset quality metric |
|
| 15 | Impairment losses of which Underlying |
Impairment losses (14) excluding Loans servicing fees and Commision expenses for credit protection as disclosed in the Consolidated Financial Statements of the reported period. |
Asset quality metric |
|
| 16 | Impairment losses on loans |
Impairment losses and provisions to cover credit risk on Loans and advances to customers and related expenses as derived from the Consolidated Financial Statements of the reported period, taking into account the impact from any potential restatement, less management adjustments on impairment losses on loans for the corresponding period. Management adjustments on impairment losses on loans include events that do not occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation between the reporting periods. |
Standard banking terminology |
LLP |
| 17 | Impairment losses on transactions |
Represent the impact of incorporating sale scenario in the estimation of expected credit losses. | Asset quality metric |
|
| 18 | Impairments & Gains/(Losses) on financial instruments, fixed assets and equity investments |
Sum of Impairment losses of fixed assets and equity investments ,Gains/(Losses) on disposal of fixed assets and equity investments and Impairment losses, provisions to cover credit risk on other financial instruments as derived from the Consolidated Income Statement of the reported period, less management adjustments on Impairments & Gains/(Losses) on fixed assets and equity investments. Management adjustments on Impairments & Gains/(Losses) on financial instruments, fixed assets and equity investments include events that do not occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation between the reporting periods. |
Standard banking terminology |
|
| 19 | "Income from financial | Sum of Gains less losses on derecognition of financial assets measured at amortised cost and Gains | ||
| operations" or "Trading Income" |
less losses on financial transactions, as derived from the Consolidated Income Statement of the reported period ,adding the NII effect resulting from the hedge of the net investment in RON through foreign exchange swap derivatives, amounting to €1.5m in Q4 2024 and €2.5m in Q1 2025, and less management adjustments on trading income for the corresponding period. Management adjustments on trading income include events that do not occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation between the |
Standard banking terminology |
||
| 20 | Income tax | reporting periods. The figure equals Income tax as disclosed in the Consolidated Financial Statements of the reported period, less management adjustments on income tax for the corresponding period. Management adjustments on income tax include events that do not occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation between the reporting periods. |
Standard banking terminology |
|
| 21 | Leverage Ratio | This metric is calculated as Tier 1 capital divided by Total Assets (54). | Standard banking terminology |
|
| 22 | Loan to Deposit ratio | Net Loans (24) divided by Deposits (8) at the end of the reported period. | Liquidity metric | LDR or L/D ratio |
| 23 | Net Interest Income | Net interest income as derived from the Consolidated Financial Statements of the reported period, excluding the NII effect resulting from the hedge of the net investment in RON through foreign exchange swap derivatives, amounting to €1.5m in Q4 2024 and €2.5m in Q1 2025. |
Profitability metric | NII |
| 24 | Net Interest Margin | Net interest income for the period (annualised) divided by the average Total Assets (54) of the relevant period. Average balance is defined as the arithmetic average of balance at the end of the period and at the end of the previous relevant period. |
Profitability metric | NIM |
| 25 | Net Loans | Loans and advances to customers as derived from the Consolidated Balance Sheet of the reported period. |
Standard banking terminology |
|
| 26 | Non Performing Exposure Coverage |
Accumulated Provisions and FV adjustments (1) plus CET 1 deductions used to cover calendar provisioning shortfall divided by NPEs (28) at the end of the reference period. |
Asset quality metric | NPE (cash) coverage |
