Alpha Bank has reached a binding agreement to acquire the total assets and liabilities of AstroBank Public Company Ltd for approximately €205 million, further solidifying its presence in the Cypriot market. The acquisition will be executed through Alpha Bank Cyprus Ltd, a wholly owned subsidiary of Alpha Holdings.

This strategic move aligns with Alpha Bank Group’s goal of expanding its financial footprint in key markets of interest. With Cyprus' strong economic outlook and an anticipated real GDP growth exceeding that of the broader Eurozone, Alpha Bank sees the Cypriot market as a valuable opportunity for growth. This investment underscores the Group’s long-term commitment to the region.

Following the acquisition, Alpha Bank Cyprus will significantly expand its market position, increasing its total asset base by approximately 65%, its loan portfolio by over 60%, and its deposits by nearly 70%. The bank's market share is expected to reach around 10%, making it the third-largest bank in Cyprus.

The transaction is projected to generate substantial financial benefits for the Alpha Bank Group, contributing over €100 million annually in recurring net profits. Additionally, it is expected to result in 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.

From a risk management perspective, the deal structure excludes certain Non-Performing Exposures (NPEs) of AstroBank, ensuring a neutral impact on the Group’s overall NPE ratio. The transaction is also expected to have a limited impact on the Group's Common Equity Tier 1 (CET1) capital ratio, reducing it by approximately 40 basis points.

Unlike a traditional share acquisition, Alpha Bank is purchasing AstroBank's banking operations and balance sheet rather than its share capital. This structure simplifies regulatory approvals, as the European Central Bank (ECB) will not be directly involved in the oversight process. However, the deal does include some of AstroBank's NPEs, while other non-performing loan portfolios will remain under AstroBank's management as it transitions away from banking activities.

Regarding personnel, Alpha Bank is not expected to absorb the entire AstroBank workforce. A voluntary exit scheme will be introduced before regulatory approval, with severance packages potentially reaching up to €230,000 depending on pending legislative changes.

The agreement was finalized following the approval of AstroBank's Board of Directors, which considered Alpha Bank's offer highly attractive. Maurice Sehnaoui, the lead investor in AstroBank, gave the final green light for the deal.

With the deal now disclosed to regulatory authorities, Alpha Bank will conduct a thorough audit of AstroBank's balance sheet and begin integration processes. The acquisition is expected to be fully completed by the fourth quarter of 2025, with operational absorption targeted by October of that year. Until then, AstroBank will continue its usual banking operations until all approvals are secured and regulatory requirements are met.

By executing this acquisition, Alpha Bank reaffirms its long-term vision and growth strategy in Cyprus, leveraging synergies to drive profitability and operational efficiency in one of its key markets.