The Bank's CEO Miltos Michaelas has described 2025 as a milestone year that defines its new course for Alpha Bank Cyprus, leaving open the possibility of new changes, both in the banking and insurance sectors.
Speaking on the sidelines of a meeting with journalists and invited to comment on the Bank's new dynamic in recent years, especially after the acquisition of AstroBank, he said that "like all banks, Alpha Bank went through some difficult periods, but without causing hardship to its depositors, while maintaining its presence in Cyprus."
"In 2019, when Mr. Psaltis (Vasilios E. Psaltis) took over as CEO, a different path began, in 2022 and when the Group had begun to recover, seeing the Cyprus market and its prospects, it was decided to invest in Cyprus," Michaelas added, emphasising that " our goal is to grow our presence in Cyprus."
As he explained, "in order to grow our presence, we are of course investing in organic expansion, with the right products and the right service, and, at the same time, we are also considering inorganic expansion, as was recently done with the acquisition of AstroBank. Now, together with AstroBank and our own organic expansion, in the last 2.5 years we have reached 10% of the market."
Interest in acquisitions
Asked if the Bank is considering other actions, such as the acquisition of an insurance company, due to information about interest in Universal Life, the CEO of Alpha Bank said that "it is known that the operations of banks are compatible with insurance companies. And in Greece, we have insurance companies. Therefore, it is logical for any bank to always look at the insurance sector, taking into account, of course, the advantages it has, the funds it has, etc."
"So, I neither confirm nor deny anything, because I cannot tell you that we do not see the insurance sector as an opportunity at all. On the contrary," he explained, noting that " insurance is a compatible product for banks and given that the two major banks have a presence, such a possibility cannot be ruled out."
Asked to specify the time when the Bank might take a relevant action, Michaelas did not want to specify anything, underlining that at this moment, the Bank's priority is to complete its contract with AstroBank.
"We are currently running the procedures to complete the merger with AstroBank and for us there is no binding time frame. There are opportunities, possibilities, which we will examine when the time comes," he said, reiterating that the Bank is interested in the insurance sector and when such an opportunity arises, they will evaluate it.
"As a Group, we know the insurance sector, we have an insurance company in Greece, and as I said before, we consider insurance operations to be completely compatible with ours," he added further.
Asked whether the Bank is also considering the possibility of a new acquisition in the banking sector, Michaelas reiterated that for Alpha Bank, the merger with AstroBank is currently the priority.
"If opportunities are found, either in the banking or insurance sector, we will examine them, because we are interested in growing."
How the merger with AstroBank is progressing
Regarding the merger of Alpha Bank with AstroBank, Michaelas said that the legal merger was completed on 31 October, while the operational merger is expected to be completed in eight months.
Asked if the Bank intends to announce a voluntary retirement plan for staff, he indicated that "we will first have to look at our needs and there will certainly be a voluntary retirement plan within 2026, but I repeat, at this time the unification of Alpha Bank with AstroBank takes precedence."
Milestone year in 2025
Regarding the Bank's course in 2025, he stated that for Alpha Bank Cyprus, 2025 is a milestone year that defines its new course.
"The completion of the transfer of the majority of the banking activities of the former AstroBank, after receiving all supervisory approvals, marks a strategic joining of forces that significantly strengthens the Bank's position in the market," he added.
According to Michaelas, Alpha Bank Cyprus is now the third largest bank in the country, with assets exceeding €6.6 billion, a loan portfolio of over €2 billion and deposits exceeding €5.6 billion.
"The new scale allows for investment in technology, innovation and human resources, enhancing stability, efficiency and customer experience," he added.
The Bank, he emphasised, is creating an organisation with a substantial size, a stable capital base and a clear strategy, capable of consistently supporting the sustainable development of the economy and offering high-quality services to individuals and businesses.
"The priority is to fully utilise the combined expertise and experience of colleagues at Alpha Bank and the former AstroBank, with an emphasis on corporate and business banking, private and digital banking, which is evolving rapidly and requires continuous investment in innovation," he highlighted.
At the same time, Michaelas pointed out, Alpha Bank Cyprus is investing in sustainable financing and green transition solutions, recognising that the banking of tomorrow is linked to responsibility towards society and the environment.
"The commitment to excellence in service is at the heart of the strategy, aiming to create products and services that respond to real market needs: financing for small and medium-sized enterprises, solutions for green investments, housing and consumer products on favourable terms, as well as specialiwed services for emerging sectors such as technology and energy," he pointed out.
Housing problem
Furthermore, when asked to comment on the housing problem and whether banks can contribute to addressing it, the CEO of Alpha Bank clarified that "the bank cannot give a loan to someone who cannot repay it."
"The priority is the protection of the depositor, which is why the criteria for granting loans have become stricter," he added, emphasising that "banks have a role and can contribute to the effort to address the housing problem, but within the framework determined by their operating regulations."
"The bank cannot come and give any loan outside of the procedures it has established," he further explained, stating that "the government also has a role, the banks of course have a role, but on the condition that they keep their balance sheets healthy, because we are controlled and as I said, our top priority is the protection of the depositor."
"In order to enable depositor protection, the bank must be able and in a position to collect the loan it granted," he indicated.
Asked about recent statements by the President of the Cyprus Land Development Corporation that banks were negative about the possibility of reducing the contribution rate of borrowers who are included in housing projects, Michaelas said that "banks have a legal limit."
"Based on the ECB's instructions, the maximum financing limit that a bank can cover is 80% of the value and we are obliged to adhere to it. This limit, of course, applies globally, not just in Cyprus or Europe," Michaelas concluded.
(Source: InBusinessNews)
