Alpha Services and Holdings S.A. reported stronger-than-expected earnings for the fourth quarter of 2025, posting net profit of €237 million. That result exceeded analyst expectations of €204 million by 16% and was supported by a mix of higher fee generation and tighter-than-forecast operating costs.
Pre-provision profit came in about 5% ahead of consensus, lifted by fee income that outperformed estimates by 10% and operating expenses that were 4% below forecasts. Net interest income was broadly in line with market projections and rose 3% from the prior quarter, a change management attributed primarily to the consolidation of Astrobank into the group.
Alpha highlighted that underlying net interest income benefited from increased volumes, although margin dynamics were less favorable. Greek corporate loan spreads compressed by 7 basis points quarter-over-quarter, partially offsetting the benefit from higher volumes.
Credit growth and composition
Credit expansion accelerated in the quarter. Performing exposure balances increased by 5% sequentially and by 10% year-over-year, with the growth driven largely by corporate lending in Greece. Excluding the impact of Astrobank, loan balances rose 3% versus the prior quarter. Net credit expansion amounted to €1.3 billion in Q4, up from €700 million in Q3.
Fee income was broadly robust across categories, with particular strength in disbursement fees, real estate-related fees and asset management. Asset management fees rose sharply, with asset management fee income climbing 48% year-over-year as assets under management reached €22.4 billion, up €1.1 billion from the previous quarter.
Costs, impairments and capital
Operating expenses for the full year totaled €856 million, coming in under the company’s guidance of €870 million. The fourth-quarter cost-to-income ratio was 29%, aided by reductions in staff costs and lower depreciation and amortization charges.
However, loan impairments weighed on the quarter. The cost of risk in Q4 was 58 basis points, above consensus estimates of 45 basis points. For the full year the cost of risk stood at 48 basis points, compared with the bank’s guidance of 45 basis points.
On capital metrics, the Common Equity Tier 1 (CET1) ratio was reported at 15.0% at quarter end, a decrease of 70 basis points from the previous quarter and 40 basis points below consensus expectations. The reduction reflected the interplay of organic capital generation and the impact of transactions and dividend accruals.
Tangible book value per share increased to €3.28, up 9% on a year-over-year basis.
Dividend and buyback
Alpha Bank increased its payout ratio for 2025 to 55%, up from the previously accrued 50%, a move that exceeded market expectations. The company said the distribution will be split evenly between cash dividends and share buybacks. An interim dividend of €111 million was already paid in the fourth quarter as part of this distribution.
Outlook and investor engagement
For 2026, management expects normalized earnings per share of €0.40, which it said is in line with current analyst consensus. This compares with reported earnings per share of €0.36 for 2025. The bank also plans to hold an investor day in the second quarter of 2026 to set out strategic priorities and targets.
Overall, the quarter combined stronger operating performance and a more generous shareholder distribution with near-term headwinds from higher impairments and a decline in the CET1 ratio. Management has provided a 2026 EPS baseline and scheduled an investor day to elaborate on execution and targets.