The integration of HSBC Malta is set to be a defining milestone for CrediaBank‘s future growth prospects — and, for the first time, opens the door for management to consider distributing dividends to shareholders. Regulatory approvals from the ECB for the completion of the transaction are expected in Q4 of this year, while the full integration of HSBC Malta is anticipated by Q2 2027.
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A strategic move
The strategic soundness of acquiring HSBC Malta was extensively highlighted by CrediaBank CEO Eleni Vrettou during the presentation of H1 results last week. As a reminder, CrediaBank agreed to acquire a 70% stake in HSBC Malta for a fixed price of €200 million. As a result, the current estimated negative goodwill (badwill) stands at €238 million, excluding the positive impact of the purchase price allocation (PPA) process. CrediaBank’s entry into the Maltese market expands the Group’s geographical footprint and will further diversify CrediaBank’s business model, establishing a strong regional banking institution.
HSBC Malta boasts a strong capital position, ample liquidity, high asset quality, and further profitability growth potential. The bank’s recurring pre-tax profit came in at €51.7 million, compared to €58.7 million in H1 2025, negatively impacted by a lower interest rate environment and reduced income from non-core and other activities. Provision reversals, driven by continued improvement in asset quality, partially offset the lower revenues.
Net loans stood at €2.7 billion, down by just €67 million from the start of the year, with non-performing exposures (NPEs) declining by 6% to historically low levels (2.3%). Customer deposits were at €6.2 billion, unchanged year-on-year, with ample liquidity reflected in a loan-to-deposit ratio of just 43%. Capital ratios remained robust, well above regulatory thresholds, with the CET1 ratio at 24.7% (+60 basis points from the start of the year) and the total capital ratio at 27.8% (+70 basis points from the start of the year).
Doubling in size
With the acquisition of HSBC Malta, CrediaBank effectively doubles its size, forming a systemic banking institution with total assets of approximately €17.5 billion (€9.6 billion from CrediaBank and €7.9 billion from HSBC Malta) and a combined workforce of 2,146 employees (1,223 from CrediaBank and 923 from HSBC Malta), while significantly boosting its profitability. On a combined basis, using H1 2026 end-figures, the institution reports pre-tax profit of €92 million, pre-provision income of €92 million, operating income of €234 million, customer loans of €7.9 billion, customer deposits of €13.8 billion, a net interest margin of 2.2% for CrediaBank and 2.1% for HSBC Malta, a cost-to-income ratio of 59% and 56% respectively, a loan-to-deposit ratio of 69% and 43% respectively, and an NPE ratio of 2.4% and 2.3% with corresponding provision coverage ratios of 57% and 43%.
The Maltese economy continues to grow at a strong pace (3.9% in Q1 2026), despite geopolitical tensions, with full-year forecasts pointing to a significant outperformance versus the Eurozone average growth rate for 2026 as well (3.7% vs. 1.1% for the Eurozone). Meanwhile, the bank’s key fundamentals and overall attractiveness remain intact: the CET1 capital ratio was further strengthened to 24.7% (+60 bps vs. 2025), with the total capital adequacy ratio at a very robust 27.8% (+70 bps); liquidity remains strong (loan-to-deposit ratio of 43%); asset quality improved further (NPE ratio of 2.3%); and recurring pre-tax profit remained satisfactory at €51.7 million.
Originally published in the newspaper “Apogevmatini.”
