A new chapter in the history of Eurobank opens tomorrow’s general meeting of the shareholders of the now subsidiary Hellenic Bank of Cyprus.
After acquiring a majority stake in its share capital earlier in the year, the time has come for Athens to install new management at the Cypriot credit institution.
This is a landmark acquisition for the systemic group, as with its accounting consolidation from the 3rd quarter of this year, its assets will be in the 100 billion euro range, opening new avenues for further expansion of sources of profitability.
According to Eurobank’s 6-month results, adjusted profits from abroad represented 38% of the group’s total figures. The goal of the strategy implemented by the CEO of Fokion Karavia in recent years is for this percentage to be in the region of 50% in the coming years.
New markets for Eurobank
It is recalled that the bank maintains, after its last transformation cycle, a systemic presence in three markets: Greece, Cyprus and Bulgaria.
At the same time, it is attempting to expand its operations in Asia. In this context, preparations are in full swing for the opening of representative offices in Mumbai and Dubai.
At a conference held in Athens the previous two days, Mr. Karavias referred to the goals set by Eurobank.
As he said, “Greece is Europe’s natural springboard to the East and, apart from ports, it must focus on the critical sectors of logistics and data centers”.
According to him, “in order for businesses to settle in a country they must be welcome and have local partners, especially in the financial sector.”
In this context, he noted, “Eurobank is leading efforts to create the financial services base for Indian businesses in Europe.”
It has already signed the first MOU to introduce UPI payments in Greece specifically for Indian users, while the bank will become the first Greek bank with a presence in India.
Mr. Karavias linked this initiative to the strong position that Eurobank has acquired in the Cypriot market.
As he explained, “Cyprus represented 3% of foreign direct investment inflows in India last year, while it is a privileged entry point to the EU for Indian companies. At the same time, it is a country with a rich ecosystem of professional services and UK-educated professionals and a financial system tailored to serve businesses.”
According to the CEO of Eurobank, “the bank has the resources and vision to become the main partner of the Indian business community in the new era of India’s economic relations with Europe”.
Hellenic Bank
It is recalled that the Greek group is significantly strengthened after the acquisition of Hellenic Bank of Cyprus, as it acquires an arm with high market shares in retail banking, which complements Eurobank Cyprus, which is active in business credit.
The figures of the Cypriot subsidiary will be integrated into Eurobank’s financial results from the third quarter of 2024, which will be announced in November.
The positive effect of this integration will be presented in detail at the beginning of next year in the new three-year business plan 2025-2027.
The aim of Eurobank is the absorption of Hellenic Bank. In order to take such a decision, however, all the shareholders of the latter must consent, a condition that is currently not satisfied, as the minority disagrees with this perspective.
Regardless of this development, management control has already passed to the Greek group. In this context, at tomorrow’s general meeting of Hellenic Bank shareholders, new management will be appointed.
According to information, the current CEO of Eurobank Cyprus, Michalis Louis, will be appointed CEO, who will be flanked by Haris Hamakis, currently CEO of Eurobank Private Bank Luxembourg and Stefanos Kassianidis, currently general manager of Eurobank Cyprus.
These changes will also affect the management of the latter, in which Andreas Petsas, until now its senior general manager, is expected to be appointed CEO.
The prospects
According to analysts, regardless of how quickly the merger will proceed in Cyprus, Hellenic Bank will strengthen its figures, due to its participation in the Eurobank group. Specifically:
– There is room to increase net interest income through an acceleration of credit expansion
– It is possible to significantly increase the income from commissions, with the development of operations in the fields of bancassurance and wealth management, utilizing the existing clientele of the Cypriot bank
– Profits will come from reducing costs, both operating and interest expenses through cheaper bond issues.
Source: ot.gr
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