Greek banks are increasingly expanding their presence in Cyprus, viewing the island as both a profitable market and a strategic base for further expansion toward the Middle East. At the moment, Cyprus offers a favorable financial environment that enables banking institutions to maximize revenues, increase profitability, and establish a presence in key markets such as the UAE, Egypt, Lebanon, Israel, and Jordan.

As Brief reports, beyond attracting high-net-worth individuals who have strengthened liquidity in Cypriot banks, Greek banking executives see new lending opportunities, particularly in retail banking, as household consumption increased by 4% in 2024. Meanwhile, Cyprus’ economy is projected to grow by 2.5% in 2025, positioning it among the best-performing economies in the Eurozone.

Due to these favorable conditions, Greek banks already operating in Cyprus have chosen to strengthen their local presence while simultaneously using Cyprus as a launchpad for expansion into an increasingly attractive region. This expansion is fueled by the growing presence of multinational companies, especially in the energy sector, as Cyprus and its neighbors plan to further develop their hydrocarbon resources.

Eurobank, which operates in Cyprus through Eurobank Cyprus Ltd, has reaffirmed its commitment to the market with its acquisition of Hellenic Bank. This move strengthens Eurobank’s position in Cyprus and aligns with its broader strategy to expand from the Middle East to India, the home country of its major shareholder.

Additionally, Eurobank has announced plans to establish representative offices in Dubai, Abu Dhabi, Saudi Arabia, and Egypt as part of its strategy to increase international profits to 50% of total earnings.

Alpha Bank, operating in Cyprus through Alpha Bank Cyprus Ltd, is active in both retail and corporate banking and has a strong presence in the insurance and financial services sectors through its subsidiaries.

Its recent acquisition of AstroBank aligns with its strategic partnership with UniCredit, which invested in Alpha Bank in 2023. UniCredit, a pan-European commercial bank, provides services in Italy, Germany, and Central and Eastern Europe, operating 13 banks across 12 countries. With over 15 million customers worldwide, UniCredit focuses on corporate solutions, retail banking, and payment services.

The National Bank of Greece (NBG) operates in Cyprus through National Bank of Greece (Cyprus) Ltd, yet it has not pursued a strategic merger or partnership with a Cypriot bank.

According to Marilena Sevastidou, Head of Corporate Banking, the bank's growth and operational strategy is based on key pillars of the domestic market and international transactions.

Speaking at a conference in Athens last month, Sevastidou emphasized that NBG has been present in Cyprus since 1910 and aims to further strengthen its presence and enhance service quality. The bank is focusing on the development of international banking solutions tailored to its clients' needs.

Sevastidou also highlighted Cyprus’ investment opportunities in solar and wind energy projects, which support the government’s goal of meeting 35% of its energy needs from renewables by 2030.