HSBC’s strategic review process “is at an early stage” and will “consider a range of options”, the company said in a new announcement published on Thursday afternoon.
The company was following up on an earlier statement published on Wednesday morning in which it declared that it would be carrying out a strategic review of its 70.03% shareholding in the bank.
Wednesday’s announcement appeared to confirm long-held suspicions that the bank was looking to exit Malta, much in the same way it had shuttered its doors across various other European countries in recent years.
Inside sources told Times of Malta that the bank’s global shareholders were in advanced negotiations to sell its shares to APS, with the two parties reportedly already in agreement over various elements of the deal, including its price.
A second company statement published late on Wednesday night, reacted to these reports, with HSBC Malta saying that "it is not aware of any such negotiations taking place between the majority shareholder and APS Bank p.l.c. or any other third party but has requested clarification of the position from its majority shareholder"
But in a statement on Thursday afternoon, HSBC Malta confirmed that having consulted with its majority shareholder, all options are on the table but insists that “no decisions have been made”.
APS ‘takes note’ of HSBC’s review
Meanwhile, in a separate announcement reacting to media reports, APS said that it is “taking note” of HSBC’s decision to undertake a strategic review.
The bank 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”.
APS pledged to “keep the market informed through company announcements”.
Major international bank should replace HSBC: PN
Meanwhile, in comments to Times of Malta, PN shadow finance minister Graham Bencini said that if HSBC were to leave, they should be replaced by an international bank of similar stature, rather than by a local operator.
Bencini said that “should the rumours of a potential exit of HSBC be true, then we certainly hope that the government will immediately attract to our shores other major international banks of the calibre of HSBC”.
According to Bencini, practitioners within the financial services industry are concerned about the impact that HSBC’s departure could have on “our financial service industry, our economy and on our ability to continue attracting Foreign Direct Investment”.
Bencini said that while reports of the deal remain unconfirmed, “the uncertainty is certainly not beneficial”.
If HSBC were to leave, Bencini said, PN would be insisting with the relevant authorities that “employment rights, shareholder and consumer interests, together with the interest of our national banking sector, must be protected and looked after by whoever will be acquiring HSBC”.