Armenia’s second-largest bank, Ardshinbank, has confirmed it has submitted a formal bid to acquire HSBC Malta, marking a bold play to enter the EU banking market.

‎

In an exclusive interview with Times of Malta, deputy chair David Sargsyan said the bank had formally submitted its offer for HSBC Continental Europe’s 70% stake in the Maltese subsidiary. “We are currently one of the bidders… we have submitted our offer to them,” he said. The decision now rests with HSBC’s European leadership, which is assessing offers before selecting a preferred bidder.

‎

Sargsyan said Ardshinbank was “quite confident” about its chances, pointing to its successful acquisition of HSBC Armenia last year. The bank had been eyeing a move into Malta for some time, he added, and seized the opportunity when HSBC announced its exit from the country last September.

‎

If successful, the acquisition would mark Ardshinbank’s first operation within the EU. Sargsyan is expected to expand on the bank’s post-takeover plans in the full interview, including its intentions for HSBC Malta’s staff and branch network.

‎

But the bid is unlikely to go unchallenged. Billionaire owner Karen Safaryan – who controls 98% of Ardshinbank – built much of his business empire in Russia during the 1990s and early 2000s. While Safaryan insists he has since exited most of his Russian ventures, his ties to the region have raised red flags with financial industry sources, who say local and EU regulators are likely to scrutinise any sale to the Armenian group.

‎

This may partly explain why previous contenders have fallen away. Hungarian banking giant OTP, once seen as a frontrunner, declined to submit a bid after encountering similar reputational hurdles. Maltese bank APS also exited the race, reportedly after sensing a lack of institutional backing. German fintech RS2, another early candidate, dropped out after HSBC raised its asking price.

‎

That leaves Ardshinbank in a smaller field of active contenders, which includes a local consortium and another unnamed Eastern European bank.

‎

With HSBC Malta’s exit now firmly in motion, the focus shifts to whether EU regulators – and the Maltese government – will be comfortable allowing a bank with post-Soviet origins to take over one of the country’s oldest financial institutions.

‎