Half Year 2026 Alpha Bank SA Earnings Call Transcript
Key Points
- Normalized profits up 6.5% year-over-year in H1 2026, with EPS guidance upgraded to EUR0.41.
- Strong loan growth with performing loans up 5% in Q2, reaching 87% of the full-year net credit expansion target.
- Fees surged 34% on a headline basis, driven by a 38% increase in transaction banking revenue and strong investment banking activity via AXIA.
- Cost-to-income ratio improved to 38% in Q2, better than the full-year guidance, reflecting operating leverage.
- The UniCredit partnership is delivering tangible benefits, including cross-border transactions and the EuropeanGate platform, enhancing client offerings and fee generation.
- Reported profits were impacted by notable items, including a EUR38 million legacy cash flow hedge cost and EUR17.5 million provisions for a voluntary separation scheme in Cyprus.
- CET1 ratio declined to 14.3% due to RWA growth, the Alpha Trust acquisition, and DTA recognition, with further headwinds expected from real estate investments.
- Costs increased 14% year-over-year, partly due to acquisitions, though the company maintains its full-year cost guidance.
- The bank faces potential additional one-off costs from government programs, such as the Marietta Giannakou program, expected in Q3.
- Deposit inflows were partly driven by a large single corporate ticket, which may flow out in coming quarters as it converts to CapEx, potentially impacting liquidity.
Ladies and gentlemen, thank you for standing by. I am Yota, you Chorus Call operator. Welcome and thank you for joining the Alpha Bank conference call to present and discuss the first half of 2026 financial results.
At this time, I would like to turn the conference over to Alpha Bank management. Gentlemen, you may now proceed.
Hello, everyone, and welcome to the presentation of our second-quarter results. I am Iason Kepaptsoglou, Alpha Bank's Head of IR. Our CEO, Vassilios Psaltis, will lead the call with a usual summary and a few updates. Our CFO, Vasilis Kosmas, will then go through this quarter's numbers in some detail. Q&A will come at the end of the call, and we should wrap up within the hour.
Vassilios, over to you.
Good morning, everyone. Thank you for joining our call. Let's start with an overview of our results for the first half of the year on
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