Eurobank has made significant strides in its investment in the Cypriot banking sector, particularly with its ongoing acquisition of Hellenic Bank. That business move may prove not be the last one by the Greek lender in Cyprus.
By the end of 2024, Eurobank’s total investment in Cyprus is expected to surpass 1.1 billion euros, with a final figure of around €1.2 billion when it acquires the remaining 6.53% of Hellenic Bank by February 2025. This acquisition has turned out to be more expensive than initially planned, but it signals a growing belief in the value of Hellenic Bank and Cyprus’ economy.
Looking ahead, Eurobank’s stake in Hellenic Bank might be just the beginning. The bank now has significant funds to pursue more investments in the local market. Specifically, Eurobank could potentially use these funds to increase its influence in Bank of Cyprus (BoC), which is valued at around €2 billion.
With nearly half a billion euros available, Eurobank could purchase up to 10% of BoC without requiring special regulatory approvals, raising speculation that further acquisitions in Cypriot banking may be on the horizon.