CrediaBank will retain all HSBC Malta staff and management following its planned takeover of the bank, CEO Eleni Vrettou has said.
The Greek bank was recently named the preferred bidder in the almost year-long bidding war that erupted after HSBC announced its plans to exit Malta last September.
However, the fate of more than 900 HSBC Malta staff members once the takeover is completed remained unclear.
Guarantees to remain in place for two years after deal is signed
In comments to Times of Malta, CrediaBank’s CEO Eleni Vrettou pledged that the bank would hold on to all HSBC Malta staff members and keep the bank’s current management team in place.
Vrettou also said that the bank would eventually be looking to increase its workforce, bringing operations to Malta that are currently being outsourced.
HSBC Malta is believed to outsource several internal operations to the broader HSBC group.
The exact nature of these operations is unclear, however the HSBC group is known to have centralised much of its risk and compliance, as well as its tech and core infrastructure development.
Vrettou said carrying out these operations in-house would require as many as 2,000 new roles, split across the bank’s native Greece and Malta.
Informed sources told Times of Malta that these employment guarantees form part of the terms agreed upon by CrediaBank and HSBC, with staff guarantees set to remain in place for two years after the deal is signed.
The guarantees are also understood to protect staff salaries, allowances and pensions. Meanwhile, collective agreements for unionised employees will remain in force.
Staff salaries, pensions and allowances will be protected
In a statement published shortly after CrediaBank was named as the preferred bidder, the Malta Union of Bank Employees (MUBE) said it was adopting a “prudent and cautious approach,” pledging to collaborate with HSBC and CrediaBank representatives throughout the transition.
During a TVM interview last week, Finance Minister Clyde Caruana said the bank is expected to start operating in Malta early next year, with due diligence by MFSA and, later, the European Central Bank expected to last roughly eight months.