On 11 May 2010 HSBC published its Interim Directors’ Statement covering the period from the start of their new financial year on 1 January 2010. The HSBC Malta Group explained that during this period, the Bank performed strongly and made further progress in improving revenues and controlling costs, whilst as expected, loan impairments weakened modestly. Due to the current economic slowdown, HSBC Malta saw a slight softening in demand for loans. Meanwhile, deposits rose slightly even through the period was characterized by a number of local government and corporate bond issues together with growing competitive pressure. The HSBC Malta Group maintained a strong liquidity position with a stable loans to deposits ratio and confirmed that the credit quality of the available-for-sale investment portfolio remains satisfactory and has in fact improved over the period under review. The Group’s capital ratio also remains well above regulatory requirements.
HSBC Malta’s CEO Mr Alan Richards stated that Group is encouraged by the Bank’s performance during the period under review and following five consecutive quarters of negative GDP growth, the local economy has returned to growth and should remain positive for the rest of 2010. However, as the Eurozone recovery remains fragile, the HSBC Group continues to monitor the current situation closely. Mr Alan Richards concluded by confirming that HSBC “made good progress in the quarter” and “remains well capitalized, liquid and very much open for business”.