Alpha Services and Holdings S.A., the 100% parent company of Alpha Bank S.A., has announced a binding agreement on the key financial and legal terms for the acquisition of essentially all assets, liabilities, and employees of AstroBank Public Company Ltd. The transaction will be carried out through Alpha Bank Cyprus, a wholly owned subsidiary of Alpha Holdings.

According to a press release, the acquisition “aligns with the Group’s strategic objective of strengthening its presence and financial footprint in key target markets.” Cyprus, in particular, is highlighted as an attractive market due to strong economic prospects and a projected real GDP growth rate outpacing that of the broader Eurozone.

Following the completion of the Transaction, Alpha Bank Cyprus is expected to:

• Increase its loan portfolio by more than 60%
• Boost its deposits by approximately 70%
• Grow its total assets by about 65%
• Double its profitability, exceeding EUR 100 million in recurring net earnings per year
• Limited Impact on CET1: Approximately 40 basis points for the Group.
• NPEs: A portion of AstroBank’s Non-Performing Exposures (NPEs) is excluded, resulting in a neutral effect on the Group’s NPE ratio.
• Enhanced Profitability Metrics: Earnings Per Share (EPS) are expected to rise by around 5%, while Return on Tangible Equity (ROTE) will increase by about 60 basis points.
• Purchase Price: Under the transaction terms, the consideration payable to AstroBank upon completion is estimated at a minimum of EUR 205 million, subject to the finalization of contractual terms.
• Timeline: The transaction is projected to conclude in the fourth quarter of 2025, pending completion of contractual documentation and receipt of all necessary regulatory approvals and licenses.

Sources close to the transaction confirm that the deal will be financed by Alpha Bank’s “existing surplus capital” and will not affect the Group’s dividend policy. These sources also highlight that the combined banking operations in Cyprus, once synergies are fully realized, are expected to contribute over EUR 100 million in recurring net earnings annually to the Alpha Bank Group.

With this move, Alpha Bank Cyprus anticipates:

• A market share of roughly 10% in total assets, positioning it as the third-largest bank in the country

• Around 50,000 new customers, creating significant revenue opportunities through a competitive suite of products and services

• A limited capital impact of about 40 basis points on the Group’s CET1 ratio, ensuring the Group’s capital base remains solid

According to the same sources, the acquisition could add approximately EUR 50 million in net profit each year, boosting EPS by ~5% and ROTE by ~60 basis points. They also note that the Return on Regulatory Capital is expected to reach around 40%.

The Transaction forms part of the Group’s broader strategy of pursuing “targeted developmental moves” in its core markets. It follows other recent strategic initiatives, such as the acquisition of Flexfin and its merger with ABC Factors, creating what the Group calls “the most modern factoring platform in Greece.”

By integrating AstroBank, Alpha Bank aims to:

• Provide a “contemporary alternative” for households, SMEs, and large corporate clients in Cyprus

• Combine two complementary banking operations to streamline products and expertise, especially in the SME sector where AstroBank has a diversified loan portfolio

• Strengthen the Group’s footprint in Southeastern Europe through enhanced products, services, and innovative digital solutions.