Overview

Malta is continuously establishing itself as an international banking center and financial hub in the Mediterranean region despite the ongoing crisis in the Eurozone. Some of the benefits of conducting banking activities in the Malta region are: –

  • Secure location for assets and savings.Approximately 70 double taxationDouble TaxationDouble Taxation is a situation wherein a tax is levied twice on the same source of income. It usually occurs when the same income is taxed both at corporate as well as at the individual level.read more treaties.Diversified industries offer various financial services, such as custodian banking and trade financeFinanceFinance is a broad term that essentially refers to money management or channeling money for various purposes.read more.Benefits of EU membership with a prompt, efficient, and accessible regulator.Governed by the Central Bank of Malta Act (2002) and Banking Act (1994).

Structure of Banks in Malta

The Malta Financial Services Authority (MFSA) is the sole regulator of the country for the issuance of the license and supervision of the credit and financial institutions. The foreign and local banks functioning in Malta are grouped into three main categories: –

  • Core domestic banks are universal banksUniversal BanksUniversal banking, in contrast to traditional banking institutions, offers a wider range of banking and financial services, including insurance, development banking, investment banking, commercial banking, and other financial services.read more with a wide range of services operating through a branch network in the country’s main cities.Non-core domestic banks offer a restricted area of banking services for residents and foreigners.International banks mostly deal with foreign customers or businesses outside Malta’s borders.

List of Top 10 Banks in Malta

  • Bank of Valletta plcHSBC Bank MaltaFIMBank plc (First International Merchant Bank)Sparkasse BankIIG Bank (Malta) Ltd.Akbank TAŞCredoraxAgriBank PLCBNF Bank p.l.c. (Banif Bank)FCM Bank Ltd.

Let us discuss each of them in detail –

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#1. Bank of Valletta plc.:

Bank of Valletta plc was previously known as the National Bank of Malta. Its headquarters are in Santa Venera. It is the oldest and largest financial service provider with specialized retail and loansLoansA loan is a vehicle for credit in which a lender will give a sum of money to a borrower or borrowing entity in exchange for future repayment.read more, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits.” url=”https://www.wallstreetmojo.com/commercial-bank/”]commercial banking[/wsm-tooltip] and representative offices in Italy, Australia, and Belgium. The Bank of Valletta was established in 1974 with an employee strength of over 1500. Apart from traditional banking services of accepting deposits and giving loans, they also offer: –

  • Life insurance and retirement productsCard servicesWealth management services and stockbrokingBancassurance BancassuranceBancassurance refers to the partnership of a bank and a life insurance company that permits the latter to offer its products to the former’s clients. Such an arrangement is beneficial to both the organizations by increasing their customer base, revenue and paving the way for expansion.read moreForeign exchangeForeign ExchangeForeign exchange, or Forex, is trading one currency for values equivalent to another currency.read more servicesInternet and mobile banking services

The 12 monthly profitsProfitsProfit refers to the earnings that an individual or business takes home after all the costs are paid. In economics, the term is associated with monetary gains. read more from 1st Oct’16 – 30th Sept’17 is €97.923 billion.

#2. HSBC Bank Malta:

A subsidiary of HSBC Europe BV, Malta’s leading international banking and financial services group. The headquarters are in Valletta, Malta, offering Retail bankingRetail BankingRetail banking or personal banking refers to the financial services offered by the financial institutions exclusively to the individual clients. The consumer banking provides personal loan, savings account, debit cards, credit cards, locker, etc.read more and wealth management, commercial banking, and global banking and market segments. The bank manages 28 branches and entities in Malta, including 3 in Gozo. For the six months ended 30th June 2017, the HSBC Bank Malta has recorded a net profit of €16.85 billion.

#3. FIMBank plc (First International Merchant Bank):

The bank was established in 1994 and commenced operations from 1995 onwards. It is one of the leading providers of: –

  • Trade financeFactoringForfaitingTreasury

In June 2001, the shares were listed on the Malta stock exchange, which subsequently changed the name to FIMBank P.L.C. For Year to DateYear To DateThe term Year to Date (YTD) is applied when referring to the time between the beginning of the fiscal year and the current day.read more (YTD) 2017, the net profit was $4.12 million.

#4. Sparkasse Bank:

Established in 2000, the bank offers private banking, investment, and custody/depositary services. It is a licensed credit institution headquartered in Sliema, Malta, and is also in possession of two investment service licenses: –

Category 2: Authorised to provide any investment service and hold or control the clients’ money or assets but not deal or underwrite on their behalf.

Category 4a: Authorised to act as trusteesTrusteesA trustee is an individual or institution with legal authority to manage the trust property and assets on behalf of the settlor to benefit the beneficiary. They have complete control over the trust assets until they get transferred to the beneficiary. The administration of assets goes as per the directions of the trust. read more or custodians of collective investment schemes.

