Local Consortium Joins Race For HSBC As Finance Minister Urges Caution
Finance Minister Clyde Caruana has voiced concern over the potential sale of HSBC Malta, warning that while interest in the bank may be a sign of economic vitality, the identity and intentions of the eventual buyer will have long-term implications for the country’s financial landscape.
His remarks come as the race to take over the bank has developed into what appears to be a three-horse contest. It is understood that the parties actively exploring an acquisition now include APS Bank, Hungary’s OTP Group, and a local consortium of roughly 10 local investors.
While no formal bids have yet been made public, all three are said to be at varying stages of due diligence. APS, for its part, confirmed on Wednesday that it has signed a non-disclosure agreement with HSBC Malta and is currently reviewing data in a virtual data room with the support of its advisory team.
Alongside APS, Hungarian banking group OTP has also entered the picture. As Hungary’s largest financial institution, OTP would represent a shift in ownership dynamics, bringing in a foreign player with a strong regional presence but no prior operations in Malta. While the bank’s scale and credentials are well established, its involvement has prompted broader discussion about the implications of overseas ownership in a strategically important sector.
But Caruana, speaking to the Times of Malta, urged caution. “We have to ensure that whoever ends up owning HSBC Malta has the capability and track record to run a systemically important bank in a prudent and responsible manner,” he said, adding that any new ownership must be aligned with the stability of Malta’s wider economy.
He also acknowledged that while competition can be healthy, it cannot come at the expense of effective supervision or strategic foresight. “This is not just about financials. It’s about the kind of financial system we want to have in this country over the next 10 or 15 years,” Caruana noted.
In a brief update issued this week, HSBC Malta reiterated that its review is ongoing, and that it would not be commenting on individual expressions of interest. However, the bank confirmed that it had entered into discussions with multiple parties and that any eventual deal would be subject to regulatory approval.
HSBC has long played a critical role in Malta’s banking sector. As the second-largest bank by assets, its potential sale would mark a significant reshuffling of the domestic financial landscape. The group announced in 2023 that it was exploring strategic options for its Maltese subsidiary as part of a broader effort to streamline its operations and focus on higher-growth markets.
Since then, speculation has swirled about who might step in. APS Bank – a growing force in local banking – was the first to publicly signal interest last September. OTP Group, Hungary’s largest lender, would mark a more foreign-facing shift, with its expansive Central and Eastern European network and backing from major shareholder MOL, the Hungarian oil and gas giant. The third contender, a local investment group, represents a different proposition altogether – a move to keep one of Malta’s most iconic financial institutions in local hands.
With the due diligence phase now under way, the coming weeks are likely to clarify who the frontrunners really are.
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