HSBC Malta has posted results showing that it has continued to divest from its operations in Malta, but the bank also says that it has made less revenues due to lower interest rates. HSBC Malta seems to have made an effort to avoid any new major business this year, and continued divesting by pruning bad debt from their books and avoiding expanding their loan book as they divest from Malta. HSBC Malta is being sold to Credia Bank.
Profit before tax for the the third quarter of this year came in at €82.5 million, down a third or 30% compared to the same period last year. Revenue decreased by €24.6 million, a 13% reduction, due to lower interest rates. Growth was reported in net fee income, foreign exchange, and transaction banking (particularly global trade services, with revenue up 15%), contributing to operational strength. Expected credit losses totaled €4.6 million, lower than €10.8 million in Q3 last year, as the bank continued pruning its bad debt and divesting from local risk.
Net loans and advances to customers decreased marginally compared to last December. The bank’s investment portfolio saw no specific changes reported at around €197 million. The bank processed more transactions in its foreign currency operations, with growth in foreign exchange, and reported increased activity in its wealth management section, including higher wealth assets, insurance, and asset management. Customer deposits remained at the same level compared to last December, though average corporate deposits increased during the period, retail deposit balances specifically grew by 2%. Operating expenses increased by 6%, mainly from staffing costs under an enhanced workers’ collective agreement, while the liquidity position remained strong and capital ratios exceeded regulatory requirements.
HSBC Malta had a successful business in Malta and was posted successful results year on year before it announced it was being sold to a foreign bank.
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