Alpha Bank has announced a binding agreement to acquire the total assets and liabilities of AstroBank Public Company Ltd for €205 million, strengthening its presence in the Cypriot market. The transaction will be executed through Alpha Bank Cyprus Ltd, a subsidiary of Alpha Holdings, marking a significant step in the Group's expansion in Cyprus.
The acquisition is expected to play a key role in enhancing Alpha Bank Group’s profitability, with the integrated operations projected to contribute over €100 million annually in recurring net profits.
The transaction will be financed through the Group’s excess capital and will not impact its dividend policy.
Additionally, the deal is anticipated to drive a 5% increase in Earnings Per Share (EPS), a 60-basis-point improvement in Return on Tangible Equity (RoTE), and a 40% return on regulatory capital.
Upon completion of the acquisition, Alpha Bank Cyprus will hold a market share of approximately 10%, strengthening its position as a modern and robust banking choice for households, small and medium-sized enterprises, and large corporate clients.
The transaction aligns with Alpha Bank’s growth strategy, which focuses on targeted investments with strict financial criteria and a focus on high-potential markets. Alongside this acquisition, the recent purchase of Flexfin and its merger with ABC Factors further reinforces the Group’s presence in the factoring sector.
The deal is expected to be finalized in the fourth quarter of 2025, subject to regulatory approvals. With the addition of AstroBank, Alpha Bank will increase its exposure to the Cypriot market from 5% to 8% of its total assets, significantly expanding its customer base by approximately 50,000 new clients.
In terms of financial impact, the transaction is projected to boost net earnings by €50 million annually while having a neutral effect on the Group’s Non-Performing Exposures (NPE) ratio, as certain non-performing loans from AstroBank are excluded from the acquisition. The Group’s CET1 ratio is expected to see a marginal decline of 40 basis points.
