Panayiotis Rougalas
Cyprus is set to have three systemic banks again after Alpha Bank Cyprus signed a final agreement to acquire most of AstroBank’s assets and liabilities. The deal was officially signed Tuesday, June 24, 2025, following the earlier dissolution of the Cooperative Bank and the closure of RCB Bank, which had left the island with only two systemic banks.
The acquisition, valued at €205 million, makes Alpha Bank Cyprus the third-largest bank in the country with about a 10% market share. The agreement covers nearly all of AstroBank’s assets and liabilities except for certain non-performing loans totaling around €15 million, which will be handled separately.
Alpha Bank’s parent company in Greece estimates the transaction will increase Alpha Holdings’ earnings per share (EPS) by roughly 5%, assuming full synergy realization. The deal is expected to have a limited impact on Alpha Holdings’ Common Equity Tier 1 (CET1) ratio, reducing it by about 40 basis points.
Following the acquisition, Alpha Bank Cyprus’ loan portfolio will grow to €1.9 billion, a 60% increase, while deposits are projected to rise to €5.8 billion, a 70% increase. These synergies are expected to double the bank’s profitability, generating €100 million in recurring annual net profits.
The transaction remains subject to customary conditions, including regulatory approvals, with a closing expected in the fourth quarter of 2025.
Alpha Bank pursues Altius Insurance acquisition
Alpha Bank is in talks to acquire Altius Insurance as part of its strategy to expand its presence in Cyprus and boost non-interest income for Alpha Bank Cyprus. Altius, which holds a 4.6% share of Cyprus’ insurance market, was originally created by Alpha Bank Cyprus and sold in 2015. The recently acquired AstroBank had an exclusive partnership with Altius, making this acquisition a likely next step.
Industry sources suggest a potential agreement could be reached after the summer, possibly in early autumn 2025. However, the deal remains in preliminary stages.
Alpha Bank expands investment banking presence with Axia Ventures acquisition
In addition to the AstroBank deal, Alpha Bank announced the acquisition of Axia Ventures, bringing total investments in Cyprus to €265 million. If the Altius acquisition proceeds, total investments could surpass €300 million.
The Axia acquisition aims to establish the leading investment banking firm across Greece and Cyprus by merging Axia with Alpha Finance Investment Services S.M.S.A., the investment services subsidiary of Alpha Holdings, and the bank’s existing Investment Banking unit.
The combined entity will offer a broad range of Investment Banking and Capital Markets (IBCM) services, targeting companies in Greece and abroad, institutional investors, and shipping firms. It will focus on supporting growth strategies, international expansion, and mergers and acquisitions.
The transaction is expected to boost Alpha Holdings’ investment banking revenues, increase EPS by approximately 1.4%, and deliver a return on invested capital above 20%. The impact on the Group’s CET1 ratio is expected to be limited, under 20 basis points, with no effect on future capital distribution plans.
The acquisition is expected to close in the third quarter of 2025.
