2024-09-04 00:40:30
“Today, we are called upon to take one of the most important decisions in the history of our bank, a decision that will shape our future and strengthen our position in the Greek economy,” Attica Bank CEO Eleni Vrettou said during the extraordinary general meeting meeting that marks the definitive turning of the page for the Bank, creating a new healthy, dynamic and competitive banking organization through the merger with Pankritia Bank”
“After a multi-year, long-suffering course characterized by strong fluctuations, instability, depreciation and weak balance sheets and anxiety about the viability and security of the depositors of both Banks, today we decide to put all of this behind us for good,” stressed Ms. Vretto. .
“However, this merger is not just a step to clean up the two Banks. It embodies our vision and the commitment of our shareholders – in and through the Shareholders Agreement approved by the Hellenic Parliament – for a new banking proposal that will boost competition and give citizens and businesses an alternative choice. A new, powerful financial institution, doubled in size, with healthy balance sheet, high return on equity, able to meet the challenges of the future and better serve the needs of the market, targeting small and medium-sized enterprises and individuals” also noted.
And keep going
“As provided for in the Shareholders’ Agreement, the merger of Attica Bank with Pankritia Bank takes place by absorption of the latter, but let me say that this is a formal, technical detail.”
“It is a comprehensive strategy of bringing together two roughly equal Banks to jointly create something that they could not do alone. With the support of the Financial Stability Fund (HFS) and Thrivest Holding Ltd, as well as our other shareholders EFKA and TMEDE, we are able to proceed with the necessary capital support, ensuring that our new business plan will be successfully implemented.
Below 3%, bad loans will be limited
This deal makes it possible for the Non-Serviced Exposures of the two banks to be included in “Hercules III”, so that the relative index is limited to levels below 3% for the joint bank, bringing about a substantial consolidation in its balance sheet. A key point for the next, new page of the healthy bank is its recapitalization through a new Share Capital Increase and issuance of acquisition securities, in October, amounting to 735 million euros.
The capital aid aims not only to cover the losses resulting from the consolidation of bad loans through the Heracles III scheme. In addition,seeks adequate funds for restructuring and operational transformation costs of consolidation, funds for new investments both in our physical stores, modernizing them, but and in new technologies and new products, and most importantly: funds for development, to be able to give additional loans at a faster rate. We want through the merger and consolidation to fully restore and consolidate the trust of our customers.
The significance of the Attica Bank – Pankritia Bank merger is multidimensional. It will be created the fifth largest financial institution in the country, after the four systemic banks.
Combining the assets, customers, branches and staff of the two banks will significantly strengthen our competitiveness and allow us to expand our network throughout Greece. The new bank, at the end of 2024 – we estimate that it will have total assets of 10 billion euros. Our goal is for loans to reach 7.6 billion euros in 2027, with significantly higher revenues by approximately 20% compared to the sum of the revenues of the two banks”, concluded Mrs. Vretto.