HSBC Bank Malta p l c : Strong momentum drives a 48% increase in HSBC Malta's first quarter results

News Release

30 April 2024

Strong momentum drives a 48% increase in

HSBC Malta's first quarter results

HSBC Bank Malta p.l.c. continued to report strong profits with reported profit before tax for Q1 2024 of €39.3m, an increase of 48% over the €26.5m profit reported in the same period last year. The higher interest rate environment was the biggest contributor to the increase in profits. Good progress was reported on the non-interest income while lower Expected Credit Losses (ECL) recoveries were registered.

Revenue was up €14.6m or 29% when compared to Q1 2023. This was mainly driven by higher net interest income earned on the placement of excess liquidity due to the higher interest rate environment. The bank additionally registered higher business volumes resulting in an increase in net fee income, foreign exchange and insurance income.

The bank recorded an improvement in the credit quality of its loan book, resulting in a release of ECL of €1.8m in Q1 2024 compared to a release of €3.7m in Q1 2023. The Q1 2024 release reflected a generic improvement in the credit quality of the book.

The bank managed to maintain costs at the same level as the same period last year despite the impacts of inflation and the continued investment in its people, technology, and premises.

Net loans and advances to customers remained broadly in line with Q4 2023 levels. Customer deposits decreased marginally mainly driven by a decrease in operational corporate deposits.

The bank's liquidity position remained strong and regulatory capital ratios continued to exceed regulatory capital requirements.

Geoffrey Fichte, Chief Executive Officer of HSBC Bank Malta p.l.c., said: "I would like to thank our customers for their business. We continued our strong momentum with a 48% growth in pre-tax profit over prior year. We continue to invest in technology to improve customer service. In January 2024, we signed a new collective agreement for the period 2024 - 2026 which is characterised by significant enhancements to employee pay, benefits and retirement pension. We also continued to invest into our state-of-the-art office to offer a better working environment for our employees.

"HSBC Malta's Global Trade and Receivables Finance team was awarded as the Market Leader and Best Service Bank in Malta for the second consecutive year in the Euromoney Trade Finance Survey 2024. This prestigious recognition underscores HSBC Malta's commitment to excellence and innovation in serving its customers."

This news release is issued by	Registered Office:
HSBC Bank Malta p.l.c.	116 Archbishop Street, Valletta VLT1444
	Web: www.hsbc.com.mt

HSBC Bank Malta p.l.c.

HSBC Bank Malta p.l.c. is a member of the HSBC Group, whose ultimate parent company is HSBC Holdings plc. HSBC Malta provides a comprehensive range of financial services which are all designed to meet the expanding requirements of its large client base of personal and corporate customers. These include Wealth and Personal Banking, Commercial Banking and Global Markets. Registered in Malta number C3177. Registered Office: 116, Archbishop Street, Valletta VLT 1444, Malta. HSBC Bank Malta p.l.c. is regulated and licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta) by the Malta Financial Services Authority.

HSBC Holdings plc

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,967bn at 31 December 2022, HSBC is one of the world's largest banking and financial services organisations.