Alpha Bank Cyprus bets on green finance and innovation after merger

Alpha Bank Cyprus on Wednesday said that 2025 marked a milestone year that reshaped its position in the local market.

This follows the completion of the transfer of most banking activities of the former AstroBank after securing all supervisory approvals, a move aimed at strengthening its scale and ability to support the Cypriot economy.

The bank described the transaction as a “strategic joining of forces that significantly enhances its market presence and creates a new growth dynamic for its operations in Cyprus”.

As a result of the acquisition, Alpha Bank Cyprus has become the country’s third-largest bank, with total assets exceeding €6.6 billion, a loan portfolio of more than €2 billion and deposits above €5.6 billion.

The expanded scale is expected to support increased investment in technology, innovation and human capital, while reinforcing stability, efficiency and the overall customer experience.

The bank said that it is “building an organisation with meaningful size, a solid capital base and a clear strategy, capable of consistently supporting sustainable economic growth and delivering high-quality services to both individuals and businesses”.

A key priority, the bank said, is the “full utilisation of the combined expertise and experience of Alpha Bank and the former AstroBank teams”.

This will involve “a strong focus on corporate and business banking, as well as private and digital banking, an area that continues to evolve rapidly and requires continuous investment in innovation”.

At the same time, Alpha Bank Cyprus stated that it is “stepping up its focus on sustainable finance and green transition solutions, linking the future of banking with responsibility towards society and the environment”.

“Customer service excellence remains central to its strategy, with the bank aiming to deliver products and services aligned with real market needs, including financing for small and medium-sized enterprises, green investment solutions, housing and consumer products on favourable terms, and specialised services for emerging sectors such as technology and energy,” Alpha Bank Cyprus said.

The bank also said that the “digital transformation is at the core of its strategy“, with investments in artificial intelligence, data analytics and automation “designed to simplify processes, reduce servicing costs and create added value for customers”.

“Through the adoption of modern technologies, the bank aims to enhance transaction security, improve response times and offer greater convenience and transparency in the management of banking affairs,” the bank added.

Operational efficiency was described as “a strategic foundation”, supported by continuous improvements in internal processes, stronger risk management and “the promotion of a culture of accountability to safeguard long-term sustainability“.

Moreover, Alpha Bank Cyprus said that “customer needs guide every initiative, with the design of integrated customer journeys that combine innovation, security and ease of use to make banking as simple and immediate as possible”.

The bank also stated that International Banking Services and the Wealth and Institutional Banking division are playing a growing role in the expansion of operations.

These aim to “support entrepreneurs establishing companies in Cyprus, businesses financing trade and operational flows, and investors managing cross-border transactions”.

“The Wealth and Institutional Banking segment targets high-net-worth individuals and institutional investors, offering specialised products and comprehensive solutions in wealth management, investment planning and advisory services,” the bank said.

“By leveraging the international expertise of the Alpha Bank Group and the complementary portfolio of the former AstroBank, Alpha Bank Cyprus provides advanced investment options with transparency and high quality, strengthening long-term trust-based relationships,” it added.

What is more, the Alpha Bank Group described Cyprus as a mature yet dynamic market with strong prospects, citing its strategic location between Europe, the Middle East and North Africa, a developed business ecosystem and a high-quality talent base.

The acquisition of most of the former AstroBank’s banking activities aligns with the group’s strategy to develop regional growth hubs in Greece, Cyprus, England and Luxembourg, creating a unified and modern European banking ecosystem.

“Through the transaction, the group said it has strengthened its capital base and reaffirmed its long-term commitment to regional markets,” the bank said.

The group is also transferring private banking expertise to Cyprus, following international recognition such as the Best Private Bank in Greece award at the Global Private Banking Awards 2025.

Alpha Bank said its strategic cooperation with UniCredit further enhances capabilities, expanding access to European products, services and expertise.

“Cyprus is expected to play an upgraded role as a financial hub, facilitating capital and investment flows and creating new business opportunities,” the bank said, with Alpha Bank Cyprus “aiming to be at the forefront” of this regional connectivity.

Looking ahead, the bank said geopolitical and energy uncertainty is likely to affect tourism, trade and investment, with Cyprus remaining vulnerable due to its size.

The expected normalisation of interest rates is set to put pressure on profitability, increasing the need for revenue diversification and more efficient operating models.

Stricter regulatory and ESG requirements will also demand sustained investment in expertise.

“In this environment, partnerships, outward orientation and consolidation are becoming increasingly important,” the bank said.

“The resilience and growth of the banking system will depend on targeted consolidations that create more efficient organisations, diversified revenue streams, meaningful digital transformation and the full integration of ESG criteria as a driver of long-term competitiveness,” Alpha Bank Cyprus concluded.