Alpha Services and Holdings S.A., the parent company of Alpha Bank S.A., has announced on Thursday a binding agreement on the key financial and legal terms for the acquisition of the banking operations, assets, liabilities, and workforce of AstroBank Public Company Ltd. The deal is valued at no less than €205 million.
The transaction, which will be executed through Alpha Bank Cyprus Ltd, is expected to be finalized in the fourth quarter of 2025, pending finalization of contractual agreements and regulatory approvals.
The acquisition aligns with Alpha Bank Group’s strategic goal of strengthening its presence and financial footprint in key markets of interest.
“With its strong economic outlook and projected real GDP growth surpassing that of the broader Eurozone, Cyprus presents an attractive market for expanding market share. This investment reaffirms Alpha Bank’s long-term commitment to the Cypriot market,” the company stated.
As a result of the transaction, Alpha Bank Cyprus is poised for significant expansion, increasing its market share to approximately 10% in terms of total assets, thereby solidifying its position as the third-largest bank in Cyprus.
Specifically, Alpha Bank Cyprus is expected to grow its loan portfolio by more than 60%, deposits by approximately 70%, and total assets by around 65%. Factoring in the synergies from the acquisition, the bank’s recurring net profit is projected to exceed €100 million annually, effectively doubling its profitability.
The transaction is anticipated to have a limited impact on the Group’s Common Equity Tier 1 (CET1) ratio, with an estimated effect of around 40 basis points. Under the terms of the deal, certain Non-Performing Exposures (NPEs) of AstroBank will be excluded, ensuring a neutral impact on the Group’s NPE ratio.
Furthermore, the deal is expected to boost Earnings Per Share (EPS) by approximately 5% and enhance Return on Tangible Equity (ROTE) by around 60 basis points, considering the expected synergies.