| 27 | Non Performing | NPEs (28) divided by Gross Loans (12) at the end of the reference period. | Asset quality metric | NPE ratio |
| 28 | Exposure ratio Non Performing Exposure Total Coverage |
Accumulated Provisions and FV adjustments (1) plus the value of the NPE collateral, plus CET 1 deductions used to cover calendar provisioning shortfall divided by NPEs (28) at the end of the reported period. |
Asset quality metric | NPE Total coverage |
| are more than 90 days past-due b)The debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless of the existence of any past-due amount or of the number |
||||
|---|---|---|---|---|
| of days past due. | ||||
| 30 | Non Performing Exposures Collateral Coverage |
Value of the NPE collateral divided by NPEs (28) at the end of the reference period. | Asset quality metric | NPE collateral Coverage |
| 31 | Non Performing Loan Collateral Coverage |
Value of collateral received for Non Performing Loans (28) divided by NPLs (34) at the end of the reference period. |
Asset quality metric | NPL collateral Coverage |
| 32 | Non Performing Loan Coverage |
Accumulated Provisions and FV adjustments (1) plus CET 1 deductions used to cover calendar provisioning shortfall divided by NPLs (34) at the end of the reference period. |
Asset quality metric | NPL (cash) Coverage |
| 33 | Non Performing Loan ratio |
NPLs (34) divided by Gross Loans (12) at the end of the reference period. | Asset quality metric | NPL ratio |
| 34 | Non Performing Loan Total Coverage |
Accumulated Provisions and FV adjustments (1) plus the value of the NPL collateral, plus CET 1 deductions used to cover calendar provisioning shortfall divided by NPLs (Non Performing Loans) at the end of the reference period. |
Asset quality metric | NPL Total Coverage |
| 35 | Non Performing Loans | Non Performing Loans (34) are Gross loans (12) that are more than 90 days past-due. | Asset quality metric | NPLs |
| 36 | Normalised Net Profit after (income) tax |
Main Income and expense items that are excluded for purposes of the normalized profit calculation are listed below: 1. Transformation related: a. Transformation Costs and related Expenses b. Expenses and Gains/Losses due to Non-Core Assets' Divestiture c. Expenses/Gains/Losses as a result of NPE/NPA exposures transactions' 2. Other non-recurring related: a. Expenses/Losses due to non anticipated operational risk b. Expenses/Losses due to non anticipated legal disputes c. Expenses/Gains/Losses due to short-term effect of non-anticipated and extraordinary events with significant economic impact d. Non-recurring HR/Social Security related benefits/expenses e. Impairment expenses related to owned used [and inventory] real estate assets f. Initial (one off) impact from the adoption of new or amended IFRS g. Tax related one-off expenses and gains/losses 3. Income Taxes Applied on the Aforementioned Transactions. |
Profitability metric | Normalised Net PAT |
| 37 | Operating Income | Sum of Net interest income, Net fee and commission income, Income from financial operations or Trading Income (19) and Other income, as derived from the Consolidated Income Statement of the |
Standard banking terminology |
|
| 38 | Other (operating) income |
reported period, taking into account the impact from any potential restatement. Sum of Dividend income, Other income and insurance revenue/(expenses) and financial income/(expenses) from insurance contracts as derived for the Consolidated Income Statements of the reported period, taking into account the impact from any potential restatement. |
Standard banking terminology |
|
| 39 | Other adjustments | Include management adjustments for events that occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation between the |
||
| 40 | Other items | reporting periods and are not reflected in other lines in Income Statement. Sum of Impairment losses of fixed assets and equity investments, Gains/(Losses) on disposal of fixed assets and equity investments, Impairment losses, provisions to cover credit risk on other financial instruments, Provisions and transformation costs and Share of profit/(loss) of associates and joint ventures as derived from the Consolidated Financial Statements of the reported period, taking into account the impact from any potential restatement, less management adjustments on other items for the corresponding period. Management adjustments on other items include events that do not occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation between the reporting periods. |
