The deal struck between a Greek bank to take over HSBC Malta is “a milestone for Greece’s banking sector”, according to the country’s finance minister.
Shortly after the deal was announced on Friday, Kyriakos Pierrakakis enthusiastically welcomed the agreement for Greece’s CrediaBank to acquire HSBC Malta, telling Times of Malta it demonstrates the Greek financial sector’s growing strength.
“This is an important step for both institutions and a milestone for Greece’s banking sector, demonstrating the strength, resilience, and outward vision of our financial system,” he said.
“It is also a tangible example of the opportunities created by the European Banking Union — enabling cross-border investment, healthy consolidation, and the emergence of stronger, more competitive banks.”
HSBC Malta announced on Friday that the Greek bank, which is in the process of rebranding from its previous name, Attica Bank, was its preferred bidder to buy its Malta operations.
Having agreed on a deal, discussions between HSBC and CrediaBank will now enter a new phase, as advisors on both sides iron out finer details and await formal approval from regulators before setting pen to paper.
The announcement brings HSBC Holdings one step closer to exiting the Maltese market, continuing its broader strategy of exiting smaller markets and pivoting to Asia.
The holding company first announced its intention to sell last September, following years of rumours about it seeking an exit.
‘Deepening bonds between Greece and Malta’
In his reaction to the news, Greek minister Pierrakakis said that beyond the financial aspects, the deal had broader geopolitical implications.
“This transaction strengthens the bonds between Greece and Malta, deepening our bilateral relations and contributing to closer cooperation across Southern Europe and the Mediterranean,” he said.
“We are confident that CrediaBank’s experience will deliver benefits for customers, employees, and the economies of both Greece and Malta, while reinforcing the foundations of a truly integrated European financial market.”
Earlier on Friday Finance Minister Clyde Caruana also welcomed the news, saying the move will “foster healthy competition” and strengthen Malta’s financial system.
Last week, Times of Malta revealed that the bank had emerged as a strong favourite, with both the Greek and Maltese governments having approved the deal.
CrediaBank was known as Attica Bank until last month, when it changed its name as part of an extensive rebranding exercise. It is expected to fully transition to the new brand by October.
When HSBC left Greece in the summer of 2023, it was taken over by Greek bank Pancreta Bank which, in turn, merged with Attica a year later.
It is the fifth-largest bank in Greece and is strongly supported by the Bank of Greece and the Greek state, which owns a 36% stake in it through the country’s sovereign wealth fund.
The HSBC Malta take over will mark the first time the Greek bank will be directly supervised by the European Central Bank.
A previous run-in with the ECB, almost a decade ago, spelled trouble for the bank.
In 2016, a joint inspection by the Bank of Greece and the ECB uncovered a litany of governance failures, including offering generous credit terms while being heavily in debt and against the instructions of its regulator.
The findings led to sweeping changes at the bank, with a new chair and CEO installed to lead the bank’s restructuring.
The bank’s reputation has improved markedly since then, with several international credit agencies having upped their verdict of the bank in recent years.