HSBC Records Lm20.6m profit in six months

Malta Independent Sunday, 30 July 2006, 00:00 Last update: about 19 years ago

At a meeting held on Thursday, the board of directors of HSBC Bank Malta approved the group and bank Interim Accounts for the six-month period to 30 June.

During the first half of 2006, HSBC Bank Malta and its subsidiaries recorded a profit before tax of Lm20.6 million for the six months ended 30 June, which represents an increase of 11.3 per cent over the Lm18.5 million earned during the same period in 2005. Within this improved profit performance, HSBC’s Cost to Income efficiency ratio improved from 47.5 per cent to 45.5 per cent.

Tax on profits was Lm7.1 million resulting in a net profit after tax of Lm13.4 million for the half year.

Total assets stood at Lm1,706 million representing a three per cent increase over 31 December 2005. Within that figure the Customer focus of the bank’s business improved as Total Loans and Advances to Customers increased by six per cent. Specifically, HSBC continued to see a significant increase in its market leading mortgage business with Home Loans and Equity Release loans increasing to Lm371 million.

Total Customer Investments including Savings, Term Deposits, Funds, Life Policies and Equities and Bonds held under custody also saw an overall five per cent increase to Lm1,880 million.

Equity amounted to Lm123 million producing an improved Annualised Pre-Tax Return on Equity of 33.4 per cent (compared to 26.5 per cent in 2005) and an Annualised Return on Assets of 2.41 per cent, (2.27 per cent in 2005). The Capital Adequacy Ratio was a healthy 10.9 per cent.

The board is recommending an interim gross dividend of 5.3 cents per share (3.4 cents net of tax). This represents a Gross Dividend Yield of 4.5 per cent on the current share price of Lm2.35 and will be paid on 17 August to shareholders who are on the bank’s register as at 4 August. The dividend payment of Lm10.1million is 75 per cent of current year earnings.

HSBC Bank Malta noted that the HSBC Group Call Centre was on track for opening in October, with dedicated premises now fully refurbished at a cost of circa Lm600,000. IT and Telecoms equipment and furniture ordered at a cost of circa Lm850,000 are being installed and some 3,200 applicants for jobs are currently being vetted, tested and interviewed for the 350 new full time and part-time jobs and taking into account the bank’s Diversity policy. Extensive HSBC Global Training is about to commence.