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HSBC Bank Malta plc – Interim Directors’ Statement

Jonathan Falzon

October 28, 2025

28 October, 2025
4 min read
28 October, 2025
4 min read

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.

On 28 October 2025, HSBC Bank Malta plc issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2025.

The Bank explained that revenue decreased by €24.6 million or 13% when compared to the comparable period last year, reflecting the impact of a lower interest rate environment. Nonetheless, the Directors explained that growth was achieved across all other revenue lines, namely net fee income and foreign exchange, with strong results achieved in transaction banking. The Group also registered an increase in wealth assets under management.

The financial performance of HSBC Malta was also boosted by the improvement in the credit quality of its loan book, resulting in a release of Expected Credit Losses (ECL) of €4.6 million, which however was lower than the release of €10.8 million in the same period last year. The release in 2025 was primarily driven by a reassessment of the loss rate and loss given default parameters used to calculate ECL on mortgages and recoveries on corporate non-performing exposures.

Operating expenses increased by 6% compared to the same period last year. HSBC Malta explained that there was an increase in staff costs due to enhanced benefits as per the collective agreement. Moreover, the bank continued to invest in technology, including the launch of SEPA Instant Payments and property as the refurbishment of the headquarters in Qormi has been completed.

The profit before tax for the first nine months of 2025 amounted to €82.5 million, which is 30% lower than the €118.0 million in pre-tax profits reported in the same period last year.

HSBC Malta noted that net loans and advances to customers decreased marginally when compared to 31 December 2024, while customer deposits remained at the same level. The Directors highlighted that an increase in average corporate deposits was achieved during the period. It was also noted that the Bank’s liquidity position remained strong and regulatory capital ratios continued to exceed capital requirements.

The Directors also referred to the signed put option agreement for the potential sale of HSBC Continental Europe’s majority stake in HSBC Bank Malta plc to CrediaBank S.A. The Bank has embarked on the seamless transition while retaining its focus on business continuity, growth, strategic investment, and employee engagement.

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.

On 28 October 2025, HSBC Bank Malta plc issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2025.

The Bank explained that revenue decreased by €24.6 million or 13% when compared to the comparable period last year, reflecting the impact of a lower interest rate environment. Nonetheless, the Directors explained that growth was achieved across all other revenue lines, namely net fee income and foreign exchange, with strong results achieved in transaction banking. The Group also registered an increase in wealth assets under management.

The financial performance of HSBC Malta was also boosted by the improvement in the credit quality of its loan book, resulting in a release of Expected Credit Losses (ECL) of €4.6 million, which however was lower than the release of €10.8 million in the same period last year. The release in 2025 was primarily driven by a reassessment of the loss rate and loss given default parameters used to calculate ECL on mortgages and recoveries on corporate non-performing exposures.

Operating expenses increased by 6% compared to the same period last year. HSBC Malta explained that there was an increase in staff costs due to enhanced benefits as per the collective agreement. Moreover, the bank continued to invest in technology, including the launch of SEPA Instant Payments and property as the refurbishment of the headquarters in Qormi has been completed.

The profit before tax for the first nine months of 2025 amounted to €82.5 million, which is 30% lower than the €118.0 million in pre-tax profits reported in the same period last year.

HSBC Malta noted that net loans and advances to customers decreased marginally when compared to 31 December 2024, while customer deposits remained at the same level. The Directors highlighted that an increase in average corporate deposits was achieved during the period. It was also noted that the Bank’s liquidity position remained strong and regulatory capital ratios continued to exceed capital requirements.

The Directors also referred to the signed put option agreement for the potential sale of HSBC Continental Europe’s majority stake in HSBC Bank Malta plc to CrediaBank S.A. The Bank has embarked on the seamless transition while retaining its focus on business continuity, growth, strategic investment, and employee engagement.