HSBC Bank Malta plc - Sale of Investment Property

On 17 January 2020, HSBC Bank Malta plc issued an announcement explaining that its decision to enter into a promise of sale agreement with Malta Properties Company plc (“MPC”) to dispose of an investment property located in Swatar reflects the view of the bank’s Board of Directors that property management does not form part of its core business. Furthermore, the Swatar investment property is a non-core property asset which is not part of the bank’s normal business.

HSBC Malta also added that the sale would provide a simplification benefit to transfer this responsibility to a third party whilst generating a small one-off profit for the bank which will be reflected in the 2020 financial year. While the investment property will no longer generate a revenue stream for the bank, once transferred, HSBC Malta will also benefit from reduced volatility in earnings associated with revaluations and a reduction in the complexity of related-party obligations.

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