HSBC Bank Malta plc said yesterday that it has made solid progress to date this year and it was continuing to explore growth opportunities across all customer segments.

Profit before tax, net interest income and non-interest income showed good improvement over the same period in 2006. Net interest income included interest recognised on a sizeable exposure previously categorised as non-performing.

Against a background of strong income flows, the bank said it had succeeded in keeping operating expenses under tight control. A number of customer-focused initiatives have been started to reduce operational costs and improve the delivery of customer service .

Overall, credit quality remained sound. Growth in loans and advances during 2007 has been largely mortgage-related. Balance sheet growth has been driven by increased customer deposits and the issue of a subordinated bond.

HSBC Bank Malta plc director and CEO Shaun Wallis commented: “We have had a good start to 2007, with our results up strongly compared to the same period last year. The bank continues to deliver on our strategy of building sustainable growth by focusing on our main customer groups – putting customers at the centre of everything we do – and by using technology to increase our business efficiencies and to reduce our costs.

“During this period we have rolled out a branch refurbishment programme. We have also invested in a number of major projects and initiatives to enhance our automated banking channels and processes. The improvement in customer experience and sales, and in the bank’s processing efficiency, has resulted in a significantly improved cost income ratio compared to the same period in 2006.

“We are confident that we can continue to grow our business successfully and in a sustainable manner through 2007,” Mr Wallis concluded.