Alpha Services and Holdings S.A.

Earnings Release • Aug 1, 2025

Alpha Bank announces 2025 EU-wide Stress Test Results

Strong performance confirms resilience and strategic transformation of Alpha Bank

Alpha Bank announces the successful completion of the 2025 EU-wide Stress Test, conducted by the European Banking Authority (EBA) in cooperation with the European Central Bank (ECB) and the European Systemic Risk Board (ESRB). The Stress Test, based on a static balance sheet approach, assessed the resilience of European Banks under a baseline and an adverse macro scenario with a 3-year forecasting horizon (2025-2027). No hurdle rate or capital thresholds are applied for this exercise, but it is designed to be used as an important input in the Supervisory Evaluation Process (SREP).

The Alpha Bank's Stress Test results under the adverse scenario incorporate a conservative 50% pay-out ratio in years where the Bank is making profits. The Bank's CET 1, Tier I and Total capital ratios of December 2027 pro-forma excluding the dividend payments are enhanced by c. 1%.

The fully loaded impact from the new CRR (CRR 3) and new Basel implementation for reference date of 31.12.2024 is very limited, affecting CET 1 by just 0.34%. This compares favorably with the new Basel implementation impact to EU average of c. 1.28%.

	Starting Point (31.12.2024)		Projections (31.12.2027) – CRR3
	Actual	Restated (CRR 3)	Baseline	Adverse	Adverse (Pro-forma1 )
CET1 fully loaded (%)	16.3%	15.9%	18.3%	13.9%	15.0%
Tier I fully loaded (%)	18.6%	18.2%	20.5%	16.1%	17.1%
Total Capital fully loaded (%)	21.9%	21.4%	23.6%	19.2%	20.2%
Leverage Ratio (fully loaded)	7.8%	7.8%	9.2%	7.4%	7.9%

Table – Stress Test results

1 | Pro-forma calculations, excluding the dividend payments, were conducted by the Bank and have not been quality assured by the ECB as part of the Stress Test exercise.

In the baseline scenario, the Bank recorded a capital accretion with an increase of the Fully Loaded CET 1 ratio by c. 2.4% in the 3-year horizon, also incorporating a dividend payout of 50% on Profit After Tax.

Since the EU-wide 2023 Stress Test, the Bank has been transformed, significantly strengthening its balance sheet, decisively reducing its stock of NPEs, restoring its organic profitability and successfully building a demonstrable track record of execution in the capital markets through the issuance of capital and MREL instruments while also further enhancing capital and liquidity buffers. In the adverse scenario, the capital depletion of the Fully Loaded CET 1 ratio over the three-year horizon in the adverse scenario is slightly below 2% for the Bank (c. 3.1% in EU-wide 2023 Stress Test) compared favorably to c. 3% for the EBA EU average (c. 4.6% the EBA EU average in the EU-wide 2023 Stress Test).

The CEO of Alpha Bank, Vassilios Psaltis made the following statement:

"The EU-wide Stress Test results demonstrate the resilience of our balance sheet and our business model to perform well even under adverse macroeconomic conditions. These results validate the success of our transformation efforts over the past year. Alpha Bank today is stronger, more agile and better positioned to support our customers and the economy through any cycle".