Attica Bank becomes first EU bidder for HSBC Malta
The bid has gained support from both Greek and Maltese governments
Attica Bank of Greece has entered the race for HSBC Malta, becoming the first foreign EU bank to submit an offer.
The bank’s bid is believed to be viewed favourably by both the Greek and Maltese governments, allowing it to avoid many of the pitfalls that have plagued other bids so far.
It is also likely to encounter few obstacles from HSBC’s side, having already indirectly taken over the global bank’s business in Greece.
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.
The merger means Attica is now the fifth largest bank in Greece. Based in Athens, it was first founded in 1924 and was listed on the Greek stock exchange in 1964.
The bank’s majority shareholder, with a little over half all shares is Thrivest Holding, a Greek investment company previously involved in Pancreta Bank.
The Greek government is also a major shareholder, with just over 36% of a stake in the bank.
If successful, Attica Bank’s bid for HSBC Malta would represent the bank’s first venture outside of Greece. It would also mark the first time the 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.
Attica Bank is also likely to have deep enough pockets to complete a deal, having recently announced plans for a €735m capital increase, with funds reportedly going toward repaying a bond and supporting the bank’s growth.
While several other foreign banks had thrown their names into the hat as negotiations with HSBC unfolded, sources say each of them faced an uphill battle to bring authorities on board.
Sources describe the Maltese government’s major reservations about the prospect of HSBC being taken over by Armenian bank Ardshinbank. When faced with similar resistance, Hungarian bank OTP, an early favourite in the race, had dropped out before formally submitting its bid.
Meanwhile, other bids, including by the Bank of Georgia’s parent company Lion Finance Group, raised fewer red flags, but were nonetheless considered less than ideal, given their non-EU and non-Eurozone profile.
Attica Bank’s bid is strongly supported by the Greek government, which is believed to have successfully lobbied to gain the consent of local authorities.