The following is a summary of the Alpha Services and Holdings S.A. (ALBKY) Q3 2024 Earnings Call Transcript:
Financial Performance:
Alpha Services and Holdings reported Q3 2024 recurring earnings of €666 million with a 14.4% return on tangible equity and €0.26 earnings per share.
Net interest income remained strong, supported by solid management of operating leverage and an improvement in provisions.
Capital generation added 131 basis points, reaching 16.5% in equity tier 1 ratio, raising to 17.1% post-pending transactions. Dividends accrued from 2024 profits increased from 20% in 2023 to over 35%.Updated guidance predicts further improvements in net interest income, lower provisioning expenses, and stronger risk-weighted asset optimization, leading to higher recurring earnings and profitability.
Business Progress:
The company has seen strong loan book growth, particularly in corporate loans, contributing to net credit expansion appreciated at €2 billion for 2024.
Fee income grew robustly, with significant contributions from asset management and expected growth in bancassurance and payments sectors.
Alpha Services strengthened its partnership with UniCredit, enhancing offerings in private banking, asset management, and corporate banking operations.
Opportunities:
The partnership with UniCredit allows tapping into the pan-European banking network, creating opportunities for innovative banking services and products in the Greek market.
Risks:
Mentioned risks pertain mostly to interest rate fluctuations affecting net interest income, albeit hedged substantially.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
