HSBC Bank Malta announced on Friday that its parent company has identified a preferred bidder for its 70.03% majority stake, selecting Greek bank CrediaBank S.A. in a move that could reshape Malta’s banking landscape.
The announcemnt came on the Feast of the Assumption, probably Malta’s most important public holiday.
The British banking giant confirmed it has entered exclusive discussions with CrediaBank, formerly known as Attica Bank, though no binding agreement has yet been reached.
The potential transaction remains subject to regulatory approval from both the Malta Financial Services Authority and the European Central Bank, a process expected to take several months.
HSBC Holdings has been conducting a strategic review of its Maltese operations since late 2024 as part of its broader pivot towards Asian markets.
The sale of HSBC Malta, which employs approximately 1,100 staff and commands around 30% of Malta’s retail banking market through 24 branches.
A rocky bidding process
The path to today’s announcement has been marked by a series of high-profile withdrawals that narrowed the field considerably.
APS Bank, initially considered a frontrunner, abruptly withdrew its bid in April citing “confidential information external to the due diligence exercise.” Industry sources suggest the local bank faced resistance from authorities concerned about reduced competition if Malta’s third-largest bank acquired the second-largest.
Finance minister Clyde Caruana emerged as a key voice in shaping the bidding landscape, publicly questioning the suitability of certain potential acquirers. His intervention proved particularly damaging to Hungary’s OTP Bank, which reportedly lost interest after Caruana raised concerns about the bank’s continued operations in Russia, citing reputational risks.
Bank of Valletta ruled itself out entirely in April, stating concerns over market concentration just one day after confirming it had been approached by a consortium. The decision came immediately after Caruana stressed the need for greater competition in Malta’s banking sector.
German fintech firm RS2 also withdrew from the process, reportedly after HSBC increased its asking price during negotiations, though the company’s partner bank continued separate discussions.
A local consortium reportedly involving the Azzopardi Group, Alf Mizzi and Virtu Holdings remained in contention alongside CrediaBank and other non-EU banks. However, the Greek bank’s emergence as preferred bidder suggests it offered the most compelling combination of financial strength and regulatory acceptability.
Armenian bank Ardshinbank, which recently acquired HSBC’s operations in Armenia, was also understood to have expressed interest, though it appears to have fallen by the wayside as the process progressed.
Who is CrediaBank?
CrediaBank represents a fascinating choice for HSBC Malta’s new ownership. The Athens-based institution underwent significant transformation in recent weeks, rebranding from Attica Bank following its merger with Pancreta Bank to become Greece’s fifth-largest lender.
The bank boasts an impressive ownership structure that likely appealed to regulators. Its majority shareholder is Thrivest Holding Ltd, controlled by prominent Greek shipping magnates Dimitris Bakos, Yiannis Kaimenakis, and Alexandros Exarchou. Crucially, the Greek state maintains a 36% stake through the country’s sovereign wealth fund, providing implicit government backing.
Founded in 1924 as Attica Bank, CrediaBank has historical connections to HSBC through Pancreta Bank’s previous acquisition of the British bank’s Greek operations. This experience in absorbing HSBC assets may have strengthened its bid for the Maltese subsidiary.
The bank has been on a recovery trajectory after facing past challenges including poor loan performance and governance issues. Credit rating agency Moody’s recently upgraded its assessment to B1, citing progress in reducing non-performing loans and improving capital positions.
Regulatory hurdles ahead
Despite being selected as preferred bidder, significant obstacles remain. The transaction requires approval from both Maltese and European banking regulators, reflecting the systemically important nature of HSBC Malta within the local financial system.
The Malta Financial Services Authority will scrutinise CrediaBank’s fitness and propriety, while the European Central Bank must approve any change of ownership exceeding certain thresholds under EU banking regulations.
These regulatory reviews typically examine the acquirer’s financial strength, governance standards, and strategic plans for the target institution. CrediaBank will need to demonstrate its ability to maintain HSBC Malta’s operations while potentially enhancing competition in the Maltese market.
