HSBC Bank Malta plc - Interim Directors’ Statement

Thursday, November 19th, 2015

On 19 November, HSBC Bank Malta plc issued its Interim Directors’ Statement covering the period since 30 June 2015.

The Directors reported that during the period under review, despite generating higher revenues on the back of higher net interest and fee income, HSBC registered a modest decline in profit before tax compared to the same period in 2014. This decline was primarily attributable to higher costs (namely increases in compliance and regulatory costs and the impact of currency changes on the cost of HSBC Group services) and a lower contribution from the life insurance business. Excluding these items, expenses remained well controlled and in line with the corresponding period last year. Moreover, loan impairment charges were broadly in line with the same period in 2014.

HSBC revealed that loans and advances to customers increased slightly, primarily as a result of an increase in home loans, whilst corporate and business lending remained broadly unchanged compared to the end of 2014 as the amount of new loans granted was offset by early repayments. Meanwhile, the Directors confirmed that customer deposits continued to increase during the period. Accordingly, HSBC’s liquidity and capital positions remain strong.

Andrew Beane, the Chief Executive Officer of HSBC Malta, concluded by stating: “The operating environment in the eurozone continues to be very challenging with record low interest rates and modest economic growth. However, the local economy is doing well with encouraging rates of growth. The bank has made good progress under our new regulatory regime and I am encouraged by the strong platform this provides for us to grow the business and create value for shareholders. HSBC Malta remains well positioned to support the local economy and our priorities are to improve the service we provide to customers, to manage our costs, and to operate to the highest global standards of compliance.”

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