Alpha Bank’s international operations recorded a normalised net profit of €79 million in the first nine months of 2026, up 13 per cent year-on-year, while the Greek banking group’s Cyprus operations incurred €17.5 million in provisions linked to a voluntary staff exit scheme.

The international division, which includes the bank’s business in Cyprus, generated a reported profit of €57 million, down 16 per cent year-on-year, while net interest income rose by 64 per cent and fee services income increased by 65 per cent over the same period.

Net loans across the international operations stood at €2.9 billion, while customer deposits reached €6.6 billion, with the division recording a return on tangible book value of 12.9 per cent during the nine-month period.

The group also recorded €0.7 million in integration costs in Cyprus, contributing to total operating expenses of €231.7 million for the group in the third quarter.

The Cyprus-related provisions and integration costs formed part of a wider period of restructuring and integration, as Alpha Bank continues to pursue its transformation and prepares to present its strategic priorities through to 2030 at an Investor Day scheduled for November 5.

At group level, Alpha Bank reported profit after tax of €268.9 million in the third quarter of 2026, bringing its total reported earnings for the first nine months to €766.1 million.

On a normalised basis, which adjusts for certain exceptional items, quarterly profit after tax reached €283.2 million, while nine-month earnings amounted to €778.5 million, representing a 14 per cent annual increase.

The group achieved a normalised return on tangible book value of 15.5 per cent in the third quarter, compared with 14.5 per cent over the first nine months, while earnings per share stood at €0.11.

Its Common Equity Tier 1 (CET1) capital ratio, a key measure of a bank’s ability to absorb financial losses, remained at 14.5 per cent at the end of both reporting periods.

Tangible book value per share stood at €3.52, while total tangible book value reached €7.9 billion, representing an increase of 2.1 per cent quarter-on-quarter and 4 per cent year-on-year, rising to 10.7 per cent before accounting for distributions.

The bank attributed its performance to sustained growth in lending and deposits, higher interest rates and contributions from its recent acquisitions.

Net credit expansion reached €400 million in the third quarter and €2.6 billion during the first nine months of 2026, supported by total loan disbursements of €3.1 billion.

The group’s performing loan book, excluding senior notes, expanded by 1 per cent quarter-on-quarter to €40.4 billion, representing annual growth of 13.1 per cent.

Deposits also continued to increase, rising by 2.5 per cent quarter-on-quarter, equivalent to €1.5 billion, with time deposits accounting for 29 per cent of the total.

The bank reported a deposit beta of 22 per cent, indicating the extent to which changes in market interest rates were reflected in the rates offered to depositors.

Total customer funds increased by 18.7 per cent year-on-year, supported by a 13.3 per cent rise in customer deposits and a 32 per cent expansion in assets under management.

The group’s loan-to-deposit ratio stood at 77 per cent at the end of September, while its non-performing exposure ratio remained at 3.8 per cent.

The cost of risk, which measures the expense of provisions against potential loan losses, stood at 43 basis points in the third quarter and 42 basis points across the first nine months.

Alpha Bank’s capital position remained stable despite the recognition of a €421 million dividend accrual during the first nine months of the year, supported by 124 basis points of organic capital generation.

Net interest income reached €472.2 million in the third quarter, increasing by €35.8 million, or 8.2 per cent, compared with the previous quarter.

The increase reflected higher income from loans and bonds, supported by growth in lending volumes and higher interest rates, while net interest income for the first nine months rose by 10.7 per cent year-on-year.

Chief executive officer Vassilios Psaltis said the latest results demonstrated the resilience of the group’s banking operations and the benefits of its recent acquisitions.

“Net interest income came to €472 million, the highest quarterly figure since the fourth quarter of 2017, reflecting the sustained growth in our loan book, and the step-up in rates,” Psaltis said.

“Fee income increased to €156 million, supported by cards and payments fees, and an uptick in asset management, following a softer second quarter.”

Fee services income amounted to €156.3 million in the third quarter, representing a 16.3 per cent decline compared with the previous three-month period.

However, the decrease largely reflected a higher comparison base in the second quarter, which had benefited from a dividend received from Prodea.

Excluding that contribution, fee services income increased by 6.2 per cent quarter-on-quarter, supported by stronger revenue from cards and payments and a higher contribution from asset management fees.

For the first nine months of 2026, fee income increased by 32.2 per cent year-on-year, or 25.4 per cent when excluding dividends from Prodea.

Total operating income reached €634 million during the third quarter, while the group said its cost-to-income ratio remained comfortably within expectations.

Recurring operating expenses declined by 3.6 per cent quarter-on-quarter to €231 million, reflecting a 9.3 per cent reduction in staff costs and a 7.2 per cent decrease in depreciation expenses.

These savings were partly offset by higher general and administrative expenses, mainly resulting from increased taxes, third-party fees and building costs.

However, recurring operating costs for the first nine months were 12.2 per cent higher year-on-year, largely due to increased staff expenses, alongside higher administrative and depreciation charges.

Psaltis said the group remained confident about its financial position despite an uncertain international economic environment.

“Despite the uncertain macroeconomic environment, we remain confident in the Bank’s financial strength. Our capital position is sound, our provisioning is prudent and our funding base is solid,” he said.

He also pointed to Greece’s economic performance, arguing that the country was in a stronger position than many other European economies.

“Greece currently occupies a distinct position compared to the majority of Europe, characterised by a robust fiscal trajectory, declining public debt and an investment pipeline that continues to expand,” Psaltis said.

He added that these conditions provided confidence that the foundations for the bank’s next phase of growth were firmly established.

The results follow a major rebranding initiative unveiled on October 12, which Psaltis described as marking the completion of an ambitious transformation programme.

“On October 12, Alpha Bank achieved a significant milestone as we unveiled our new brand identity and drew a line under our ambitious transformation,” he said.

“The new brand honours our nearly 150 years of history, is closely aligned with our new Purpose and Values, and accurately reflects our strategic positioning.”

Psaltis said the new identity reflected the bank’s progress in strengthening its operations and its relationships with customers, businesses and communities.

He added that the positive response from customers, employees and business partners had reinforced confidence in the group’s strategic direction.

Alongside the rebranding, Alpha Bank introduced two initiatives aimed at its employees, including a new programme providing medical insurance and home care for employees’ elderly parents.

The bank also announced salary increases for its Gold relationship managers across its branch network, with Psaltis describing the measures as part of its commitment to its workforce.

On the economic outlook, Alpha Bank said the Greek economy had remained resilient during the first half of 2026, with gross domestic product expanding by 1.9 per cent.

The bank expects the economy to grow by just under 2 per cent for the full year, followed by expansion of 1.7 per cent in 2027.

However, it warned that renewed geopolitical tensions had intensified energy-related inflationary pressures, while political and fiscal uncertainty in Europe could weigh on external demand and create tighter and more volatile financial conditions.

Psaltis said the group expected to outline its next strategic phase at its forthcoming Investor Day, where it will present priorities extending through to 2030.

“The financial performance evident in these results, in conjunction with the new identity we unveiled this month, provides a strong foundation upon which to embark on Alpha Bank’s forthcoming chapter,” he said.

“We have much to share, and we eagerly anticipate the dialogue on November 5,” Psaltis concluded.