The international rating agency Moody’s has upgraded the long-term deposit rating of Alpha Bank to Baa1 from Baa2.
In its announcement, the rating agency noted that the upgrade reflects the continued improvement in the bank’s solvency, a result of the reduction in risk in its assets and the gradually strengthening profitability.
The quality of Alpha Bank’s loan portfolio is improving, with NPE decreasing to 3.5% in June 2025, from 4.6% in the corresponding month of 2024. As Moody’s noted, Alpha Bank is catching up with other Greek banks.
At the same time, the profitability profile is improving (normalised earnings after tax increased by 5% year-on-year in the first half of 2025), the bank has a moderate cost base (the cost-to-income ratio is around 38%) and Moody’s forecasts a sustainable increase in profits in the future despite the interest rate reduction cycle.
The bank’s non-interest income is also expected to gradually increase, as a result of the commercial cooperation with UniCredit in the “asset management” and “bancassurance” activities.
