Financials

Report by Fighting Financials

Management has been heavily focused on improving the bank’s operations, while also being highly shareholder-friendly, with a commitment to distribute >€9bn by way of dividends and buybacks in FY25e. UCG also has material optionality in terms of M&A and in the context of a Europe that is insecure about diminishing US defensive support and stagnant economic growth, Fighting Financials thinks European regulators will be more open to supporting pan-European corporate “champions” across sectors, including financial services. Ultimately, they see the bank as one of the higher quality, more defensive names, able to benefit from certain structural and geopolitical dynamics coming into play across the continent.

Financials

Report by ResearchGreece

The Greek bank announces an agreement with UniCredit a) to merge their Romanian operations, with ALPHA keeping a 10% stake in the combined entity while pocketing €300m; b) the two sides entering a commercial partnership in asset management and unit linked products, with UCG buying 51% in AlphaLife Insurance; and c) with the Italian bank submitting a bid to buy HFSF’s 9% stake in ALPHA. ResearchGreece considers this to be a win:win for both sides and with the overhang lifted, they upgrade ALPHA to Buy with a TP of €1.84; sees limited downside to current trading of 0.47x TBV.