In This Article:
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alpha Services and Holdings SA (ALBKF) reported a strong first quarter profit of 239 million, translating to a 15.4% normalized return on tangible equity.
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The company maintained a solid capital buffer with a core equity tier one ratio of 16.3%, despite the impact of Basel 4 and increased dividend accruals.
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The acquisition of Aia Ventures and the strategic partnership with UniCredit are expected to significantly boost investment banking revenues and international presence.
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Alpha Services and Holdings SA (ALBKF) has a defensive net interest income profile, with expectations of maintaining guidance despite falling rates.
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The company is on track to meet its annual net credit expansion target, with strong disbursements in various sectors such as trade, manufacturing, and tourism.
Negative Points
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The Greek economy faces potential indirect effects from global trade tensions and protectionism, which could impact exports and economic growth.
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There is uncertainty regarding the impact of lower interest rates on profitability, with potential negative consequences for loan growth.
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Operating income was slightly down due to lower net interest income and seasonally lower fees.
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The company expects an uptick in staff costs and general administrative expenses as it continues to invest in its workforce and digital capabilities.
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There is a need to revisit macroeconomic parameters and risk models due to potential changes in unemployment and GDP, which could affect asset quality.
Q & A Highlights
Q: Could you clarify your Net Interest Income (NII) outlook for the second quarter? A: Vassilis Cosmas, CFO: We expect slightly higher NII in the second quarter compared to the first. While we anticipate softer rates, this is offset by our lower interest rate sensitivity and the benefits from a steeper yield curve.
Q: With the lower interest rate trajectory, how confident are you in achieving your NII growth target above 1.7 billion? A: Vassilis Cosmas, CFO: We remain firm on our guidance of at least 1.67 billion for 2025. Despite some volatility, our rate sensitivity is low, and we expect time deposit costs to decrease, supporting our NII growth.
Q: What are your plans for expanding product offerings, and what is the expected impact of the UniCredit partnership? A: Vasilo Chavez, CEO: We are focusing on enhancing our fee-generating business and integrating with UniCredit, particularly in payments. This partnership is expected to provide seamless experiences across multiple countries and enhance our capital markets presence.