Alpha Bank S A : Αποτελέσματα Β’ τριμήνου 2025

About this update from Alpha Bank S.a.

Alpha Bank Q2 2025 Results Investor presentation 1 st August 2025 ‌Pages Alpha Bank Financial Performance 10 Macroeconomic Update 19 P&L 21 Balance Sheet 32 Asset Quality 44 Capital 50 Segmental Information 56 Digital 62 ESG 64 3 Business Update 3 H1 2025 performance reinforces outlook H1 2025 Group Results Set strong profitability foundation Resilient Top line & Growth in Fees Low NPE ratio & Cost of Risk de-escalation Increase in customer balances Excess capital growth allows for distribution Reported Profit After Tax €517mn +60% y/y Normalised Profit After Tax €460mn +5% y/y Net Interest Income €795mn (5%) y/y Fee Income €229mn +16% y/y NPE ratio 3.5% Cost of Risk 45bp Performing loans +15% y/y Customer funds +9% y/y Organic capital generation +111bp Growth in Tangible Book Value 5 +14% y/y Return on Tangible Equity 1 14.2% or 11.7% reported Earnings Per Share 2 €0.19 or €0.21 reported Fully Loaded CET1 Ratio 15.7% or 16.2% pro-forma 3 Payout accrual 4 50% or €259mn of H1 25 reported profit €111mn interim proposed to be paid 4 in Q4 4 1| 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; 2| Earnings per share Diluted; based on 4 normalized profit after tax post AT1 coupon; 3| Pro-forma for remaining RWA relief from NPA transactions including mainly Skyline and Athena; 4| Subject to regulatory approval; 5| Adjusted for dividend and buyback ELTA: strategic partnership for nationwide financial inclusion Rationale of the partnership Signed a new exclusive partnership to deliver a full suite of financial services via ELTA's 1,100 service points across Greece.… … promoting financial inclusion for > 1 million citizens, especially in rural, island, and underserved urban areas Alpha Bank's technology and expertise will support ELTA's transformation into a modern, customer-centric financial hub Expands Alpha Bank's physical footprint to 1,400+ locations, enhancing access for individuals and SMEs 02 01 03 Opens new revenue and liquidity pools for Alpha Bank, whilst initial set-up costs are small and shared among partners Services will be rolled out gradually starting H2 25 , and ELTA Branches will offer: Daily banking (account opening, deposits, payments) Exclusive access to Alpha Bank product suite, including loans, insurance, investments Is aligned with our longterm sustainability and growth strategy 5 Unicredit partnership reinforced COMMERCIAL PARTNERSHIP WEALTH & ASSET MANAGEMENT WHOLESALE Continued successful collaboration in Wealth with onemarkets Funds launched in 2024, and offering being continuously enhanced - "One-stop shop" investment solution, offering access to global capital markets to over 200k Private and Gold Alpha Bank customers Other initiatives launched include collaboration on structured notes and the leveraging of UniCredit's brokerage capabilities Ongoing collaboration on Unit Linked products Highlights: onemarkets - c.€605mn of funds already distributed 1 Structured notes - 5 private placement since partnership commenced Three AlphaLife Unit Link product issuances in collaboration with UniCredit in 2024 and 2025 YTD (c.€110mn total notional) Providing Alpha Bank's clients with access to UniCredit's pan-European network , thus solidifying our position as the bank of choice for our over 5k wholesale group of companies Collaboration already well underway in: Trade finance and Transaction banking Trading and treasury products Advisory business and international syndications, including factoring Payment services including remittances currency conversion services Highlights: Letters of guarantee and Letters of Credit for over €200mn in 2024 and 2025 YTD c€300m of approved lending for international syndications since partnership commenced c€650m volume of bilateral exchange of EURO payments in in 2024 and 2025 YTD Partnership further reinforced through UniCredit's increase in Alpha Bank shareholding to c. 20%. Both parties continue to mutually benefits from compelling commercial partnership, joining forces in Romania by combining respective subsidiaries in the country and knowledge exchange 1 | As of 16 July 2025; 2| with indication OUR 6 Structural advantages leading to earnings growth Alpha Bank's structural advantages Outlook for 2027 Positioned to absorb rate cuts and grow NII… Dynamic management of interest rate sensitivity