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HSBC reports lower Q1 profit, initiates quarterly dividends

Nikki Pace Bonello

May 5, 2026

Daily Market Highlights
5 May, 2026
7 min read
Daily Market Highlights
5 May, 2026
7 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

The MSE Equity Price Index advanced by 0.23% to 3,982.3 points as the gains in RS2, Harvest, Lombard, and MIA outweighed the declines in PG and MPC. Meanwhile, seven other equities closed unchanged as today’s total trading activity amounted to €0.36 million. Download today’s Equity Market Summary.

Today, HSBC Bank Malta plc published a quarterly update providing information about its performance in Q1 2026 when compared to the same period in 2025. Total revenue decreased by 14% (or €8.1 million) reflecting the lower prevailing average interest rates in Q1 2026 when compared to Q1 2025 and lower net investment return from the insurance subsidiary due to significant market fluctuations. Nonetheless, the Directors highlighted that from an underlying business perspective, the insurance subsidiary reported higher gross written premium compared to Q1 2025. The Group also experienced strong sales growth across the retail and commercial businesses, as well as wealth management. The financial performance was positively impacted by a release of expected credit losses (ECL) of €4.6 million compared to a charge of €0.6 million in Q1 2025. HSBC noted that costs increased by 12% (or €3.7 million) driven by higher salaries and employee benefits, legal provisions, as well as accelerated amortisation of intangible assets in view of the change in their estimated useful lives. Overall, HSBC reported a profit before tax of €21.3 million, which is 24% lower than the €27.9 million figure reported in Q1 2025.

In line with previous guidance relating to the declaration of quarterly dividends, the Directors of HSBC Malta declared a gross interim dividend of €0.036 (net: €0.0234) per share, representing a payout ratio of 60%. The interim dividend will be paid on 30 June 2026 to shareholders as at close of trading on Friday 15 May 2026.

The ordinary shares of RS2 plc closed 4.9% higher at €0.30, albeit most of the 77,036 shares that traded exchanged hands at the €0.25 level (-12.6%). During the day, RS2 announced that it has entered into a five-year, multi-million-euro processing agreement with a major financial services partner in Latin America. The company highlighted that this demonstrates the Group’s ability to support complex, multi-country processing requirements across both acquiring and issuing services. The agreement will be delivered through the Group’s BankWORKS® platform and will extend the Company’s acquiring capabilities into eight additional markets: Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, the Dominican Republic and Guatemala. The Company will also extend its issuing services across eight markets: Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, the Dominican Republic and the Cayman Islands.

Harvest Technologies plc gained 6.4% to the €1.00 level across six deals amounting to 30,936 shares and the average price of the day stood at €1.10 (+17%).

Lombard Bank Malta plc rose by 5.4% to the €0.78 level as 36,000 shares changed hands across four trades, although the average price of the day stood close to the previous closing share price of €0.74.

Malta International Airport plc advanced by 0.8% to the €6.15 level across nine trades totalling 17,170 shares.

Bank of Valletta plc closed unchanged at the €2.09 level across six trades amounting to 62,058 shares.

GO plc closed unchanged at the €2.52 level although most of the 865 shares that traded exchanged hands at €2.48 (-1.5%).

International Hotel Investments plc closed unchanged at the €0.50 level as 11,288 shares changed hands across three trades.

APS Bank plc (11,000 shares), FIMBank plc (32,292 shares), Hili Properties plc (12,000 shares), and Malita Investments plc (37,000 shares) traded flat at the €0.54, USD0.135, €0.27 and 0.35 levels respectively.

PG plc declined by 0.6% to the €1.62 level as 6,300 shares changed hands.

Malta Properties Company plc fell by 7.4% to the €0.352 level over trivial volumes.

The RF MGS Index declined by 0.09% to 890.4 points. The ceasefire between the US and Iran remained fragile following renewed strikes in the Strait of Hormuz, pushing crude oil prices above USD104 per barrel. Ongoing high energy prices have heightened inflation concerns, increasing expectations of a potential ECB rate hike after policymakers left rates unchanged at last week’s meeting.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which 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. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which 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. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

Varied movements across several equities The MSE Equity Price Index remained little unchanged at 3,933.1 points as gains in MPC, BOV, Trident and the preference shares of RS2 were outweighed by declines in seven equities. Meanwhile, another seven equities closed unchanged as today’s trading activity on the main market amounted to €0.5 million. APS Bank plc closed unchanged at the €0.51 level across two trades amounting to 4,185 shares. GO plc closed unchanged unchanged at the €2.52 level as 931 shares changed hands across three trades. Simonds Farsons Cisk plc closed at the €5.45 level across two deals amounting to 700 shares, although the weighted average price of the day was €5.13 (-5.9%). Hili Properties plc (38,000 shares), Malta International Airport plc (1,820 shares) and M&Z plc (7,250 shares) all traded flat at €0.27, €6.00, and €0.58 respectively. Plaza Centres plc closed unchanged at the €0.90 level over lacklustre trading. Malta Properties Company plc increased by 12.5% to the €0.45 level across three trades amounting to 50,000 shares, albeit the majority of shares exchanged hands at the previous closing price of €0.40. Tomorrow, MPC is scheduled to release its 2025 full-year results. Today’s most actively traded equity, Bank of Valletta plc rose by 1% to the €2.12 level as 136,176 shares changed hands, although most trades took place at the previous closing price of €2.10. The preference shares of RS2 plc gained 1.7% to the €0.60 level, although the majority of shares changed hands at the €0.32 level (-45.8%). Trident Estates plc moved 1% higher to the €1.01 level over lacklustre trading. Harvest Technology plc dropped by 15.3% to the €1.00 level as 150,000 shares changed hands across five trades. Quinco Holdings plc fell by 5.3% to the €0.90 level across two deals totalling 5,419 shares. Malita Investments plc shed 5.1% to the €0.37 level as 8,000 shares changed hands. Main Street Complex plc (-4.5% to €0.21) and the ordinary shares of RS2 plc (-5.9% €0.32) both fell to €0.21 and €0.32 respectively, albeit over trivial volumes. MaltaPost plc (-1.4% to €0.424) and PG plc (-1.2% to €1.63) were today’s other negative performers. The RF MGS Index fell by 0.11% to 905.7 points as sovereign bond yields extended their upward trend. ECB policymakers cautioned that a prolonged conflict in the Middle East could push up inflation and hinder eurozone growth. Meanwhile, ongoing energy supply disruptions continued to push oil prices higher, reaching USD78 per barrel, their highest level since January 2025.   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. Download today’s Equity Market Summary.