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Alpha Bank Reports Robust Q1 Performance, Paving The Way For 2026

by THEFUTURE.TEAM

May 21, 2026

Steady Growth In A Volatile Environment

Greek lender Alpha Bank delivered a solid first-quarter performance in 2026, achieving double-digit revenue growth and firm profitability despite ongoing geopolitical uncertainties. The bank’s report underscores its shift towards a more diversified and sustainable profit model, driven by a significant surge in fee income alongside consistent net interest income gains.

Compelling Financial Metrics

Core revenues climbed by 11.5% year-on-year, bolstered by a robust 29% increase in fee income and a steady 5.3% rise in net interest income. Adjusted net profits reached €221 million, while reported net profits, post one-off expenses, came in at €182 million. Key performance indicators included a return on tangible book value of 12.6% and earnings per share of €0.08.

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Resilient Business Model With A Focus On Diversification

CEO Vassilis Psaltis stated, “Alpha Bank delivered a strong start to 2026, with our first-quarter results confirming the momentum of our business model and setting the stage for continued growth.” He emphasized that the quarterly challenges did not detract from the bank’s overall recurring business activity and confidence in meeting its full-year targets of €950 million in profits and €0.40 earnings per share.

Fee Income And Cost Discipline Drive Progress

The bank’s fee income surged to €139.7 million, reflecting a quarter-on-quarter growth of 2.7% and an impressive 29% year-on-year increase. This uplift was largely fueled by a 33% growth in business lending fees and a 29% rise in asset management fees, complemented by gains in investment banking and brokerage operations. On the cost front, Alpha Bank maintained a cost-to-income ratio of 39%, with operating expenses showing improved efficiency despite rising personnel costs on an annual basis.

Strategic Acquisitions And Expanding Market Footprint

Strategic initiatives remain central to the bank’s outlook, with targeted acquisitions poised to bolster its wealth management and bancassurance sectors. The purchase of a 69.61% stake in Alpha Trust is expected to enhance its asset and wealth management capabilities, expanding its range of mutual funds, alternative investments, and offshore offerings. Concurrently, the anticipated acquisition of Universal Life and Altius in Cyprus by the end of 2026 is set to redefine its position in the Cyprus insurance market, providing access to over 100,000 customers and a robust network of more than 400 intermediaries.

Strong Capital Position And Forward Outlook

Alpha Bank’s strong capital base is reflected in its CET1 ratio of 14.7%, supported by organic capital generation and disciplined cost management. With a resilient asset quality indicated by a non-performing exposure ratio of 3.7% and a cost of risk maintained at 44 basis points, the bank is well-positioned to leverage its strategic investments and continue its growth trajectory into 2026 and beyond.

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Keve Welcomes New Cyprus Business Development Organisation

The Cyprus Chamber of Commerce and Industry (Keve) has welcomed Parliament’s unanimous approval of legislation establishing the Cyprus Business Development Organisation, describing it as a major step toward improving access to finance for small and medium-sized enterprises, startups and self-employed professionals.

Expanding Access To Finance

The legislation creates a new public body aimed at addressing financing gaps by supporting businesses that struggle to secure funding through traditional channels.

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According to Keve, the initiative could strengthen entrepreneurship, boost competitiveness and support Cyprus’ green and digital transition. The chamber has long argued that SMEs rely too heavily on bank financing, limiting investment, expansion and innovation.

Keve Calls For Swift Implementation

Keve said it helped shape the legislation through the consultation process and called for the organisation to become operational as quickly as possible. It also pledged to continue working with the Finance Ministry and the organisation’s management to support implementation.

How The Organisation Will Operate

Approved by Parliament on Tuesday, the legislation establishes Cyprus’ national business development body under the supervision of the Finance Minister, while the Central Bank of Cyprus will oversee anti-money laundering compliance.

The organisation will design financing programmes, provide loans and conduct studies to identify weaknesses in the financing market.

Cyprus will provide €60 million in initial capital. Over time, the body will also be able to raise funding from European and international institutions and benefit from state guarantees linked to approved strategic priorities.

Recovery Plan Milestone

Creation of the organisation is one of the final milestones under Cyprus’ Recovery and Resilience Plan and is required for the country to receive the plan’s ninth and final payment. Appointment of the board of directors remains the last outstanding step.

Before approving the bill, the Finance Ministry revised the draft following consultations with MPs and stakeholders. The changes removed provisions allowing the organisation to establish companies and narrowed the list of eligible beneficiaries by excluding small mid-cap companies.

Lawmakers also strengthened governance rules by introducing stricter board suitability requirements, conflict-of-interest safeguards, enhanced reporting obligations and borrowing limits. A seven-member board appointed by the Cabinet will oversee the organisation, while a transitional board will serve for two years until it becomes fully operational.