Pictured above: Josephine Magri, Chief Financial Officer, Sonny Portelli, Chairman, and Mark Watkinson, Chief Executive Officer of HSBC Malta 

HSBC Bank Malta p.l.c. delivered a resilient performance in the six months ended 30 June 2013 reporting a profit before tax of €53m in line with the comparable period in 2012. This was principally the result of strong balance sheet management, effective cost control and a good performance from the Life business offset by the impact of lower interest margin earned.

Mark Watkinson, Director and Chief Executive Officer of HSBC Malta, said: “We have continued to deliver resilient results for our shareholders against a very challenging European backdrop. Global conditions look to remain difficult for the medium term. However as part of one of the world’s largest banking groups, operating in 80 countries and territories, HSBC Malta is well positioned to assist its customers explore opportunities in some of the world’s faster growing markets.”

All the three main business lines, Retail Banking and Wealth Management, Commercial Banking and Global Banking and Markets, were profitable during the period under review.

Net interest income reduced by 6% to €63m compared with €68m in the first half of 2012. The fall in net interest income reflected the impact of lower yields as the loan portfolio repriced in the low interest environment and lower average lending balances. This was partially offset by a fall in the cost of funds resulting from a move by customers to more readily accessible, shorter-dated deposits. In addition, a lower level of interest income was earned on debt securities as the proceeds of higher yielding maturing bonds were re-invested at lower yields.

Net fee and commission income of €16m for the six months ended 30 June 2013 was in line with first half of 2012.

HSBC Life Assurance (Malta) Ltd reported a profit before tax of €8m compared with €7m in the first half of 2012 reflecting a release in with profits modelling reserves as a result of improved product performance.

A net gain of €4m was reported on a higher level of disposals of available-for-sale securities compared to a net gain of €2m in the comparable period in 2012.

Operating expenses at €45m were well controlled and broadly in line with the first half of 2012. The increase of €1m, or 9%, in administrative expenses reflected a higher contribution by the bank to the depositor guarantee scheme and a rise in compliance, security and fraud-risk related costs. The continued investment to improve technology capabilities was funded by savings from simplification and re-engineering of processes. Cost efficiency ratio at 45.9% is in line with last year’s ratio of 45.4%.

The bank’s focus continues to be that of building a high quality asset base and, despite the ongoing economic uncertainties, there were no material new loan impairments reported in the period. Loan impairments at €0.8m were in line with the comparable period in 2012. At a bank level, non-performing loans remained stable at 5% of gross loans and asset quality remains generally good.

Net loans and advances to customers at €3,336m were only €18m lower than at 31 December 2012. In spite of a softening in loan demand the bank provided gross new lending to customers of €318m in the period. This reflects the bank’s continued support to the local economy.

Customer deposits declined by €70m to €4,447m reflecting the normal volatility of corporate and institutional deposits. This fall was partially offset by higher levels of retail deposits achieved despite the heightened competition for deposits.

The bank’s available-for-sale investment portfolio remains well diversified and conservatively positioned.

The bank’s liquidity position remains strong with an advances-to-deposits ratio of 75% compared with 74% at 31 December 2012.

The bank continued to strengthen its capital ratio which was 12.9% at 30 June 2013, comfortably exceeding the 8% minimum regulatory capital requirement. The bank intends to maintain a conservative approach to capital and will continue to build its capital where considered appropriate.

Mark Watkinson said: “I would like to thank our staff, directors and shareholders for their commitment, hard work and support during the first half of

The board is declaring an interim gross dividend of 10.0 cent per share (6.5 cent net of tax). This will be paid on 5 September 2013 to shareholders who are on the bank’s register of shareholders at 16 August 2013.

05.08.2013

L-HSBC Malta jħabbar riżultati reżiljenti għall-ewwel nofs ta’ 2013

• Qligħ qabel it-taxxa ta’ €53 miljun għall-ewwel sitt xhur li ntemmu fit-30 ta’ Ġunju 2013 – meta mqabbel mal-istess perjodu fl-2012.

• Qligħ attribwit lill-azzjonisti jammonta għal €34 miljun għas-sitt xhur li ntemmu fit-30 ta’ Ġunju 2013 – f’konformità mal-istess perjodu fl-2012. Dan jirriżulta fi dħul ta’ 11.8 ċenteżmu għal kull sehem.

