Hellenic Bank's voluntary exit scheme did not meet the informal target set by management, as the application deadline closed on Tuesday at 3 p.m. A total of 150 to 160 employees opted for the scheme, with many submitting their applications at the last moment.

Most of the employees who accepted the offer are between the ages of 55 and 60, qualifying them for the maximum tax-free compensation of €200,000. However, the bank had initially set an informal target of 250 to 300 employees for the scheme.

A source within Hellenic Bank told Brief that, given the circumstances, “the final number of participants is satisfactory.”

From the outset, the bank’s management was cautious in its expectations. Last year, 450 employees left under a similar voluntary exit scheme, significantly reducing the workforce. Additionally, many employees considered the fact that Hellenic Bank’s new owner, Eurobank, is a large and reputable banking group, providing stability and long-term prospects for the institution.

Between 2013 and the appointment of interim CEO Antonis Rouvas, the bank experienced internal conflicts, frequent leadership changes, and labor disputes, creating uncertainty among staff. Hellenic Bank was seen as an "active volcano," causing anxiety among employees. However, today, the bank operates in a more stable and structured environment, with a cohesive leadership team and a clear vision.

Given these improvements, why would an employee choose to leave early, even with the maximum tax-free compensation of €200,000?

Despite the restructuring efforts, rising labor costs remain a significant concern for Hellenic Bank’s management. Every year, labor costs increase by approximately 5%, primarily due to across-the-board salary adjustments. The renewal of the banking sector’s collective agreement is expected later this year, further increasing labor expenses. Like Hellenic Bank, Eurobank and other banks that negotiate collective agreements with ETYK are facing the same challenge.

Given these factors, it is possible that Hellenic Bank may offer another voluntary exit scheme before its merger with Eurobank and before new tax reforms are approved by Parliament later this year.

The tax reform is expected to include the abolition of tax exemptions on lump-sum compensations, making early retirement schemes less attractive.

Under the terms of the voluntary exit scheme, Hellenic Bank retains the right to reject an employee’s departure if they are deemed essential to the organization. The bank finalized the evaluation of the exit applications on Tuesday night, with no indications that it intends to block any employee from leaving.

Today, Hellenic Bank will inform regulatory authorities, the Cyprus Stock Exchange, and the Cyprus Securities and Exchange Commission, providing full details on the scheme’s outcome.

Following the merger with Eurobank, which will make Hellenic Bank fully owned by the Greek banking group, the new management is expected to implement a comprehensive restructuring of the bank’s organizational structure.

The legal merger will take place first, followed by the operational integration, which will include the unification of banking systems and staff. Currently, Hellenic Bank employs around 2,000 employees, while Eurobank Cyprus has approximately 500 employees.