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According to Kathimerini's Panayiotis Rougalas, Michalis Louis, in his first interview since becoming CEO of Hellenic Bank, discussed the challenges and opportunities ahead, especially in the context of the bank’s merger plans and its strategies for growth. Louis highlighted the importance of merging the diverse cultures from the Hellenic Bank and Co-operative Bank backgrounds. He emphasized that the success of this process depends on fostering trust, collaboration, and a balanced working environment. A key part of this effort is the recent agreement to acquire the 12.48% stake held by ETYK, signaling strong commitment to employee engagement. Louis stressed that aligning the staff’s interests with the bank’s vision is vital for long-term success, noting the recent renewal of a collective agreement with ETYK as a significant milestone.
Turning to the merger of Hellenic Bank and Eurobank Cyprus, Louis outlined a timeline for the full integration, which is set to begin in the third quarter of 2025. Eurobank’s investment of nearly €1.3 billion, making it the largest cash investment in Cyprus, will result in the combined bank becoming the largest financial institution in the country. Louis emphasized that the merger would create a powerful base for Eurobank’s expansion into broader European and international markets. This investment also benefits the Cypriot economy by ensuring liquidity and creating new growth opportunities, with more than €800 million being injected into the Cypriot market as part of the merger.
Addressing concerns about liquidity, Louis explained that Hellenic Bank has increased its liquidity but is cautious about channeling it solely into the local market due to geopolitical and economic risks. The bank is exploring new avenues for growth, such as entering the international syndicated loan market. In early 2025, the bank will present a comprehensive business plan with specific synergies, projecting a target of €120 million in synergies over the next three years, with a third of that expected to materialize in 2025 alone.
On the topic of dividends, Louis acknowledged that Hellenic Bank’s profitability is impressive, but the distribution of dividends is subject to strict supervisory approval. The bank is focused on maintaining its capital strength and ensuring all conditions are met before distributing any dividends. He reassured that once the bank's capital base is sufficiently fortified, dividends will be possible, but the priority is always the bank’s long-term viability.
Lastly, Louis addressed the potential impact of the ECB's easing monetary policy on the bank’s profitability. He outlined a strategy to boost profitability by diversifying revenue streams. This includes growing assets under management, expanding bancassurance services, and cautiously exploring the real estate market. Additionally, the bank is seeking new partnerships with fast-growing markets such as Saudi Arabia, the UAE, and India, positioning Cyprus as a regional hub for development.
Louis concluded by acknowledging the challenges of rising living costs in Cyprus but emphasized that the bank’s strong capital base, liquidity, and provisions will allow it to navigate any risks related to loan servicing. The bank, he assured, is better prepared to handle potential economic setbacks than it was during previous crises.
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