astrobank acquisition — astrobank acquisition — Alpha Bank’s recent financial results reflect a significant boost in income, largely attributed to its acquisition of AstroBank in Cyprus. The bank announced net profits of €943.3 million for 2025, alongside a substantial €519 million distribution to shareholders, characterising the year as pivotal for its growth strategy.
CEO Vassilis Psaltis remarked, “2025 was a decisive year for Alpha Bank, marking the successful completion of the three-year strategic plan that began in 2023.” This period saw the bank exceed many of its strategic and financial targets, culminating in a series of acquisitions that enhance its operational capabilities.
Astrobank acquisition: Strong Quarterly Performance
In the fourth quarter, net interest income reached €413.3 million, a 3 per cent increase from the previous quarter, primarily thanks to the AstroBank deal. Despite a slight year-on-year decline of 2 per cent, the recurring net interest income benefited from a robust demand for loans, although lending margins faced some pressure.
Alpha Bank recorded a return on tangible equity of 13.1 per cent in the fourth quarter, with adjusted earnings per share at €0.36. The bank’s Common Equity Tier 1 (CET1) ratio stood at 15 per cent, reflecting a solid financial foundation.
Record New Disbursements in Greece
The bank achieved a record level of new disbursements in Greece, totalling €4.2 billion in the fourth quarter. This figure marks a 40 per cent increase from the previous quarter and a 4 per cent rise year-on-year. Net credit expansion reached €1.3 billion in the same period, indicating a significant demand for loans, particularly from businesses.
Psaltis highlighted, “Our commercial momentum remained strong, with net credit expansion reaching €3.5 billion, mainly driven by financing to businesses, confirming Alpha Bank’s role as the bank of choice for the business community in our core markets, Greece and Cyprus.”
Growth in Customer Funds and Assets
Customer funds increased by 11.5 per cent year-on-year, driven by an 8 per cent annual rise in deposits, which was bolstered by a €2.2 billion contribution from AstroBank. Additionally, assets under management saw a striking 21 per cent increase, with equities and mutual funds both rising by 28 per cent year-on-year.
Net fee income also surged, climbing 19 per cent year-on-year and comprising 23 per cent of total revenues. This growth highlights the bank’s successful diversification of revenue sources, particularly through transaction banking and asset management initiatives.
Stable Non-Performing Exposure Ratio
Alpha Bank’s non-performing exposure ratio remained stable at 3.6 per cent compared to the previous quarter, indicating consistent asset quality. The cost of credit risk was 58 basis points in the fourth quarter, further reflecting the bank’s careful management of credit risks.
Strategic Partnerships and Future Plans
The bank’s strategic partnership with UniCredit continues to deepen, offering new opportunities across various services, including investment banking and wealth management. Psaltis stated, “We enter 2026 from a position of strength,” expressing confidence in the bank’s strategic direction and regional presence.
Looking ahead, Alpha Bank is preparing for its Investor Day in the second quarter of 2026, where it aims to present its future key pillars and targets. Psaltis concluded, “The past three years of disciplined execution have brought us to the forefront of the sector, and we continue with the same momentum into a new chapter, remaining committed to creating sustainable value for shareholders and all stakeholders.”
