HSBC Malta's majority shareholder has told the bank that its "review process is at an early stage, will consider a range of options and no decisions have yet been made," after HSBC Malta sought clarifications following reports that the shareholder was in negotiations with APS Bank.

On Wednesday morning, HSBC Malta issued a statement, announcing that HSBC Holdings plc (the majority shareholder) informed the Board of Directors that it will undertake a strategic review of its indirect 70.03% shareholding in the Bank. "The Bank recognises the important role it plays in Malta's economy and society and is making this announcement in line with its market obligations, and to support the smooth functioning of the public market. The Bank will make further announcements as and when required."

But later in the day media reports quoted inside sources as saying that APS Bank is in advanced negotiations to take over HSBC's Malta operations, and that negotiations between HSBC Global and APS have been underway for years.

This sparked another statement by HSBC Malta, issued at around 11pm on Wednesday. "HSBC Malta announces that it is not aware of any such negotiations taking place between the majority shareholder and APS Bank p.l.c. or any other third party but has requested clarification of the position from its majority shareholder. HSBC Malta will make further announcements as and when required."

On Thursday, the bank issued a company announcement. "Having made further enquiries, HSBC Malta has been informed by the majority shareholder that the review process is at an early stage, will consider a range of options and no decisions have yet been made. HSBC Malta remains focused on running its business and will provide further updates as required."

APS Bank also issued its own company statement regarding the media reports, in which it did not deny them.

"APS Bank plc makes reference to various media reports and comments following yesterday's announcement by HSBC Bank Malta plc., namely that its ultimate parent, HSBC Holdings plc, will be undertaking a strategic review of its indirect 70.03% shareholding in the Maltese subsidiary, and the later announcement (by HSBC). While taking note, the Bank declares that all its actions and dealings are invariably guided by the highest standards of good governance and due regard of its various regulatory obligations, including respect for confidentiality. Furthermore, the Bank confirms that it will keep the market informed through company announcements whenever necessary and, as has been customary for the past years, Market Briefings where appropriate," APS Bank said.