Eurobank and Alpha Bank could have further room for share-price gains following their third-quarter results, with Swiss investment bank UBS maintaining buy recommendations on both lenders while highlighting their growing operations in Cyprus and other international markets.

In its latest report, the findings of which were shared by Greek news outlet Newmoney, UBS kept its price targets unchanged at €5.40 for Eurobank and €5.20 for Alpha Bank, implying potential upside of around 21 per cent and 18 per cent respectively, excluding dividends.

The bank’s positive assessment is underpinned by stronger core banking income, expanding lending and a growing contribution from acquisitions, although it identifies different drivers for the two groups.

For Eurobank, UBS points to its regional expansion and earnings momentum, while Alpha Bank’s outlook is expected to become clearer following an investor presentation on November 5, when the lender is due to outline an updated business plan and medium-term targets.

Both banks have significant operations in Cyprus, where their latest financial results offer an indication of the island’s importance to their wider businesses.

Eurobank’s Cyprus operations generated €367 million in profit before tax during the first nine months of 2026, while the group’s net profit attributable to shareholders reached €1.16 billion, according to interim financial statements released on Monday.

The bank’s Cyprus business generated €733m in external revenue between January and September, representing a substantial contribution to its international operations, which also include Bulgaria, Luxembourg and other markets.

Cyprus accounted for €579m in net interest income, €98m in net banking fee and commission income and €56m in other net revenue during the nine-month period.

The figures come as Eurobank continues to integrate its Cypriot banking and insurance operations, following its acquisition of the former CNP Cyprus subgroup in April 2025 and the subsequent merger of Eurobank Ergasias Services and Holdings with Eurobank SA in December 2025.

At group level, UBS said Eurobank’s third-quarter performance confirmed its strong underlying momentum, with adjusted net profit exceeding estimates by 5 per cent and UBS’ own forecast by 4 per cent.

Its return on tangible equity stood at 17.8 per cent, while its common equity tier one capital ratio was 15.5 per cent.

UBS raised its estimate for Eurobank’s adjusted earnings per share in 2026 by around 1 per cent, forecasting annual growth of approximately 17 per cent. It expects earnings per share to rise by 15.1 per cent in 2027, and calculates an average annual growth rate of 13.6 per cent between 2025 and 2028, compared with management’s target of more than 10 per cent.

Net interest income rose by 5 per cent quarter-on-quarter and 13.7 per cent year-on-year. UBS expects the figure to approach €2.8bn in 2026, exceeding the bank’s already upgraded guidance of €2.7bn.

A positive surprise was the widening of Eurobank’s net interest margin in Greece by seven basis points to 2.30 per cent. The group-wide margin stood at 2.53 per cent, while deposits increased by 10.4 per cent, including a 12 per cent rise in the Greek market.

Southeastern Europe remains an additional source of growth, with net loans rising by 11.8 per cent year-on-year and Bulgaria recording an increase of 14 per cent. Core pre-provision profits rose by 24 per cent in Bulgaria and 18 per cent in Cyprus.

The completion of the Eurolife acquisition is expected to add around €100m a year in commission income, with its contribution beginning in the fourth quarter. Despite the capital impact, UBS sees scope for further growth and distributions.

Eurobank’s shares are valued at 8.3 times estimated 2028 earnings, with a projected dividend yield of 6.3 per cent for 2027. Alpha Bank’s international business expands Alpha Bank’s international operations, which include Cyprus, recorded normalised net profit of €79m in the first nine months of 2026, an increase of 13 per cent year-on-year.

The division reported profit of €57m, down 16 per cent compared with the same period last year, while net interest income rose by 64 per cent and fee services income increased by 65 per cent.

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

Alpha Bank’s Cyprus operations incurred €17.5m in provisions linked to a voluntary staff exit scheme, while the group also recorded €0.7m in integration costs in Cyprus.

The Cyprus-related costs formed part of a broader period of restructuring, as Alpha Bank continues its transformation and prepares to present its strategic priorities through to 2030 at its November 5 investor day.

At group level, Alpha Bank reported third-quarter profit after tax of €268.9m, bringing reported earnings for the first nine months to €766.1m.

The bank’s third-quarter results also exceeded analyst expectations, with net interest income 6 per cent above the average estimate, pre-tax profit 7 per cent higher and normalised net profit 17 per cent above consensus.

Against UBS’ own forecasts, normalised net profit was 6 per cent higher, prompting the investment bank to raise its estimates for Alpha’s adjusted earnings per share in 2026 and the medium term by around 1 per cent.

Net interest income increased by 8.2 per cent quarter-on-quarter and 17.4 per cent year-on-year. The net interest margin widened by 14 basis points to 2.30 per cent, above UBS’ estimate of 2.20 per cent.

Strong lending growth in the second quarter supported income from loans, while revenue from bonds increased by 14 per cent quarter-on-quarter.

Management now expects annual net interest income of around €1.8bn, while maintaining guidance for total revenue of close to €2.5bn.

UBS is looking for further details on the contribution from acquisitions, corporate and investment banking, and the expansion of fee income. It forecasts average annual earnings-per-share growth of around 15 per cent between 2025 and 2028.

With Alpha Bank trading at 1.2 times its 2026 price-to-tangible-book value and eight times estimated 2028 earnings, UBS believes there is scope for a higher valuation as the bank’s efficiency improves.

UBS also maintained its buy recommendation on Piraeus Bank, with a price target of €12.50 and potential upside of around 28 per cent, excluding dividends. It said the bank’s underlying performance remained strong despite exceptional charges, which it expects to ease from 2027.