CrediaBank SA, formerly known as Attica Bank, has reported a robust performance for the first quarter of 2025, with recurring pre-provision income reaching €20.1 million, more than double the €8.7 million recorded in the same period last year.

It is worth noting that year-on-year results are not fully comparable, as the September 2024 absorption of Pancreta Bank had a major impact on the bank’s performance, particularly during the final nine months of that year, according to the group’s 2024 annual report. The merger contributed to a reported loss of over €300 million.

Recurring operating income rose to €55.1 million in Q1 2025, more than twice the €25.3 million posted a year earlier. Net interest income climbed by 90 per cent year-on-year, supported by net credit expansion of €232 million and an enlarged bond portfolio.

At the same time, net commission income jumped 129 per cent to €7.1 million, boosted by higher lending volumes, increased issuance of letters of guarantee, stronger fund transfers and growing demand for wealth management services. Client funds under management increased by 6 per cent compared to the prior year, reaching €800 million.

Operating costs remained under control, with recurring expenses amounting to €35 million in the first quarter, down 11 per cent from the previous quarter. Cost-saving measures, including voluntary exit schemes and branch consolidation, have already secured €10 million in annual synergies. These savings form part of a broader target of €30 million by the end of 2027.

The bank’s non-performing exposures (NPE) ratio, meaning loans unlikely to be repaid as originally agreed, dropped from 61.5 per cent in Q1 2024 to just 2.9 per cent, largely due to the successful transfer of assets under the Hellenic Asset Protection Scheme (HAPS).

Looking ahead, CrediaBank plans to implement non-dilutive capital enhancement measures in the second half of 2025 to further reinforce its capital base.

Management highlighted that the first quarter’s performance reflects a new phase of “qualitative profitability,” in line with the bank’s business plan. Already, over one-third of targeted cost synergies have been achieved within just three months of operations under the merged entity. The bank also expects full integration of systems and brand consolidation by the end of the year.

CrediaBank in the lead in HSBC Malta race

In a statement issued on 15^th August, CrediaBank confirmed that it has entered exclusive discussions with HSBC Holdings plc and has been identified as the preferred bidder for the potential acquisition of HSBC’s 70.03 per cent stake in HSBC Malta.

While no agreement has yet been reached, CrediaBank emphasised that any transaction would be subject to regulatory approvals from the Malta Financial Services Authority, the Bank of Greece and the European Central Bank, a process expected to take several months. There is also no guarantee that discussions will result in a definitive deal.

The acquisition is aimed at bolstering CrediaBank’s wealth management and maritime finance capabilities. Additionally, many executives at Attica Bank, including Ms Vrettou, have a background within HSBC itself, which benefits the bank from familiarity with HSBC’s operational culture and networks.

Banking professionals have also been recently debating whether HSBC Malta should return to local ownership or remain under foreign control, with some viewing foreign ownership as a catalyst for investment, while others see it as a remnant of colonial-era thinking.