UniCredit has announced the acquisition of additional financial instruments linked to a stake of around 5% in Greece-based Alpha Bank, raising its total ownership to approximately 26%.

The conversion of the stake exceeding 9.9% into physical shares, along with the equity consolidation to showcase the benefits of the strategic alliance, is contingent upon the completion of the ongoing regulatory approval processes.

This ensures that all necessary compliance measures are met before any changes are implemented, stated UniCredit.

According to analysts’ consensus, Alpha’s participation is expected to generate a net profit of around €244m ($283.4m) in 2026, as stated in the company’s press release. This profit is anticipated to significantly grow from there.

UniCredit plans to return these profits to its shareholders in accordance with its distribution policy.

UniCredit CEO Andrea Orcel said: “Our investment in Alpha has delivered well beyond expectations and continues to be a key area for growth within our business. The strong mutually beneficial partnership has benefited clients, shareholders and our people alike and there is much more to come.

“This collaboration is a clear demonstration of what UniCredit’s federal approach can contribute to other institutions, leaders of their own nations within Europe. Our relationship with Alpha and the quality of their people remain the linchpin of both past and future success.”

The newly acquired stake is projected to affect UniCredit’s CET1 ratio by around 65 basis points, with an initial return on investment estimated at approximately 20%.

This figure is anticipated to improve as both institutions pursue collaborative initiatives, according to the company.

Recently, UniCredit boosted its voting rights in Commerzbank to around 26% by converting more synthetic positions into physical shares.

Last month, the bank increased its equity stake to 20% by converting derivatives into stock.