CrediaBank will double its size and acquire systemic bank status following the completion of its HSBC Malta acquisition in Q1 2027. After consolidating HSBC Malta, CrediaBank will evolve into a banking group with €16.4 billion in assets and €13.3 billion in deposits. With loans of €2.8 billion and deposits of €6.5 billion as of December 31, 2025, HSBC Malta recorded pre-tax profits of €109 million in 2025, while the loan-to-deposit ratio reached 42% and the CET1 ratio stood at the remarkably high level of 24.1%. HSBC Malta is the 2nd largest by total assets in Malta, with a strong capital position (24.1% CET1 ratio), low funding costs (approximately 0.4% cost of capital), an established wealth management division, and growth prospects in bancassurance products. It has a stable, high-quality customer base with significant untapped potential and high market share (13%) in loans (16.7% in retail loans, 23% in mortgages, and 3.9% in consumer credit), 15.1% in customer deposits, and 9.9% in corporate deposits.
Read more: CrediaBank: Operating profits €82.5 million in 2025 – Net credit expansion reaches €1.1 billion
CrediaBank: The transformation program
Credia’s positioning in the Malta market represents a strategic masterstroke by CEO Eleni Vrettou’s management, and completing this transaction will be the main project for the current year. In Malta, aligned with its core strategic pillars, CrediaBank’s strategy focuses primarily on leveraging commercial banking opportunities and accelerating retail banking development and fee income sources. Specifically, in the wholesale sector, CrediaBank identifies significant development opportunities in underserved areas such as real estate and construction, wholesale and retail trade, as well as hospitality, food services, and recreational activities. By strategically focusing on currently underserved sectors, HSBC Malta could increase its current market share to the average market share (approximately 17.5%), unlocking over €400 million in new lending. In retail banking, CrediaBank aims to introduce significant value enhancers such as greater product flexibility, simpler and faster lending processes, digital solutions, services for young people and professionals, and other innovative services.
As CEO Eleni Vrettou stated yesterday during the investor briefing, the CrediaBank Group is in an advantageous position to capitalize on structural and business opportunities in both Greece and Malta, while synergies are expected to include parallel utilization of products and expertise, funding synergies, and operational cost optimization. CrediaBank has set strategic priorities for Malta in both Wealth & Personal Banking and Commercial Banking sectors.
With the share capital increase up to €300 million that CrediaBank intends to proceed with (an extraordinary general meeting of shareholders is convened on March 16 to grant relevant authorizations to management) and negative goodwill of €0.2 billion from the HSBC Malta acquisition to be implemented in Q1 2027, Credia’s targets for net loans are above €11 billion medium-term and above €14 billion long-term, with average annual net growth in mid-teens levels, NPE ratio below 2.7%, net loan-to-deposit ratio approximately 70% medium-term and 75% long-term, tangible book value above €1.3 billion and above €1.9 billion respectively, net interest margin approximately 2.8% and 3%, total income growth on annual basis in mid-teens levels, recurring cost-to-income ratio 40%-50% medium-term and 30%-40% long-term, cost of risk approximately 30 basis points, recurring net profit above €225 million and €325 million respectively, and recurring return on equity above 17% and 18%.
CrediaBank is simultaneously implementing a transformation program that in its next phase targets: Increasing digital adoption above 20%, increasing productivity (per full-time employee) greater than 8%-12%, reducing process cycle time above 10%-15%, reducing operational process costs above 5%-10%, reducing manual work through automation above 15%-20%, and reducing decision-making guidance time above 10%.
