A German fintech company, RS2, has submitted a formal bid to acquire HSBC Malta and aims to revive the historic Mid-Med Bank brand if successful.

The company confirmed it had been selected to present an offer, making it the fourth known contender in the ongoing acquisition process. RS2 is now seen as a leading candidate, following the withdrawal of APS Bank last week. Other bidders include Hungary’s OTP Bank and a local business consortium.

RS2 is globally recognized for its payment processing services, working with major clients like Worldpay, SumUp, Swedbank, Banca Intesa, and Barclays. Barclays, which holds an estimated 18% stake in RS2, would indirectly mark a return to the Maltese market through this bid, having exited the country over a decade ago.

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Although RS2 operates a long-established subsidiary in Malta, employing around 200 people across offices in Mosta and Gozo, the bid is being spearheaded by the German parent company. The subsidiary, listed on the Malta Stock Exchange, reported €19.1 million in revenue and €5.4 million in gross profit for the first half of 2024. However, it is not directly involved in the acquisition bid.

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To complete the acquisition, RS2 would require a full banking license, as it currently only holds an e-money license issued by Germany’s financial regulator, BaFin. The group maintains additional offices in the United States, the Philippines, and Jordan.

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Despite uncertainties around how the deal would be financed—particularly since HSBC Malta reported pre-tax profits of €154.5 million last year—a spokesperson stated that “financing for a competitive bid is already in place.”

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If successful, RS2 plans to bring back the well-known Mid-Med Bank brand, complete with its classic blue and white visual identity. A company spokesperson confirmed that the brand rights have been secured and will be used to symbolize a return of a “homegrown champion with European aspirations.”

The original Mid-Med branches were prominent throughout the country before being rebranded following HSBC’s acquisition in 1999. Interest in the brand resurfaced last year when a website featuring Mid-Med’s iconic sailing boat logo quietly appeared online.

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Alongside the rebranding efforts, RS2 intends to retain HSBC Malta’s existing staff and infrastructure. “Our business plan commits to retaining all employees, branches, and ATMs. Our goal is expansion, not reduction,” said the spokesperson.

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The company indicated it would continue offering retail and commercial banking services, aiming to fill the same market space currently served by HSBC Malta.

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However, the bid may encounter regulatory challenges, given that RS2 is not yet a licensed bank. The acquisition must be approved by both the Malta Financial Services Authority and the European Central Bank.

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While regulators often prefer bidders who already hold a banking license, RS2 remains optimistic. It has already held preliminary discussions with the MFSA and received encouraging feedback.

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“In our initial meeting with the MFSA, we informed them of our bid and received positive signals. We expect further coordination between Maltese and German regulators,” the company stated.