Greek lender Alpha Bank on Wednesday reported a strong operational performance in the first quarter of 2026, posting double-digit revenue growth and resilient profitability despite heightened geopolitical uncertainty, the bank announced.

The results confirmed the lender’s transition towards a more diversified and recurring profitability model, driven primarily by strong fee income growth and steady net interest income expansion.

Core revenues rose by 11.5 per cent year-on-year, supported by a 29 per cent increase in fee income and a 5.3 per cent rise in net interest income.

Adjusted net profits reached €221 million, while reported net profits stood at €182 million after one-off items.

The bank’s return on tangible book value (RoTBV) came in at 12.6 per cent, with earnings per share at €0.08.

“Alpha Bank delivered a strong start to 2026, with first-quarter performance confirming the momentum of our business model and creating solid conditions for continued growth,” said Alpha Bank chief executive Vassilis Psaltis.

“Profits were affected by factors related exclusively to the first quarter and not to our recurring business activity,” he added.

“Beyond these factors, the bank is in an excellent position and remains on track to fully achieve the targets we have set for 2026,” he continued.

The lender reaffirmed its full-year targets of €950m in profits and €0.40 earnings per share.

Fee income emerged as the key growth driver, reaching €139.7m, up 2.7 per cent quarter-on-quarter and 29 per cent year-on-year.

This increase was largely driven by business lending fees, which rose by 33 per cent, and asset management fees, which climbed by 29 per cent, alongside stronger contributions from investment banking and brokerage activities.

Excluding merger and acquisition-related transactions, underlying fee income remained robust, increasing by 0.4 per cent quarter-on-quarter and 23.1 per cent year-on-year.

This performance supports the bank’s goal of achieving fee income close to €600m by 2026, reinforcing its shift towards more sustainable revenue streams.

Net interest income reached €416.3m, rising 0.7 per cent compared with the previous quarter and 5.3 per cent year-on-year, supported by loan portfolio growth and higher bond income.

On the cost side, the bank maintained discipline and improved efficiency, with the cost-to-income ratio standing at 39 per cent, in line with guidance.

Recurring operating expenses totalled €229.3m, declining by 1.7 per cent quarter-on-quarter, mainly due to lower general and administrative expenses, IT costs and taxes, which offset higher staff costs.

Depreciation remained broadly stable during the quarter.

On an annual basis, recurring operating expenses increased by 14.6 per cent, reflecting higher personnel costs, up 22.3 per cent, as well as rising general expenses and depreciation.

The bank said that the evolution of costs reflects the consistent execution of its cost optimisation strategy, with temporary quarterly pressures offset by longer-term benefits.

Credit activity remained strong, with net credit expansion in Greece reaching €0.5 billion during the first quarter, supported by increased business demand.

Total disbursements amounted to €3.2bn, while performing loans grew by 11 per cent year-on-year.

Customer funds also recorded an increase, with deposits rising by €0.3bn, equivalent to 0.6 per cent growth, despite seasonal outflows across the banking system.

Assets under management rose sharply by 18.6 per cent quarter-on-quarter, although this corresponds to a 7.3 per cent decline when excluding a one-off equity portfolio transfer, with positive net mutual fund sales of €0.2bn.

Asset quality remained strong, with the non-performing exposure (NPE) ratio at 3.7 per cent, while the cost of risk stood at 44 basis points, both in line with guidance.

The results were impacted by a one-off cost of €47m related to a voluntary exit scheme, which saw approximately 350 employees participate.

The programme is expected to generate annual benefits of around €15m, supporting future efficiency gains.

Additionally, the bank recorded a negative contribution of €6m from associated companies.

Strategically, the bank is advancing targeted acquisitions to strengthen its presence in wealth management and bancassurance, sectors viewed as key to revenue diversification.

The acquisition of a 69.61 per cent stake in Alpha Trust is expected to enhance the bank’s asset and wealth management capabilities, expanding its client base and product offering, including mutual funds, alternative investments and offshore activities.

The move will also support the development of private banking initiatives.

At the same time, the bank expects to complete the acquisition of Universal Life and Altius in Cyprus by the end of 2026, following their merger.

This transaction will significantly strengthen Alpha Bank’s position in the Cyprus insurance market, making it one of the top three players in the sector.

The deal will also expand the bank’s offering across life, general and health insurance products.

As part of the transaction, Alpha Bank will gain access to more than 100,000 customers and a network of over 400 insurance intermediaries.

Management said the acquisition is expected to have a limited capital impact of around 23 basis points on the CET1 ratio, while contributing approximately 2 per cent to earnings per share and boosting the return on tangible equity by more than 30 basis points.

The bank’s CET1 ratio stood at 14.7 per cent, supported by organic capital generation of 25 basis points, underscoring its strong capital position.