Standard banking terminology |
|
| 41 | PPI/Average Assets | Pre-Provision Income for the period (41) (annualised) divided by Average Total Assets (54) of the relevant period. Average balance is defined as the arithmetic average of balance at the end of the period and at the end of the previous relevant period. |
Profitability metric | |
| 42 | Pre-Provision Income | Operating Income (36) for the period less Total Operating Expenses (55) for the period. | Profitability metric | PPI |
| 43 | Profit/ (Loss) before income tax |
Operating Income (36) for the period less Total Operating Expenses (55) plus Impairment losses on loans (16), plus Other items (39) |
Profitability metric | |
| 44 | Profit/ (Loss) after income tax from continuing operations |
Profit/ (Loss) before income tax (42) for the period less Income tax (20) for the period | Profitability metric | |
| 45 | Profit/ (Loss) after income tax from discontinued operations |
The figure equals Net profit/(loss) for the period after income tax, from Discontinued operations as disclosed in Consolidated Income Statement of the reported period, less management adjustments. Management adjustments on operating expenses include events that do not occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation between the reporting periods. |
Profitability metric | |
| 46 | Profit/ (Loss) attributable to shareholders |
Profit/ (Loss) after income tax from continuing operations (43) for the period, plus Impact from NPA transactions (13), plus Profit/ (Loss) after income tax from discontinued operations (44), plus Other adjustments (38), plus Non-controlling interests as disclosed in Consolidated Income Statement of the reported period. |
Profitability metric | |
| 47 | Recurring Cost to Income ratio |
Recurring Operating Expenses (47) for the period divided by Operating Income (36) for the period. | Efficiency metric | C/I ratio |
| 48 | Recurring Operating Expenses |
Total Operating Expenses (55) less management adjustments on operating expenses. Management adjustments on operating expenses include events that do not occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation between the reporting periods. |
Efficiency metric | Recurring OPEX |
| 49 | Return on Equity | Net profit/(loss) attributable to: Equity holders of the Bank (annualised), as disclosed in Consolidated Income Statement divided by the Average balance of Equity attributable to holders of the Company, as disclosed in the Consolidated Balance sheet at the reported date, taking into account the impact from any potential restatement. Average balance is defined as the arithmetic average of the balance at the end of the period and at the end of the previous relevant period. |
Profitability metric | RoE |
| 50 | "Return on Tangible Book Value" or "Return on Tangible Equity" |
Net profit/(loss) attributable to: Equity holders of the Bank (annualised), as disclosed in Consolidated Income Statement divided by the Average balance of Tangible Book Value (52). Average balance is defined as the arithmetic average of the balance at the end of the period and at the end of the previous relevant period. |
Profitability metric | RoTBV or RoTE |
| 51 | RWA Density | Risk Weighted Assets divided by Total Assets (54) of the relevant period. | Standard banking terminology |
|
| 52 | Securities | Sum of Investment securities and Trading securities, as defined in the consolidated Balance Sheet of the reported period. |
Standard banking terminology |
|
| 53 | Tangible Book Value or Tangible Equity |
Total Equity excluding the sum of Goodwill and other intangible assets, Non-controlling interests and Additional Tier 1 capital & Hybrid securities. All terms disclosed in the Consolidated Balance sheet at the reported date, taking into account the impact from any potential restatement. |
Standard banking terminology |
TBV or TE |
| 54 | Tangible Book Value per share |
Tangible Book Value (52) divided by the outstanding number of shares. | Valuation metric | TBV/share |
