Minority shareholders in HSBC Malta stand to benefit significantly if the bank’s proposed acquisition by Greece’s CrediaBank goes ahead, according to a bank spokesperson.

The bank’s representatives, who are in the process of finalising the bank’s acquisition, poured cold water over recent speculation about the eventual share price and assured that shareholders – along with customers, employees and Malta’s economy – can benefit in the medium and long term.

A success story in Greece

CrediaBank is already considered one of the most notable success stories in the Greek banking sector. Formed from the merger of Attica Bank and Pancreta Bank (itself the prior acquirer of HSBC Greece), the bank has since undergone a rapid transformation.

With 65 branches across Greece, it is now the fifth largest bank in the country by assets. A €735 million recapitalisation brought in Thrivest Holdings as the main private shareholder (55 per cent), alongside the Hellenic Financial Stability Fund (HFSF) and its successor the Hellenic Corporation for Assets and Participations (HCAP).

Since then, the turnaround has been decisive. A comprehensive balance sheet clean-up reduced non-performing exposures (NPEs) to just 2.9 per cent, the lowest in the Greek banking sector. From recurring organic losses of €40 million, the bank made €44 million in recurring profits in 2024, and plans to quintuple that figure within three years. Already, in Q1 2025, CrediaBank captured 13.5 per cent of net credit expansion across the Greek market, showing its ability to compete head-on with the systemic banks.

At the core of this success is a disciplined strategy among whose main elements are tighter risk management, product expansion, and stronger lending to small-to medium-sized enterprises, an important part of Malta’s economy.  Applying a similar strategy to the proposed combined business will be important in helping the bank to grow market share here too. HSBC Malta has eight to 10 per cent of the domestic market, while CrediaBank’s growth in Greece shows how quickly a challenger can gain ground.

Synergies from the merger

The acquisition of HSBC Malta offers clear synergies. By combining balance sheets, systems, and products, CrediaBank expects total assets to rise to €15.3 billion and its loan book to €7.3 billion. Greater efficiency, improved digital offerings and a stronger funding base could all increase value for shareholders.

An opportunity in Malta

For Malta, the timing of the deal is significant. HSBC has long signalled it was not prepared to invest further locally and was seeking an exit. This created a gap for a more ambitious player. With few competitors and a market ripe for growth, CrediaBank’s entry provides a fresh opportunity to strengthen the bank’s profitability and expand customer offerings.

Future expansion potential

Beyond Malta, the deal positions CrediaBank as more than a national lender. A successful integration would give the bank a cross-border footprint and a platform for future expansion, creating further upside potential for shareholders.

Reasons for optimism

Minority shareholders will naturally want clarity on the details of the transaction, including price. But focusing solely on that misses the bigger picture. With a proven turnaround track record in Greece, the potential for synergies, untapped opportunities in Malta, and the prospect of broader regional expansion, there are strong reasons for optimism that shareholder value can grow.