HSBC Bank Malta p.l.c. has announced that HSBC Holdings plc on Tuesday evening informed the Board of Directors that it will undertake a strategic review of its indirect 70.03% shareholding in the Bank.
The Bank said that it recognises the important role it plays in Malta’s economy and society and is making this announcement in line with its market obligations, and to support the smooth functioning of the public market.
The Bank said that it will make further announcements as and when required.
HSBC Chief Financial Officer Georges Elhedery in May 2023 told Reuters that the bank was reviewing a possible exit from as many as 1 in 5 of the countries the lender operates in to sharpen its focus on Asian expansion.
But last January, The Times of Malta had reported that HSBC Malta CEO Geoffrey Fichte brushed aside rumours of the bank’s departure from Malta. “I could speak until I’m blue in the face but you just need to look at what we’re doing in Malta”, Geoffrey Fichte told the newspaper. He had, among other things, pointed to the bank’s €30 million investment in its new headquarters as an example of the company’s long-term commitment.
HSBC had bought 70.03% of Mid-Med Bank in 1999.
The Malta Independent sent questions to HSBC Malta, asking for information as to the bank’s intentions behind this strategic review of its shareholding, and whether it is considering selling part of its shareholding, or all of it.
In response, an HSBC Malta spokesperson said: “HSBC Group is reviewing its strategic options with respect to its majority shareholding in HSBC Malta. The review will consider a full range of options and no decisions have been made yet. It is business as usual for HSBC Malta and our focus will continue to be to serve our customers to the highest standards.”
The Times of Malta quoted inside sources as saying that APS bank is in advanced negotiations to take over HSBC’s Malta operations, and that negotiations between HSBC Global and APS have been underway for years.