Alpha Bank S.A. posted second-quarter 2026 net profit of EUR 316m, outperforming market consensus by roughly 32% against an expected EUR 240m. The reported result included a EUR 120m positive deferred tax asset recognition recorded during the period.
On a normalized basis, profit after tax reached EUR 275m, about 17% above analysts' forecasts. Pre-provision operating profit also exceeded expectations, coming in roughly 4% higher than anticipated. Management attributed the outperformance to stronger-than-expected net interest income and improved fee revenue.
Net interest income (NII) was 2% ahead of estimates, rising 5% from the prior quarter and 9% year-over-year. The bank said the increase in NII reflected higher income from both loans and bonds. The second-quarter net interest margin expanded by 4 basis points to 216 basis points. Within margins, group loan spreads narrowed by 3 basis points while deposit spreads widened by 18 basis points.
Fee income outpaced expectations by 15%, a result materially influenced by a EUR 40m dividend from Prodea that was recorded within real estate income. Excluding that dividend, fee revenues still grew 5% quarter-over-quarter and 24% year-over-year, supported by heightened investment banking activity and stronger cards and payments performance.
Credit metrics showed continued expansion of performing business. Performing loan balances rose 5% from the prior quarter and 11% year-over-year, driven primarily by corporate lending in Greece. Net credit expansion for the quarter totaled EUR 1.6bn.
Asset-quality and provisioning indicators remained favorable in the quarter. The cost of risk was 39 basis points, below the consensus estimate of 46 basis points. The non-performing exposure ratio fell by 10 basis points to 3.6%, with the improvement attributed mainly to retail net inflows. Coverage of non-performing exposures held steady at 55%.
Capital metrics showed a decline in the fully loaded common equity tier 1 (CET1) ratio to 14.0%, down 70 basis points quarter-on-quarter. The reduction was attributed to several one-off items, including the Alpha Trust deal, the closure of a significant risk transfer transaction, profit-and-loss one-offs, and an employee share accrual program.
On distributions, Alpha Bank said it plans to pay an interim cash dividend of EUR 124m in the fourth quarter of 2026, subject to regulatory approval. For the first half of 2026 the bank has accrued EUR 273m for distributions, representing an accrual rate of 55%.
Guidance for the year was adjusted modestly on a normalized basis. The bank raised its full-year 2026 normalized earnings per share guidance to EUR 0.41 from EUR 0.40, compared with consensus estimates of EUR 0.39. Reported net profit guidance for 2026 remained unchanged at EUR 950m.
What this means
- Reported results were materially aided by a EUR 120m deferred tax asset recognition and a EUR 40m Prodea dividend, both affecting reported and fee lines respectively.
- Underlying operating momentum was visible: NII and fees outperformed, and performing loan balances recorded solid quarter-on-quarter and year-on-year growth driven by corporate lending in Greece.
- Capital and one-off adjustments trimmed CET1 by 70 basis points, a factor to monitor alongside planned distributions pending regulatory clearance.