HSBC Bank Malta plc - Interim Directors’ Statement

On 30 May 2023, HSBC Bank Malta plc published a Quarterly Update providing information about its performance in Q1 2023 when compared to the same period in 2022. In this respect, HSBC reported a profit before tax of €26.5 million which is a significant rise from the €4.8 million profit reported in Q1 2022. The surge in profitability was attributed to a boost in net interest income as well as the enhanced credit quality of the bank’s loan book.

Total revenue was reported to have increased by 60% (€18.8 million) as the Bank was able to earn considerable interest on its excess liquidity as opposed to the previous year when negative interest rates were present.  Furthermore, insurance income was also boosted due to improved equity markets.

The healthier credit quality of the bank’s loan books was attributed to the revision of assets which were downgraded during the COVID-19 pandemic. This resulted in a release of expected credit losses totalling €3.7 million in Q1 2023, compared to €0.3 million in Q1 2022.

On the other hand, operating expenditure increased by €0.5 million due to inflationary pressures and investment for further growth through technology, automation, and people.

Commenting on the results, HSBC Malta’s CEO Mr Geoffrey Fichte explained that: “We reported strong Q1 2023 results driven by the increase in interest rates and improvement in the credit quality of our loan book. We remained focused on improving our customer service and investing in technology while maintaining cost discipline.”