Contrary to what many have suggested, the possibility of APS Bank acquiring HSBC Malta is “far from being a done deal,” Archbishop Charles J. Scicluna said on Friday as he spoke publicly for the first time on the controversy.
“Any decision taken will be based on facts, not speculation,” he insisted as he addressed the Diocesan Assembly gathered in Birkirkara.
Last September Times of Malta reported that negotiations between APS and HSBC’s global shareholders had been underway for several years, ever since it became apparent that HSBC Malta was looking to wind down its operations.
HSBC Malta reacted by saying it did not know of any such talks, but in a public announcement confirmed it was carrying out a strategic review and was considering “a range of options.”
On its part APS did not deny or confirm its intention to buy out HSBC Malta’s operations, simply saying that “all its actions and dealings are invariably guided by the highest standards of good governance and due regard of its various regulatory obligations, including the respect for confidentiality”.
Such statements were followed by a flurry of opinions mostly criticising the Church’s interest, as APS majority shareholder, in acquiring one of Malta’s largest banks.
But Michael Pace Ross, the Curia’s administrative secretary, intervened in early October telling Times of Malta that the Catholic Church planned to continue “retreating” from Malta’s banking industry by diluting its shareholding further.
On Friday, the Archbishop called for "sincere dialogue" only after all necessary information is officially available, ensuring any decision reflects the principles of ethical and responsible stewardship.
While the Church has progressively reduced its shareholding, it continues to play a role in the bank's management and direction, he said.
“APS has operated ethically and without controversy for 50 years,” the Archbishop remarked.
Mgr Scicluna said that the Archdiocese has always acted prudently in its management of APS, including promoting its ethical banking reputation and reducing its influence over the bank without undermining its investment.
He assured stakeholders that the discernment process within the Church is both collegial and structured, involving the Diocesan Finance Committee and the Diocesan Representative Council.
Mgr Scicluna highlighted the Church's unique responsibility to society, warning that if the Church were to abandon its charitable mission in favour of profit-driven enterprises, it would risk losing its relevance and failing its role to the People of God.
He acknowledged the debate, reminding the public of the Archdiocese's legal obligation, as the bank’s largest shareholder, to refrain from making comments that could influence the financial market.
“This is the law, and we must abide by it,” he said.
Tracing APS Bank's origins, the Archbishop noted that the institution was not established by the Church but was inherited in 1947 from the Unione Cattolica San Giuseppe.
Over the decades, APS evolved into a publicly listed entity on the Malta Stock Exchange, adhering to strict regulatory frameworks, he said.
Scicluna concluded by reaffirming his commitment to ensuring that any decisions made regarding APS’s future will prioritise the common good, the bank’s ethical legacy, and the Church’s mission.
However, he stressed that these decisions must be guided by verified information and conducted in dialogue with all stakeholders.