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Eurobank Group’s €1.3 billion investment in Hellenic Bank is set to reshape Cyprus' banking landscape, creating the country’s largest financial institution with total assets of €27.5 billion.
Eurobank Group Chairman George Zanias, speaking during the bank’s Board of Directors visit to Cyprus, described the acquisition as a strategic move to strengthen the group’s presence and support economic growth. “Expanding our footprint in Cyprus allows us to boost investment and entrepreneurship, ensuring sustainable development for Cypriot society,” he said.
In an article written by Eugenia Tzortzis, Hellenic Bank CEO Michael Louis echoed the sentiment, calling it the largest single investment in Cyprus' banking sector and a “strong vote of confidence” in the country’s economy. With Eurobank already controlling 93.47% of Hellenic Bank, the public offer to acquire the remaining shares closes on April 9, paving the way for a full merger with Eurobank Cyprus by late 2025.
The merger is expected to generate €120 million in synergies by 2027, driven by cost reductions, increased interest income, and higher revenue from insurance and asset management. Eurobank aims to grow its Cyprus loan portfolio by €1.7 billion over the next three years, further solidifying its dominance in the market.
Hellenic Bank reported €382.6 million in net profit last year, while Eurobank Cyprus posted €210 million. Cyprus’ contribution to Eurobank’s total profitability has surged to €592 million, accounting for nearly half of the group’s international earnings—a share projected to rise to 55% in the coming years.
With regulatory approvals pending and an operational merger planned within two years, the newly formed banking powerhouse aims to enhance stability, transparency, and resilience—while positioning Cyprus as a key international financial hub.
Meanwhile, three members of Hellenic Bank’s Board of Directors—Miranda Xafa, Stephen John Albutt, and Antonis Rouvas—have submitted their resignations, which will take effect once the transfer of Eurobank Cyprus’ banking operations to Hellenic Bank is complete.
Rouvas, however, will remain in his role as the bank’s Chief Financial Officer. This follows the Board’s decision on March 27, 2025, to move forward with the merger between Hellenic Bank and Eurobank.
