Maltese bank owned by US group to wind down after a decade of operations

A small Malta-based lender controlled by US investors is preparing to shut down its operations after ten years in the country, according to sources familiar with the decision.

Employees at Merkanti Bank have been issued termination notices and informed that the non-retail institution will cease operations in the coming weeks, The Shift News has learned.

Neither Merkanti Holding plc – the bank’s Malta-listed parent company – nor Scully Royalty Ltd, its New York-listed ultimate owner, has issued a market announcement as required under regulatory rules.

People close to the company said the closure reflects a strategic business decision and is not expected to have repercussions for Malta’s financial sector. They added that Merkanti Holding’s listed bonds should remain unaffected, as they are substantially secured by overseas assets owned by the group.

Merkanti Bank began operating in Malta in 2016 after securing a licence from the Malta Financial Services Authority. The institution, previously owned by Austria’s BAWAG, offers niche corporate services including factoring, inventory finance, trade finance and bank guarantees, targeting international trade and finance clients.

The bank reported total assets of €48 million in 2024, ranking it as the 16th-largest bank in Malta and marking a 19% year-on-year decline. Net income fell sharply to €416,000, down 83% from 2023.