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Greek banks are showing no signs of slowing down when it comes to investing in Cyprus. The latest move sees Alpha Bank Cyprus taking over Astrobank, following Eurobank’s ongoing acquisition of Hellenic Bank, which is expected to be fully completed soon, merging with Eurobank Cyprus.
According to an article by Kathimerini's Panayiotis Rougalas, the deal with Astrobank was rumored to be in the works since February 20, but it was this week that the price was settled at €205 million. This brings the total investments by Greek banks into the Cypriot banking sector over the past three to four years to around €1.5 billion.
To put things into perspective, Eurobank has already committed over €1.3 billion to take full control of Hellenic Bank. Now, Alpha Bank’s €205 million deal with Astrobank adds to the growing list of Greek investments in Cyprus.
Will There Be More?
The big question now is whether Greek banks will continue to invest in Cyprus. There have been rumors that the National Bank of Greece (NBG) might also be eyeing potential investment opportunities in the country to strengthen its local branch and generate extra income for the parent company. With Cyprus’ banking sector still offering growth potential, it wouldn't be a shock if NBG made its move soon.
There’s also talk that Attica Bank could get involved in the future. The recent appointment of Konstantinos Herodotou, the former Governor of the Central Bank of Cyprus, as the new Chairman of Attica Bank, could pave the way for more investments from Greece into Cyprus. His deep knowledge of the local banking sector could make a big impact on the future of Greek-Cypriot banking ties.
Strategic Growth and Promising Returns
Greek banks are not just expanding in Cyprus for the sake of it – they are aiming for long-term growth. The merger between Alpha Bank Cyprus and Astrobank is expected to bring in over €100 million in recurring net profits for the Alpha Bank Group.
Eurobank’s Cyprus operations are also expected to contribute significantly to the bank’s profits. In 2024, Eurobank expects its Cyprus branch to add €210 million to its adjusted net profit. Hellenic Bank, once fully integrated into Eurobank, is set to contribute another €275 million.
It’s clear that Greek banks see Cyprus as a key market, and with these ongoing investments, it looks like they’ll continue to strengthen their position on the island for years to come.
*This article was translated and summarized from its Greek original. Read the full article in Greek at the link above.
