Bank of Valletta (BOV) has confirmed that it has been approached by third parties regarding potential financial bids for major business entities in Malta, including HSBC Bank (Malta) plc, but stressed that no decision will be taken without the highest levels of governance and regulatory oversight.

In a statement issued on Tuesday (today), BOV said it was "unsurprising" that, as one of Malta’s leading financial institutions, it had attracted such interest. However, it emphasised that any future decisions would be made "in close coordination and cooperation with all relevant regulatory authorities" and only after fully completing its internal due governance processes.

The Bank underlined its commitment to transparency and full compliance with regulatory obligations, particularly those relating to competition, financial stability, and avoidance of conflicts of interest. It also reaffirmed its duty of care towards shareholders.

"In view of the above considerations, any decision which the Bank might consider in the future will only be formulated following the full extent of its due governance processes," BOV stated. "The Bank has no further comments and any communication the Bank issues to the market would be carried out through official channels and company announcements."

HSBC first announced in September 2024 that it was considering a sale of its Malta arm. Within days, APS had emerged as the leading contender. On 26th March 2025, the local bank confirmed that it had entered the due diligence phase, a key step in evaluating the potential acquisition.

However, on 17th April, APS issued a statement saying it was “regrettably withdrawing” from the bidding process. No further reason was publicly given, though market speculation has been rife.

With APS now out of the picture, attention has turned to other potential buyers. Hungarian financial giant OTP Bank has emerged as a strong contender, although its participation has sparked concern due to its continued operations in Russia following the invasion of Ukraine.

Separately, a group of prominent local businesses are reported to have banded together to submit a collective bid, with some foreign investors also believed to be part of the ongoing talks.

The eventual outcome will significantly shape the future of Malta’s financial landscape – and with the Finance Minister calling for reasonable but timely closure, the spotlight is now firmly on HSBC to chart its course forward.