Alpha Bank CEO Vassilis Psaltis outlined the bank’s latest initiatives aimed at strengthening its international presence, with a focus on Private Banking, obtaining a banking license in Luxembourg, wealth management, and capital markets. He also addressed the issue of non-performing loans (NPLs), which continue to hamper growth in retail banking. His remarks were made on the sidelines at an event marking the launch of the bank’s new corporate identity.
Alpha Bank is expected to secure its banking license in Luxembourg in the first quarter of 2027, while its syndicated loan portfolio in the country currently stands at €3.5 billion, according to Deputy CEO Lazaros Papagaryfallou. Additionally, through its partnership with UniCredit, the bank has distributed €2 billion worth of mutual funds to its customers.
Presenting the bank’s new corporate identity, Vassilis Psaltis emphasized that “the transformation within the bank has already taken place; today, it finds its voice.” He highlighted the extensive transformation Alpha Bank has undergone over the past six years, as well as its partnership with UniCredit, which has given Alpha Bank’s customers access to 13 markets where the Italian banking group operates. According to Psaltis, this partnership has made Alpha Bank “the most internationally oriented bank in Greece.”
The bank’s new logo retains its distinctive emblem inspired by the ancient silver stater of Aegina, alongside the slogan “Together.” As the CEO noted, “Alpha Bank has strengthened its financial position and built an ecosystem of capabilities with an international reach, aiming to offer more choices to individuals and businesses.”
Banking License in Luxembourg
Speaking on the sidelines of the event, Deputy CEO Lazaros Papagaryfallou said that Alpha Bank has submitted an application to the Banque centrale du Luxembourg for a banking license, with the aim of expanding its Private Banking operations.
Alpha Bank already maintains an office in Luxembourg, through which it operates in the international syndicated lending market. According to the Deputy CEO, the bank’s syndicated loan portfolio in Luxembourg currently stands at €3.5 billion.
The strategic partnership with UniCredit is also delivering significant results in investment products. As Deputy CEO Lazaros Papagaryfallou noted, approximately €2 billion worth of UniCredit mutual funds have been distributed to Greek investors since September 2024. This performance highlights both the strength of the partnership between the two banking groups and the growing importance of investment products to Alpha Bank’s business.
The expansion of Wealth Management, alongside the planned move into Luxembourg, is a key pillar of Alpha Bank Group’s strategy to diversify its revenue streams and strengthen its international presence.
Meanwhile, Giorgos Linatsas said that 2027 is expected to bring significant activity on the Athens Stock Exchange, now part of Euronext, with new listings of major companies and shipping firms.
Non-Performing Loans Continue to Hold Back Retail Banking
Non-performing loans (NPLs) continue to constrain retail banking growth, Alpha Bank CEO Vassilis Psaltis said yesterday, stressing that refinancing is the only solution to bring affected borrowers back into the banking system.
The legacy of bad loans from Greece’s financial crisis has left a significant proportion of the population excluded from access to bank financing.
Although Greek banks have cleaned up their balance sheets, nearly €80 billion in distressed loans have been transferred to investment funds and are now managed by loan servicers, while the borrowers concerned remain largely excluded from the banking system.
At the same time, the lasting effects of the financial crisis, coupled with the perception that obtaining a bank loan is difficult, continue to discourage even younger people who might otherwise consider borrowing.
Psaltis emphasized that refinancing loans currently held by investment funds is the key to enabling more borrowers to regain access to bank financing.
However, the Single Supervisory Mechanism (SSM) does not currently permit the refinancing of distressed loans under the existing regulatory framework.
As a result, the clean-up of banks’ balance sheets has not been accompanied by a corresponding reintegration of all affected borrowers into the traditional banking system.
According to Psaltis, the challenge is to establish the conditions that would allow individuals who are now financially capable of servicing new debt obligations to regain access to bank lending, rather than remaining excluded because of financial difficulties in the past.
As he stated in his speech: “The crisis left a deep mark on people’s lives. Today, our responsibility is clear: to help restore that trust.”