| 55 | Total Assets | Total Assets (54) as derived from the Consolidated Balance Sheet of the reported period, taking into account the impact from any potential restatement. |
Standard banking terminology |
TA |
| 56 | Total Operating Expenses |
Sum of Staff costs, Voluntary exit scheme program expenses, General administrative expenses, Depreciation and amortization, Other expenses as derived from the Consolidated Income Statement of the reported period taking into account the impact from any potential restatement. |
Standard banking terminology |
Total OPEX |
| P&L Group (€mn) | Bridge between Fin. Statements & APMs | Bridge between APMs & Normalized profit | ||||
|---|---|---|---|---|---|---|
| Q1 2025 | Accounting | Delta | APMs | APMs | Delta | Normalized |
| Net Interest Income | 393 | 3 | 395 | 395 | (3) | 393 |
| Net fee & commission income | 108 | 0 | 108 | 108 | 0 | 108 |
| Trading income | 50 | (3) | 47 | 47 | 3 | 50 |
| Other income | 9 | 0 | 9 | 9 | 0 | 9 |
| Operating Income | 559 | 559 | 559 | 559 | ||
| Staff costs | (88) | 0 | (88) | (88) | 0 | (88) |
| General Administrative Expenses | (80) | 0 | (80) | (80) | 0 | (80) |
| Depreciation & Amortization | (35) | 0 | (35) | (35) | 0 | (35) |
| Recurring Operating Expenses | (204) | (204) | (204) | |||
| Extraordinary | 0 | 0 | 0 | 0 | 0 | |
| Total Operating Expenses | (204) | 0 | (204) | (204) | (204) | |
| Core Pre-Provision Income |
305 | 308 | 308 | 305 | ||
| Pre-Provision Income | 355 | 355 | 355 | 355 | ||
| Impairment Losses | (68) | 16 | (52) | (52) | 0 | (52) |
| o/w Underlying | 30 | 30 | 0 | 0 | ||
| o/w Servicing fees | 9 | 9 | 0 | 0 | ||
| o/w Securitization expenses | 13 | 13 | 0 | 0 | ||
| Other impairments | (2) | 0 | (2) | (2) | 0 | (2) |
| Impairment losses of fixed assets and equity investments |
(3) | 2 | (2) | (2) | 0 | (2) |
| Gains/(Losses) on disposal of fixed assets and equity investments |
4 | (1) | 2 | 2 | 0 | 2 |
| Provisions and transformation costs | (5) | 5 | (0) | (0) | 0 | (0) |
| Share of Profit/(Loss) of associates and JVs |
6 | 0 | 6 | 6 | 0 | 6 |
| Profit/ (Loss) Before Income Tax | 286 | 307 | 307 | 307 | ||
| Income Tax | (67) | 5 | (72) | (72) | (72) | |
| Profit/ (Loss) After Income Tax | 220 | 236 | 236 | 236 | ||
| Impact from NPA transactions | 0 | (12) | (12) | (12) | 12 | 0 |
| Profit/ (Loss) after income tax from discontinued operations |
4 | 0 | 4 | 4 | 4 | |
| Other adjustments | 0 | (4) | (4) | (4) | 4 | 0 |
| Reported Profit/ (Loss) After Income Tax |
223 | 0 | 223 | 223 | 16 | 239 |
6 Detailed reference on normalised profits is available in the APMs section.
1 Normalised Profit After Tax of €239mn in Q1 2025, is Reported Profit /(Loss) After Tax of €223mn excluding (a) NPA transactions impact of €12mn, (c) €4mn on other adjustments and tax charge related to the above.
2 Based on normalized profit after tax over average TBV; Calculated after deduction of AT1 coupon payments; Adjusted excluding capital above management target and dividends accrued but not paid.
3 Pro-forma for remaining RWA relief from NPA transactions including mainly Skyline and Gaia.
4 In Q1 2025, "other items" include the sum of: Other impairments of -€2.4mn, Impairment losses of fixed assets and equity investments of -€1.7mn, Gains/(Losses) on disposal of fixed assets and equity investments of €2.3mn, Provisions and transformation costs -€0.2mn and Share of profits of associates and Joint ventures €5.9mn.
5Q1 2025 impact from NPA transactions of €12.1mn, includes a) €16.3mn impairment losses on loans, o/w €1.4mn impairment of ACAC, €0.2mn impairment of Avramar, €2.2mn impairment of Gaia, €2.4mn impairment of Gaia II, €8.9mn impairment of Solar, €1.2mn impairment of Leasing, b) Impairment losses of fixed assets and equity investments of €1.6mn for impairments of investment properties related to Skyline transaction, c) Gains on disposal of fixed assets and participations of €2.1mn related to project Skyline and d) income tax as a result of NPA transactions €3.8mn.
About Alpha Services and Holdings
Alpha Services and Holdings S.A. (under the distinctive title Alpha Services and Holdings) is a financial holdings company, listed on the Athens Stock Exchange, and the parent company of the banking institution "ALPHA BANK S.A.".
