HSBC chief Stuart Gulliver in bid to dispel fear of bank's relocation from Malta

HSBC Group's chief executive Stuart Gulliver has described Malta as one of the global bank's "best performing markets" in a bid to allay fears of a possible bank relocation, in response to reports by union newspaper It-Torca on Sunday that claimed HSBC Malta was reconsidering its future on the island.

Short of any categorical denial, Gulliver said in a statement issued by the Maltese branch's public relations firm that HSBC would "continue to invest in our Maltese franchise, expanding our range of services and products for our customers."

According to the General Workers Union's organ, Gulliver's speech - which was internally shared with senior managers in the HSBC global network - appeared to have shed doubt on HSBC's permanence in a small market like Malta: "Which makes it difficult to explain why on earth are we there... we will sort this in the next year or something similar," Gulliver was quoted as saying.

Gulliver was commenting on the bank's main markets, which namely include the UK and Hong Kong 'priority growth market' and the 'network market' of 22 other countries. In referring to a third sector, 'the small markets', Gulliver said questions over HSBC's presence on the island would be resolved within the next year.

The statement comes hot on the heels of HSBC Malta's €88.3 million pre-tax profits in 2011, which followed the sale of HSBC's credit card division, as well as the closure in Malta of six branches and voluntary retirement schemes as part its $3.5 billion global cost-cutting plan under CEO Stuart Gulliver.

Mark Watkinson, HSBC Malta's chief executive, allayed fears of HSBC moving out: "There are exciting opportunities to develop our business as part of the government's strategy of expanding the financial services sector in Malta. HSBC's international footprint provides the bank with a unique competitive advantage in this growth sector.

"Over the last year, HSBC Bank Malta has continued its programme of renovating its branch network, rolling out new ATMs and automated banking facilities, and IT and systems upgrades to the tune of  €21 million," Watkinson said.

HSBC acquired the former national Mid-Med Bank in 1999 for Lm82 million.