On 12 November, HSBC Bank Malta plc issued its Interim Directors’ Statement updating the investing public on the Group’s performance since the half-year end on 30 June 2010. The Directors noted that the Group performed satisfactorily with revenue and profits continuing the positive trend reported during the first six months of 2010 when HSBC Malta reported a 21% increase in pre-tax profits to €42.2 million.
Furthermore HSBC managed to maintain its cost efficiency at the levels registered in the first half of 2010 without hindering the continuous investment by the Bank to expand its business. The Directors also explained that loan impairments were only modestly higher than the level during the same period last year.
On the other hand profits from the life insurance business remain volatile as the current economic conditions adversely impact this business.
On the Balance Sheet, the Bank managed to further increase its deposit base despite the growing competitive pressures including various Malta Government Stock issues and corporate bonds whilst HSBC experienced a slight softening in demand for loans due to the challenging economic conditions as well as increased competition.
The Directors concluded by reiterating that liquidity and capital ratios remain well above regulatory requirements.