Eurobank and Hellenic Bank merger to complete in 2025

The legal merger between Eurobank and Hellenic Bank is expected to be completed within the first quarter of 2025, with the final step, the operational merger, scheduled to take place over the following two years.

According to Eurobank Holdings’ latest financial results, the bank recorded a €99 million contribution to its net profits from acquiring an additional stake in Hellenic Bank during the second half of 2024.

Following the mandatory public offer in early 2025, Eurobank will proceed with a squeeze-out to acquire the remaining 6.5 per cent stake in Hellenic Bank, aiming for full ownership.

The delisting of Hellenic Bank is expected within the second quarter of 2025, pending regulatory approvals.

Once the legal merger is completed in the third quarter of 2025, the final phase will be the integration of operations, which will take up to two years.

Eurobank currently holds 93.5 per cent of Hellenic Bank’s share capital, with plans to increase this to 100 per cent through the upcoming acquisition processes.

Eurobank CEO Fokion Karavias highlighted that the merger would create one of the largest financial institutions in Cyprus.

“The business models of the two banks complement each other and will further strengthen our product offerings and customer service,” he said.

According to Eurobank Holdings, Hellenic Bank’s assets contribute €27.5 billion, making up 27 per cent of Eurobank’s total assets of €101.2 billion.

Additionally, Hellenic Bank accounts for 33 per cent of Eurobank’s net profits, contributing €485 million out of the group’s total net profits of €1.48 billion.

Hellenic Bank also holds a significant share of Eurobank’s deposits, amounting to €23.6 billion out of a total of €78.6 billion, while its net loans of €8.7 billion form part of Eurobank’s total net loans of €51 billion.

Eurobank’s adjusted net profits grew by 18.2 per cent year-on-year, reaching €1.484 billion in 2024.

Earnings per share stood at €0.39, with a return on tangible equity at 18.5 per cent.

In Bulgaria, adjusted net profits increased by 9.6 per cent to €208 million, while in Eurobank Cyprus, they rose by 5.1 per cent to €210 million. Hellenic Bank contributed €275 million to Eurobank’s adjusted net profits in 2024.

Pre-provision organic profits abroad rose by 53.1 per cent (or 11.7 per cent excluding Hellenic Bank), reaching €800 million.

Pre-tax organic operating profits increased by 58.9 per cent (or 14.2 per cent excluding Hellenic Bank) to €739 million in 2024.

CEO Karavias emphasised the bank’s focus on sustainable annual returns of approximately 15 per cent.

“Our growth strategy is built on three pillars: expanding credit at around 8 per cent annually, prioritising wealth management and private banking, and leveraging synergies from our leading position in Cyprus,” he explained.

Eurobank anticipates further growth through the integration of Hellenic Bank and Eurobank Cyprus, the acquisition of CNP Insurance, and organic loan expansion, estimated at an annualised rate of 7.5 per cent.

Wealth management operations are also projected to grow by approximately 15 per cent annually in assets under management and private banking portfolios.

Hellenic Bank reported preliminary profits of €383 million for 2024, reflecting a 10 per cent annual increase.

CEO Michalis Louis described 2024 as a landmark year for the bank, both in terms of financial performance and ownership structure.

Eurobank Holdings announced total profits of €1.44 billion for 2024, distributing €674 million to shareholders, including a dividend of 10.5 cents per share and €288 million in share buybacks.

Karavias described 2024 as a record-breaking year and expressed confidence in Eurobank’s strong outlook for 2025 and beyond.

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