At a meeting held last Monday, 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 2007, HSBC Bank Malta and its subsidiaries recorded a profit before tax of Lm25.3 million for the six months ended 30 June which represents an increase of 23.1 per cent over the Lm20.6 million earned during the same period in 2006.

The overall cost base was again flat and consequently the cost efficiency of business improved from 45.5 per cent to 40.1 per cent.

Increases in loans and advances and customer deposits, together with improved margins, generated a 19.1 per cent increase in net interest income. Sales of products and services, including insurance and brokerage, and trading profits resulted in an 8.4 per cent increase in revenues arising from these activities.

Tax on profits was Lm8.5 million resulting in a net profit after tax of Lm16.8 million for the half year.

Total assets stood at Lm2,031.4 million representing a 7.6 per cent increase over 31 December 2006. Within that figure total loans and advances to customers increased by 4.4 per cent.

The board is declaring an interim gross dividend of 6.6 cents per share (4.3 cents net of tax). The ordinary dividend payment of Lm12.5 million is 75 per cent of current profits attributable to the bank’s circa 10,000 shareholders. Furthermore a special gross dividend of 4 cents (2.6 cents net of tax) will be paid also on 22 August. This will distribute a total of Lm20.1 million to shareholders who are on the bank’s register as at 8 August. On 2006, earnings per share increased by 24.9 per cent.

Employee satisfaction reached 70 per cent (66 per cent in 2005), while 66 per cent (57 per cent in 2005) of employees were prepared to recommend HSBC to friends as a great place to work in.

Mr Wallis highlighted HSBC’s role in Malta’s economy. Today, HSBC Malta is one of the biggest employers with some 1,500 full timers in the bank itself and over 250 full timers in the Call Centre with the number planned to increase to over 500 by December 2007.

During the first six months of 2007, HSBC continued its market-leading role in corporate social responsibility activities in Malta. Total CSR expenditure is expected to be circa Lm250,000 for 2007. During this year, HSBC’s involvement in the Maltese community will further increase as the bank is committed to contribute a minimum of Lm35,000 to each of its three local charitable funds, aimed at supporting Malta’s children, the environment and Malta’s heritage. A further Lm130,000 has already been given in support of charitable and philanthropic causes, NGOs, financial literacy projects, and sporting events.