Key Moments
- Q4 2025 net profit reached €237 million, 16% above analyst expectations of €204 million.
- Alpha Bank raised its 2025 payout ratio to 55%, with distributions split evenly between dividends and share buybacks.
- Credit expansion accelerated in Q4, with performing exposure balances up 5% quarter-on-quarter and 10% year-on-year.
Solid Q4 Earnings Performance
Alpha Services and Holdings S.A. (ATSE:ALPHA) reported net profit of €237 million for the fourth quarter of 2025, surpassing analyst estimates of €204 million by 16%. The bank delivered stronger-than-expected pre-provision profits, which came in 5% above forecasts.
This outperformance was supported by fee income that exceeded projections by 10%, combined with operating expenses that were 4% lower than anticipated. Net interest income was broadly in line with expectations, increasing 3% from the prior quarter, mainly reflecting the consolidation of Astrobank.
Income Drivers and Lending Trends
Underlying net interest income was helped by higher volumes, although this was partly offset by reduced loan spreads. Greek corporate loan spreads narrowed by 7 basis points on a quarter-over-quarter basis.
Credit expansion picked up pace in the fourth quarter. Performing exposure balances rose 5% compared to the previous quarter and 10% versus the prior year, supported by corporate lending activity in Greece. Excluding the impact of Astrobank, loans increased 3% quarter-on-quarter.
Net credit expansion reached €1.3 billion in the fourth quarter, up from €700 million in the third quarter, highlighting a notable acceleration in lending.
Fee Income and Asset Management Growth
Fee-related revenues showed resilience across all lines, with strong contributions from disbursement fees, real estate, and asset management. Asset management fees grew 48% year-on-year as assets under management rose to €22.4 billion, an increase of €1.1 billion from the preceding quarter.
Cost Control and Profitability Metrics
For the full year, operating expenses totaled €856 million, which was lower than the company’s guidance of €870 million. In the fourth quarter, the cost-to-income ratio stood at 29%, helped by reduced staff-related expenses and lower depreciation and amortization.
| Metric | Period | Reported | Guidance / Consensus |
|---|---|---|---|
| Net profit | Q4 2025 | €237 million | €204 million (analyst expectations) |
| Pre-provision profit | Q4 2025 | 5% above expectations | – |
| Fee income | Q4 2025 | 10% above expectations | – |
| Operating expenses | Full year | €856 million | €870 million (guidance) |
| Cost-to-income ratio | Q4 2025 | 29% | – |
| Cost of risk | Q4 2025 | 58 basis points | 45 basis points (consensus) |
| Cost of risk | Full year | 48 basis points | 45 basis points (guidance) |
| CET1 ratio | Latest quarter | 15.0% | 40 basis points below expectations |
| Tangible book value per share | Year-on-year | €3.28 | Up 9% year-on-year |
| Assets under management | Latest quarter | €22.4 billion | Up €1.1 billion quarter-on-quarter |
Risk Costs and Capital Position
Loan impairment charges were above expectations. The cost of risk for the fourth quarter was 58 basis points, compared with consensus estimates of 45 basis points. For the full year, the cost of risk came in at 48 basis points, versus guidance of 45 basis points.
The bank’s Common Equity Tier 1 ratio stood at 15.0%, a decrease of 70 basis points relative to the prior quarter and 40 basis points below market expectations. The movement in the ratio reflected organic capital generation that was offset by transactions and dividend accruals.
Tangible book value per share reached €3.28, representing a 9% increase on a year-over-year basis.
Enhanced Payout and Forward Guidance
Alpha Bank raised its 2025 payout ratio to 55%, up from a previous accrual level of 50%, exceeding market expectations. The total distribution is set to be divided equally between cash dividends and share repurchases, and includes a €111 million interim dividend that was already paid in the fourth quarter.
Looking ahead to 2026, the bank expects normalized earnings per share of €0.40, consistent with current analyst consensus, compared with €0.36 in 2025. Alpha Bank intends to hold an investor day in the second quarter of 2026 to outline its strategic priorities and financial targets.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
