Image Source :Jaccede
The Catholic Church in Malta plans to further reduce its stake in the country’s banking sector. According to Michael Pace Ross, administrative secretary of the Curia, this move is part of an agreement between the dioceses in Malta and Gozo to dilute the church’s banking presence. APS Bank, where the church holds a majority stake, has been in talks to acquire HSBC Malta
In 2022, APS Bank raised close to €100 million through an initial public offering (IPO), which saw the Maltese archdiocese’s shareholding diluted from 79% to 55%. This development marked the beginning of the church’s retreat from banking. Pace Ross noted that the church aims to continue this trend, citing benefits from both pastoral and financial perspectives.
HSBC’s decision to review its Malta operations has sparked speculation about a potential exit. The global banking giant seeks to focus on corporate banking in Asia, scaling back retail banking in Europe. In July 2023, APS Bank initially stepped back from takeover talks but resumed discussions in February 2024.
Currently, talks between APS Bank and HSBC have intensified, with both parties agreeing on key elements, including price and transition assistance. However, the Maltese government, particularly Finance Minister Clyde Caruana, prefers an international buyer for HSBC’s Malta operations. APS Bank has maintained confidentiality, stating that its actions are guided by good governance and regulatory obligations.
The potential acquisition highlights the shifting landscape of Malta’s banking industry. As the church continues to reduce its banking presence, the sector faces significant changes. The outcome of the APS Bank-HSBC talks will shape the future of banking in Malta.
