Issue link: https://maltatoday.uberflip.com/i/762759
maltatoday, WEDNESDAY, 14 DECEMBER 2016 11 Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way HSBC Bank Malta named 2016 Bank of the Year HSBC Bank Malta has been named Bank of the Year in Malta for 2016 as part of the Financial Times' prestigious 'The Banker' magazine awards. The award recognised that HSBC Malta had been successful in rapidly adapting its business model to thrive within a changed operating environment for banks characterised by more demanding regulatory and compliance obligations while continuing to support growth in the economy in a responsible way. The award was presented to HSBC Bank Malta CEO Andrew Beane and chairman Sonny Portelli at a ceremony in London, accompanied by a group of employees from across the bank's business. "This award is a testament to the hard work, professionalism and dedication of all my colleagues and I dedicate the award to them," Beane said. "We set out a new strategy for the bank at the beginning of 2016 and I am delighted that the progress we have made in a short period has been recognised in this way." He said banking would always be about serving customers through long-term relationships built on trust, but insisted this could only be achieved if demanding regulatory and compliance standards were also met. Beane aknowledged that the bank's customers were being asked for more information than they were accustomed to in the past. "Our unwavering commitment to the highest standards of compliance can give them confidence that their bank is strong, safe and secure and this award demonstrates we are leading the industry in Malta and protecting future growth in the economy," he said. The 'Bracken Award', named after Lord Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958, is hailed as an 'Oscar' in the global banking industry. Family businesses discuss the prospect of internationalisation The fourth edition of the Fam- ily Business Forum was hosted at the Xara Lodge in November. This year's conference – Seeking Growth Beyond our Borders, fo- cused on the prospect of interna- tionalisation as a growth driver for this sector. Besides highlighting the concerns of local businesses, the forum sought to determine the level of readiness for this step. Family business constitutes a specific sector in the local economy. Although mainly SMEs, family businesses have distinct attributes, mainly resilience and long-term vision. For the last four years, Bank of Valletta and PwC have organised this event with the view of bringing the players together to discuss concerns and learn from best practice. The Forum was opened by Kevin Valenzia, the Territory Senior Partner at PwC, who set the tone for the event by highlighting concerns family businesses raise when considering expanding their operation outside our borders. In his keynote speech, Hon. Chris Cardona, Minister for the Economy, Investment and Small Business acknowledged the importance of this sector for the economy, and highlighted the role of legislation that ensures stability in this sector. He referred to the one-off incentive for 2017, where family businesses wishing to transfer the business to the next generation, are encouraged to register and benefit from a reduction of tax (from 5% to 1.5%). The PwC Family Business Survey was launched by Michel Ganado, Advisory Partner at PwC. It transpires that as many as 80% of family businesses in Malta have registered an increase in sales over the last financial year. However, it is also true that many local family businesses do not succeed in transferring their family business beyond the 2nd generation. This is usually due to lack of succession planning and financial planning. 60% of family businesses surveyed generate an average of 24% of turnover from overseas markets. This share is likely to grow to 30% over the coming 5 years. Among the main concerns for Maltese family businesses, one finds the need to innovate to keep ahead, intensifying competition and attracting and retaining talent. The Forum also included a panel discussion. Alec Mizzi and Malcolm Miller represented local family businesses that successfully established their operations overseas together with Anton Buttigieg from Trade Malta, the agency set up two years ago to support businesses interested in venturing into other markets. The panellists shared experiences, highlighting important differences between the local market and those overseas. They also underlined human capital and an entrepreneurship spirt as key attributes that determine growth. Carmel Borg, Head Trade Finance at Bank of Valletta, explained the risk factors in international trade, which multiply when compared to the domestic market. He stressed on the importance that one is knowledgeable about variables involved, including exchange rate fluctuations, unforeseen events and legal framework. In his concluding speech, Albert Frendo, Chief Credit Business Development Officer said that more family businesses, particularly established ones, are looking at internationalisation as a means of growth, once they reach a saturation point in the local market. Through modern technology and the marked shift in the local economy towards the service industry, a number of businesses are internationalizing successfully even through their operations from our shores. Ultimately, the outcome's success depends on a number of factors and business fundamentals including the characteristics that define the market itself, proper financial management, effective entrepreneurship and the robustness of the governance structure in place. Speaking about the Bank's role, Mr Frendo said that Bank of Valletta remains committed to support family businesses in their journey to grow and evolve, fully cognisant that family businesses are key to the economic prosperity and success of our country. HSBC Bank Malta CEO Andrew Beane (fi fth from left) and HSBC staff at the Banker Awards ceremony in London