HSBC Malta Surges: First Quarter Results Up By 48%
HSBC Bank Malta saw strong profits in Q1 2024, reporting a profit before tax of €39.3 million, marking a 48% increase from €26.5 million in the same period last year.
This boost was mainly due to the higher interest rates. The bank also made good progress in non-interest income, but saw lower Expected Credit Losses (ECL) recoveries.
Revenue went up by €14.6 million or 29% compared to Q1 2023, primarily due to higher net interest income from placing excess liquidity in the higher interest rate environment. Increased business volumes also contributed to higher net fee income, foreign exchange, and insurance income.
The bank’s loan quality improved, resulting in an ECL release of €1.8 million in Q1 2024, compared to €3.7 million in Q1 2023. Costs remained stable despite inflation impacts and continued investment in people, technology, and premises.
Net loans and advances to customers remained steady, while customer deposits decreased slightly, mainly due to a drop in corporate deposits.
HSBC Bank Malta’s liquidity position stayed strong, with regulatory capital ratios exceeding requirements. The bank’s Global Trade and Receivables Finance team was recognised as the Market Leader and Best Service Bank in Malta for the second year.
“HSBC Malta’s Global Trade and Receivables Finance team was awarded as the Market Leader and Best Service Bank in Malta for the second consecutive year in the Euromoney Trade Finance Survey 2024. This prestigious recognition underscores HSBC Malta’s commitment to excellence and innovation in serving its customers,” CEO, Geoffrey Fichte concluded.