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The management of Hellenic Bank has set an ambitious goal for the new structure that will emerge in the coming months following its consolidation with Eurobank Cyprus, according to a report by Kathimerini's Panayiotis Rougalas.
Raising the bar to unprecedented heights, Hellenic Bank’s leadership has stated for the first time that their vision is to create the best bank ever to come out of Cyprus. By the end of May 2025, Hellenic will be fully owned by Eurobank S.A., and its CEO has emphasized that success hinges on its people. "If our executives do not embrace the vision of building Cyprus’ best bank, then the project will have failed," he said. "However, we know we have outstanding professionals, and by merging Hellenic with Eurobank Cyprus, we won’t just create the biggest bank—we will create the best."
Major Developments and Next Steps
During an update on Hellenic Bank’s progress on Wednesday, March 19, 2025, CEO Michael Louis outlined recent developments and upcoming steps. He revealed that on Tuesday, March 18, the bank secured approval to acquire CNP Insurance from Greece—a necessary move due to its small Greek branch. Final approval from the parent company in France is still pending.
Looking ahead, the expectation is that by early May, Eurobank S.A. will have completed its acquisition of Hellenic Bank, with the public offer already in progress. Meanwhile, Hellenic will proceed with regulatory approvals from the Central Bank of Cyprus and the European Central Bank for the legal merger with Eurobank Cyprus.
Mid-June and the 30-Month Timeline
While the bank's leadership acknowledges that some aspects of the merger are beyond their control, they anticipate receiving legal merger approvals by mid-June—marking the first phase of integration. The second phase, the operational merger, will begin immediately after legal approval to avoid unnecessary delays.
How long will the full process take? Hellenic’s management estimates that a properly executed merger should take around two to two-and-a-half years (30 months). When asked if that timeline was too long, they responded, "To get a merger right, that’s exactly how long it should take—it’s a completely reasonable timeframe."
Investing in Cyprus, Not Overseas Lending
Deputy CEO Haris Hambakis, alongside CEO Michael Louis, reaffirmed that the new banking entity will support the Cypriot economy while maintaining high standards of service and customer care. Both emphasized that substantial resources will be dedicated to ensuring this.
Addressing concerns that the new Eurobank-Hellenic structure might start lending Cypriot depositors’ money to markets like India, the Gulf, and Israel, Louis clarified that expansion plans do not involve overseas financing. Instead, the bank aims to leverage Cyprus' strategic advantages to attract foreign companies to establish headquarters in the country. "If these businesses later wish to expand into Europe, Cyprus can be their gateway," he explained.
One key opportunity, according to Louis, is India. "After Brexit, India is looking for a new business hub. We need to reach beyond Cyprus to bring new business in," he stressed.
Senior General Manager Stephanos Kassianidis added that success in foreign markets requires sustained effort. "For years, someone from Cyprus would go to India every 2-3 years to promote the country, but that approach doesn’t yield results. To attract businesses from India, the Gulf, and Israel, we need a consistent presence and regular engagement with business leaders there. As the saying goes, ‘one swallow does not make a spring.’"
The Cost of Representative Offices (RepOffices)
Regarding the establishment of representative offices (RepOffices) in foreign markets, management described the effort as "low risk and worthwhile." Maintaining a RepOffice in India, for example, would cost Eurobank approximately €1 million per year—an investment they believe carries no real downside.
A Seamless Merger Experience for Customers
When asked about the impact on customers, both the CEO and Deputy CEO reassured that the integration will be so smooth that clients won’t even notice the transition. "The merger will be so seamless that people won’t even realize the banks have become one," they remarked.
Could Cyprus’ GDP Benefit?
A final point of emphasis was Eurobank’s €1.3 billion investment in acquiring Hellenic Bank. Leaders noted that much of this capital has ended up in Cypriot hands, and if reinvested within the economy, it could even contribute to Cyprus' GDP growth.
With an ambitious vision, careful planning, and strategic international outreach, Hellenic Bank’s leadership is determined to set a new benchmark for banking in Cyprus.
