Cyprus is set to have three systemic banks again after Alpha Bank Cyprus signed a final agreement on Tuesday to acquire most of AstroBank’s assets and liabilities. That followed the earlier dissolution of the Cooperative Bank and the closure of RCB Bank, which had left the island with only two systemic banks.
The acquisition, valued at 205 million euros, makes Alpha Bank Cyprus the third-largest bank in the country with about a 10% market share. The agreement covers nearly all of AstroBank’s assets and liabilities except for certain nonperforming loans totaling around €15 million, which will be handled separately.
Alpha’s parent company in Greece estimates the transaction will increase Alpha Holdings’ earnings per share (EPS) by roughly 5%, assuming full synergy realization. The deal is expected to have a limited impact on Alpha Holdings’ Common Equity Tier 1 (CET1) ratio, reducing it by about 40 basis points.
Following the acquisition, Alpha Bank Cyprus’ loan portfolio will grow to €1.9 billion, up 60%, while deposits are projected to grow to €5.8 billion, a 70% rise. These synergies are expected to double the bank’s profitability.Mute
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