Alpha Bank, Greece’s fourth-largest lender by market value, has announced the acquisition of Cypriot financial institution AstroBank for €205 million. The deal, revealed on Thursday (Feb. 27), is set to reinforce Alpha Bank’s presence in the Cypriot banking sector.
The acquisition will be executed through Alpha Bank Cyprus, the Greek lender’s subsidiary on the island, and is expected to be finalized in the last quarter of 2025. Alpha Bank confirmed that the transaction will be financed through the group’s capital, ensuring it will not impact its dividend policy.
According to Alpha Bank, the deal is projected to yield a 5% increase in earnings per share, a 60-basis point improvement in return on tangible equity, and a 40% return on regulatory capital.
Strengthening Market Position
AstroBank operates 15 branches and manages deposits worth €2.2 billion alongside €800 million in loans. Upon completion of the acquisition, Alpha Bank Cyprus will command an estimated 10% market share, positioning itself as a competitive banking option for households, small and medium-sized enterprises, and large corporations.
Post-merger, the new Alpha Bank entity will operate 26 branches with a workforce of just under 800 employees. This follows AstroBank’s decision in 2023 to streamline its operations, reducing its network and workforce to 400 employees. The acquisition also marks the exit of Lebanon’s Sehnaoui family from the Cypriot banking landscape, ending their presence that began in 2017 when they took over Piraeus Bank’s local operations.
Strategic Growth and Financial Performance
The acquisition aligns with Alpha Bank’s broader growth strategy, which emphasizes targeted investments in high-potential markets. The lender recently raised its profit outlook after reporting robust financial results for 2024.
On Friday (Feb. 28), Alpha Bank announced a net profit of €861 million ($894.23 million) for 2024, a 9.3% increase from €787.4 million in 2023. The bank also upgraded its earnings projections, forecasting €0.42 per share by 2027.
“In line with our commitment to maximizing shareholder value, dividend accrual for the full year amounts to €281 million, representing 43% of reported profits, with 75% allocated to a share buyback program,” said Alpha Bank CEO Vassilios Psaltis.
The bank’s net interest income remained stable at €1.65 billion for 2024, while fee income rose by 12.2% year-on-year to €420 million. Additionally, Alpha Bank successfully reduced its non-performing exposure ratio to 3.8% of its total loan book, down from 4.6% in 2023
AstroBank’s M&A History
AstroBank has previously attempted to expand its footprint in Cyprus through mergers and acquisitions but faced setbacks. It failed to acquire CDB Bank in late 2023 and National Bank of Greece (Cyprus) in 2019. However, the bank had earlier successfully taken over the smaller Universal Savings Bank (USB).
The latest acquisition by Alpha Bank signals a new chapter in Cypriot banking, consolidating market players and reinforcing Alpha Bank’s strategic position in the region.
Alpha Bank at a Glance
Year Founded: 1879 Headquarters: Athens, Greece Employees: ~8,800 (as of 2024) Revenue: €2.4 billion (2023) Total Assets: ~€80 billion (2023) Market Position: One of Greece’s largest financial institutions, with a strong regional presence in Southeast Europe
AstroBank
Year Founded: 2008, Headquarters: Nicosia, Cyprus, Employees: ~400 (before acquisition), Revenue: Estimated ~€50 million (2023), Total Assets: ~€3 billion (2023), Market Position: A mid-sized Cypriot bank, known for its focus on retail and corporate banking, with a history of acquisitions in the local market.
