**Rating Agency Backs Alpha Bank Strategy and Profitability Outlook**
Scope Ratings has reaffirmed Alpha Bank’s BBB issuer rating with a stable outlook, highlighting the bank's strong market position, improving profitability, and robust capital buffers. This endorsement comes as Alpha Bank prepares for its upcoming Investor Day, where it will outline its future plans and priorities.
In its latest assessment, shared by the Greek business outlet Newmoney, Scope Ratings expressed confidence that Alpha Bank will maintain a strong performance trajectory through 2028. The agency anticipates that the bank will continue to enhance its credit profile, supported by its strategic acquisitions and operational improvements.
Scope Ratings specifically noted the significance of Alpha Bank's recent acquisitions, including Alpha Trust, Flexfin, AXIA, and AstroBank. These transactions are expected to bolster the bank's presence in wealth management, investment banking, and the Cypriot market. The agency believes that these strategic moves will not only strengthen Alpha Bank’s competitive position across various business segments but also support its long-term growth strategy.
The agency forecasted that Alpha Bank's profitability will remain resilient in the coming years, with a return on risk-weighted assets (RoRWA) projected to stay close to 3 percent through 2028. Additionally, Scope considers the bank's management target of reducing the non-performing exposures (NPE) ratio to below 3 percent by the end of 2027 to be achievable.
While Alpha Bank's Common Equity Tier 1 (CET1) ratio declined to 15.0 percent in the first quarter of 2026, Scope attributed this decrease to the impacts of acquisitions, credit expansion, and shareholder distributions. Despite this reduction, the bank maintains a capital buffer of approximately 500 basis points above supervisory requirements, indicating a solid capital position.
Scope Ratings also emphasized the strength of Alpha Bank's funding profile, noting that more than 80 percent of its total funding sources are derived from customer deposits. Furthermore, the bank has progressively expanded its access to capital markets to fulfill its minimum requirement for own funds and eligible liabilities (MREL) obligations.
The reaffirmation of Alpha Bank's rating is seen as a significant endorsement of the management's strategic direction and is expected to enhance the bank's standing among investors and market participants. This positive outlook comes at a crucial time as Alpha Bank aims to strengthen its market image and investor confidence.
In line with its growth strategy, Alpha Bank recently launched its Institutional Wealth & Private Agency, a specialized unit aimed at providing comprehensive services for clients with complex liquidity and capital management needs. This initiative was unveiled at a recent event in Nicosia and integrates the bank's local market knowledge with the broader expertise of the Alpha Bank Group and Alpha Asset Management.
The new unit operates as an integrated service platform, offering a range of services including liquidity management, deposit and investment solutions, execution, and custody services. It also provides advisory support, including market analysis and portfolio construction, along with dedicated Depositary Services for the island’s investment fund industry, such as Alternative Investment Funds and Registered Alternative Investment Funds.
Chief Executive Officer Miltos Michaelas described the establishment of this unit as a strategic investment in expertise, aimed at fostering partnerships built on trust and tailored solutions. By leveraging its local presence alongside the professional resources of Alpha Asset Management, the bank seeks to deliver structured and transparent solutions for pension funds, organizations, and corporate clients.
In summary, Scope Ratings' reaffirmation of Alpha Bank's BBB rating with a stable outlook underscores the bank's strong market position, improving profitability, and solid capital buffers. As Alpha Bank continues to implement its strategic initiatives and expand its service offerings, it is well-positioned to maintain a positive performance trajectory in the coming years.