HSBC Bank Malta plc – Interim Directors’ Statement
Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.
Quarterly performance
On 5 May 2026, HSBC Bank Malta plc published a quarterly update providing information about its performance in Q1 2026 when compared to the same period in 2025.
Total revenue decreased by 14% (or €8.1 million) reflecting the lower prevailing average interest rates in Q1 2026 when compared to Q1 2025 and lower net investment return from the insurance subsidiary due to significant market fluctuations. Nonetheless, the Directors highlighted that from an underlying business perspective, the insurance subsidiary reported higher gross written premium compared to Q1 2025. The Group also experienced strong sales growth across the retail and commercial businesses, as well as wealth management.
The financial performance was positively impacted by a release of expected credit losses (ECL) of €4.6 million compared to a charge of €0.6 million in Q1 2025. The release in Q1 2026 was mainly driven by a recovery on a long-outstanding non-performing corporate loan.
HSBC noted that costs increased by 12% (or €3.7 million) driven by higher salaries and employee benefits, legal provisions, as well as accelerated amortisation of intangible assets in view of the change in their estimated useful lives.
Overall, HSBC reported a profit before tax of €21.3 million, which is 24% lower than the €27.9 million figure reported in Q1 2025. The bank continued to hold a strong liquidity position and regulatory capital ratios that exceed regulatory requirements by significant margins.
The Bank explained that customer loans remained broadly in line with balances as at 31 December 2025 of around €2.76 billion. Loans to corporates were 4% higher than balances as at 31 December 2025. New loans to corporates approved in Q1 2026 were up 86% when compared to Q1 2025. Despite a slight decline in overall retail lending balances when compared to balances as at 31 December 2025, the Bank delivered 4% growth in mortgage sales and 41% growth in personal unsecured loan sales compared to Q1 2025.
Customer deposits decreased by €200m when compared to balances as at 31 December 2025 of €6.53 billion, reflecting mainly a decrease in corporate deposits due to seasonality. Deposits were, however, €120m higher than those reported as at 31 March 2025.
Commenting on the results, HSBC Malta’s CEO Mr Geoffrey Fichte noted that Malta’s strong economy is presenting many opportunities for growth. The CEO highlighted that progress was made on the transition to a new majority shareholder, CrediaBank, which is still subject to regulatory approval.
Dividend
In line with previous guidance relating to the declaration of quarterly dividends, the Directors declared a gross interim dividend of €0.036 (net: €0.0234) per share, representing a payout ratio of 60%. The interim dividend will be paid on 30 June 2026 to shareholders as at close of trading on Friday 15 May 2026.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.