Subsequent to the corporate transformation that took place in April 2021, the banking operations were hiveddown to a new wholly owned banking subsidiary (Alpha Bank S.A.).
Alpha Bank S.A. is 100% subsidiary of Alpha Services and Holdings S.A. and one of the leading Groups of the financial sector in Greece which was founded in 1879 by J.F. Costopoulos. The Bank offers a wide range of high-quality financial products and services, including retail banking, SMEs and corporate banking, asset management and private banking, the distribution of insurance products, investment banking, brokerage and real estate management.
https://www.alphaholdings.gr/en/investor-relations
Enquiries
Alpha Services and Holdings FGS Global
Iason Kepaptsoglou Edward Simpkins Director, Investor Relations Division Tel. +44 207 251 3801 E-mail: [email protected] Tel: +30 210 326 2271, +30 210 326 2274
Disclaimer
This Press Release has been prepared and issued by Alpha Services and Holdings S.A. and its 100% subsidiary, Alpha Bank S.A., solely for informational purposes. It is hereby noted that on 16.4.2021, the demerger of the credit institution under the former name "Alpha Bank S.A." (which has been already renamed "Alpha Services and Holdings S.A.") was completed by way of hive-down of the banking business sector with the incorporation of a new company- credit institution under the name "Alpha Bank S.A.". References to "Alpha Bank" shall be construed to be references to Alpha Services and Holdings S.A., except to the extent otherwise specified or the context otherwise required, i.e. references to the entity acting as a credit institution shall be deemed to refer to (i) the former Alpha Bank (already renamed Alpha Services and Holding S.A.) prior to 16.04.2021 and to (ii) the new "Alpha Bank S.A." on and after 16.04.2021.
For the purposes of this disclaimer, this presentation shall mean and include materials, including and together with any oral commentary or presentation and any question and answer session. By attending a meeting at which the presentation is made, or otherwise viewing or accessing the presentation, whether live or recorded, you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation or any information contained herein. By reading this presentation, you agree to be bound by the following limitations:
No representation or warranty, express or implied, is or will be made in relation to, and no responsibility is or will be accepted by Alpha Services and Holdings (or any member of its Group as to the accuracy, fairness, completeness, reliability or sufficiency of the information contained in this presentation and nothing in this presentation shall be deemed to constitute such a representation or warranty. The information contained in this presentation may contain and/or be based on information that has been derived from publicly available sources that have not been independently verified. Alpha Services and Holdings is not under any obligation to update, revise or supplement this presentation or any additional information or to remedy any inaccuracies in or omissions from thispresentation.
This Press Release does not constitute an offer, invitation or recommendation to subscribe for or otherwise acquire securities. Also, it is not intended to be relied upon as advice to investors or potential investors and does not take into account the objectives, financial situation or needs of any particular investor. You are solely responsible for forming own opinion and conclusion.
Certain statements in this presentation may be deemed to be "forward-looking". You should not place undue reliance on such forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect current expectations and assumptions as to future events and circumstances that may not prove accurate. Forward-looking statements are not guarantees of future performance, and the actual results, performance,
achievements or industry results of Alpha Services and Holdings and/or Alpha Bank's operations, results of operations, financial position and the development of the markets and the industry in which they operate or are likely to operate may differ materially from those described in, or suggested by, the forward- looking statements contained in this presentation. In addition, even if the
operations, results of operations, financial position and the development of the markets and the industry in which Alpha Services and Holdings and Alpha Bank operate is consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, competition, changes in banking regulation and currency fluctuations.
Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document reflect Alpha Services and Holdings' current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Alpha Services and Holdings and/or Alpha Bank's financial position, operations, results of operations, growth, strategy and expectations. Any forward-looking statement speaks only as of the date on which it is made. New factors will emerge in the future, and it is not possible for Alpha Services and Holdings to predict which factors they will be. In addition, Alpha Services and Holdings cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those described in any forward-looking statements. Alpha Services and Holdings disclaims any obligation to update any forward-looking statements contained herein, except as required pursuant to applicable law.