Attica Bank Submits Offer for HSBC Malta – Aiming for International Expansion

Attica Bank has officially submitted a bid to acquire HSBC Malta, marking a strategic move toward expanding its operations beyond Greece. The offer is reportedly being viewed favorably by the Greek government, which supports the outward growth of domestic banks. The Bank of Greece has also responded positively, though sources indicate that it’s still early in the process, and the central bank will only become involved at a supervisory level in a later stage.

Government and Ownership Structure

The Greek state, through the Hellenic Corporation of Assets and Participations (HCAP), holds a 36.2% stake in Attica Bank, while the main shareholder is Thrivest Holding, with a 54.6% share.

HSBC is selling its Malta operations as part of a broader strategy to exit smaller European markets and refocus on its core business in Asia. According to the Times of Malta, Attica Bank has officially entered the race to acquire the Maltese unit.

This follows HSBC’s 2023 exit from the Greek market, when it transferred its operations to Pancretan Bank, which was later absorbed by Attica Bank. This successful acquisition is seen as a positive precedent for the potential takeover in Malta.

HSBC Malta Overview

HSBC Malta is a subsidiary of the London-based HSBC Group and holds a significant position in the local market, even though the total market size in Malta is relatively small (around €31 billion). HSBC Malta has assets of approximately €5 billion and a market share of about 20%. The bank remains profitable, and the sale has been on the table since 2023.

Previous interest reportedly came from non-Eurozone banks, which failed to gain government support. Malta’s APS Bank, the country’s second-largest bank after Bank of Valletta (BOV), also showed interest, but no agreement was reached. Around 20 banks currently operate in Malta.

HSBC Malta is considered a systemically important bank, and a potential acquisition by Attica Bank would mark the first time the Greek bank comes under direct supervision by the European Central Bank (ECB) and the Single Supervisory Mechanism (SSM).

Attica Bank’s Financial Profile and Strategic Vision

• Total assets: €7.2 billion
• Capital adequacy ratio: 11%
• Non-performing loan (NPL) ratio: 2.9%
• Q1 2025 recurring operating profit (pre-provisions and taxes): €20.1 million
• Net profit: marginally positive

As part of its transformation, Attica Bank is expected to complete its merger with Pancretan Bank by the end of the year. The bank has also announced a rebranding under the name Credia Bank.

Its business plan through 2027 includes:

• Return on equity (ROE) target of 20%
• Operating cost reduction below 40%
• Pre-provision profits of €280 million

A significant restructuring is already underway, including a voluntary exit program, branch closures, and cost streamlining, narrowing its physical footprint to 65 branches and 5 business centers.

Official Confirmation

Attica Bank officially confirmed today that it has submitted a bid for HSBC Malta. The announcement reads:

“In response to media reports regarding the ongoing sale of HSBC Malta’s shares, Attica Bank confirms it has expressed interest in participating in the process and acquiring the shares. The Bank will issue a new announcement in the event of any significant development.”

Source: pagenews.gr