HSBC Malta delivered an improved performance during the period 1 July to 13 November, primarily resulting from higher profitability in the life insurance business reflecting the rally in the investment markets during the period. Gains on disposals of available-for-sale securities contributed to the improved performance, the company’s board said in an interim statement.

Operating expenses for the period were higher than the comparable period in 2011 primarily as a result of restructuring costs. Underlying costs, excluding restructuring costs for the period were broadly in line with the levels reported in the comparable period in 2011.

HSBC Malta continues to provide support to borrowers and security for its depositors. The bank has seen a slight softening in loan demand during the period as the economy slowed.

During the period, corporate and institutional deposits increased. Retail deposit levels were broadly unchanged during the period in spite of significant competitive pressures, including from local government bond issuance.

The bank continues to focus on building a high quality asset base. It is encouraging that loan impairments, although slightly higher than in the comparable period in 2011, remain below expectations.

The available-for-sale portfolio remains well diversified and conservative. The bank maintained both a strong liquidity position and a stable loans-to-deposits ratio during the period. Its capital ratio remains above minimum regulatory requirements.

HSBC Malta’s management of its capital and risk positions continues to be conservative and the bank is well placed to meet future challenges.

Mark Watkinson, director and chief executive officer of HSBC Malta, said: “Clearly market conditions have been particularly difficult in recent months and it seems that the world is becoming more uncertain by the day. We are satisfied with the bank’s positive performance during the period under review but we are mindful of the significant and growing challenges faced by the global economy.

“We have a clear strategy focused around simplifying our business, reducing bureaucracy and improving efficiency. As part of the world’s largest international banking organisation, we are well placed to service the needs of our customers and to support the local economy.”