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September 08 2024 07:31 by PCLMedia
 
HSBC Holdings plc has announced a strategic review of its indirect 70.03% shareholding in HSBC Bank Malta p.l.c., marking a significant development that could influence the bank's future in Malta. The decision was communicated to the Board of Directors on Tuesday evening, highlighting HSBC's ongoing assessment of its global operations.

HSBC Bank Malta acknowledged its critical role in Malta's economy and society, emphasizing that this announcement aligns with its market obligations and aims to ensure the smooth functioning of the public market. The Bank has committed to making further announcements as and when required.

This strategic review comes amid broader considerations by HSBC Holdings to refine its global presence, with an increased focus on Asian markets. In May 2023, HSBC Chief Financial Officer Georges Elhedery told Reuters that the bank was evaluating a potential exit from as many as 20% of the countries it operates in, reflecting its shift towards Asia. However, this stands in contrast to earlier statements made by HSBC Malta CEO Geoffrey Fichte, who in January 2023 dismissed rumours of the bank's departure from Malta. He highlighted HSBC's €30 million investment in new headquarters as evidence of its commitment to the Maltese market.

HSBC's engagement in Malta dates back to 1999, when it acquired 70.03% of Mid-Med Bank. Over recent years, speculation about HSBC's potential exit from Malta has persisted, largely fueled by the bank's strategic pivot away from Europe and smaller markets. In 2020, HSBC announced the permanent closure of several branches in Malta, including those in Mellieħa, San Ġwann, Żabbar, and Żebbuġ, citing the increasing shift towards digital banking services accelerated by the COVID-19 pandemic.

Despite the ongoing review and previous branch closures, HSBC Malta reported a strong financial performance in 2023, posting a pre-tax profit of €134 million. The bank also announced a final gross dividend of 9 cents per share, bringing the total dividend for the year to 15 cents per share, reflecting its continued profitability.

While the outcome of the strategic review remains uncertain, HSBC Malta’s leadership has repeatedly underscored its commitment to the local market, balancing its global strategic shifts with the needs of its Maltese operations. The Bank has pledged to keep stakeholders informed as further developments arise.
 

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