• Total tal-assi jammonta għal €5,748 miljun fit-30 ta’ Ġunju 2013, tnaqqis ta’ €139 miljun, jew 2%, meta mqabbel mal-31 ta’ Diċembru 2012

• Kontijiet tal-klijenti laħqu €4,447 miljun fit-30 ta’ Ġunju 2013, tnaqqis ta’ €70 miljun jew 2%, imqabbla mal-31 ta’ Diċembru 2012

• Ir-ritorn fuq l-ekwita’ (return on equity) għall-ewwel sitt xhur li ntemmu fit-30 ta’ Ġunju 2013 kien ta’ 16.3%, meta mqabbel mas-17.8% għall-ewwel nofs tal-2012.

• Cost efficiency ratio għall-perjodu li ntemm fil-30 ta’ Ġunju 2013 kien ta’ 45.9%, meta mqabbel mal-45.4% għall-istess perjodu fl-2012.

• Capital adequacy ratio kien ta’ 12.9% sat-30 ta’ Ġunju 2013 meta mqabbel mat-12.4%  fil-31 ta’ Diċembru 2012. Core tier 1 ratio ta’ 8.9% fit-30 ta’ Ġunju 2013, meta mqabbel ma’ 8.3% fil-31 ta’ Diċembru 2012.

L-HSBC Bank Malta p.l.c. irreġistra riżultati reżiljenti għas-sitt xhur li ntemmu fit-30 ta’ Ġunju 2013, b’qligħ qabel it-taxxa ta’ €53 miljun li jitqabbel tajjeb mal-istess perjodu f’2012. Dan kien prinċipalment ir-riżultat ta’ tmexxija diliġenti tal-balance sheet, kontroll effettiv tal-ispejjeż u prestazzjoni tajba minn HSBC Life Assurance (Malta) Ltd li kkumpensaw għall-impatt tal-marġni ta’ imgħax aktar baxxi.

Mark Watkinson, Direttur u Kap Eżekuttiv tal-HSBC Malta, qal: “Għal darb’oħra, qed nippreżentaw riżultati reżiljenti lill-azzjonisti tagħna minkejja ċ-ċirkostanzi ta’ sfida fl-Ewropa. Il-kundizzjonijiet globali jidhru li se jibqgħu jkunu diffiċli għat-terminu medju. Madankollu, bħala parti minn wieħed mill-akbar gruppi bankarji fid-dinja li qed jopera fi 80 pajjiż u territorju, l-HSBC Malta jinsab f’pożizzjoni tajba biex jassisti lill-klijenti tiegħu ħalli jfittxu opportunitajiet f’uħud mis-swieq fid-dinja li qed jikbru b’ritmu aktar mgħaġġel.”

It-tliet oqsma ewlenin tan-negozju, Retail Banking & Wealth Management (RBWM), Commercial Banking (CMB) u Global Banking & Markets (GBM),  kienu kollha profittabli fl-ewwel sitt xhur tas-sena finanzjarja.

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L-HSBC Malta jħabbar riżultati reżiljenti għall-ewwel nofs ta’ 2013 / pġ 2

Id-dħul minn imgħax nett naqas b’6% għal €63 miljun meta mqabbel mat-€68 miljun fl-ewwel nofs tal-2012. It-tnaqqis fid-dħul nett mill-imgħax jirrifletti l-impatt ta’ dħul iktar baxx hekk kif il-portafoll ta’ self kien rivedut (repriced) f’ambjent ta’ imgħaxijiet aktar baxx u medja anqas fil-bilanċi ta’ self (lending balances). Dan kien parzjalment ikkumpensat bi tnaqqis fl-ispejjeż tal-fondi li rriżulta mill-fatt li l-klijenti li għażlu depożiti iktar aċċessibbli u fuq perjodu iktar qasir. Barra minn hekk, kien hemm livell anqas ta’ dħul mill-imgħax fuq it-titoli ta’ dejn hekk kif ir-rikavat ta’ bonds b’ritorn aktar għoli li mmaturaw kienu investiti mill-ġdid b’ritorn iktar baxx.

Id-dħul nett mill-ħlasijiet u kummissjonijiet ta’ €16 il-miljun fis-sitt xhur li ntemmu fit-30 ta’ Ġunju 2013 kienu fl-istess livelli tal-ewwel nofs ta’ 2012.

HSBC Life Assurance (Malta) Ltd  iġġenerat qligħ qabel it-taxxa ta’ €8 miljuni meta mqabbel mas-€7 miljuni  fl-ewwel nofs tal-2012. Dan jirrifletti rilaxx ta’ riżervi with profits bhala riżultat ta’ prestazzjoni aħjar tal-prodott.