Significant potential from structural growth dynamics Further upside from balance sheet and franchise positioning …strong loan growth in corporate lending… …and accelerating momentum in fee generation capabilities… …all further supported by UniCredit partnership Pace of growth retained above the €2bn mark Significant expansion in Large Corporates and SMEs Strong demand dynamics while lower rates reduce repayments Significant investment in corporate solutions bearing fruit Accelerate growth in transaction banking and IB Increasing growth and penetration in Wealth management Positioning franchise as bank of choice for cross-border activity Unify commercial framework to mutually benefit both groups Accelerating earnings growth and capital generation as rates stabilize +5% EPS growth 2025 +12% EPS CAGR 2026-2027 7 7 EPS expansion to continue across 2025-2027 EPS trajectory 1 +15% 2,3 On track to sustain 0.32 0.35 0.37 0.38 2 0.53 3 EPS CAGR in 2024-2027 0.46 including buyback effect +9% Guided EPS CAGR in 2024-2027 Consensus 0.44 excluding buyback effect c. +4% above consensus 4 Consensus 0.35 2025 & 2027 estimates positive EPS trajectory: • +5% EPS growth in 2025 • +12% EPS CAGR in 2026-2027 Lower gearing to interest rates, coupled with… …leading positions in corporate lending and asset management… …resulting in a differentiating positive EPS growth trend in the medium term H1 25 2023 2024 2025E 2027E 8 1| Earnings per share diluted calculated after deduction of AT1 coupon payments based on normalized profit after tax; 2| Assuming 43% payout of which 75% in buyback for 2024 and 50% payout of which 75% in buyback 8 for 2025 at a share price of €3.30; 3| Assuming 43% payout of which 75% in buyback for 2024 and 50% payout of which 75% in buyback for 2025, 2026 and 2027 at a share price of €3.30; 4| Company-compiled consensus Significant potential to create and return value to shareholders 1 Organic growth Organic RWA expansion in wholesale and retail segments in Greece and Cyprus Capital allocation in 2025-2027 2 Ordinary payout Increasing ordinary payout over 2025-2027 A Share buybacks & extraordinary dividends 3 B Bolt-on acquisitions Excess capital Strict criteria for any M&A Accelerating delivery on our strategy No change to distribution policy Return on investment of >15% RoCET accretive EPS accretive in 2-3 years 9 ‌Pages Business Update 3 Alpha Bank Financial Performance 10 Macroeconomic Update 19 P&L 21 Balance Sheet 32 Asset Quality 44 Capital 50 Segmental Information 56 Digital 62 ESG 64 10 Group Profit & Loss Summary Profit & Loss (€ mn) H1 2024 H1 2025 Δ % Q1 2025 Q2 2025 Δ % Net Interest Income 833 795 (5%) 395 399 1% Net fee and commission Income 197 229 16% 108 122 13% Trading & Other Income 67 86 28% 56 30 (46%) Operating Income 1,097 1,110 1% 559 551 (1%) Total Operating Expenses (417) (418) 0% (204) (214) 5% Pre Provision Income 680 692 2% 355 337 (5%) Impairment Losses (120) (91) (24%) (52) (40) (23%) Profit/ (Loss) before income tax 552 605 10% 307 298 (3%) Income Tax (163) (152) (7%) (72) (80) 12% Impact from NPA transactions, discontinued operations & other adjustments (67) 64 … (12) 76 … Reported Profit/ (Loss) after income tax 322 517 60% 223 294 31% Normalised Profit After Tax 437 460 5% 239 221 (8%) 11 Q2 25 Group Profit and Loss (1%) Group, € mn 542 544 578 559 551 Operating Income Q2 y/y +2% Operating income: Net interest income +1% q/q offsetting deterioration from rates and US $. Fee income +3% q/q underlying Quarterly decline reflecting normalization of trading Operating Expenses Impairment losses Profit After Tax 5% (213) (211) (239) (204) (214) (23%) (52) (53) (63) (52) (40) +31% 294 167 165 223 110 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 +1% (23%) 166% Operating expenses: Costs up just 1.3% y/y reflecting VSS and IT benefits Cost pressures expected to return to more normal levels Impairment losses: Cost of Risk at 39bp in Q2 Asset quality environment remains benign Reported Profit After Tax: Bottom line +31% q/q on DTA recognition Normalised profit of €221mn in the quarter 12 Q2 25 Group Balance Sheet Performing loans 1 Group, € bn 30.5 31.6 Customer Funds 65.8 67.9 +1% 34.1 34.5 34.9 +2.7% 69.5 69.7 71.6 +5% 2 7.2 7.5 Q2 y/y +15% +9% Performing loans: Growth fueled by corporates despite FX headwinds €1.5bn net credit expansion in H1, partially offset by FX headwinds and NPE portfolio reclassified