CrediaBank’s shareholders today gave the “green light” to its merger with CrediaBank through the absorption of Europe Holdings, paving the way for the bank to expand its operations into the insurance sector.
The meeting was held with an 80.37% quorum, and all items put to a vote were approved. The fifth item on the agenda, concerning the announcement of the election of a board member to replace a member who had resigned, was not put to a vote because it was for information purposes only.
Synergies with Europe Holdings
As noted during the general meeting, integrating the insurance business complements the bank’s operations, broadens its revenue streams and creates new opportunities to serve customers.
CrediaBank chief executive Eleni Vrettou then addressed the meeting, describing the merger as another important step in the bank’s development and stressing that it demonstrated management’s ability to complete deals within the timeframes it sets.
The transaction is being completed just five months after it was announced. In the meantime, CrediaBank also completed its acquisition of a 70% stake in Pantelakis Securities, strengthening its presence in capital markets and investment services.
Ms Vrettou said synergies with Europe Holdings would begin on the first day after the transaction is completed, through the use of the networks, customer bases and expertise of both sides.
The merger is expected to boost CrediaBank’s earnings per share by about 8% in 2027, including synergies, and is estimated to improve its Common Equity Tier 1 ratio by 100 to 120 basis points.
The insurance business is also expected to contribute at least €45m to the group’s pre-tax profits in 2028.
HSBC Malta: One-off gains of at least €235m
Eleni Vrettou gave particular attention to the acquisition of HSBC Malta, which is expected to be completed in the second quarter of 2027. She said the transaction was on schedule, with approval from the European Central Bank the next step, expected before the end of the year.
The acquisition, for a price of €200m, is expected to generate a one-off, non-recurring accounting gain of at least €235m due to negative goodwill. The price represents just 46% of the Maltese bank’s tangible equity.
The transaction is expected to double CrediaBank’s size and significantly strengthen its liquidity through access to the deposit base of Malta’s second-largest bank.
Ms Vrettou estimated that the acquisition would mark CrediaBank’s transition to a systemic bank in 2027, without sacrificing its flexibility.
Targets for 2030
In the first half of 2026, CrediaBank recorded credit expansion of €842m, with loan balances up 39% year on year. Deposits rose 16%, with €1bn in new deposits added, while pre-provision profits increased 45%.
By the end of 2028, management is targeting recurring net profits of more than €260m, net loans of more than €11bn, a return on average tangible equity of more than 18% and a Common Equity Tier 1 ratio above 15.5%.
For 2030, the targets rise to recurring net profits of more than €360m, net loans of more than €14bn, a return on average tangible equity of more than 19% and a Common Equity Tier 1 ratio above 16.5%.
As was emphasised, expanding operations through acquisitions, strengthening the capital base and harnessing synergies are the key pillars of CrediaBank’s plans for the next phase.