Sparkasse Bank Malta

Sparkasse Bank Malta plc is a small, specialist bank on the Sliema seafront, and it is one of the more unusual names in our directory of banks in Malta. Rather than running a network of high street branches, it concentrates on three things: banking for companies and individuals, investment services, and depositary and custody work for investment funds. Its head office is at 101 Townsquare on Ix-Xatt ta' Qui-si-Sana, with the Sliema promenade on the doorstep.

The bank was established in Malta in 2000 and is registered as a public limited company. It is fully owned by an Austrian savings bank holding entity, which in turn holds the Austrian savings bank Sparkasse Schwaz AG. That Austrian parentage shows in the bank's outlook, which is conservative, relationship led and focused on customers across Europe. For a UK reader, the practical point is that this is a regulated Maltese credit institution that talks the language of institutions, funds and sophisticated investors as much as that of individual savers.

Who the bank is for

The business model keeps products and services simple, and rests on transparency, ethics and prudence. Its banking and investment services are geared towards corporate entities, private customers, funds, asset managers and other regulated investment entities. Its resources are predominantly directed at institutional and sophisticated customers from around Europe, so it is best suited to people who already have a clear financial purpose: a company needing multi-currency accounts, a fund manager needing a depositary, or an experienced investor wanting a secure platform.

Private individuals and legal entities are still welcome. The bank is keen to build lasting relationships with people who want to draw on its guidance or its systems to reach their financial goals. Each customer is assigned a dedicated Relationship Officer as their main point of contact, which suits anyone who prefers a named person over a call centre.

The ambition is to grow into a recognised European financial institution offering banking, investment, depositary and fund custody services, with excellent service and expertise. The mission is to give customers value through a dedicated and talented team of professionals. For readers comparing options, our wider guide to financial services in Malta explains how banks of this kind sit alongside insurers, fund administrators and advisers.

Banking and online services

Day to day banking at Sparkasse Bank Malta covers deposits, payments and multi-currency accounts, with an emphasis on building a working relationship. Liquidity management accounts and fixed term deposits are offered for customers who want to make the most of cash balances. The bank offers accounts and payments in a great number of currencies and applies competitive foreign exchange rates across all currency pairs.

Customers manage their accounts through the bank's Online Banking Platform, available at any hour. The bank is a direct participant in the SEPA, TARGET and SWIFT payment networks, which are the main routes for euro and international transfers, and the platform supports bulk payments. Customers can also instruct orders to buy and sell securities online, download statements in CSV and Excel formats, and use a secure messaging system to contact the relevant department. Statements are ordinarily emailed as PDFs, and extra machine readable reports can be set up for cash and portfolio accounts.

Two security and connectivity tools are named on the bank's pages. Spar Key is the user authentication application that customers use to log in securely. Spar Konnekt is the bank's access to account interface, an API required under the European PSD2 payment services rules, which lets authorised third party providers connect to accounts with the customer's permission.

Private banking and investment services

The investment side of the bank operates under an Investment Firm licence issued by the Malta Financial Services Authority. The private banking philosophy is that wealth is personal as well as financial, so the team takes account of family circumstances and life goals. The bank aims to offer personalised service backed by efficient administration, and its Relationship Officers take time to understand a client before proposing anything.

Two kinds of mandate are on offer. Under an advisory mandate, a licensed Investment Advisor prepares a tailored recommendation after an in-depth discussion of risk preferences, investment horizon, desired return and objectives. The recommendation draws on four portfolio allocation models with different asset allocation parameters. The bank's whitelist of investments is made up mainly of collective investment schemes pursuing strategies such as government bonds, investment grade and high yield corporate bonds, strategic bond funds, regional equity funds covering the UK, US, EU or global markets, thematic equity funds and dividend paying equities.

Under a non-advisory mandate, the customer chooses investments independently and uses the bank's securities infrastructure to trade and hold them. That infrastructure gives access to equities, debt instruments, exchange traded funds and notes, structured products, collective investment schemes, forex spot and forwards, and money market instruments. Its private banking team also writes quarterly market updates reviewing equity and bond conditions, and a sustainable finance section covers its disclosures.

Depositary and custody services for funds

Depositary and custody services are a core part of what the bank sells. A depositary is the independent institution that safeguards a fund's assets and checks that the fund manager follows the rules, a role required for regulated funds. The bank has provided these services since 2008 and has built a dedicated team of qualified, experienced professionals for the purpose.

In Malta, the bank is authorised by the Malta Financial Services Authority to act as depositary of all types of collective investment schemes, and to act as custodian for retirement schemes. The Maltese fund types it serves include UCITS, alternative investment funds, notified alternative investment funds and unit trusts. Through its Dublin branch, authorised by the Central Bank of Ireland, it acts as depositary to Irish authorised funds such as UCITS, QIAIFs and RIAIFs. It also serves regulated funds in third countries.

The package covers safekeeping of assets, settlement and trade execution, asset servicing, client and trade settlement accounts, forex, record keeping, credit lines for leverage or short term liquidity, and the regulatory monitoring the relevant directive requires. Fund promoters and company owners can find background in our guide to Malta's corporate tax structure and our guide to iGaming companies in Malta.

Regulation and governance

Sparkasse Bank Malta plc is licensed by the Malta Financial Services Authority as a credit institution under the Banking Act, as an Investment Firm and Depositary under the Investment Services Act, and is authorised as a Registered Custodian under the Retirement Pensions Act. The bank is registered in Malta under company number C27152. The Dublin branch is separately authorised by the Central Bank of Ireland for depositary work.

Governance is laid out in some detail. The Board of Directors approves the overall business strategy, risk strategy and internal control framework, and it has an Audit Committee and a Risk Committee to advise it. The Managing Director and the Chief Technology Officer form senior management, supported by a Management Committee of department heads and a Regulatory Steering Committee that coordinates compliance projects and resolution planning.

Risk management follows the three lines of defence model. Business departments and support functions such as account management, finance, IT, legal and operations form the first line, the risk, compliance and anti-money laundering functions form the second, and internal audit is the third. For customers, this structure shows up in thorough onboarding checks, which is normal for any bank operating in Malta.

Location and how to get started

The head office is at 101 Townsquare, Ix-Xatt ta' Qui-si-Sana, in Sliema. If you are planning a longer stay or a move, our relocation guide for Malta and Malta tax guide for UK nationals cover the wider questions of moving money and setting up life on the island.

To explore your options, compare this bank with others such as MeDirect Bank, BNF Bank or APS Bank in Birkirkara, then decide which style of service suits you. Whether you are a company seeking a depositary, an investor wanting an advisory or non-advisory mandate, or an individual opening a multi-currency account, the next step is the same: use the VisitMalta.co.uk enquiry form on this page and we will pass your message to the bank.