The Malta Association of Small Shareholders is obliged to defend the interest of minority shareholders. I and others have long had misgivings about HSBC Malta and we expressed our concerns at the bank’s annual general meeting earlier this year.

The fact that HSBC, year after year, continues to close branches – not only in Malta – does not augur well. By selling branches in

different localities, HSBC Malta is diminishing the goodwill built over long years by Mid-Med Bank. Would this not amount to reduced goodwill? Does this not have any effect on HSBC Malta’s accounts?

Earlier this year, in another section of the press, it was reported there was the possibility that HSBC would be pulling out of Malta. The bank was quick to deny this claim.

In the last few days, however, we learned that HSBC is selling off its operations in Pakistan, including 10 branches, to JS Bank Ltd, even though this country has good prospects of massive Chinese investments in infrastructural projects. These projects and other lucrative deals need massive bank finance which, we are sure, cannot be had locally. The question is: Are we to believe HSBC Malta or will time make us wiser?

Announcing the sale, HSBC Bank Middle East Limited (HBME), an indirect wholly-owned subsidiary of HSBC Holdings plc, stated: “The transaction, which is subject to regulatory approval and the approval of the direct shareholders in HBME and JS Bank Limited, is expected tobe completed in the final quarter of 2012. It represents further progress in the execution of the HSBC Group strategy.”

Earlier this year, HSBC sold stakes in two Indian banks. HSBC described the sale of its 4.73 per cent stake in India’s third-largest non-government bank, Axis Bank, and a 4.74 per cent stake in the smaller Yes Bank for about $96 million, as the disposal of non-core investments.

The Malta Association of Small Shareholders wants the best for the minority shareholders but to achieve this aim it needs all the support it can get.

Those wishing to contact or help the association can contact us at ssa.malta@yahoo.com.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.