The process of merging the two largest banks in Cyprus - Hellenic Bank and Eurobank Cyprus - has reached the finishing line.
On Wednesday 21 May, Hellenic Bank CEO Michalis Luis announced that Eurobank Cyprus has acquired 98% of Hellenic Bank's shares. The remaining stake is expected to be in the hands of the new owner at the beginning of July 2025.
After the merger, the two commercial banks will operate under a single Eurobank brand. According to the consultancy's research, this name was chosen as the most recognisable and in line with the group's development strategy. Although the Hellenic Bank name will disappear, the structure itself will continue to operate, but as a single entity with Eurobank. Hellenic Bank customers will have access to a wider network of services and more advanced digital solutions. No abrupt changes are expected for them - the transition will be smooth and gradual.
In particular, the legal merger of structures will take place first, followed by the operational integration, which includes the merger of IT systems, internal structure and customer service. Preliminary estimates suggest that this process could take two to two and a half years.
Our goal is to create a strong, competitive financial institution that will contribute to the development of the economy and provide high quality services to customers," Luis stressed.
Hellenic Bank was founded in 1976 and was previously the second largest bank in the country in terms of assets. Eurobank Cyprus has been operating in the market since 2007 and is part of the Greek banking group Eurobank.
Eurobank first announced its intention to acquire a controlling stake in Eurobank in September 2023, shortly after signing successive agreements with strategic shareholders Poppy S.à rl (Pimco), Senvest Management LLC and Wargaming Group, resulting in the acquisition of a 26% stake in Hellenic Bank.
A subsidiary of Greece's Eurobank SA and the island's third largest banking institution, it joined Hellenic Bank's shareholders in June 2021 when it bought a 12.6% stake from fund manager Third Point Hellenic Recovery Fund. This was followed by a deal with Wargaming. As a result, 13.4% went to Eurobank. The financial institution became Hellenic's largest shareholder and added a further 3.2% by effectively buying out Senvest Management LLC for €16.74 million. At the end of August, Wargaming announced its decision to sell its remaining 6.8% stake in Hellenic to Eurobank in a deal worth €65.9 million. Following approval from the ECB, Eurobank acquired a further tranche of shares from Demetra, Logicom and Etyk. This increased its assets to 98%.
The merger of two large financial institutions is not just a rebranding exercise, but a step towards creating a powerful player in the Cypriot financial market. Although full integration will take several years, customers and investors will benefit from more reliable service, enhanced digital capabilities and greater financial stability.