Attica Bank

The time is approaching for the share capital increase of Attica Bank, whose management this week expects DBRS Morningstar's evaluation of its bad-loan portfolio so that it can be included in the "Hercules 3″ bonds program of the state.

The streamlining of Attica Bank and its merger with Pancreta Bank will require a new share capital increase, which according to information will possibly even reach 600 million euros.

The Hellenic Financial Stability Fund (HFSF) is one step before the complete divestment from Greece's four systemic banks, after the successful sale of all the shares it owned in Piraeus Bank.

The year of 2023 was a landmark for Attica Bank, marking the lender's consolidation, recovery and return to operating profitability after a long glut, according to a statement issued by the bank on Thursday.

The issues of the Hellenic Financial Stability Fund's divestment from Greek banks and the expansion of the Hercules program were at the center of the meeting held this week by Minister of National Economy Kostis Hatzidakis with the Hellenic Bank Association.

The new Hercules program will include three pending securitizations amounting to 3 billion euros.

Attica Bank on Thursday announced its return to profitability, with pre-provision operating profits totaling 500,000 euros in the first quarter of 2023, from a loss of €4.9 million in the same period last year.

The Hellenic Financial Stability Fund (HFSF), Thrivest and Pancreta Bank pledged to participate in a share capital increase plan by Attica Bank worth up to 393 million euros as part of a merger deal, Attica Bank said in an announcement. 

The creation of Greece's fifth largest bank, which would be near the level of the four systemic lenders, will likely get closer this week with the signing of a memorandum of understanding by Thrivest and the shareholders of Attica Bank regarding the participation of the former in the lender.

Attica Bank is heading towards transitional nationalization, as the process of implementing the law on deferred taxation has started, after the losses it recorded in the fiscal year 2020.

Prominent Greek banker Giorgos Michelis, who was appointed as Chairman of the Board of Attica Bank in late March, died on Saturday at the age of 69.

Michelis had many years of banking experience having served as CEO of Bancpost, a subsidiary of Greece's Eurobank in Romania, general manager of Emporiki Bank and executive vice president and chief operating officer at Egnatia Bank.