HSBC Bank Malta plc - Interim Directors’ Statement

On 30 April 2024, HSBC Bank Malta plc published a quarterly update providing information about its performance in Q1 2024 when compared to the same period in 2023.

Total revenue increased by 29% (or €14.6 million) as the Bank was able to earn higher interest on its excess liquidity. Furthermore, the Group registered higher business volumes which resulted in increases in net fee income, foreign exchange, and insurance income.

The healthier credit quality of the bank’s loan books resulted in a release of expected credit losses of €1.8 million, which however was less than the release of €3.7 million in Q1 2023.

HSBC noted that costs were maintained at the same level despite the impacts of inflation.

The Bank explained customer loans remained broadly in line with the levels reported as at the end of 2023, but customer deposits decreased marginally due to a drop in operational corporate deposits.

Overall, HSBC reported a profit before tax of €39.3 million compared to €26.5 million reported in Q1 2023 and €33.1 million in Q4 2023. The bank continued to hold a strong liquidity position and regulatory capital ratios continued to exceed regulatory requirements.

Commenting on the results, HSBC Malta’s CEO Mr Geoffrey Fichte explained that the Bank continued to invest in technology to improve customer service. A new collective agreement for 2024-2026 was concluded in January 2024, which is characterised by significant enhancements to employee pay, benefits and retirement pension.