Customer deposits at HSBC Bank Malta climb for 8^th consecutive year

The MSE Equity Price Index fell by 0.11% to 3,913.9 points as the declines in HSBC and IHI outweighed the gains in APS and PG. Meanwhile, three other equities closed unchanged as today’s total trading activity amounted to €0.12 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc fell by 1.3% to the €1.47 level across five deals amounting to 10,545 shares. Today, HSBC Bank Malta plc published its Annual Report for the financial year ended 31 December 2025. Net interest income dropped by 15% to €175 million. The Bank explained that the results reflect the lower interest rate environment where the average prevailing rates in 2025 were lower than those recorded in 2024. Excluding insurance operations, non-interest income remained at the €30.5 million level. Furthermore, HSBC Life Assurance (Malta) Limited reported a profit before tax of €8.1 million. The Group’s net operating income before changes in expected credit losses (ECL) fell by 13% to €219 million compared to €253 million in the last financial year. The financial performance also included the release of ECLs amounting to €9.5 million, which however was lower than the release of €14.6 million in the previous year. Overall, HSBC Malta reported a profit before tax of €109 million and a net profit of €71.6 million (equivalent to €0.1987 per share) which translates into a return on average equity of 11.7%. The Group’s total assets increased by 5.3% (or €409 million) to €8.15 billion as financial investments increased by 11% (or €246 million) to €2.54 billion and balances with the Central Bank of Malta, treasury bills and cash surged by 20% (or €219 million) to €1.29 billion. In contrast, customer loans dropped by 3.9% (or €111 million) to €2.76 billion. Meanwhile, customer deposits increased by 6% (or €370 million) to €6.53 billion. As a result of the contraction in customer loans and growth in deposits, the loans-to-deposits ratio dropped to a multi-year low of 42%. Total equity increased by 4.1% to €626 million, which translates into a net asset value per share of €1.736. The Board of Directors is recommending a final net dividend of €0.0546 per share. The dividend will be paid on 6 May 2026 to all shareholders as at close of trading on 26 March 2026 subject to approval by the Annual General Meeting scheduled for 29 April 2026. Coupled with the net interim dividend of €0.065 per share paid in September 2025, the total net dividend attributable for the 2025 financial year amounts to €0.1196 per share and represents a payout ratio of 60%.

International Hotel Investments plc declined by 1.4% to the €0.43 level over two deals totalling 1,689 shares.

On the other hand, APS Bank plc gained 2.0% to the €0.51 level over five trades amounting to 31,150 shares.

PG plc moved 0.6% higher to the €1.65 level across three deals totalling 10,000 shares.

Meanwhile, Malta International Airport plc closed unchanged at the €6.00 level over five deals totalling 1,340 shares.

Hili Properties plc traded flat at the €0.27 level as 250,500 shares changed hands.

Bank of Valletta plc held the €2.06 level albeit over trivial volumes.

Yesterday evening, MIDI plc announced that it entered into promise of sale agreements with The 540 Hub Limited, whereby MIDI plc promised to sell the temporary utile-dominium for the remaining period of the ninety-nine years that commenced in June 2000 of the building under construction known as the T15 Building situated at Tigné Point, Sliema. The promise of sale agreement is valid up to 30 June 2026. The consideration for the sale amounts to €5.5 million with the payment to be made on the final deed of sale. The agreement is subject to several conditions which need to be satisfied prior to the final deed of sale. The company noted that the property is currently under construction and hence no rental income is accruing from it. MIDI explained that the net proceeds from the sale will be applied towards the redemption of the €50 million bond which is due to mature in July 2026.

Today, FIMBank plc announced that its Board of Directors is scheduled to meet on Thursday 26 March 2026 to consider the approval of the financial statements for the year ended 31 December 2025.

The RF MGS Index remained relatively unchanged at 911.5 points as eurozone government bond yields continue to hover around multi-month lows. Fresh data released today showed consumer morale in Germany fell as economic expectations weakened, willingness to buy deteriorated, and the propensity to save rose to a record high. In contrast, consumer confidence in France exceeded forecasts as households became less pessimistic about their future personal financial situation, and their opinions on the ability to save improved.

Today, the Central Bank of Malta released an updated economic forecast for Malta up to 2028.  The CBM projects real GDP growth to remain steady at around 3.7% annually, supported mainly by strong private consumption partly reflecting income tax adjustments. Inflation is forecasted to ease from roughly 2.3% in 2026 to 2.1% in 2027 and 2.0% in 2028, reflecting declines in service and core inflation. The CBM also stated that while risks to growth are broadly balanced, inflation risks are modestly tilted to the upside. The CBM also noted that the government’s financial position is set to strengthen as the projected deficit is set to fall from 2.8% in 2026 to around 2.0% in 2028.

 

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.