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August 30 2025 12:49:36 by PCLMedia
 
Malta’s banking sector is bracing for a downgrade in reputation and strength as HSBC Malta prepares to be taken over by Greece’s CrediaBank SA, formerly known as Attica Bank.

Industry experts warn that the Greek lender—while the sixth-largest in Greece—lacks the global stature and influence that HSBC has long brought to Malta. HSBC, a powerhouse in international banking, has been present on the island for decades but has been seeking an exit from the small market amid growing reputational pressures. Malta’s greylisting in 2021 only reinforced HSBC’s decision to withdraw.

Efforts to secure an international buyer were met with hurdles. An initial deal with APS, a much smaller Maltese church-owned bank, was blocked by Finance Minister Clyde Caruana, despite earlier approval from Prime Minister Robert Abela. A separate bid by a consortium of Maltese and foreign investors was also rejected, with government officials preferring to open the door to a foreign institution.

CrediaBank ultimately emerged as the government’s preferred choice, backed by the Finance Ministry. Founded in 1925, the bank has a turbulent history marked by bailouts and state intervention. Its largest shareholder today is Thrivest Holdings Ltd, controlled by Greek shipping magnates Dimitris Bakos, Yiannis Kaimenakis, and Alexandros Exarchou. Thrivest’s involvement in recent years has reshaped the institution, steering it through a €735 million recapitalisation in 2024 and overseeing the merger of Pancretan Bank into Attica, which was then rebranded as CrediaBank SA.

Currently, Thrivest holds around 54.6% of the bank, while the Greek state retains the rest through the Hellenic Financial Stability Fund. Since its restructuring, CrediaBank has improved its financial standing, cutting down non-performing loans with government support. Moody’s upgraded its credit rating to B1 in March 2024, signalling progress but still well below HSBC Malta’s A3 rating and global standing.

HSBC Malta, with assets of €7.6 billion and a stable outlook from Moody’s, represents one of the strongest banking presences in Malta. The contrast with CrediaBank highlights the concerns over reputational decline following the takeover.

Despite these worries, CrediaBank CEO Eleni Vrettou has pledged job security. She confirmed that all 900 HSBC Malta employees, along with the existing management team, would remain in place after the acquisition. She further outlined plans to expand the workforce by insourcing operations that HSBC previously handled abroad—potentially creating up to 2,000 new roles between Malta and Greece.

These guarantees, valid for two years after the deal is signed, are reported to safeguard staff salaries, benefits, and pensions. Existing union agreements will also remain in force. The Malta Union of Bank Employees (MUBE) has responded cautiously, promising to work closely with both banks to protect employees during the transition.

Finance Minister Clyde Caruana announced last week that CrediaBank’s operations in Malta are expected to begin early next year. The Malta Financial Services Authority (MFSA) and the European Central Bank will carry out an eight-month due diligence process before final approval.
 

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