MaltaCEOs.mt’s Post

The news that HSBC was seeking an exit from a number of European markets has long been on the wall. However, losing a high-street bank name, especially one that ranks among the global top five, is never good news—particularly for an island that aspired to be a leading financial center in the region. HSBC Malta was relatively highly profitable (compared with other local players), albeit, compared with the bank's global performance, Malta's income was petty, less than 1% of its overall income. Leaving Malta will, therefore, be a mere footnote on the HSBC annual reports. It wouldn't dent or effect their books in any way. However, the same cannot be said for what stands to be lost on the island. HSBC brought about a banking revolution in Malta, elevating standards and discipline and introducing much-needed competition to an otherwise limited, if not stagnant, banking sector. From a national branding and reputational perspective, the highly respected HSBC presence will be sorely missed in Malta.

HSBC’s upcoming restructuring could be transformative, but it demands a strategic balance to avoid becoming just a shift in labels and regions. Splitting global operations into East and West, along with merging commercial and institutional banking, is intended to streamline processes and reduce redundancy. However, a move this extensive can risk neglecting the intricate priorities across divisions, where one can easily overshadow another. This internal competition sometimes stalls larger change agendas, and if not managed, could dilute the impact of the entire restructuring effort. With operating expenses around $17.6 billion in H1 2024, HSBC has the chance to see substantial savings—a 5% cost cut, for instance, could release close to $900 million annually. Digital transformation will be crucial in supporting these shifts, ensuring efficiency and consistency in service delivery. While #HSBC’s focus on regional rebalancing makes sense, the bank must also sustain a global, interconnected approach that leverages technology smartly. Without a clear balance across its divisions and a unified commitment to digital priorities, any potential gains from this shake-up may fall short of expectations. HSBC Pam Kaur

HSBC's bold move to reorganize their global markets!! Under this new structure and leadership, HSBC will merge its Middle East and Asian markets into one division called Eastern Markets, while the rest of the markets will be operated as Western Divisions, except for the UK and Hong Kong. The banking giant is restructuring its organization into four main divisions: UK, Hong Kong, Corporate and Institutional Banking, and Wealth Banking. According to officials, this move is essential, as dropping interest rates is hurting profit margins. Having worked with HSBC for almost three years, one thing I know is that they take very calculated steps and understand what they are doing. What do you think about this strategic move? Let me know your take in the comments below! #restructuring #banks #HSBCUK #HSBCHK #wealthmanagement #MENAmarkets #Americas #corporates #HSBCIndia #banking #asia #interestrates

What's happening with HSBC in Malta? And why is the Chairman of the Malta Exchange throwing softball questions at HSBC's CEO? Background: "EXCLUSIVE: APS Bank set to acquire HSBC Malta Senior officials privy to negotiations with HSBC Malta’s parent company have confirmed that talks are in an ‘advanced stage’" https://lnkd.in/eHj7VVjp Opinion Piece: "Investors, especially those in the Maltese capital market, should keep their eyes wide open because the sea in which they swim is infested with sharks, and there is little external protection. Of course, the victims are, as usual, small shareholders. Principal among these are thousands of pensioners and ex-Mid-Med colleagues who are heavily invested in HSBC Malta shares. These shares will have suffered a fall in value in excess of 20% and may not recover to their pre-rumour level.... ...Meanwhile, to square the circle of this Maltese tragi-comedy, the Malta Stock Exchange also played its part, and this revolved around its chairman, Joseph Portelli.... So, earlier this month and approximately at the same time that the manipulation in the prices of HSBC and APS was raging, Portelli posted his interview with HSBC CEO Geoffrey Ficthe on the Malta Stock Exchange website. Fichte is the same person who, only a few months ago, said he could not assure us strongly enough that HSBC is here for the long haul and that the shareholders have nothing to worry about. In his interviews, Malta Stock Exchange Chairman Joseph Portelli tries to come across as the chairman of NASDAQ, even adopting an American accent. But his questioning leaves much to be desired. In a pathetic interview interspersed with repeated lauding of government economic policies, he proceeds to ask the mildest and most predictable questions in a staged interview meant only to provide a ready platform for the HSBC CEO to promote the bank with promises of massive investment in its human resources and artificial intelligence and taking the bank in Malta to the front of the worldwide banking industry...." https://lnkd.in/eXMF_Ybd https://lnkd.in/eVN7jtmu

