Alpha Bank sees profit growth of more than 50% by 2030

Alpha Bank Aims for Over 50% Profit Growth and €4 Billion Shareholder Return by 2030

Alpha Bank's Strategic Business Plan and Financial Outlook

By Lefteris Papadimas

Profit Growth Projections and Shareholder Returns

ATHENS, Nov 5 (Reuters) - Alpha Bank, Greece's fourth-largest lender by market value, said on Thursday that it expects profit growth of more than 50% by 2030 driven by strong credit expansion, lower costs and its international businesses.

Profit and Earnings Targets

The bank's management said during a presentation of its new business plan that profit would reach or exceed €1.4 billion ($1.58 billion) by 2030, from €906 million in 2025, and that it plans to return €4 billion to its shareholders in cash or share buybacks over the 2027-2030 period. 

It, meanwhile, expects its earnings per share to rise to €0.63 in 2030 from €0.41 in 2026.

Sector Recovery and Revenue Growth Drivers

Alpha Bank, like its Greek peers, has posted strong profit growth in recent years, underscoring the sector's strong recovery from Greece's debt crisis in the previous decade and its success in attracting foreign investors.

Revenue Growth Contributors

"Around three quarters of our revenue growth to 2030 will come from our client businesses, with three broadly balanced contributors: businesses, households, and our international franchise, each adding around €200 million," CEO Vassilios Psaltis told Reuters.

Growth Strategy and Client Relationships

He added that Alpha Bank's growth was not dependent upon an acceleration of the economic cycle but would instead result from "our ability to deepen client relationships, expand our offering and capture new opportunities."

Recent Developments and Expansion Efforts

The lender, in which Italy's UniCredit raised its ownership stake to 29.5% last year, reported a 14.2% year-on-year increase in net profit last month for the January-September period.

Acquisitions and Diversification

Last year, it acquired the smaller Cypriot Astro Bank and asset management company Axia Ventures in an effort to diversify its income sources by expanding its insurance and wealth management businesses.

Financial Targets and Ratios

The bank also expects return on tangible equity of 16% by 2030, from 12% in 2026, a net credit expansion of €3 billion annually and for its cost-to-income ratio to improve to 34%.

Exchange Rate and Reporting Notes

($1 = 0.8880 euros)

(Reporting by Lefteirs Papadimas, Editing by Louise Heavens, Tomasz Janowski and Joe Bavier)