Alpha Bank is entering the next phase of its growth, focusing on deepening customer relationships and increasing returns to shareholders.
Updated targets for 2030
GROWTH
- Annual growth in adjusted earnings per share (EPS) of around 12% (CAGR), reaching ~€0.63 in 2030 from ~€0.41 in 2026.
- Adjusted net profit of >€1.4bn.
- Net credit expansion of around €3bn a year, funded mainly by deposits.
- Net interest income of around €2.3bn.
- Annual growth in net fee income of around 9% (CAGR), reaching approximately €0.85bn.
PROFITABILITY & EFFICIENCY
- Adjusted return on tangible equity (RoTE) of ~16%.
- Return on risk-weighted assets (RWA) of ~3.2%.
- Improvement in the cost-to-income ratio to ~34%.
- Continued investment in technology, artificial intelligence, people and process simplification, while achieving positive operating leverage.
BALANCE-SHEET RESILIENCE
- Non-performing exposures (NPE) ratio of ~2%.
- Cost of risk below 50 basis points, falling to ~45 basis points by 2030.
- Maintain a liquidity coverage ratio (LCR) of >160%.
- CET1 ratio of around 13% by 2030.
- Reduce deferred tax credits (DTCs) to <5% of CET1.
CAPITAL MANAGEMENT & SHAREHOLDER RETURNS
- €7.3bn of capital generated internally over 2026-2030.
- More than €4bn available for distributions or investment over 2027-2030.
- Operate with a CET1 ratio of 13% through to 2030.
- Gradually increase the cash dividend payout ratio to 40% of net profit by 2028.
- Excess capital will be returned to shareholders or invested to create additional value.
Vassilis Psaltis: “From rebuilding the Bank to accelerating growth”
“Three years ago, at our 2023 Investor Day, we set out a clear roadmap to restore Alpha Bank’s profitability, strengthen its balance sheet and put the Bank back on a path of sustainable growth and shareholder distributions.
Today, we are demonstrating that we have delivered on those commitments.
Alpha Bank is entering this new strategic cycle from a position of greater strength. We have broadened our capabilities, expanded our product portfolio, strengthened our presence in key customer segments and established partnerships that significantly extend what we can offer our customers.
The environment around us is changing. Businesses now need more than straightforward financing. They are looking for transaction banking services, treasury solutions, strategic advice and access to international markets. Individuals, meanwhile, seek support and guidance with their savings, investments, insurance cover and retirement. As financial needs become more complex, we aspire to be an even more valuable and meaningful partner to both businesses and households.
This ambition is reflected in our strategic plan, Alpha Accelerated.
Our strategy is built around two complementary growth drivers, focused on businesses and individuals. Together, they enable us to deepen customer relationships, increase product penetration and build a broader, more diversified earnings profile.
Our partnership with UniCredit is a powerful growth accelerator, broadening our ability to provide modern products and services and extending our international reach. Technology, data and artificial intelligence enable us to serve our customers more effectively and operate more productively. Our people are at the heart of our ambitions. We will continue to invest in their skills and professional development so that we can operate as One Bank, focused on our customers’ needs.
Our priorities for the next period are clear: higher-quality earnings, disciplined capital allocation, increased shareholder distributions and sustainable value creation for all. By 2030, we are targeting a normalised return on tangible equity (RoTE) of around 16% and annual earnings-per-share growth of around 12%, with more than €4bn available for distributions to shareholders.
Having put the Bank on a sounder footing, we unveiled our new identity on 12 October. It reflects a Bank that is evolving while remaining connected to a legacy built over nearly 150 years. We have already built a stronger Alpha Bank. We are now focused on further strengthening our commercial position and accelerating Alpha Bank’s next phase of growth.”