APS Bank CEO Marcel Cassar has insisted the bank had both the resources and the capital to acquire HSBC Malta but stepped away from the deal out of prudence.

Speaking to The Corporate Times, Cassar described the decision to pull out of the acquisition as “painful” but necessary to stay true to APS’s long-term strategy.

APS had been the only bidder to formally confirm its interest in HSBC Continental Europe’s 70.03% stake in HSBC Malta. However, in April the bank decided to withdraw, leaving the way open for Greek bank CrediaBank, which is now set to acquire HSBC Malta for €200 million.

“We were very advanced in our due diligence, but the conditions were not aligned with our long-term strategy, and we chose to act responsibly rather than rush a transaction that didn’t fully fit,” Cassar said.

He also sought to put to rest speculation that APS did not have the financial capacity to complete the deal. “All the rumours were unfounded. We had the resources, the team, and a capital ‘war chest’ of over €800 million to complete the acquisition, but prudence demanded we step back,” he explained.

Despite the disappointment of withdrawing, Cassar believes the episode marks a turning point for APS. “Closing this chapter has strengthened APS’s position. It confirms that we are no longer a secondary player, and we can pursue growth on our own terms, fully focused on serving our customers and expanding strategically in Malta and beyond.”

The CEO also highlighted the bank’s fresh efforts to raise €45 million in equity. This will accelerate the dilution of its historic Church ownership and shift control further towards institutional and retail investors. “This is not only about strengthening the bank’s capital base. We are sending a clear message that APS Bank is ready for a new era of growth and positioning,” Cassar said.