Scope reaffirms Alpha Bank's BBB rating with a stable outlook

Scope Ratings has reaffirmed Alpha Bank’s BBB issuer rating with a stable outlook, citing the bank’s strong market position, improving profitability and robust capital buffers.

In its latest update, the details of which shared by Greek business outlet Newmoney, the rating agency said it expects Alpha Bank to maintain a strong performance trajectory through 2028, while also further strengthening its credit profile.

According to the agency, the assessment is supported by Alpha Bank’s strong position in the market, improved profitability and comfortable capital reserves.

Scope also highlighted the strategic importance of the bank’s recent acquisitions of Alpha Trust, Flexfin, AXIA and AstroBank, saying these transactions are expected to strengthen Alpha Bank’s presence in wealth management, investment banking and the Cyprus market.

The agency believes that the acquisitions will support the bank’s longer-term growth strategy and enhance its competitive position across multiple business segments.

Scope forecasts that the bank’s profitability will remain resilient over the coming years, with its return on risk-weighted assets (RoRWA) expected to remain close to 3 per cent through 2028.

At the same time, the agency considers management’s target of reducing the non-performing exposures (NPE) ratio below 3 per cent by the end of 2027 to be achievable.

Although the bank’s Common Equity Tier 1 (CET1) ratio declined to 15.0 per cent in the first quarter of 2026, Scope said this reflected the impact of acquisitions, credit expansion and distributions to shareholders.

Despite the reduction in the CET1 ratio, the agency pointed out that Alpha Bank continues to maintain a capital buffer of approximately 500 basis points above supervisory requirements.

Scope also highlighted the strength of the bank’s funding profile. According to the agency, funding remains primarily based on customer deposits, which account for more than 80 per cent of total funding sources.

In addition, the bank has gradually expanded its access to capital markets in order to meet its minimum requirement for own funds and eligible liabilities (MREL) obligations.

The rating reaffirmation is seen as an endorsement of management’s strategy and is expected to strengthen the bank’s standing among investors and market participants.

The decision also comes ahead of Alpha Bank’s forthcoming Investor Day, providing additional support for the bank’s market image as it outlines its future plans and priorities.

In terms of the bank’s operations in Cyprus, Alpha Bank launched its Institutional Wealth & Private Agency last week.

This specialised unit is designed to provide comprehensive services for clients with complex liquidity and capital management needs.

Unveiled at a recent Nicosia event, the initiative integrates the bank’s local market knowledge with the broader expertise of the Alpha Bank Group and Alpha Asset Management.

The new unit functions as an integrated service platform, offering liquidity management, deposit and investment solutions, execution, and custody services.

Furthermore, it provides advisory support, including market analysis and portfolio construction, while also delivering 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 unit as a strategic investment in expertise, aimed at fostering partnerships built on trust and targeted solutions.

By combining the bank’s local presence with the professional resources of Alpha Asset Management, the institution aims to deliver structured, transparent solutions for pension funds, organisations, and corporate clients.