HSBC Bank Malta plc – Interim Directors’ Statement

HSBC Bank Malta plc announced that during the period 1 January 2015 to 15 May 2015, economic and market conditions remained very challenging, characterised by record low interest rates with the European Central Bank launching a quantitative easing programme in January 2015. Against this backdrop, HSBC Malta delivered a profit before tax that was in line with same period in 2014. 

 Total revenues were higher compared to the same period in 2014, despite a decrease in interest income from lending. The increase was driven by a growth in insurance and trading income and a fall in the cost of funding.

Operating expenses for the period were higher compared to the same period in 2014 as a result of continued investment in risk and compliance staff and the impact of currency changes on the cost of offshored services.

Loan impairments were marginally higher than the same period last year. In view of the current challenging environment, the Bank continues to maintain a cautious approach to provisions. 

Mark Watkinson, Director and Chief Executive Officer of HSBC Malta, said: “Operating conditions remain difficult but the underlying performance of the three main business segments – retail banking and wealth management, commercial banking and global banking and markets – has been positive in the first quarter. Activity levels remain good, particularly with respect to mortgages. The Bank is focussed on building its local franchise and leveraging the opportunities that arise as Malta becomes increasingly globally connected both by way of inward investment and as companies in Malta seek to expand internationally.”

To view the official company announcement, click here.