The extraordinary general assembly of Attica Bank SA shareholders, as widely expected, gave the ‘green light’ for the latter’s merger with Pancreta Bank S.A, on Tuesday. This development marks a decisive step towards the restructuring of both non-systemic banks and the creation of a so-called fifth banking pillar in Greece – as it’s been billed for the past year or so in a bid to play up its purported filip for competition in the sector.
Attica Bank CEO Eleni Vrettou described the merger as a historic move for the bank, one that is expected to shape its future.
Furthermore, she emphasized that after a challenging journey marked by weak balance sheets, the credit institutions’ shareholders now have the prospect of a more competitive bank, double in size, and with a high return on capital.
Without the problems of the past, such as non-performing loans, that burdened it, the new banking group aims to bring traditional banking to the forefront, focusing on its clients and financially supporting small and medium-sized businesses (SMEs).
Additionally, Vrettou stressed the significance of the initiative as it creates the 5th banking pillar in Greece, following the four systemic banks. She stated that the new entity will boost competition in the banking sector while it is set to expand its network across the country.
Regarding an upcoming share capital increase of 735 million euros, the bank CEO mentioned that the aim is for it to take place in October, highlighting that this move would contribute to the bank’s growth prospects, targeting a loan portfolio of 6 billion euros by 2027 and new disbursements of 2 billion euros annually.
The Bank of Greece (BoG) approved the merger between the two banks on Friday, August 30th. The merger is scheduled to finish in September, once the competent Authorities and the general assemblies of both banks are obtained.