#5. IIG Bank (Malta)Ltd.:

The bank was established in Malta in March 2010 and rapidly earned a reputation as a trustworthy financial institution offering the highest classes of services. It is a participant in the depositor compensation scheme and is fully licensed. The bank specializes in: –

  • Prime accountsTrade financeCorporate bankingCurrency exchangeInternet bankingTerm deposit accounts

Its headquarters in St. Julian serves customers in Europe, the Middle East, Asia, and Africa. For 2016, IIG Bank recorded a net profit of $2.8 million.

#6 – Akbank T.A.Ş.:

It is one of the largest banks in Turkey, established in 1948. It has evolved from offering funding services to local cotton growers to a full-fledged universal bank. Akbank T.A.Ş. has a presence around the globe, offering services such as: –

  • Consumer bankingCorporate bankingPrivate bankingInvestment bankingInvestment BankingInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read moreMortgage loansForeign exchangeSecurities tradingInternational financingInternational FinancingInternational Finance is a section of Financial Economics that deals with the macroeconomic relationship & monetary transactions between 2 or more countries. It includes concepts like Exchange Rates, Interest Rates, FDI, & Balance of Payments etc. read more

For 2016, the net incomeNet IncomeNet income for individuals and businesses refers to the amount of money left after subtracting direct and indirect expenses, taxes, and other deductions from their gross income. The income statement typically mentions it as the last line item, reflecting the profits made by an entity.read more recorded was 3.7 billion Lira.

#7. Credorax:

Established in 2007 by technological experts, Credorax is one of the world’s first hi-tech firms to be a principal member of Visa Europe, Mastercard, and a financial institution licensed under the PSD (Principal Services Directive). The bank provides integrated, acquiring, and payment processing services to merchants within the European Union (EU) and other EEC (European Economic Community) states. The bank will focus on end-to-end business services and tools required to grow an online business with maximum success.

#8. AgriBank PLC:

Founded in 2012 by an experienced banker, the bank is a regulated credit institution with a primary focus on providing asset financeAsset FinanceAsset financing is defined as a loan taken out by an organization using balance sheet assets as collateral, such as land and buildings, vehicles, machinery, trade receivables, and short-term investments. The asset’s value is divided into regular payment intervals of the asset’s unpaid portion plus interest.read more to the agricultural industry of the UK. The main business is: –

  • Financing landowners (farmers) in the UKPurchase of farm machinery and equipmentFinancing construction of buildingsPurchase of landFinancing of farm energy projects

They operate solely through an online platform and obtain their funding through equityEquityEquity refers to investor’s ownership of a company representing the amount they would receive after liquidating assets and paying off the liabilities and debts. It is the difference between the assets and liabilities shown on a company’s balance sheet.read more, bonds, retail deposits, and wholesale funding.

#9. BNF Bank plc (Banif Bank):

Banif Bank, now known as BNF Bank plc, was established in 2008 based in Gzira, with 12 branches across the Maltese regions managing three corporate and Business banking Business BankingBusiness banking refers to a bank or financial institution that focuses solely on businesses and corporate clients, offering products such as business loans, asset management, and electronic fund transfers that are tailored to their specific needs.read more centers and a localized trading room. It has a network of retail and business branches supported by electronic banking facilities and trade financeTrade FinanceTrade Finance is the funding of trade transactions (both domestic and international). It is conducted in the presence of both buyer and seller and can be facilitated with the help of various intermediaries like banking and financial institutions.read more solutions to offer innovative banking solutions for both personal and business consumers. The bank operates as a subsidiary of Al Faisal International Investment Co.

#10. FCM Bank Ltd.:

The bank is a Maltese credit institution operating since 2010 and specializes in savings and fixed deposit products. The bank operates online with low penetration of brick and mortarBrick And MortarBrick and Mortar is a kind of business that offers goods and services to its customers face-to-face through a physical outlet. It represents a physical presence of a business. read more branches, which keeps the costs down and benefits the end customers. In 2015, the total assetsTotal AssetsTotal Assets is the sum of a company’s current and noncurrent assets. Total assets also equals to the sum of total liabilities and total shareholder funds. Total Assets = Liabilities + Shareholder Equityread more of FCM Bank Ltd. were €5,700 million, giving a market share of 0.23%. With its headquarters in St. Julian, the focus is on delivering simple and high-value products. The flagship products are the fixed-term deposit accounts, where a minimum of €2,000 is deposited for a one-to-five-year term, with highly-competitive interest rates ranging between 2.8% to 3.7% per annum.

We hope you liked this guide to an overview of the Top 10 Banks in Malta. We also discussed the structure and financial status of the top banks in Malta. If you are looking forward to making a career in banking, then you can check out some of the awesome resources: –

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