Alpha Bank sees profit growth of more than 50% by 2030 (updated)
UPDATE 2-Alpha Bank sees profit growth of more than 50% by 2030 Adds CEO comments in paragraphs 5 and 6, additional details, background
By Lefteris Papadimas
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.
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.
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.
"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.
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."
The lender, in which Italy's UniCredit CRDI.MI 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.
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.
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%.
($1 = 0.8880 euros)
(Reporting by Lefteirs Papadimas, Editing by Louise Heavens, Tomasz Janowski and Joe Bavier)
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