Kien irrappurtat dħul nett ta’ €4 miljuni fuq livelli ogħla ta’ disponimenti (disposals) ta’ available-for-sale securities mqabbel ma’ dħul nett ta’ €2 miljuni irreġistrati fl-istess perjodu fil-2012.

L-ispejjeż tal-operat li ammontaw għall-€45 miljun kienu ikkontrollati tajjeb u f’konformità b’mod ġenerali mal-ewwel nofs tal-2012. Iż-żieda ta’ €1 miljun, jew 9%, fi spejjeż amministrattivi tirrifletti kontribuzzjoni akbar mill-bank għall-iskema ta’ garanzija tad-depożitanti kif ukoll żieda fl-ispejjeż relatati ma’ compliance, sigurtà, u riskji ta’ frodi. L-investiment kontinwu biex jisaħħaħ il-kapaċitajiet teknoloġiċi kien iffinanzjat mill-iffrankar tas-simplifikazzjoni u r-re-engineering tal-proċessi. Il-cost efficiency ratio ta’ 45.9% tikkonforma mar-ratio tas-sena l-oħra li kien ta’ 45.4%.

L-enfasi tal-bank ikompli jkun fuq il-bini ta’ bażi ta’ assi ta’ kwalità għolja, u, minkejja l-inċertezza ekonomika li teżistu bħalissa, ma kien hemm ebda indebolimenti (impairments) ġodda materjali ta’ self ir-rappurtati f’dan il-perjodu. Indebolimenti ta’ self ta’ €0.8m huma f’konformità mal-istess perjodu tal-2012. Fuq il-livell ta’ bank, is-self mhux produttiv baqa’ stabbli f’livell ta’ 5% tas-self gross u l-kwalità tal-assi tibqa’ ġeneralment tajba.

Is-self lill-klijenti ta’ €3,336 miljun kien biss €18 miljun inqas meta mqabbel mal-31 ta’ Diċembru 2012. Minkejja it-tnaqqis fid-domanda għas-self, il-bank ipprovda self gross ġdid lill-klijenti ta’ €318 miljun f’dan il-perjodu. Dan jirrifletti l-appoġġ kontinwu li l-HSBC Bank Malta qed jagħti lill-ekonomija Maltija.

Id-depożiti mill-klijenti naqsu b’€70 miljun għal €4,447 li jirrifletti l-volatilità normali ta’ depożiti minn kumpanniji u istituzzjonijiet. Dan it-tnaqqis kien parzjalment ikkumpensat minn livelli ogħla ta’ depożiti personali miksuba minkejja kompetizzjoni qawwija għad-depożiti.

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L-HSBC Malta jħabbar riżultati reżiljenti għall-ewwel nofs ta’ 2013 / pġ 3

Il-portfolio tal-investimenti available-for-sale tal-Bank għadu diversifikat sew u konservattiv.

Il-likwidita’ tal-Bank għadha waħda b’saħħitha b’advances to deposits ratio ta’  75%, meta mqabbel mas-74% li kien hemm sal-31 ta’ Diċembru 2012.

Il-Bank kompla jsaħħaħ il-capital ratio tiegħu li kien ta’ 12.9% fit-30 ta’ Ġunju 2013. Dan hu ferm iżjed mill-ħtieġa minima regolatorja ta’ 8%. Il-Bank beħsiebu jkompli jaddotta din il-fehma konservattiva għall-kapital filwaqt li se jkompli jibni l-kapital fejn hu xieraq.

Mark Watkinson qal: “Nirringrazzja lill-impjegati, lid-diretturi u lill-azzjonisti għall-impenn, ħidma intensiva u l-appoġġ tagħhom tul l-ewwel nofs tal-2013.”

Il-Bord iddikjara interim gross dividend ta’ 10.0 centeżmi għal kull sehem (6.5 ċenteżmu netti wara t-taxxa). Dan jitħallas fil-5 ta’ Settembru 2013 lill-azzjonisti rreġistrati fuq il-ktieb tal-azzjonisti tal-Bank sas-16 t’Awwissu 2013.

Photocaption 1: Mix-xellug, Josephine Magri, Chief Financial Officer, Sonny Portelli, Chairman, u Mark Watkinson, Kap Eżekuttiv tal-HSBC Malta waqt it-tħabbir tar-riżultati interim 2013.

Photocaption 2: Mark Watkinson, Kap Eżekuttiv tal-HSBC Malta.