HSBC Bank Malta plc - Interim Directors’ Statement

On 28 October 2025, HSBC Bank Malta plc issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2025.

The Bank explained that revenue decreased by €24.6 million or 13% when compared to the comparable period last year, reflecting the impact of a lower interest rate environment. Nonetheless, the Directors explained that growth was achieved across all other revenue lines, namely net fee income and foreign exchange, with strong results achieved in transaction banking. The Group also registered an increase in wealth assets under management.

The financial performance of HSBC Malta was also boosted by the improvement in the credit quality of its loan book, resulting in a release of Expected Credit Losses (ECL) of €4.6 million, which however was lower than the release of €10.8 million in the same period last year. The release in 2025 was primarily driven by a reassessment of the loss rate and loss given default parameters used to calculate ECL on mortgages and recoveries on corporate non-performing exposures.

Operating expenses increased by 6% compared to the same period last year. HSBC Malta explained that there was an increase in staff costs due to enhanced benefits as per the collective agreement. Moreover, the bank continued to invest in technology, including the launch of SEPA Instant Payments and property as the refurbishment of the headquarters in Qormi has been completed.

The profit before tax for the first nine months of 2025 amounted to €82.5 million, which is 30% lower than the €118.0 million in pre-tax profits reported in the same period last year.

HSBC Malta noted that net loans and advances to customers decreased marginally when compared to 31 December 2024, while customer deposits remained at the same level. The Directors highlighted that an increase in average corporate deposits was achieved during the period. It was also noted that the Bank’s liquidity position remained strong and regulatory capital ratios continued to exceed capital requirements.

The Directors also referred to the signed put option agreement for the potential sale of HSBC Continental Europe’s majority stake in HSBC Bank Malta plc to CrediaBank S.A. The Bank has embarked on the seamless transition while retaining its focus on business continuity, growth, strategic investment, and employee engagement.