Updated 1240
RS2 bids for HSBC Malta – reports: German fintech firm RS2, via its German parent company, has bid to acquire HSBC Malta, pledging to revive the Mid-Med Bank name and branding. RS2 is now a frontrunner after APS Bank withdrew, leaving OTP Bank and a local consortium in the race. Though headquartered in Malta, the bid is not led by RS2’s Maltese arm, which employs 200 people and holds a local stock exchange listing. RS2 plans to retain HSBC’s staff and infrastructure, continuing its retail and commercial services. It holds an e-money licence from BaFin but must secure a full banking licence. Despite regulatory hurdles, the company says financing is in place and claims early positive feedback from the Malta Financial Services Authority. (Times of Malta)
Cash is a dying breed, new study shows: A Central Bank of Malta study reveals a growing shift toward digital and card payments, though cash remains dominant for daily purchases, especially groceries (39.5%) and among older consumers. Debit card use is rising sharply, now at 34.2% for groceries, up from just 14% in 2020. Cash use has declined significantly in non-essential purchases like clothing and electronics, where debit and credit card usage has increased. Utility and service payments are slowly transitioning online, but sectors dominated by self-employed workers still heavily rely on cash. A clear age divide exists: younger users adopt digital payments more readily, while older adults prefer cash and show lower fintech adoption. Despite changes, 56.8% still use cash for peer-to-peer payments. (Maltatoday)
Morning Briefing
Malta concludes 2024 with 3.7% deficit
Malta’s General Government sector recorded a deficit of €825.3 million in 2024, representing 3.7% of the country’s GDP, according to the National Statistics Office (NSO). This figure reflects accrual-based accounting, which includes adjustments from the Consolidated Fund deficit of €432.7 million. The increase accounts for differences such as accrued revenues and expenditures. Meanwhile, government debt rose by €817.7 million compared to 2023, reaching €10.6 billion, or 47.4% of GDP. In a statement, the Ministry for Finance said the improving financial situation, Malta is now set to exit the Excessive Deficit Procedure (EDP) two years ahead of schedule.
HSBC takeover cannot take forever – Minister
Finance Minister Clyde Caruana has cautioned that HSBC’s takeover process “cannot take forever,” warning that prolonged delays could negatively affect shareholders, employees, and the broader economy. Speaking just days after APS withdrew from the controversial deal, Caruana acknowledged that a complex transaction of this nature naturally takes time. However, he stressed that unnecessarily extending the process is far from ideal for customers, businesses, and the wider economy. “Eight or nine months have passed since the announcement,” he said. “I understand that such procedures need time, but every beginning must have an end. For the sake of shareholders, workers, businesses, and the economy, this process must be concluded within a reasonable timeframe.” (Times of Malta)
New bypass to link Zabbar and Smart City
An €8 million bypass connecting Żabbar to Smart City in Kalkara will begin construction within a month, Transport Malta announced Tuesday. The 1.6km route aims to reduce traffic through Cottonera’s residential areas and promote alternative transport. The project will include two vehicle lanes—one in each direction—along with segregated pedestrian and cycling paths. Unlike a 2007 four-lane proposal that would have taken up 14,500 square metres of farmland, the current plan uses just 3,000 square metres by upgrading existing roads and a rural path running beneath historic bastion walls in Żabbar. (The Malta Independent)
