HSBC Bank Malta p.l.c. and its subsidiaries on Wednesday reported pre-tax profit of €109.0 million in 2025, a drop in profits of €45.4 million or 29% over 2024.

In 2025, the local group achieved a profit before tax of €109.0 million demonstrating what the bank said was "resilience and consistent performance across all business units despite operating in a lower interest rate environment".

In a statement, HSBC Bank Malta p.l.c. said it confirms its commitment to delivering sustainable shareholder returns, recommending a final gross dividend of 8.4 cents per share, following another period of resilient financial performance and disciplined capital management. This represents the highest dividend payout ratio in recent years, which together with the interim dividend paid in September 2025, represents a 60% dividend payout ratio.

The final proposed dividend will be paid on 6 May 2026 to shareholders who are on the bank's register of shareholders on 30 March 2026, subject to approval at the Annual General Meeting scheduled for 29 April 2026.

HSBC reported profit before tax of €109.0 million for the year ended 31 December 2025, a decrease of €45.4million or 29% over 2024. The decrease in profit reflects the impact of lower interest rates and lower releases of expected credit losses. The bank achieved solid underlying revenue growth, driven by increased customer activity. Operating costs increased reflecting continued strategic investment in talent and accelerated amortisation of software.

There was strong customer growth and confidence led to deposit growth of €370 million during the year, reaching a record high of €6.5 billion at year-end, the nbank said.  Deposit market share increased by over 1%. Additionally, there was growth of 28% in client wealth management and investment balances to €1.1 billion. Life insurance sales increased by 21%.

Reported profit after tax attributable to shareholders amounted to €71.6 million for the year ended 31 December 2025, resulting in earnings per share of 19.9 cents, compared with 27.8 cents in the same period in 2024.

The Board has recommended a final gross dividend of 8.4 cents per share (5.46 cents per share net of tax), bringing the total dividend for 2025 to 18.4 cents (11.96 cents net of tax). This represents a payout ratio of 60%.

The bank's total capital ratio grew to over 27% and the liquidity coverage ratio remained over 500%, making HSBC Bank Malta p.l.c. one of the most capitalised and liquid banks in Malta and amongst the highest in Europe, well above regulatory requirements

Geoffrey Fichte, Chief Executive Officer at HSBC Bank Malta p.l.c., said: "I am proud to report another year of successful results, marking our third consecutive year of pre-tax profit exceeding €100million - a first in the history of HSBC in Malta. This performance, delivered despite lower interest rates and reduced recoveries, underscores the strength and resilience of our diversified business model, disciplined execution and the continued trust of our customers.

"We continued to grow our business, increasing market share with a record €6.5 billion in customer deposits while also growing wealth management, insurance and investments for our customers to record levels.

"In 2025 we achieved an increase of 10% in new retail lending. We have now launched our 2026 Start of the Year campaign where we are offering customers a number of incentives, including discounted interest rates on personal loans and mortgages, as well as cash-back on insurance policies and waiver of initial fees on mutual fund investments.

"We continue to serve our customers with the same high standards of service and banking, insurance and investments. Throughout the year, we continued to invest in the future of the bank - enhancing our digital capabilities through the implementation of SEPA Instant payments, upgrading our IT infrastructure, and completing the replacement of our ATM fleet across Malta and Gozo.

"Testament to this is the bank's recognition as 2025 Bank of the Year Malta by The Banker, the Financial Times internationally renowned publication covering global banking and financial affairs. HSBC Bank Malta's recognition reflects the bank's significant progress across key performance metrics, including earnings growth, capital strength, operational efficiency, and continued investment in digital and technological capabilities."