HSBC Bank Malta plc - Cost Reduction Programme

Thursday, January 7th, 2016

On 7 January, HSBC Bank Malta plc issued an announcement in connection with its planned programme aimed at improving its productivity and cost effectiveness which had been initially disclosed through another Company Announcement dated 26 November 2015.

In this regard, the Bank confirmed that, as part of such measures, it intends to accept 130 applications for early retirement from its staff members. The estimated cost of this one-off expenditure is approximately €14.7 million, but it will enable the Bank to reduce annual operating costs by approximately €4.4 million.

The entire cost for the voluntary retirements will be provided for in the financial year ended 31 December 2015 and is expected to result in a one-time reduction in the Bank’s profitability for that financial year. However, the cost reductions are expected to enable the Bank to achieve a higher level of profitability and efficiency in future years.

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