ATHENS, Feb 28 (Reuters) - Alpha Bank, the fourth-largest bank in Greece by market value, raised its profit outlook on Friday following a robust net profit for 2024 attributed to increased fee income and steady net interest income.
In its recent announcement, Alpha Bank disclosed normalized net earnings of 861 million euros ($894.23 million) for last year, marking a 9.3% rise from 2023's figure of 787.4 million euros.
In line with other Greek financial institutions benefiting from enhanced net interest income and a robust recovery of the Greek economy, Alpha Bank revised its earnings projection to 0.42 euros per share by 2027.
Greek banks have regained stability and returned to profitability after being nationalized post the financial crisis in 2009, due to the country's debt predicament, necessitating multiple government capital injections.
Having secured European Central Bank approval last year to resume dividend distributions for the first time in 16 years, Greek banks have reduced their bad loan ratios, eliminated state ownership, and returned to the profit zone.
Alpha Bank's Chief Executive Vassilios Psaltis stated, "Aligned with our commitment to maximizing shareholder value, dividend accrual for the full year stands at 281 million euros, representing 43% of the reported profit... and allocating 75% towards a buy-back."
The bank reported that net interest income, reflecting the difference between lending and deposit rates, remained relatively stable year-on-year at 1.65 billion euros in 2024.
Additionally, net fees experienced a 12.2% annual increase to 420 million euros, while the bank reduced its non-performing exposure ratio to 3.8% of the total loan book from 4.6% in 2023.
($1 = 0.9628 euros)