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4 NEWS 18.11.2021 IN September 2021 compared with August 2021, seasonally adjusted pro- duction in the construction sector in- creased by 0.9% in the euro area and by 1.2% in the EU, according to first estimates from Eurostat, the statisti- cal office of the European Union. In August 2021, production in construc- tion fell by 1.4% in the euro area and by 1.8% in the EU. In September 2021 compared with September 2020, production in con- struction increased by 1.5% in the euro area and by 1.8% in the EU. In the euro area in September 2021, compared with August 2021, civ- il engineering increased by 2.6% and building construction by 0.9%. In the EU, civil engineering increased by 2.0% and building construction by 1.2%. Among Member States for which data are available, the highest month- ly increases in production in con- struction were recorded in Slovenia (+8.5%), Sweden (+6.0%) and Hungary (+4.1%). The largest decreases were observed in Romania (-4.9%), Slovakia (-3.8%) and Poland (-1.9%). In the euro area in September 2021, compared with September 2020, civ- il engineering increased by 1.8% and building construction by 1.5%. In the EU building construction in- creased by 2.3% and civil engineering by 1.5%. Among Member States for which data are available, the highest annu- al increases in production in con- struction were observed in Hungary (+14.3%), Finland (+6.0%) and Poland (+4.3%). The largest decreases were recorded in Romania ( 14.2%), Spain ( 7.2%) and Slovakia ( 1.6%). The euro area (EA19) includes Bel- gium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Mal- ta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland. Estonia, Greece, Croatia, Cyprus, Latvia, Lithuania, Luxembourg and Malta are not required to supply monthly data within 1 month and 15 days after the end of the refer- ence month under Regulation (EU) 2019/2152. Ireland has a derogation to remain with quarterly frequency and Den- mark to have a longer deadline until the end of 2023. Production in construction up by 0.9% in euro area and by 1.2% in EU Production in construction up by 0.9% in euro area and by 1.2% in EU Up by 1.5% and 1.8% compared with September 2020 In September 2021 compared with August 2021, seasonally adjusted production in the construction sector increased by 0.9% in the euro area and by 1.2% in the EU, according to first estimates from Eurostat, the statistical office of the European Union. In August 2021, production in construction fell by 1.4% in the euro area and by 1.8% in the EU. In September 2021 compared with September 2020, production in construction increased by 1.5% in the euro area and by 1.8% in the EU. HSBC Bank Malta p.l.c. has report- ed a profit before tax of €25.2 million during the nine-month period ended 30 September 2021. is represents an increase of €13.0m over the same pe- riod last year. Adjusted profits, which represent reported profits excluding significant items, amounted to €28.6m compared to €12.2m reported in the same period last year. Significant items incurred in 2021 mainly consist of re- structuring provisions and related transformation costs. Year-to-date revenues were €5.8m higher than those reported in Q3 2020. e increase in revenue is mainly at- tributable to higher insurance income, partially offset by a decrease in interest income. In 2020, the insurance compa- ny was negatively impacted by adverse mark to market movements compared to positive movements reported dur- ing the current year-to-date. e bank experienced a decrease in net interest income as a result of persistent low and negative interest rates and an increase in surplus liquidity. Adjusted costs for the nine-month period were €0.9m higher than those reported in the same period in 2020. While HSBC Bank Malta continues to realise cost savings from the imple- mented cost strategies and ongoing proactive cost management measures, there was an increase in regulatory fees linked to higher customer deposits held at the prior year end, as well as higher regulatory and compliance costs. Expected credit losses ('ECL') were broadly maintained at the levels booked at 31 December 2020. e addition- al charge of €0.1m for the period was linked to the deterioration of particular facilities which was partially offset by releases resulting from improvement in the macro- economic environment and improvements in other facilities. Net loans and advances to customers were maintained at the levels reported as at 31 December 2020. While lending is on the increase, this was overshad- owed by increased prepayments as a result of the current interest rate envi- ronment. Customer deposits increased by €242m compared to 31 December 2020. e bank's liquidity position remained strong and regulatory capital ratios continued to exceed regulatory require- ments. Simon Vaughan Johnson, Chief Exec- utive Officer of HSBC Bank Malta p.l.c., said the bank retains a cautious outlook on the external risk environment. "We remain determined to pursue our safe growth strategy and to continue supporting our customers and the com- munity that we serve as we emerge from the pandemic," he said. "Sustainability is a key element of this strategy and we are fully committed both to providing our customers in Malta with sustainable in- vestment choices and to facilitating the transition to net zero." HSBC Bank Malta records €25.2 million in Q1-Q3 profit before tax

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