HSBC Malta and its subsidiaries registered a profit of Lm25.3 million/EUR58.9 million during the first six months of this year – an increase of 23.1 per cent over the Lm20.6million/EUR47.99 million earned during the same period last year, announced HSBC CEO Shaun Wallis yesterday.
Mr Wallis, who was speaking during a press conference announcing HSBC’s half-yearly results, said that HSBC Malta is experiencing strong growth across all of its customer group businesses.
The bank also registered an increase in loans, advances and customer deposits. These, together with improved margins, generated a 19.1 per cent increase in net interest income.
“Forty-six per cent of our loans are in revenue and another 36 per cent are home loans,” he said.
Furthermore, said Mr Wallis, sales of products and services, including insurance and brokerage and trading profits resulted in an 8.4 per cent increase in revenue.
He explained that the overall cost base was flat and, as a result, “the cost efficiency of our business improved from 45.5 per cent to 40.1 per cent.”
The tax on profits amounted to Lm8.5 million/EUR19.8 million resulting in a net profit of Lm16.8 million/ EUR 39.1 million for the first six months, said Mr Wallis.
There was a 7.6 per cent increase in total assets amounting to a Lm2,031.4 million/EUR4,731.9 million increase over 31 December 2006.
He pointed out that there was a drop of Lm56 million/EUR130.44 million of funds under management.
However, Mr Wallis explained that the drop was a result of rising interest rates which in turn resulted in customers selling their bonds and placing the funds with the bank.
During the first six months, there was an increase in retail deposits amounting to Lm88 million/EUR 204.98.
Mr Wallis said that between January and July, HSBC Malta registered record levels of financial results, customer satisfaction levels and business volume with customers.
He explained that the bank is in the process of revamping several of its branches to enhance customer experience.
“We have made it much easier for our customers to bank with us – 90 per cent of bank activities are held face-to-face,” said Mr Wallis.
HSBC’s shareholders will receive a special gross dividend of four cents/EUR9.3 cents (2.6 cents/EUR6.1 cents net of tax) on 22 August – amounting to a total of Lm20.1 million (EUR46.82 million) to shareholders, he added.
Mr Wallis said that the earnings per share increased by 24.9 per cent over 20006.
He added that HSBC is expecting to spend around Lm250,000/EUR582,343 on Corporate Social Responsibility and a minimum of Lm35,000/ EUR81,528 on each of the its three local charitable funds: HSBC Cares for Children’s Fund, HSBC Cares for the Environment Fund and HSBC Cares for Malta’s Heritage Fund.