to Held-For-Sale Customer funds: Deposit inflows of €0.9bn in the quarter, mainly corporates AuM net sales at €0.5bn Tangible Book Value: Tangible Book Value 6.7 6.8 7.0 (43bp) +14% 2 2024 Dividend payment of €70mn impacting Q2 25 Growth ex-payouts at 5% q/q CET1 ratio 14.8% 15.5% 16.3% 16.2% 15.7% +95bp CET1 ratio: 40bp of organic capital generation €147mn of dividend accrual in the quarter Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 1 | Excluding senior notes, including CLOs. 2| Adjusted for dividend and buyback 13 Net interest income and Fees Interest Income / Interest Expense breakdown Group, € mn (114) 27 101 481 411 408 406 (70) (78) 18 110 419 395 399 Fees Group, € mn 100 o/w c. (€5mn) impact from government measures 114 12 11 14 13 29 7 34 40 22 30 22 24 30 29 38 109 108 42 5 28 32 122 Loans PE Bonds Loans NPE Funding & Other 475 104 472 107 439 5 38 Q2 24 5 Q3 24 25 4 Q4 24 Q1 25 14 Q2 25 (104) 22 Deposits (84) Q2 24 Q3 24 (91) Q4 24 (82) (86) 19 106 Q1 25 Q2 25 Business credit related Asset management Bancassurance Cards & Payments Other 14 (107) (87) 23 Performing loans and Customer Funds Performing loan book expansion Group, € bn Customer Funds evolution Group, € bn +15% +1% 7% +1% 34.9 34.1 34.5 +4% 31.6 30.5 21.5 22.6 25.0 25.5 25.9 7.7 7.6 1.3 1.5 7.5 7.4 7.3 1.6 1.6 1.7 YoY +9% +2.7% 51.3 20.3 0.9 0.5 71.6 31% 69.7 0.5 (5)% 65.8 48.2 17.6 AuMs +20% Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Deposits 50.4 19.3 International Greece Individuals Greece Businesses Jun 2024 Mar 2025 Deposits Net Sales Valuation & Other Jun 2025 15 Asset quality NPE ratio Group % 4.6% 4.5% 3.7% 3.7% 3.5% NPE ratio target for the year achieved 13 13 Cost of Risk Group, bps 56 57 65 52 31 39 16 12 11 Servicing fees Securitization expenses Underlying Cost of Risk at 39bp reflecting benign environment NPE coverage Group % 47% 48% 30 32 13 42 12 9 11 13 12 53% 50% 57% Coverage at 57% Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 16 16 Quarterly evolution in Capital FL CET1 % 0.8% 0.1% (0.1%) 0.2% Phased in 16.1% 16.6% 0.4% Organic Capital Generation (0.3%) (0.4%) 16.2% 16.3% 15.7% 16.2% RWAs 31.1 €bn Mar-25 Q2 25 Organic capital DTA DTC RWAs other capital elements Transactions Jun-25 Jun-25 post dividend accrual Jun-25 1 31.3 pro forma 1| Pro-forma for remaining RWA relief from NPA transactions including mainly Skyline and Athena 17 Outlook update Previously…. Updated Revenues 2025 confirmed >2.2bn NII: $ and rate pressure Fees & other better Guidance on costs reiterated Cost of Risk sustainably at c45bp ROTE c13% in 2027 EPS 2% higher 0.37 in 2025 0.46 in 2027 (incl. acquisitions) Capital >15% in 2025 and >16% in 2027 on account of acquisitions 18 18 ‌Pages Business Update 3 Alpha Bank Financial Performance 10 Macroeconomic Update 19 P&L 21 Balance Sheet 32 Asset Quality 44 Capital 50 Segmental Information 56 Digital 62 ESG 64 19 Solid growth dynamics, declining unemployment and persistent inflation Selected indicators in H1 2025 New Passenger Car Registrations (annual % change) Inbound Traveller Flows (annual % change) Real GDP growth (annual % change) Economic Sentiment Indicator Year-to-Date 1.9% (Jan - June 25) 2.1% (Jan - May 25) 2.2% (Q1-25) 107.2 (Jan - June 25) Unemployment rate in euro area countries 8,2 10,9 9,1 15,7 6,7 8,9 7,9 8,1 7,8 16 6,1 7,3 7,0 6,7 6,4 6,4 6,3 7,7 7,1 8,2 6,3 6,5 6,3 10,1 5,4 5,2 4,6 4,3 4,1 3,9 3,8 7,1 7,0 8,2 5m2025 5m2021 7,3 7,9 5,1 4,6 3,6 3,8 4,0 Spain Finland Greece ,3 Estonia France Latvia Luxembourg Lithuania Portugal Euro area Belgium Italy Austria Slovakia Croatia Ireland Cyprus Slovenia Netherlands Germany Malta 2,7 PMI Retail Trade (volume, nsa, annual % change) Residential Prices (annual % change) Production of Capital Goods (annual % change) 53.3 (Jan - June 25) 4.2% (Jan - Apr 25) 6.8% (Q1-25) 8.4% (Jan - May 25) Headline inflation 4 3 2 1 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 0 Services Non-Services HICP inflation (y-o-y), Greece HICP inflation (y-o-y), Euro area 20 Sources: ELSTAT, Eurostat, European Commission, Bank of Greece, S&P Global Economic Research calculations ‌Pages Business Update 3 Alpha Bank Financial Performance 10 Macroeconomic Update 19 Balance Sheet 32 Asset Quality 44 Capital 50 Segmental Information 56 Digital 62 ESG 64 21 P&L 21 Attention : This is an excerpt of the original content. 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