HSBC Bank Malta has experienced a significant drop in its share price, falling from €1.65 to €1.35 overnight, and further down to €1.30 following the announcement of a strategic review. This 21 per cent decline comes after the parent company, HSBC Holdings plc, informed the public on Wednesday that it would be reviewing its indirect shareholding in the Maltese subsidiary, sparking immediate concerns about the bank’s future in the local market. The announcement, made in accordance with the bank’s market obligations, has prompted speculation that HSBC may be preparing to exit the Maltese market altogether. This would mark a major shift for the bank, which has been a key player in Malta’s economy for decades. The news has undoubtedly unsettled investors, reflected in the swift sell-off that caused the share price to drop so steeply. Market reactions and investor sentiment Sources within the industry have indicated that a potential sale of HSBC Malta to a local financial institution is in the advanced stages, though no deal has yet been confirmed, as reported by WhosWho.mt. It later reported, quoting senior officials privy to negotiations, that APS Bank plc is the local institution in advanced talks to acquire HSBC Malta. Market analysts suggest that the uncertainty surrounding the review, coupled with the speculation of an impending sale, has fuelled investor concerns. While HSBC’s local operations have seen a reduced physical footprint in recent years, including the closure of several branches, the bank remains the second-largest in Malta by a considerable margin. #WhosWho #Malta #HSBC

🔍 [Updated 22 Oct 2024] Spotlight on Popularity: Wealth Management Tops Searches on HSBC Hong Kong’s Website 🌐 According to insights from Similarweb, a global leader in digital traffic data analytics, the investment related sections of HSBC Hong Kong is currently one of the most visited on the bank's website. This coincides with the influx of capital from investors. 🚀 In a development that may not come as a surprise, recent data from September reveals that almost 33% of the traffic to HSBC HK's Asset Management page is driven by viewers from Mainland China. #Finance #InvestmentTrends #Investment #WealthManagement #HSBC #HongKongFinance

HSBC Hong Kong HSBC’s exposure to defaulted commercial property loans in Hong Kong surged almost sixfold to more than $3bn in the first half of this year, underscoring the risks the UK bank faces from a slump in the Chinese territory’s real estate market. The London-headquartered bank had $3.2bn in “credit impaired” commercial real estate loans to Hong Kong. Hong Kong is HSBC’s largest market for commercial real estate lending, accounting for 45 per cent of its exposure, in comparison with 18 per cent for the UK. The bank’s total global commercial real estate lending was $79bn as of June. The $3.2bn in credit impaired loans made up 9 per cent of HSBC’s total Hong Kong commercial real estate lending.

The Monetary Authority of Singapore (MAS) has published a circular on Establishing the Sources of Wealth of Customers. In this circular, the MAS directs financial institutions in wealth management to apply a risk-proportionate and reasonable approach to the establishment of the source(s) of wealth of wealth management customers. Hereby they should apply the following principles: - Materiality: Focus on the material source(s) of wealth and its(their) risks. - Prudence: Use independent, reliable documents and information for the corroboration of the source(s) of wealth. Higher standards should be applied to higher-risk sources of wealth. - Relevance: Your corroboration should be relevant to the specific source of wealth. https://lnkd.in/d29Q6qyb

Next week the Institute of International Banking Law & Practice (IIBLP) returns to #Singapore to host their annual Guarantee & Standby Forum, LC Survey, and Trade Finance Compliance Annual Meeting, 8-10 May. Held in partnership with the The Association of Banks in Singapore, these events bring together the trade finance community and experts for in-depth talks, solutioning, and networking. Join us Thursday 9 May as MonetaGo Executive Director Sales, Ian Milne, is on stage at 3:30pm for the Supply Chain & Receivables Financing session alongside Tat Yeen Yap of Maybank, and Srinath Keshavan of Trade Risk Consulting, to discuss Global Supply Chain Finance Forum (GSCFF) rules, supply chain finance via electronic platforms, and compliance risk. And at 4:20pm, MonetaGo CEO Neil Shonhard will be joined by Alan Davidson of The University of Queensland, Ken Chia of Baker McKenzie, and Vincent OBRIEN of ICC UAE for a key session examining multiple elements of the digitalisation of trade finance, including the UK's #ETDA, #MLETR adoption in China, and data protection policies. Friday 10 May sees Ian Milne in a midday session 'If I Had a Nickel for Every FinCrime . . . I’d Still Need to Launder it', discussing tools and practices to spot fraud, and a final panel session at 1:45pm looking into hot topics for 2024, focussing on trade based financial crime. To see the full programmes and register for the events please see the link in comments. #tradefinance #globaltrade #fraudprevention #digitalisation #supplychainfinance #receivablesfinance

🇲🇹 On September 25, 2024, the Financial Intelligence Analysis Unit (FIAU) Malta released an updated Guidance Note for credit institutions regarding #AML/ #CFT obligations for payment accounts with basic features. Key updates include references to new sample documents, introduction of red flags for ongoing monitoring, and alignment with European Banking Authority (EBA) Guidelines on managing #ML/ #TF risks. This new version replaces the previous note from October 2018. Credit institutions are encouraged to review the updated document on the FIAU’s website under the ‘Financial Sector’ tab. #antimoneylaundering #compliance #moneylaundering