HSBC Malta share price jumps 7% on record interim profits

 

The MSE Equity Price Index increased by 0.09% to a two-month high of 3,767.333 points as the gains in HSBC, GO, MIA, and Mapfre Middlesea outweighed the declines in seven other equities. Meanwhile, six equities closed unchanged as the total trading activity in local equities today amounted to €0.81 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc surged by 6.9% to a fresh five-year high of €1.70 across 22 trades totalling 120,931 shares having a market value of €0.20 million. Today, HSBC Malta published its interim results for the six-month period ended 30 June 2024. Net interest income rose by 19% to €106.6 million driven by the strong growth in gross interest income which offset the higher interest expense. In this respect, HSBC explained that the performance benefitted from higher average interest rates in the first half of 2024 compared to those prevailing in the corresponding period in 2023. Meanwhile, non-interest income surged by 27.3% to €21.1 million mostly driven by an improved performance of HSBC Life Assurance (Malta) Ltd.   The financial performance was also positively impacted by a net reversal of expected credit losses of €7.0 million. The profit before tax surged by 32.6% to a record of €78.6 million compared to €59.3 million in the first half of the previous year. After accounting for a tax charge of €27.9 million, HSBC reported a net profit of €50.7 million which translates into an annualised return on average equity of 18.3% (H1 2023: 16.2%). The Board of Directors declared a net interim dividend of €0.065 per share, which represents the highest interim dividend paid by HSBC Malta in over 10 years. The dividend is payable on 17 September 2024 to all shareholders as at close of trading on 13 August 2024.

GO plc increased by 0.7% to the €2.92 level across four trades amounting to 1,917 shares.

Also among large companies by market value, Malta International Airport plc moved 0.9% to the €5.70 as 565 shares changed hands. MIA will publish its interim results tomorrow. The Directors will also consider the declaration of an interim dividend.

Mapfre Middlesea plc surged by 7.3% to a three-week high of €1.32 across ten deals amounting to 99,586 shares. On Monday, Mapfre Middlesea published its results for the first half of 2024 in which the Group generated pre-tax profits of €12.2 million compared to a restated figure of €9.70 million in the corresponding period last year.

In contrast, APS Bank plc slumped by 4.0% to an all-time of €0.48 after failing to hold onto an intraday high of €0.55 (+10%) across twenty deals totalling 116,426 shares.

Also in the banking sector, Bank of Valletta plc eased 0.6% to the €1.56 level over eleven trades amounting to 124,136 shares.

Plaza Centres plc plummeted by 12.7% to a three-month low of €0.55 on a single deal of 5,000 shares. Following the close of trading, Plaza published its interim results for the six-month period ended 30 June 2024. Revenue increased by 4.4% to €1.57 million but was largely offset by an increase in operating costs. As a result, operating profit increased by 2% to €0.85 million. Excluding depreciation, EBITDA increased by 3% to €1.10 million. Overall, Plaza reported a net profit for the period of €0.59 million. The company’s equity base expanded by €0.25 million to €27.5 million which translates into a net asset value per share of €1.077. The Board of Directors declared an unchanged net interim dividend of €0.0098 per share, payable to shareholders as at close of trading on Monday 12 August 2024. The dividend represents a payout ratio of 43% and will be paid on Wednesday 28 August 2024.

Malta Properties Company plc slumped by 10.8% to a one-month low of €0.33 albeit over trivial volumes.

PG plc fell by 5.8% to a four-year low of €1.80 over eight trades amounting to 74,400 shares.

International Hotel Investment plc moved 7.3% lower to an all-time low of €0.38 on two trades totalling 2,440 shares.

The preference shares of RS2 plc decreased by 2.6% to an all-time low of €0.76 across three deals amounting to 39,938 shares.

Meanwhile, the ordinary shares of RS2 plc closed unchanged at the €0.775 level across six deals totalling 43,794 shares.

Simonds Farsons Cisk plc traded flat at the €6.85 level as 1,350 shares changed hands.

AX Real Estate plc closed unchanged at the €0.458 level over three deals amounting to  8,333 shares.

BMIT Technologies plc and Santumas Shareholding plc held the €0.34 and €1.18 levels respectively both on muted activity.

Grand Harbour Marina plc held the €0.62 level on a single deal of 6,000 shares. Today, Grand Harbour Marina announced that it licensed a super yacht berth with a net value of €2.2 million following an early termination of the former license of the same berth against which the Company paid a settlement amount. The Company noted that the transaction is expected to have a positive effect on both profit and cash flow.

The RF MGS Index increased for the third consecutive session as it rose by 0.16% to a seven-month high of 901.758 points. Eurozone sovereign bond yields continued to decline with the German 10-year bund yield dropping to a four month low of 2.30%. Inflation in the Eurozone during July is anticipated to rise to 2.6% compared to a projected decline to 2.4% from the 2.5% reported for June as the sharper increase in the prices of energy and industrial goods outweighed a slowdown in the increase of food and service prices. Meanwhile, core inflation remained flat at 2.9% compared to forecasts of a decrease to 2.8%.

 

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.