Forbes – A defining moment in the evolution of Alpha Bank Cyprus
Source: in-cyprus.com
“The acquisition of AstroBank will significantly expand our business, with projected increases of 60% in lending, 70% in deposits, and 65% in total assets. Beyond the numbers, it lays the groundwork for a stronger, more agile, and customer-centric bank, one that is better equipped to support households, SMEs, and corporates with greater depth and flexibility,” Miltos Michaelas, CEO of Alpha Bank Cyprus tells Forbes.
What are the main objectives of Alpha Bank following its acquisition of AstroBank, and what impact do you expect this deal to have on the bank’s growth strategy?
The acquisition of AstroBank marks a defining moment in the evolution of Alpha Bank Cyprus, one that reflects our long-term commitment to the Cypriot economy and significantly enhances our strategic positioning.
Once completed in Q4 2025, Alpha Bank Cyprus is expected to become the third-largest financial institution in the country, with a market share of approximately 10%.
This transaction will significantly expand our business, with projected increases of 60% in lending, 70% in deposits, and 65% in total assets. Beyond the numbers, it lays the groundwork for a stronger, more agile, and customer-centric bank, one that is better equipped to support households, SMEs, and corporates with greater depth and flexibility.
At Group level, the integration is expected to contribute over €100 million in recurring annual net profit, while maintaining capital discipline and dividend policy, as the transaction is funded entirely through surplus capital. Importantly, selected NPEs of AstroBank are excluded from the deal, ensuring a neutral impact on the Group’s asset quality.
We also expect to onboard approximately 50,000 new customers, unlocking new growth opportunities through a broader and more competitive suite of services. Combined with the successful completion of our transformation programme, this acquisition reinforces our ambition to be a leading force in shaping the future of banking in Cyprus.
Can we expect more acquisitions from Alpha Bank in the near future? If so, what types of institutions are you targeting?
Our growth strategy is driven by precision, not volume. The acquisition of AstroBank aligns with Alpha Bank Group’s disciplined approach to strategic expansion, focusing on transactions that create long-term value, meet rigorous financial criteria, and complement our core capabilities.
In Cyprus and other key markets, we continue to assess opportunities that enhance our offering and strengthen customer relationships. This includes acquisitions in specialised segments where innovation and sector-specific expertise can amplify our impact.
A prime example is the Group’s recent acquisition of Flexfin, which is to be merged with ABC Factors to create Greece’s most advanced factoring platform. It reflects the type of value-adding transaction the Group pursues: digitally enabled, strategically aligned, and customer-focused.
Ultimately, our goal is to offer innovative banking solutions that empower businesses, especially in Cyprus, to grow, compete internationally, and navigate a complex economic environment with confidence. Any future acquisitions will be guided by this same ambition: to create synergies, strengthen our footprint in key areas, and deliver meaningful results for all stakeholders.
What are the current challenges facing the banking sector, including Alpha Bank specifically, and what strategies are in place to address these challenges?
The banking sector is operating in an environment marked by heightened uncertainty and accelerating change. Macroeconomic volatility, inflationary pressures, regulatory complexity, and digital disruption are testing the resilience of traditional models, while customer expectations continue to evolve rapidly.
For Alpha Bank, these challenges are a catalyst for transformation. We are investing in digital capabilities, optimising internal processes, and upgrading our risk frameworks to ensure operational efficiency, compliance, and long-term resilience.
We are also focused on strengthening our balance sheet, maintaining capital discipline, and ensuring prudent credit management amid changing interest rate dynamics.
In Cyprus, our strategy is grounded in adaptability and proximity. We are committed to being a reliable partner for our customers, offering tailored solutions that respond to their needs today while positioning them for success tomorrow.
We believe the banks that will lead in this new era are those that combine financial strength with innovation, agility, and purpose. And that is precisely the direction we are heading.
Recently, Alpha Bank presented its strategy for the future. What do you consider to be the most important elements of this strategy?
At the heart of our strategy lies a clear ambition: to become the bank of choice for households, SMEs, and large companies in Cyprus. Our recent decision to further strengthen our presence on the island reflects this commitment. It signals a renewed focus on sectors and customer segments that are vital to the country’s economic fabric.
Our approach combines strategic investments with targeted financing initiatives that prioritise innovation, entrepreneurship, and outward-looking growth. We are here to support our customer’s ambitions and make meaningful contributions to the sustainable development of the local economy.
By facilitating access to capital, embracing digital transformation, and fostering long-term partnerships with our customers, we aim to play an active role in attracting investment and driving progress in Cyprus.
This is a long-term commitment anchored in our belief that banking should be a force for growth, opportunity, and resilience.
What message would you like to convey to entrepreneurs and other customers of your bank? How have you enhanced your services to meet their evolving needs?
To the entrepreneurs, business leaders, and customers we serve, my message is clear: Alpha Bank Cyprus is here to support your ambitions with substance, reliability, and vision. In a world of constant change, we understand that businesses and individuals need a partner that listens, understands their challenges, and responds with solutions tailored to their unique goals.
Over the past few years, we have made significant progress in enhancing our offering-investing in technology, redesigning our customer journeys, and expanding access to specialised advisory services. Whether it’s a growing SME looking for working capital, a corporate group exploring new markets, or a household planning for the future, we aim to provide not just financing, but guidance and partnership. In Cyprus, our renewed commitment is reflected in our expanded footprint, improved digital channels, and dedicated teams that work closely with customers across sectors. We are also introducing more flexible and innovative banking solutions designed to help our customers navigate complexity, embrace digital transformation, and pursue sustainable growth.
We don’t see banking as a transactional relationship, it’s about enabling success, unlocking opportunity, and walking alongside our customers as they shape the future of Cyprus and beyond.
The original article: belongs to in-cyprus.com .
