HSBC Bank Malta said Tuesday has posted a pre-tax profit of €21.3m for the opening quarter of 2026, marking a 24% decline from the same period last year.
According to a formal company statement, the drop was primarily triggered by a cooling interest rate environment and diminished returns from its insurance arm, which suffered from price volatility in global investment markets. These challenges were somewhat mitigated by successful efforts to recover older, non-performing loans.
Total revenue fell by €8.1m, a 14% decrease compared to the first quarter of 2025. This downturn was largely due to a €3.4m dip in net interest income caused by lower market rates, alongside a €4.2m decrease in investment returns from insurance operations.
On a more positive note, the insurance subsidiary actually saw an increase in gross written premiums, and the bank recorded robust growth in wealth management sales despite the uneasy market sentiment.
In a significant shift, the bank reported a €4.6m release in expected credit losses, contrasting with a charge of €0.6m in the previous year. This was largely credited to the recovery of a major, long-standing corporate loan. While the bank noted a slight increase in provisions to account for global geopolitical tensions, it emphasized that the local Maltese economy continues to show strength and resilience.
Operating costs rose by 12%, or €3.7m, driven by increased staff salaries, legal provisions, and faster amortization of intangible assets. Meanwhile, lending to corporate clients remained strong, with new approvals surging by 86% compared to early 2025. On the retail side, mortgage sales grew by 4% and personal unsecured loans jumped by 41% following recent marketing efforts, even as overall retail balances dipped slightly.
Customer deposits saw a seasonal decline of €200m since the end of 2025, primarily among corporate clients, yet they remain €120m higher than they were this time last year.
Shareholders are set to receive a gross interim dividend of 3.6 cents per share, representing a 60% payout ratio, payable on June 30 to those registered by May 19. CEO Geoffrey Fichte highlighted that these results demonstrate consumer confidence as the bank prepares for its transition to a new majority owner, CrediaBank, pending regulatory consent.