HSBC Bank Malta held its Annual General Meeting on 7 April to provide shareholders with an overview of the bank’s results in 2010, update them with a market and performance outlook for this year and to approve a number of resolutions.
In his presentation to shareholders, CEO Alan Richards said that HSBC had delivered strong results in 2010, in a challenging market. The bank had registered a profit before tax of €83.1 million, a 16.7 per cent increase over 2009.
“The year was characterised by greater competition, increasing regulation, continued low interest rates, some softening of demand for lending and ongoing volatility in the investments markets.” said Mr Richards.
He said the Maltese economy is expected to perform relatively well this year, with a projected GDP growth higher than the EU average, but he reiterated that global and euro-zone challenges remain. Interest rates are expected to remain relatively low, impairments will be monitored closely and there will be tighter regulation on capital and liquidity. “Competition continues to increase and the bank is not immune to international developments. HSBC has a clear strategy in place, our capital is comfortably in excess of regulatory requirements and we remain well-placed to support our customers and the local economy,” said Mr Richards.
Chief Financial Officer Josephine Magri provided a detailed analysis of the 2010 financial results, explaining the bank’s strong performance. She also updated shareholders on developments within the regulatory environment, the bank’s share price and dividend policy.
The AGM confirmed the directors appointed by the majority shareholder HSBC Europe BV: Albert Mizzi (chairman), Alan Richards (CEO), Philip Farrugia (Chief Technology & Services Officer), Peter Boyles, Dr Philip Farrugia Randon and Charles J Farrugia. James Dunbar Cousin, Peter Paul Testaferrata Moroni Viani and Sonny Portelli were re-confirmed by the minority shareholders as non-executive directors.
The shareholders approved all the ordinary resolutions presented during the meeting. The audited accounts for the year ended 31 December 2010 were approved, as was a final ordinary gross dividend of €0.077 per share was approved, to be paid on 21 April 2011. This, together with the gross interim dividend of €0.079 per share, results in a total gross dividend for the year of €0.15.6. The shareholders also approved the re-appointment of KPMG as auditors.
“The AGM provides an appropriate platform for shareholders to be updated on the bank’s performance and strategy and also to share their views and concerns with the board,” said chairman Albert Mizzi.”