HSBC Malta has reported a sharp decline in profitability during the first quarter of 2026 after the bank windied down its operations ahead of its sale to Greece’s CrediaBank.
According to the bank’s latest interim directors’ statement, HSBC Malta registered a profit before tax of €21.3 million during the first quarter of 2026, representing a 24% decrease compared to the same quarter last year. Revenue also declined significantly by €8.1 million, or 14%, compared to Q1 2025.
HSBC Malta’s profits and revenues have been decreasing after the bank significantly winded down its operations prior to its sale. HSBC Malta’s annual pre-tax profits for 2025 had already fallen by 29% from €154.5 million in 2024 to €109 million in 2025, even as customer deposits climbed to a record €6.53 billion.
However, some uptake in activity by the bank has been recorded in the first quarter and its results have also been weighed down by other factors. HSBC Malta attributed the weaker Q1 2026 results primarily to lower net interest income and weaker returns from its insurance subsidiary due to volatility in international financial markets. Net interest income alone declined by €3.4 million, while investment returns from the insurance arm dropped by €4.2 million.
The bank’s operating costs increased by €3.7 million, or 12%, compared to the same period last year, due to higher salaries, and employee benefits.
Despite declining profitability, HSBC Malta emphasised on the growth in wealth management, commercial lending and insurance activity. The bank also highlighted stronger sales in mortgages and unsecured personal loans. Growth in overall loans was not significant as loans to corporates were 4% higher than balances as at 31 December 2025. However, new loans to corporates approved in Q1 2026 were up 86% when compared to Q1 2025 indicating a rising uptake. The bank claims a 4% growth in mortgage sales and 41% growth in personal unsecured loan sales compared to Q1 2025, enabled by marketing campaigns during the quarter.
At the same time, customer deposits fell by approximately €200 million compared to the end of 2025, mainly due to seasonal reductions in corporate deposits.
The bank has increasingly been reducing its operational footprint while focusing on maintaining capital strength and maximising shareholder returns before the transaction is finalised. Earlier this year, HSBC Malta announced that it would begin issuing quarterly dividends, with directors now recommending a gross interim dividend of 3.6 cents per share representing a 60% payout ratio.
The broader picture emerging from HSBC Malta’s recent results is that while the bank remains highly liquid and profitable, its growth cycle in Malta has effectively come to an end. The institution that once represented one of Malta’s last major international commercial banks is now operating in managed decline as it prepares to formally leave the Maltese market.
You can find the statement here.
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