HSBC Malta records a positive Q3 with €118m in pre-tax profits

HSBC Bank Malta reported strong profits with a reported profit before tax for Q3 YTD 2024 of €118.0m, an increase of 17% over the €100.8m profits reported in the same period last year.

Revenue was up €19.0m or 11% when compared to Q3 YTD 2023. This was mainly driven by higher customer activity amidst the higher interest rate environment: average interest rates in the first nine months of 2024 were higher than the same period in 2023.

Non-funds income increased by €2.8m compared with the same period last year with an improvement registered in net fee income, international trade services, foreign exchange and insurance income, the bank said.

The bank recorded an improvement in the credit quality of its loan book, resulting in a release in ECL of €10.8m in Q3 YTD 2024 compared to a release of €3.7m in Q3 YTD 2023. The Q3 YTD 2024 release reflected recovery on non-performing loans, a release of provisions held for inflationary pressures which did not materialise as well as a general improvement in the credit quality of the book. Operating expenses increased by 12% compared to the same period last year.

In Q3 2024, the Bank implemented a new mortgage system. Furthermore, the roll-out of new ATMs also commenced in line with our plan to replace all ATMs by 2025. Other significant digital improvements are on track.

Net loans and advances to customers decreased marginally compared with 31 December 2023. Customer deposits decreased from year-end, mainly driven by a decrease in operational corporate deposits which can be seasonal but increased compared to 30 September 2023, the bank said.

The Bank’s liquidity position remained strong and regulatory capital ratios continued to exceed regulatory capital requirements. On 11 September 2024, the Bank announced that HSBC Holdings plc will undertake a strategic review of its indirect 70.03% shareholding. HSBC Holdings plc informed that the review process will consider a range of options and no decisions have yet been made. The Bank remains focused on running its business and will provide further updates as required.

Geoffrey Fichte, Chief Executive Officer of HSBC Bank Malta p.l.c., said: “We continued our strong business momentum focused on supporting our customers with a 17% growth in pre-tax profit over prior year. We’re pleased to report higher customer activity, the launch of new products including in wealth management, investment funds and insurance and continued to invest in our people and technology in order to make banking simpler, easier and safer for our customers. Our levels of capital and liquidity remain robust amongst the highest in the market. HSBC remains fully open for business, providing the full range of lending services from mortgages, personal loans, cards to long term lending to companies, including energy efficiency loans. On behalf of the entire HSBC Bank Malta team, I would like to thank our customers for their business and our colleagues for their professionalism and support.”

GO plc enters agreement for full acquisition of Klikk Finance plc and subsidiary Klikk Limited

GO plc hereby announced that it has entered into a share purchase agreement in relation to the acquisition of 100% of the shares in Klikk Finance plc. The acquisition of Klikk will also include the acquisition of its wholly owned subsidiary Klikk Limited (C30425).

In Klikk Finance’s latest annual financial report, a “notable surge in performance” was reported, with an 11% increase in revenue from €7 million in 2022 to €7.9 million in 2023.

GO also noted that the conclusion of the transaction is dependent on a number of conditions precedent being satisfied and therefore “may or may not conclude.”

BOV’s announces oversubscription of €100 million unsecured bonds

Bank of Valletta (BOV)’s €100 million 5% unsecured subordinated bonds have been fully subscribed within days of its launch and subsequently oversubscribed as a result to “the public’s overwhelming response.”

The bank closed the offer period on Thursday 24th October 2024 at 2pm. BOV announced that it will be carrying out a scaling down process in terms of the Final Terms.

Commenting on the bond issue, BOV Chairman Gordon Cordina noted that this achievement marks another milestone for BOV “and highlights the confidence that both investors and the public have in this bank.”

CEO Kenneth Farrugia concluded “This was the largest ever issue in the domestic market and the participation of both institutional and personal investors is an endorsement of the trust that the bank enjoys in the market,” he concluded.

Malta Company Announcements:

Malita Investments plc

On 9 October 2024, Malita Investments plc announced that it will hold an Extraordinary General Meeting on Thursday 28 November 2024 to approve a change in auditors for the year ending 31 December 2024 from PricewaterhouseCoopers to KPMG.

Bank of Valletta plc

The Board of Directors agreed to distribute a net interim dividend of €0.06 per share. Shareholders of BOV as of the close of trading on Friday 8 November 2024 will be entitled to receive the dividend payable on Wednesday 27 November 2024.

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