Our Purpose and Strategy | Vassilis Psaltis, CEO, at Alpha Bank Investor Day 2023

On 7 June 2023, Alpha Services and Holdings hosted a virtual Investor Day to present and discuss with the investor community its new Strategy for 2023-2025. Alpha Bank’s Management team outlined its growth plan and revised targets that will shape the Group’s strategic direction towards a future of creating value and empowering growth for all.
Addressing investors, Vassilis Psaltis, CEO, revealed the Group’s plan for superior value creation in the next 3 years, which is driven by its renewed Purpose to "Enable progress in life and business for a better tomorrow”, and it is structured around the following strategic priorities:
Retail: Boost digital and focus on high-value segments. Increase core revenues annually by 7%, improve efficiency by reducing the cost-to-income ratio by 16%, increase the Return on CET1 capital by 13%.
Wealth & Treasury: Revamp service model to increase penetration in Wealth Management. By 2025, the Bank is targeting a Euro 40 million increase in asset management revenues, a Euro 4.8 billion increase in asset management balances, and a 26% Return on CET1 capital.
Wholesale: Further empower Customers in their growth and consolidate the Bank’s leadership in the sector. The goals are a cumulative net credit expansion of Euro 5 billion and a 13% increase in total revenues, while maintaining high-level of profitability.
International: Improve return on deployed capital by scaling the Bank's business in Romania. The International Network is targeting a Euro 1.6 billion net credit expansion, a 52% increase in total revenues, and a 9 p.p. increase in Return on CET1 capital.
ESG: Leverage ESG and sustainable finance as a value creation lever. The main SDG-aligned targets are Euro 3 billion in total sustainable disbursements from 2023 to 2025, setting net-zero targets by the end of 2023, maintaining the Bank's leading 40% ratio of women in managerial positions, achieving a 20% increase in youth hiring by 2025, and limiting the financing of certain
activities that can affect health and well-being.
In terms of financial targets, Alpha Bank aims to deliver a Return on Tangible Equity above 12% by 2025, with EPS growth of more than 20% per year for the period 2022-2025. Euro 1.4 billion of internal capital generation will be available for distribution to Shareholders, allowing the Bank to resume dividend payments starting from 2023 profits.
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