HSBC is studying the feasibility of two key locations for new branches while planning to expand its ATM network, a bank spokesman has told The Times Business.

"We are on the lookout to open new branches where it is deemed feasible for the bank as well as customers, and we are actively looking in a couple of key locations," the spokesman said, adding that some sites for new ATMs "have already been identified".

On July 1, HSBC closed an agency just off St Helen's Square in Birkirkara but retained the ATM at the site. The bank did not attribute the closure to a strategy to shut branches but to a network review.

"The bank reviews its office presence on an ongoing basis and under the present circumstances, it was felt that the main branch in Valley Road, just a few minutes from the agency, would suffice for the banking requirements of the Birkirkara population," the spokesman explained.

The agency was manned by two people: one has been redeployed to the Birkirkara branch, the other has been posted elsewhere within the network.

A notice on the agency door urges customers to make more use of ATMs and internet banking. Internet banking usage is continuously promoted by branch and call centre staff who talk customers through the process and outline the advantages, the spokesman pointed out.

Asked whether HSBC had a hire freeze in place, the spokesman said: "While there are no immediate plans to recruit new staff in the short-term, this is naturally under constant review."

HSBC Bank Malta operates a network of 34 branches and 70 ATMs nationwide.