Ambitious bank merger targets
The bank that will result from the merger of Attica Bank and Pancreta Bank is aiming at becoming a strong fifth pole in Greek banking, besides the current “big four” (Alpha, Eurobank, National, Piraeus).
Management has set ambitious goals: returning to profitability in 2025 after cleaning up its bad loans and taking the losses resulting from securitization; distributing a dividend as soon as 2028; and attaining 9% in share of new loans, nearly doubling its combined loan portfolio.
The combined bank’s management – Attica will actually absorb Pancreta – sees an opportunity in financing small and very small enterprises.
Management expects the merged bank to turn a profit of €80 million in 2025 and triple it by 2028. Dividend will rise fast to reach €800 million by 2034, allowing the Financial Stability Fund to begin recouping its investments.
Profit growth will be achieved partly by taking advantage of the merger to close excess branches and reduce the number of personnel, initially through people taking voluntary redundancy or retirement.
The merger is set to be approved at an Attica shareholders meeting on September 3.
