AstroBank’s Charis Kynigou discusses merger with Alpha Bank

The recent agreement for Alpha Bank to acquire AstroBank marks a strategic shift in Cyprus’ banking landscape, says Charis Kynigou, Executive Board Member and Head of Treasury, Private Banking and ESG at AstroBank.

In an interview with InBusinessNews, Kynigou highlighted that the merger will form the third-largest banking group in Cyprus, with a 10% market share, poised to exceed 15% in the long term. “This move boosts capital strength and scale, offering an expanded client base, broader financing capacity, and enhanced investment services,” she noted.

A stronger, more competitive banking sector

Kynigou described the deal as a realistic, forward-looking decision, part of a wider consolidation trend across Europe. In Cyprus, she sees a more resilient banking environment emerging — fewer but stronger players who can inspire greater trust among depositors and investors.

Addressing concerns about overexposure to Greek banks, Kynigou stressed that both Eurobank and Alpha Bank are now healthy, well-supervised institutions, under the European Central Bank's Single Supervisory Mechanism.

She also rejected fears of reduced competition, arguing instead that the entry of Alpha Bank Cyprus via AstroBank creates a third major pillar, balancing the market and countering duopoly risks.

Sector now healthier and more mature

Reflecting on broader trends, Kynigou said Cyprus’ banking sector is in a new phase of maturity — with robust capitalisation, liquidity nearing 300% (well above the EU minimum), and non-performing loans at record lows (6%). “We’ve moved past the bad practices of the past decade,” she said, citing improved governance, risk management, and compliance," she said.

Sustaining profitability beyond high interest rates

While the recent surge in profits was partly due to higher interest rates, banks now face the challenge of maintaining performance as rates fall. The focus, Kynigou explained, must shift toward diversified, sustainable income streams, such as investment and fee-based services.

She emphasised the need to expand Private Banking and Wealth Management, tapping into idle deposits and offering low-risk, tailored investment products even to everyday clients — not just the wealthy. “Private Banking is no longer a luxury but a strategic necessity,” she said tellingly.

Looking ahead: Focus remains on clients

As AstroBank prepares to integrate with Alpha Bank, Kynigou assured clients that their interests remain central. “Our clients will benefit from a wider range of products, stronger platforms, and a broader support network — all while retaining the personal touch they expect from AstroBank,” she affirmed.

She concluded by framing the merger as part of a wider transformation in Cyprus’ financial sector — one that requires vision, partnerships, and adaptability to meet modern demands.

(Source: InBusinessNews)