Overstone International Value Fund on Alpha Bank S.A.
Thesis
Alpha Bank is benefiting from the marked improvement in Greek public finances and the domestic economy. Its loan book is growing at double-digit rates, non-performing exposure is below 4%, and return on tangible equity is 12%. Strong capital enables dividends and share buybacks, while the shares at 1.3 times tangible book still trade below most European banks. Greece's planned return to MSCI developed-market indices in May 2027 is another potential source of investor interest.
“The loan book is growing at double-digit rates, non-performing exposure is below 4%, and return on tangible equity is at 12.”
Key risks
- Greece still carries elevated public debt.
- A weaker Greek economy could slow loan growth.
- The rerating to 1.3 times book has already reduced the valuation discount.