The Bank's Chief Wholesale Banking Officer, Christoforos Stylianides, characterises 2026 as a year of consolidation and further targeted growth for Alpha Bank Cyprus, within the framework of a broader Group strategy, emphasising that "our goal is to operate as a strategic partner for growth, with an emphasis on investments that create long-term value and enhance productivity.
In an interview with InBusinessNews as part of the IN Business Forecasting 2026 series, he underlines that the banking sector in Cyprus was entering the new year from a clearly strong position, noting that, "Cypriot banks currently have high levels of capital adequacy and liquidity compared to the European average, while non-performing loan ratios have decreased significantly."
At the same time, and after outlining the three main trends that determine the environment in the sector, he indicates that acquisitions and mergers are now a structural feature of the banking environment, both in Cyprus and at a European level.
Referring to the acquisition of AstroBank's banking activities, Stylianides indicates that "this specific move led to the creation of an organisation with a strengthened capital and operational base, increased resilience and greater ability to support business activity, in an increasingly demanding economic environment."
Regarding the acquisition of Altius Insurance and its expected integration with Universal Life, Stylianides, after emphasising that it will create a significant player in the insurance market, indicates that "it comes precisely as a response to the need to diversify revenue sources but also to exploit synergies between banks and insurance companies."
How do you think the Cypriot economy will perform in the new year and what are its prospects? What do you consider to be the biggest risks and how can they be addressed?
The Cypriot economy enters 2026 with proven resilience, in an international environment that remains highly volatile. In 2025, Cyprus recorded growth rates higher than the Eurozone average, with unemployment remaining low, inflation decelerating and public debt significantly decreasing.
These data strengthened fiscal stability and investor confidence, creating a more reliable framework for business activity and investment.
For 2026, estimates predict a growth rate of close to 3%, which creates conditions for continuity, but without room for complacency. The main risks remain and are mainly exogenous.
Geopolitical developments, changing trade policies, energy uncertainty and the impacts of climate change directly affect costs, financing and investment decisions.
At the same time, the speed of technological developments, and especially artificial intelligence, creates a new field of challenges. The critical issue is not only the adoption of technology, but its substantial integration into the real economy, with the aim of improving productivity and maintaining social cohesion.
The response to these risks cannot be piecemeal. It requires continued fiscal discipline, targeted structural reforms, and systematic reskilling of the workforce. Above all, it requires clear strategic direction.
How do you anticipate that your company's sector of activity will develop in 2026? What are the biggest trends/changes you expect to occur and what are the most significant challenges?
The banking sector in Cyprus enters 2026 from a clearly strong position. Cypriot banks currently have high levels of capital adequacy and liquidity compared to the European average, while non-performing loan ratios have decreased significantly.
This substantially strengthens the ability to support the real economy, at a time when demand for bank financing is expected to strengthen, both from businesses and households.
Three key trends are shaping the environment. First, stricter regulatory and ESG framework at a European level, which increases compliance requirements but at the same time enhances the transparency, stability and credibility of the financial system. The integration of sustainability criteria now directly affects the way investments and creditworthiness are assessed.
Secondly, accelerating digital transformation, which is further intensified by competition from fintechs. Banks are called upon to continuously invest in technology, digital solutions and new products in order to meet the increased demands of private customers and businesses.
This transformation is accompanied by particularly high costs, but also by increased risks of digital fraud, making compliance with high security and resilience standards a critical strategic priority.
Thirdly, the normalisation of the interest rate environment, which puts pressure on profit margins and necessitates the diversification of revenue sources and improvement of operational efficiency. In this context, a deeper understanding of business models and industry-specificities becomes even more important.
In this environment, banks are being called upon to further strengthen their position as strategic partners in development, combining financial stability with innovation, solvency with flexibility, and prudent risk management with support for sustainable investment and productive activity.
A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it strongly in your sector as well?
Mergers and acquisitions are now a structural feature of the banking environment, both in Cyprus and at a European level. Increased regulatory costs, significant technological investment requirements and the need for sufficient scale make targeted consolidations not just an option, but a strategic necessity to ensure long-term sustainability and competitiveness.
In this context, the acquisition of AstroBank's banking operations in 2025 was a strategic milestone for Alpha Bank Cyprus. This move led to the creation of an organisation with a strengthened capital and operational base, increased resilience and greater ability to support business activity, in an increasingly demanding economic environment.
The new scale allows for more substantial investments in technology, infrastructure and human resources, strengthening the Bank's role as a strategic partner for development.
The critical element, however, is not the size alone. It is the quality of the integration. The success of such moves is judged by the smooth integration of people, systems and culture, as well as the ability to create real added value for customers and the economy as a whole. This is precisely the level at which our approach focuses.
The acquisition of Altius Insurance and its expected integration with Universal Life, which will create a significant player in the insurance market, comes precisely in response to the need to diversify revenue sources, but also to exploit synergies between banks and insurance companies.
What can we expect in terms of your organisation's plans and development and expansion strategy in 2026? What moves do you intend to make in this direction?
2026 is a year of consolidation and further targeted growth for Alpha Bank Cyprus, within the framework of a broader strategy of the Alpha Bank Group. In 2025, the Group took steps that substantially strengthened its presence and footprint in the Cypriot market, confirming its long-term commitment to the country.
For Alpha Bank Cyprus, this strategic consistency at a Group level strengthens the framework within which we develop our activities and support the economy. Our goal is to operate as a strategic partner for development, with an emphasis on investments that create long-term value and enhance productivity.
At the level of financing for businesses, in 2026 we expect increased mobility in sectors such as energy, with an emphasis on its storage, tourism and mainly the upgrading of the tourism product, education, health, services and infrastructure for the elderly, due to demographic developments, as well as the country's main export activities.
At the same time, we continue to systematically invest in digital transformation and transaction security, which are critical prerequisites for maintaining customer trust and supporting the most complex market needs.
The new year is seeing the implementation of the tax reform, which is taking place 22 years after the previous tax reform. How do you estimate that it will affect the Cypriot economy, businesses, and the attraction of foreign investments?
Tax reform is one of the most important institutional interventions in recent years. Its success will be judged by whether it ensures stability, simplicity and predictability, which are crucial for businesses and foreign investors.
Combined with the fiscal stability and institutional credibility built in recent years, a modern and clear tax framework can further strengthen Cyprus' role as a reliable European services and investment hub. Conversely, any ambiguity or complexity increases compliance costs and limits visibility.
For the banking sector, this reform is of immediate importance, as it affects the investment climate, the structure of transactions and the demand for financing. A stable and predictable framework acts as a catalyst for healthy entrepreneurship and sustainable growth.
(Source: InBusinessNews)
