Despite challenging global and local market conditions, core income and profitability levels at HSBC Bank Malta remained satisfactory for the period 1 July to 30 September.

As at 30 September, both customers’ deposits and customers’ loans increased in line with expectations over the prior September end. In this period there was no deterioration in the quality of the lending portfolio while liquidity and capital ratios remained strong and ahead of regulatory requirements.

Further, these trends have been sustained into the fourth quarter of 2008.

HSBC Bank Malta issued a €30 million 5.9 per cent subordinated bond to support future business growth.

Alan Richards, director and chief executive officer of HSBC Bank Malta said: “The third quarter of 2008 has been challenging, but we have made good progress given the circumstances and results to date remain satisfactory.

“HSBC’s commitment to strong capital and liquidity will stand the bank in good stead. The bank is financially sound, liquid and has a conservative balance sheet policy with relatively low reliance on funding from the wholesale markets. We have limited investments in corporate securities.

“Although the banking system in Malta is in good shape, the consequences of a pronounced world economic slow down is bound to leave its mark on the local economy.”