At the annual shareholders’ meeting held on Friday week, Alan Richards, HSBC Bank Malta’s Chief Executive, explained to an audience of over 900 shareholders that despite the financial turmoil being experienced worldwide, HSBC remains in a strong and healthy position.

“This year’s meeting for shareholders with HSBC’s board and management is particularly significant given the unprecedented volatility in global markets and its impact on the world economy. While we remain in unchartered waters and the outcome of the current crisis remains unclear, there is strong consensus that the crisis has some way to run and the consequences to the global economy will be profound and long term. This will leave its mark on Malta,” Mr Richards said.

Mr Richards said that as a subsidiary of the world’s largest bank by market value, with a strong liquidity position and one of the highest capital ratios in the world, HSBC continues to outperform its peers.

Mr Richards went on to explain to shareholders that Malta is relatively well placed given the current turmoil and that banks in Malta are generally well capitalised, are not highly geared and have limited offshore exposures. The policies of the government, the Central Bank of Malta and the Malta Financial Services Authority have resulted in a well-regulated market. Joining the European Union and the move to the euro currency at the beginning of this year have significantly further reduced the risks of any seismic shocks to the Maltese economy.

HSBC has over 10,000 local shareholders in Malta. Those who attended the meeting were welcomed by HSBC Malta chairman Albert Mizzi and addressed by Mr Richards and Sally Robson, Chief Operating Officer of the bank.

In his presentation, Mr Richards emphasised to shareholders that HSBC was “travelling well in difficult times and was in a very strong position due to its long-term commitment to capital, liquidity and its conservative risk management policy.” Mr Richards expected the Maltese economy to slow given the likely world recession. He concluded by saying that “there would be significant challenges ahead for all banks in Malta but he felt that HSBC was well placed and would continue to work closely with its customers for the long-term benefit of shareholders.”

Mrs Robson focused her presentation on the operational aspects of the bank and how it is upgrading its technology and processes and using Group systems to make the bank more efficient.