HSBC Bank Malta plc - Interim Directors’ Statement

On 30 October 2023, HSBC Bank Malta plc issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2023.

The Bank explained that pre-tax profits surged to €100.8 million compared to €32.9 million in the same period in 2022, following IFRS 17 restatement. HSBC explained that the increase in profitability was attributable to strong interest income, improved credit quality of the loan book, and continued focus on cost management. In fact, total revenues increased by 60% (or €64.2 million) driven by the higher net interest income generated from an improved interest rate environment.

The financial performance was also boosted by a release of expected credit losses of €3.7 million, which however was lower than the release of €10 million recorded in the same period last year. The Bank explained that the release of the first nine months of 2023 reflected the upgrade of facilities which were granted moratoria during the COVID-19 pandemic and a general improvement in the Maltese economy.

HSBC also reported a €10 million drop in costs principally reflecting the higher level of costs attributed to the Depositor Compensation Scheme and restructuring provisions in 2022, as well as an insurance refund that was received in 2023.

In terms of financial position, HSBC explained that net loans and advances to customers remained broadly in line with the levels as at 31 December 2022 (€3.2 billion), while the Bank’s liquidity position remained strong and regulatory capital ratios continued to exceed regulatory capital requirements.

Commenting on the performance up to September 2023, HSBC Malta’s CEO Mr Geoffrey Fichte explained that: “Our record Q3 results reflect the strength of our business and confidence of our customers in a volatile world. These results demonstrate that our turnaround strategy is working. Our robust risk management is protecting and supporting customers while delivering value for shareholders. We are positive on Malta and continue to invest to improve customer experience. I would like to thank the HSBC team for the strong performance and our customers for their business.”