HSBC Bank Malta plc has had its direct shareholding transferred to the parent company’s French subsidiary HSBC Continental Europe (HBCE), it announced on Wednesday.

As a result, HBCE now holds a direct shareholding of 70 per cent in HSBC Bank Malta, equivalent to 252,320,580 voting rights, as regulatory approval has already been obtained.

The forms part of a group restructuring that is taking place to ensure it complies with a revised version of European Union (EU) directive 2013/36, focused on banks with headquarters outside of the EU, as is the case with HSBC Group. It requires banks to have an immediate parent undertaking (IPU) within the EU by 30th December 2023, with HSBC opting for HBCE, its principal French subsidiary and hub for continental Europe, as its EU IPU.

HSBC added that the transaction “will not involve any change in the day-to-day business” of the bank and its subsidiaries, and “ultimate control of the HSBC Malta Group will not change and will remain vested in HSBC Holdings plc”.

The transaction had an additional effect on Tigné Mall plc, which is 12.8 per cent owned by one of HSBC Bank’s subsidiaries, HSBC Life Assurance (Malta) Limited, it shared on Wednesday. Following the move, HBCE now indirectly holds a nine per cent interest in the company, while the nine per cent indirect shareholding in the company by HSBC Holdings remains unchanged.

The news comes as Reuters reported that HSBC is planning to close 114 branches in Britain from April 2023, as part of a move to “slash their networks to try and cut costs”. However, the group blamed this on “changing customer behaviour”, saying that more customers are making use of online banking.