HSBC Bank Malta plc – Interim Directors’ Statement

HSBC Bank Malta plc announced that during the period January 1, 2014 to May 19, 2014, against a backdrop of very challenging market conditions, HSBC Malta delivered a result that was below the same period last year. The main factors impacting performance were margin compression, slow loan growth and a reduced contribution from the life insurance business, that in the comparative period in 2013 benefitted from a significant one-off gain.

There has been a rise in operating expenses as a result of compliance investments and increased regulatory fees. However underlying expenses have been well controlled and significant work continues around streamlining the business for greater efficiencies.

Loan impairments were up on 2013, as the prior year benefited from a number of recoveries, but lower than forecast.

Mark Watkinson, Director and Chief Executive Officer of HSBC Malta, said: “The European market remains very difficult and the low interest rate environment presents its own set of issues for an organisation such as ours. Nevertheless, we continue to build our business and invest in our franchise. The growth in the pipeline of commercial and retail new business is encouraging. Notwithstanding this 2014 is likely to be a challenging year for both our business and the industry in general."

To view the official company announcement, click here.