HSBC Holdings, the parent company of HSBC Malta has announced it will be accounting for a $300 million loss at the end of the year for its sale of HSBC Malta. According to its latest financial results for the first nine months of the year, HSBC’s revenues have increased along with its operational expenses. CEO Georges Elhedery said that the bank is becoming “more simple, agile and focused”.
The losses of HSBC Holdings will be accounted in book value. HSBC Malta had a market capitalisation of up to €479 million on the Malta Stock Exchange before it was sold to Credia Bank for up to €200 million.
The bank reported a profit before of tax of $7.3 billion, $1.2 billion less than the same period of last year. Currency profit before tax came at $9.1 billion with an increase of up to $300 million or 3% increase. Total revenue came at $0.8bn or 5% higher at $17.8bn compared with the same period of last year. Net interest margin increased by 1.5% and total net interest income was at $8.8 billion, up by 15% year-on-year.
Return on tangible equity (RoTE) was 12.3%, compared with 15.5% in the same period of last year, mainly due to write-offs and one-time costs related to legal and court provisions. HSBC will be paying a $1.1 billion in damages over the Bernie Madoff case. Total operating costs came at $10.1bn with a 24% increase from last year.
A dividend of $0.1 per share has also been announced.
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