HSBC Bank Malta plc – Interim Directors’ Statement

HSBC Bank Malta plc – Interim Directors' Statement

HSBC Bank Malta plc announced that the bank delivered an improved performance during the period 1 July 2012 to 13 November 2012 (the "period"), primarily resulting from higher profitability in the life insurance business reflecting the rally in the investment markets during the period. Gains on disposals of available-for-sale securities contributed to the improved performance.

The bank continues to focus on building a high quality asset base. It is encouraging that loan impairments, although slightly higher than in the comparable period in 2011, remain below expectations. The available-for-sale portfolio remains well diversified and conservative. The bank maintained both a strong liquidity position and a stable loans-to-deposits ratio during the period. Its capital ratio remains above minimum regulatory requirements.

HSBC Malta’s management of its capital and risk positions continues to be conservative and the bank is well placed to meet future challenges.

Mark Watkinson, Director and Chief Executive Officer of HSBC Malta, said: "Clearly market conditions have been particularly difficult in recent months and it seems that the world is becoming more uncertain by the day. We are satisfied with the bank’s positive performance during the period under review but we are mindful of the significant and growing challenges faced by the global economy.

"We have a clear strategy focused around simplifying our business, reducing bureaucracy and improving efficiency. As part of the world’s largest international banking organisation, we are well placed to service the needs of our customers and to support the local economy."

To view the official company announcement, click here.