Thursday 28 March 2024

Banking sector maintains steady growth

According to figures quoted by the Malta Bankers’ Association (MBA), the banking sector in Malta has continued to maintain a steady growth.

The combined balance sheet total of the Association’s 27 member banks stood at € 51.2 billion as at the end of 2014 (2013: € 49.2 billion). In this regard, the MBA’s Chairman, Mr Mark Watkinson, pointed out that total assets of the seven “core domestic banks”, which have strong links with the domestic economy, amounted to € 19.1 billion (239% of GDP). “Non-core domestic banks”, which play a more restricted and limited role in the economy, had assets totalling € 2.1 billion (27% of GDP), whilst total assets of the “international banks”, which have virtually no link with the domestic economy, amounted to € 30 billion (377% of GDP). “These numbers put the size of the Maltese banking sector vis-à-vis GDP in its proper perspective”, said Mr Watkinson, “and demonstrate that total assets of the “core” and “non-core” domestic banks, at 266% of GDP, are well below the EU average of around 400% of GDP”.

The direct contribution of the banking sector to the local economy remains significant. The number of full time bank employees now exceeds 4,000, payroll last year amounted to € 147 million, taxation on profit on ordinary activities totalled € 88 million, and dividends paid to resident shareholders amounted to € 50 million.

Mr Watkinson also noted that in 2014, loans and advances to customers by the “core domestic banks” increased by 9% to € 9.6 billion, whilst aggregate lending by all the banks amounted to € 15 billion.

Customers’ deposits with the “core domestic banks” also increased by 14% to € 15.3 billion, reflecting public trust and confidence in the system, with total deposits of all the banks now exceeding the € 22 billion mark.
“The Maltese banking sector is very well capitalized, highly liquid and profitable, and it is gratifying that in its Global Competitiveness Report for 2014 – 2015, the World Economic Forum placed Malta 10th out of the 144 countries surveyed in terms of the soundness of its banking institutions”, concluded Mr Watkinson.

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