HSBC Malta has continued its trend of declining income and profits as it reduces its loan book and limits the growth of its business ahead of its handover to CrediaBank. The bank remains strongly capitalised, but its business is being suppressed with an unclear long-term vision for profitability.
In its latest interim directors’ statement, published on 27 October, HSBC Bank Malta reported a profit before tax of €69.8 million for the first nine months of 2026, a 15% decline from the €82 million recorded in the corresponding period last year. Adjusted profit before tax, which excludes certain notable expenses, stood at €79.7 million, down 3%.
Total revenue fell by €7.8 million, or 5%, as the bank faced lower net interest income, weaker investment returns from its insurance subsidiary and a decline in trading income.
The bank attributed €2.2 million of the revenue decline to lower net interest income, while returns from its insurance subsidiary fell by €4.1 million amid significant market fluctuations. Trading income also declined by €1.4 million.
One of the more significant developments is the reduction in the bank’s lending balances.
Net loans and advances to customers fell by €68 million compared with the end of December 2025. Corporate lending remained broadly stable, while overall retail lending balances were slightly lower than at year-end.
Another important feature of the results is the release of €6.9 million in expected credit losses, compared with a release of €4.6 million during the same period in 2025.
At the same time, HSBC Malta’s operating expenses increased by €7.3 million, or 8%, during the first nine months of the year.
The bank identified €9.9 million in notable expenses, principally accelerated software amortisation, alongside staff-related payments connected with the industrial dispute with the Malta Union of Bank Employees.
HSBC Malta’s customer funding position remains substantial. Retail and commercial deposits combined were €261 million higher than in the corresponding period of 2025, although overall deposits were lower than at the end of December 2025 because of seasonal movements in corporate balances.
The bank also continues to report strong liquidity and capital ratios comfortably above regulatory requirements.
Its Common Equity Tier 1 capital ratio stood at 24.7% at the end of June 2026, while its total capital ratio was 27.8%. These figures demonstrate that HSBC Malta retains a considerable capital buffer.
You can find HSBC Malta’s results here.
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