HSBC previously rejected a business proposal from Hungary’s OTP Bank over reputational concerns linked to Russia, sources told Times of Malta. Less than a year later, OTP is one of the top contenders to acquire HSBC’s operations in Malta.
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In April 2024, OTP reportedly approached HSBC in London to underwrite an international bond issue. But following due diligence, HSBC is said to have walked away—citing OTP’s continued operations in Russia and CEO Sándor Csányi’s perceived closeness to Russian President Vladimir Putin.

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Despite those concerns, OTP is now in active talks to take over HSBC Bank Malta, which the group put up for sale late last year as part of a wider restructuring effort. The sale is being handled by HSBC Continental Europe, and local management is not involved in the decision-making process.

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OTP, one of Central Europe’s largest financial groups, has come under pressure for maintaining business in Russia after the full-scale invasion of Ukraine. In 2023, it was temporarily listed as an “international sponsor of war” by Ukraine’s anti-corruption agency, a designation dropped after diplomatic talks.

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The irony isn’t lost on observers: a bank HSBC didn’t want to work with due to image concerns is now being seriously considered as a buyer for its Malta arm—a licensed EU financial institution.

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Any final deal will need approval from the European Central Bank and Maltese regulators, who are expected to weigh compliance history and reputation alongside financial strength.

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Maltese Finance Minister Clyde Caruana has not commented on specific bidders but has previously stressed the need to safeguard the country’s financial integrity, particularly in light of its recent removal from the FATF greylist. He has also signalled a preference for increased competition in the banking sector.

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Other bidders for HSBC Malta include APS Bank and a consortium of local business groups, including the Azzopardi, Gasan, and Virtu Holdings. All eyes are now on which buyer HSBC will choose—and how regulators will respond.

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At stake is more than just market share. The decision will reflect how reputational risk is judged in a post-sanctions world—and whether corporate strategy can truly be separated from geopolitics.