Bank of Georgia revealed as new bidder for HSBC Malta
The takeover is now a race between two Eastern European banks, although sources say neither is likely to succeed
Bank of Georgia has emerged as the latest bidder for HSBC’s Malta operations, Times of Malta has confirmed.
The Tbilisi-based bank is the banking arm of Lion Finance Group, a UK-incorporated holding company.
The bid was first reported by bne IntelliNews on Tuesday, saying the bank’s links to Belarus could raise concerns among Maltese and European regulators.
The news comes after several other prospective bidders fell by the wayside, leaving a two-horse race between the Bank of Georgia and Armenian bank Ardshinbank, which formally announced its bid last week in an exclusive interview with Times of Malta.
However, sources close to the deal say neither is likely to secure a deal, albeit for different reasons.
Ardshinbank's bid has reportedly raised concerns over the owner’s past links to Russia, together with conflict of interest fears linked to the bank’s appointment of a former HSBC top director as a key advisor on the deal.
Ardshinbank has denied both claims, telling Times of Malta that its owner has cut ties with Russia, while dismissing conflict-of-interest concerns as “total speculation”. The bank had described itself as “quite confident” of its chances of success.
Meanwhile, sources say HSBC is unlikely to favour Bank of Georgia’s bid, as it is lower than other offers.
Other prospective contenders are believed to now be out of the running.
Sources say a bid by a local consortium of businesses was never considered a serious contender, while a bank that had previously teamed up with German fintech company RS2 quickly backed out of the race after initially exploring a bid. Local bank APS and Hungarian bank OTP also backed out after showing interest.
Protracted negotiations are 'a challenge': HSBC Malta CEO
Questions remain over the protracted negotiations, with HSBC Malta CEO Geoffrey Fichte on Wednesday admitting that they represent “a challenge”.
HSBC’s plans to exit Malta were first announced in September 2024, with the sale now entering its 11th month.
Sources initially suggested that the bank would likely identify its preferred bidder by the time summer kicked in, but negotiations have dragged on as a series of complications arose.
Fichte said that although the bank was “never given a timeline for the strategic review,” it was nonetheless “a challenge the longer the strategic review drags on”.
“Everyone agrees that it is in everyone’s best interest, shareholder and company, to conclude this as soon as possible,” Fichte added.
However, Fichte declined to comment on suggestions of a conflict of interest in Ardshinbank’s bid, saying he was unable to comment on press reports into the deal.
HSBC Malta records profits of €58.7m in first six months of 2025
Fichte was speaking at HSBC Malta’s announcement of its half-yearly results, in which its profits dropped to €58.7m for the first half of 2025, nearly €20m less than the same period last year.
Bank officials attributed this drop to several issues, including declining interest rates, a drop in revenue, and higher costs, with the bank increasing its staff costs in recent months.
The bank has also replaced three-quarters of its ATMs across the country in recent months, the bank said, adding that the remaining quarter would be replaced by the year’s end.
Despite a drop in profitability, the bank still recorded “a very positive set of results,” Fichte said.
The dip in profits will not translate in a lower dividend, the bank said, promising to pay dividends of 10 cents per share, identical to what was offered in the first half of 2024.
Dividends will be paid out on September 23, the bank said.