Daily Market Highlights (22.02.2023)

 MIA generates revenue of €88m in 2022, declares dividend


The MSE Equity Price Index shed 0.35% to 3,583.063 points reflecting the declines of BOV and VBL. Meanwhile, three other equities closed unchanged as overall trading activity amounted to €0.04 million. Download today’s Equity Market Summary.

Following the close of today’s trading session, Malta International Airport plc published the Annual Report for the 2022 financial year. Revenue amounted to €88 million, which is nearly double the €47.4 million figure for 2021, but below the 2018 and 2019 revenue levels of €92.2 million and €100.2 million respectively. The 2022 financial performance was also boosted by the €12 million tax credit awarded to MIA for the losses suffered during the Covid-19 pandemic, which resulted in a net profit of €38.9 million. Excluding the tax credit, adjusted net profit amounted to €26.9 million compared to €7.0 million in 2021. In context of the improved performance in 2022, the Board of Directors is recommending a final net dividend of €0.12 per share to be paid not later than 26 May 2023 to all shareholders as at close of trading on 4 April 2023. MIA had last paid a dividend in September 2019, prior to the pandemic. The equity remained inactive today.

More than half of today’s value of equities traded was in HSBC Bank Malta plc as 21,386 shares changed hands. The equity held its over 2-year high of €1.00 after recovering from an intraday low of €0.99 (-1%). Yesterday, 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, APS Bank plc remained at the €0.59 level across 1,790 shares.

One deal of 500 shares left the share price of GO plc unchanged at the €2.96 level.

Meanwhile, Bank of Valletta plc erased yesterday’s gain as it shed 1.1% back to the €0.91 level across three trades totalling 12,180 shares.

VBL plc plunged 12.9% to a four-month low of €0.23 on two trades totalling 15,000 shares.

The RF MGS Index declined by 0.21% to 875.819 points. The annual inflation rate in   Germany was at 9.2% in January, falling from 9.6% in the previous month and meeting expectations. The main price pressures remained from energy costs, which were 23.1% higher than a year earlier and food costs which increased by 20.2%. Meanwhile, prices for goods were 12.7% higher and services prices increased by 4.5% year-on-year.


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.