Greece’s Eurobank Group is making waves in the Eastern Mediterranean with a landmark €1.3 billion investment in Cypriot lender Hellenic Bank—a move that will create Cyprus’ largest financial institution, with total assets of €27.5 billion.
During a visit by the Eurobank Board of Directors to Cyprus, Chairman George Zanias described the deal as a strategic expansion aimed at strengthening Eurobank’s footprint on the island. “This allows us to support entrepreneurship and boost investments, ensuring sustainable development for Cypriot society,” Zanias stated.
Hellenic Bank CEO Michalis Louis called the deal “the largest ever investment in Cyprus,” adding that it “constitutes a strong vote of confidence in the country’s economy and its future role in Eurobank’s regional plans.”
Eurobank currently holds 93.47% of Hellenic’s share capital. A public offer to acquire the remaining shares—expiring on April 9—will clear the path for Hellenic’s delisting and eventual merger with Eurobank Cyprus.
Strategic Stakes and Soaring Valuations
The acquisition included a series of calculated moves:
- €426 million for a 21.33% stake from Dimitra Investment
- €66 million for 3.33% from Logicom
- A revised agreement with trade union ETYK, rising from €243 million to €256 million in light of share price growth.
Eurobank paid as much as €4.84 ($5.12) per share, nearly doubling its earlier public offer of €2.56 ($2.71)—a strong reflection of Hellenic Bank’s improving performance and the renewed confidence in Cyprus’ economic outlook.
Projected Synergies and Regional Growth
Eurobank anticipates €120 million in synergies by 2027, driven by:
- Operational cost cuts
- Increased interest income
- Enhanced insurance and asset management revenue.
The bank also plans to expand its Cyprus loan portfolio by €1.7 billion over the next three years, reinforcing its dominance in the domestic market.
Last year, Hellenic Bank posted a €382.6 million net profit, while Eurobank Cyprus added another €210 million. Together, Cyprus contributed €592 million to Eurobank’s international profitability—nearly 50% of the group’s non-Greece earnings, a figure expected to rise to 55% in the near term.
While regulatory approval is still pending, the full operational merger is expected to be completed within two years, marking a significant milestone in Cyprus’ transformation into a regional financial hub.
Meanwhile, three members of Hellenic’s Board—Miranda Xafa, Stephen John Albutt, and Antonis Rouvas—have submitted resignations, to be finalized once the transfer of Eurobank Cyprus’ banking operations is complete. Rouvas will remain CFO, ensuring continuity in financial oversight.
Cyprus’ Banking System: Stronger and Leaner
The deal is unfolding amid Cyprus’ broader banking recovery. According to Scope Ratings, the country recorded the greatest reduction in non-performing loans (NPLs) among EU nations in 2024.
The NPL ratio fell to 1.9% at the end of 2024, a 0.5 percentage point drop year-on-year, and a dramatic improvement from over 19% in 2019.
Eurobank’s bold acquisition of Hellenic Bank marks more than a financial transaction—it is a strategic realignment of power in the Eastern Mediterranean. With this move, Cyprus is being positioned as a financial gateway between Europe, the Middle East, and North Africa. The timing is impeccable: as the island shows marked progress in cleaning up its banking sector, a robust regional player steps in to scale operations and drive investment.
Adding to this momentum, Alpha Bank, Greece’s fourth-largest lender by market value, recently announced its own strategic expansion with the €205 million acquisition of AstroBank, another Cypriot financial institution. The deal, revealed on February 27, will be executed through Alpha Bank Cyprus, with finalization expected by Q4 2025. This parallel development underscores a wider Greek banking commitment to Cyprus, reinforcing the island’s transformation into a regional financial powerhouse.
Eurobank at a Glance
Year founded: 1924 Headquarters: Athens, Greece Employees: 12,301 (as of Dec. 2024) Total operating income: €3.24 billion (as of Dec. 2024) Traded as: Athex: EUROB
Hellenic Bank at a Glance
Year founded: 1976 Headquarters: Nicosia, Cyprus Employees: 22,255 (as of Q1 2024) Total net income: €728 million (as of Dec. 2024) Traded as: CSE: HB
