Daily Market Highlights (21.02.2023)

HSBC doubles profits in 2022


The MSE Equity Price Index gained 0.63% to 3,595.608 points as the gains of HSBC, BOV, GO and PG outweighed the declines of BMIT, Hili Properties and MaltaPost. Meanwhile, three other equities closed unchanged as the total value traded amounted to €0.17 million. Download today’s Equity Market Summary.

Most of today’s trading took place in the shares of HSBC Bank Malta plc with 98,675 shares changing hands as its share price surged by 6.4% to the €1.00 level, the highest level since May 2020. Today, HSBC published its annual results for the 2022 financial year.  Net interest income increased by 10.7% to €108.2 million, driven by higher interest rates in the second half of the year. Excluding insurance operations, non-interest income remained virtually unchanged at €31.3 million. Meanwhile HSBC Life Assurance (Malta) Limited reported a profit before tax of €4.8 million in contrast to the loss before tax of €3 million in 2021. On the expenditure side, operating costs declined by 2% to €103.0 million and the Bank’s performance was boosted by the net release of expected credit losses of €9.6 million. Overall, HSBC Malta reported a profit before tax of €57.3 million which is more than double the reported figure of €26.9 million in 2021. The net profit figure for 2022 amounted to €37.6 million (equivalent to €0.104 per share) which, in turn, translates into a return on average equity of 7.61%, the highest level since 2016. The Group’s net asset value per share as at 31 December 2022 was of €1.380 compared to €1.359 as at the end of 2021.  The Board of Directors is recommending a final net dividend of €0.0364 per share. This represents a payout ratio of 35% which the Directors explained is based on the adverse price movements on financial instruments incurred in 2022, the expected changes in capital regulations and the uncertain economic outlook. The dividend will be paid on 25 April 2023 to all shareholders as at close of trading on 17 March 2023 subject to approval by the Annual General Meeting scheduled for 20 April 2023.

Also in the banking sector, Bank of Valletta plc climbed 1.1% to the €0.92 level across six deals totalling 33,148 shares.

One deal of 5,000 shares pushed the share price of PG plc 1% higher to the €1.98 level.

GO plc advanced by 2.1% to the €2.96 level on a single trade of 1,512 shares.

In contrast, GO’s data centre and IT services subsidiary – BMIT Technologies plc – shed 1.3% to the €0.444 level across two trades totalling 27,672 shares.

Hili Properties plc fell 4.3% to the €0.22 level on two trades totalling 8,000 shares.

MaltaPost plc plunged 12% to the €0.95 level, albeit on trivial volumes.

Malta International Airport plc remained at the €5.65 level across 1,060 shares. MIA is expected to publish its 2022 annual financial results tomorrow.

International Hotel Investment plc traded flat at the €0.60 level on two deals totalling 2,771 shares.

A single deal of 5,000 shares left the share price of Mapfre Middlesea plc at the €1.50 level.

The RF MGS Index offset most of yesterday’s gains as it eased by 0.3% to 877.622 points. Within the Eurozone, business activity in February improved to a nine-month high and exceeded expectations. In fact, manufacturing production increased for the first time in nine months. Within the largest economy of the euro area, German investor morale improved for the fifth consecutive month.



This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data.  Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.