HSBC Bank Malta plc - Interim Directors’ Statement

On 29 April 2025, HSBC Bank Malta plc published a quarterly update providing information about its performance in Q1 2025 when compared to the same period in 2024.

Total revenue decreased by 10% (or €6.7 million) reflecting the lower prevailing average interest rates in Q1 2025 when compared to Q1 2024. The Directors highlighted that the Bank reported growth across all other income lines, including net fee income, foreign exchange, and insurance income.

The financial performance was also dented by expected credit losses (ECL) of €0.6 million compared to a release of €1.8 million in Q1 2024. The net ECL charge in Q1 2025 reflected the increased global uncertainty and geo-political risks. Nonetheless, the Directors remain confident in Malta’s resilience, diversified economy and economic strength.

HSBC noted that costs increased by 8% (or €2.3 million) driven by higher salaries and employee benefits as well as higher technology spend.

The Bank explained that customer loans and customer deposits remained broadly in line with the levels reported as at the end of 2024.

Overall, HSBC reported a profit before tax of €27.9 million, which is 29% lower than the €39.3 million reported in Q1 2024. 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 stated “HSBC Bank Malta plc reported sizeable profits in Q1 2025, despite the various anticipated ECB rate cuts which started in June 2024 and are expected to continue. We are investing in people and technology, aimed at improving our customer service and achieving sustainable returns for all our shareholders. I would like to thank our customers for their business and my colleagues for their patience and resilience as we progress through the strategic review process as first announced on 11 September 2024. We remain open for business and committed to providing enhanced customer service and high standards to support growth in the Maltese market.’’