HSBC Malta generates record net profits of €100 million in 2024

 

The MSE Equity Price Index rose by 0.16% to 3,826.774 points as the gains in HSBC, BOV, Lombard, and Malta Properties outweighed the declines in APS, IHI, MIA and Trident. Meanwhile, three other equities closed unchanged as today’s trading activity in local equities amounted to €0.33 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc rose by 2.7% to the €1.54 level across eighteen deals amounting to 81,086 shares. Today, HSBC published its 2024 annual results which showed an increase across all income streams. In particular, net interest income increased by 5.2% to €206.1 million. The Group also benefitted from higher net fee income, net trading income and an improved performance of its insurance company. The financial performance was also boosted by the release of ECL’s amounting to €14.6 million. Overall, HSBC Malta reported a profit before tax of €154.5 million, which is 15.4% higher than the pre-tax profit of €133.9 million generated in the previous year. The net profit for the year amounted to a record of €100.1 million (equivalent to €0.2778 per share) which translates into a return on average equity of 17.5%. As at 31 December 2024, total equity amounted to €600.9 million, which translates into a net asset value per share of €1.6678. The Board of Directors is recommending a final net dividend of €0.078 per share. The dividend will be paid on 20 May 2025 to all shareholders as at close of trading on 9 April 2025 subject to approval by the Annual General Meeting scheduled for 13 May 2025. Coupled with the net interim dividend of €0.065 per share paid in September 2024, the total net dividend attributable for the 2024 financial year amounts to €0.143 per share, which represents a payout ratio of 51.5% (2023: 40.5%) and is the highest dividend in over a decade.

Also in the banking sector Bank of Valletta plc gained 1.7% to a fresh multi-year high of €1.83 across sixteen trades totalling 89,093 shares.

Lombard Bank Malta plc surged by 5.6% to the €0.755 level over five deals amounting to 3,104 shares.

Malta Properties Company plc increased by 0.6% to the €0.346 level over trivial volumes.

On the other hand, International Hotel Investments plc slumped by 8.9% to the €0.41 level over seven trades totalling 25,979 shares.

Malta International Airport plc moved 0.8% lower to the €6.15 level on two deals amounting to 334 shares.

APS Bank plc eased by 0.8% to the €0.615 level over trivial volumes.

Trident Estates plc fell by 0.9% to the €1.11 level across three trades totalling 952 shares.

GO plc traded flat at the €2.66 level as 8,270 shares changed hands.

Mapfre Middlesea plc held the €1.38 level across volumes totalling 600 shares.

Malita Investments plc closed unchanged at the €0.50 level across two deals amounting to 14,000 shares.

Yesterday, Hili Properties plc announced that is has been informed by the company’s largest shareholder, Hili Ventures Limited, of its intention to launch a conditional voluntary public takeover bid for the acquisition of all the issued share capital of the company, in accordance with Chapter 11 of the Capital Markets Rules. Following a request submitted to the Malta Financial Services Authority, the shares of Hili Properties plc were suspended from trading on 19 February 2025 until further notice.

The RF MGS Index fell by 0.06% to 911.624 points amidst resurfacing concerns about inflation. In fact, inflation in the UK during January was at 3.0%, the highest figure since March 2024 and above forecasts of 2.8%. Notably, services inflation rose to 5% from 4.4% in the previous month but was lower than the forecasted 5.2%, whilst core inflation increased to 3.7% from 3.2%, as per projections.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell 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.