Alpha Bank reported impressive results for the first quarter of 2026. Despite rising geopolitical tensions worldwide, the bank demonstrated stable profitability and double-digit revenue growth. These figures confirm that the financial institution has successfully transitioned to a new, more diversified earnings model that no longer depends on market volatility. The key drivers of growth were the steady expansion of net interest income and a sharp increase in fee-based revenue.
Figures That Impress: Revenue and Profit
The bank’s core revenues increased by 11.5% compared to the same period last year. Particular attention should be paid to fee income, which surged by 29%, while net interest income rose by 5.3%. Adjusted net profit reached €221 million. Including one-off write-downs and extraordinary expenses, reported net profit amounted to €182 million.
Return on tangible book value (RoTBV), one of the most important efficiency indicators for investors, stood at 12.6%. Earnings per share reached €0.08. The bank’s CEO, Vassilis Psaltis, has already confirmed that management intends to achieve its annual target of €950 million in net profit and €0.40 earnings per share.
Why Fees Became the Main Engine of Growth
Greek banks previously relied heavily on lending rates, but Alpha Bank is changing the rules of the game. Fee income jumped to €139.7 million thanks to three major factors. First, fees from servicing business loans increased by 33%. Second, asset management revenues rose by 29%. Third, investment banking services and brokerage activity accelerated significantly. Even excluding one-off mergers and acquisitions deals, recurring fee growth still reached an impressive 23% year-on-year. The bank is confidently moving toward its goal of generating €600 million in fee income by the end of 2026, focusing on sustainable and recurring revenue streams.
Cost Control and Efficiency
Financial discipline remains one of Alpha Bank’s key strengths. The cost-to-income ratio (CIR) remains at a comfortable 39%, fully in line with strategic targets. Recurring operating expenses fell by 1.7% compared to the previous quarter, reaching €229.3 million. Savings were achieved through reductions in administrative costs, IT expenses, and taxes. However, on an annual basis, expenses increased by 14.6% due to higher payroll costs — staff expenses rose by 22.3% as a result of business expansion and inflationary pressures.
Lending Expands, Deposits Grow
The real economy continues to show resilience, and the bank supports this with strong figures. Net loan portfolio expansion within the domestic market reached €0.5 billion in the first quarter alone. Total loan disbursements amounted to €3.2 billion. Performing loans increased by 11% compared to last year.
An interesting situation has emerged with deposits. Despite seasonal outflows across the wider banking system, Alpha Bank managed to increase customer deposits by €0.3 billion, or 0.6%. Assets under management surged by 18.6% quarter-on-quarter, although this was partly due to a one-off stock portfolio transfer. Net mutual fund sales reached a solid €200 million.
One-Off Charges and Asset Quality
The report also reflects several one-off factors. A voluntary employee redundancy program cost the bank €47 million, with around 350 employees participating. However, it is already clear that these optimization measures are expected to generate approximately €15 million in annual savings. The bank also recorded a negative €6 million contribution from associated companies.
The quality of the loan portfolio remains strong: the non-performing exposure (NPE) ratio stands at just 3.7%, while the cost of risk remains at 44 basis points. These are considered very healthy indicators for a European bank. The Common Equity Tier 1 (CET1) capital ratio remains high at 14.7%, supported by internal capital generation of 25 basis points.
Strategic Expansion: Cyprus and Wealth Management
Alpha Bank is not only reporting on past performance but is also actively building its future through targeted acquisitions. Particular focus is being placed on wealth management and bancassurance. The acquisition of a 69.61% stake in Alpha Trust is expected to strengthen the bank’s asset management expertise, expand its product portfolio — including alternative investments and offshore funds — and boost private banking initiatives.
The most significant move is the bank’s expansion into the Cypriot insurance market. The bank plans to complete the acquisition of Universal Life and Altius Insurance in Cyprus by the end of 2026, following their merger. This will position Alpha Bank among the top three players in the Cypriot insurance sector. Customers will gain access to life, property, and health insurance products. The transaction will provide the bank with access to more than 100,000 new clients and a network of 400 insurance intermediaries. Management notes that the impact on capital will be minimal — around 23 basis points on CET1 — while boosting earnings per share by 2% and adding more than 30 basis points to return on equity.