ATHENS – Pancreta Bank signed an agreement with HSBC Continental Europe (HSBC) in principle for the acquisition of the operations of the Greek branches of HSBC, which practically means that the foundations are being laid for the creation of a new banking pillar in Greece.

The completion of the transaction is subject to the approval of the Bank of Greece and the Competition Commission.

According to the terms of the agreement, upon completion of the transaction, it is expected that all assets and liabilities, human resources and the network of 15 HSBC branches in Greece will be transferred to Pancreta Bank SA. A relevant announcement was issued by HSBC Continental Europe.

In the context of the transaction, and as the agreement provides for the retention of HSBC staff, Pancreta has the opportunity to strengthen its potential with new high-level executives by opening up to markets that until recently had a limited presence.

The agreement envisages with the network of 15 HSBC branches in Greece, the transfer of assets amounting to approximately 1.9 billion euros, deposits amounting to approximately 1.7 billion, loans of around EUR 500 million and also EUR 500 million in bonds.

This transaction, in view of the merger of Pancreta with the Bank of Chania – the relevant procedures are proceeding smoothly, makes the new bank a new strong pillar in the sector with 5 billion euros of assets.

At the same time, Pancreta is advancing its business plan and procedures for the share capital increase, which will exceed 100 million euros and will be completed within the second quarter of the year.

The official announcements

Pancreta Bank issued a statement that said: “Initially, the Pancreta Bank signed an agreement for the acquisition of the operations of the Greek branch of HSBC with HSBC Continental Europe (HSBC).

The completion of the transaction is subject to the approval of the Bank of Greece and the Competition Commission.

According to the terms of the agreement, upon completion of the transaction, it is expected that all assets and liabilities, human resources and the network of 15 HSBC branches in Greece will be transferred to Pancretan Bank SA.

It is noted that the HSBC network is completely complementary to the presence of Pancreta in Athens, which in this way is strengthened.

The capital adequacy ratios of Pancreta Bank are estimated to strengthen significantly after the transaction, as well as further with the planned share capital increase of Pancreta that is expected to take place in the 2nd quarter of this year.

The parties estimate that the transaction is expected to be completed within the first half of 2023.”

HSBC issued a separate statement that said: “HSBC Continental Europe (‘HBCE’), an indirect subsidiary of HSBC Holdings plc, announces that it has reached an in-principle agreement to sell its branch operations in Greece (‘HSBC Continental Europe, Greece’) to Pancreta Bank SA subject to HBCE’s information and consultation process with its unions and works councils. Completion of the potential transaction would be subject to regulatory approval.”