‘We had the resources to complete HSBC Malta acquisition’ – APS CEO

APS Bank had the necessary resources and capital to acquire HSBC Malta but chose to step back out of prudence, the bank’s CEO has said.

APS pulled out of the deal to acquire its competitor back in April, after being the only bidder to have formally confirmed its interest in acquiring HSBC Continental Europe’s 70.03% stake in HSBC Malta at the time. The bank will now be sold to Greek bank CrediaBank for €200 million.

In an interview with The Corporate Times, Marcel Cassar said that exiting the deal, which the bank had been working on since 2022, was a painful choice.

“We were very advanced in our due diligence, but the conditions were not aligned with our long-term strategy, and we chose to act responsibly rather than rush a transaction that didn’t fully fit,” he said.

With the chapter now firmly closed, Cassar sought to quash rumours about the bank’s capability, or lack thereof, to follow through with the acquisition.

'All rumours were unfounded'

“All the rumours were unfounded,” Cassar says. “We had the resources, the team, and a capital ‘war chest’ of over €800 million to complete the acquisition, but prudence demanded we step back.”

Today, he views the episode as a turning point and believes APS has come out stronger. “Closing this chapter has strengthened APS’s position. It confirms that we are no longer a secondary player, and we can pursue growth on our own terms, fully focused on serving our customers and expanding strategically in Malta and beyond.”

The CEO also discussed the bank’s efforts to raise €45 million in fresh equity, accelerating the dilution of its historic Church ownership and to further tilting control towards institutional and retail investors.

“This is not only about strengthening the bank’s capital base. We are sending a clear message that APS Bank is ready for a new era of growth and positioning,” he said.

Read the full interview in today’s edition of The Corporate Times.