Issue link: https://maltatoday.uberflip.com/i/1547431
maltatoday | SUNDAY •1 NOVEMBER 2026 HSBC Malta - strong and resilient results continued through Q3 2026 HSBC Bank Malta p.l.c. main- tained a solid financial per- formance during the first nine months of 2026 and contin- ued to reward shareholders with a gross dividend of 4.6c per share, bringing the year- to-date gross dividend to 12.5c per share. Geoffrey Fichte, the Chief Ex- ecutive Officer of HSBC Bank Malta p.l.c., said: "Our Bank delivered a strong and resil- ient performance during the first nine months of 2026 with adjusted profit before tax of €80m. This was supported by growing customer demand, very strong capital and liquid- ity positions and the recov- ery of legacy non-performing loans. While profitability was affected by market volatility and notable expenses, our balance sheet continued to grow from same period last year. "I'm pleased to report cus- tomer deposit growth and an 8% increase in wealth man- agement balances over same period last year. We achieved strong growth in insurance business, wealth and invest- ment sales, with double digit growth in new home loans and personal loans. "We remain focused on supporting our customers as we progress towards a new majority shareholder, Credi- aBank, subject to regulatory approval. Both HSBC and Cre- diaBank are committed to en- suring a smooth and orderly changeover." Financial Performance Profit before tax was €69.8m for the nine months ended 30 September 2026, repre- senting a 15% decrease com- pared with the same period in the prior year. The reduction mainly reflected the lower average interest rates, mar- ket volatility and the impact of notable expenses. These factors were partly offset by progress in the recovery of legacy non-performing loans, including a material recovery during the period under re- view. Adjusted Profit before tax was €79.7m, a decrease of 3% compared with the same period last year. In line with Company An- nouncement HSBC467, the Bank continues to pay divi- dends quarterly. The Direc- tors are therefore approving the payment of a gross inter- im dividend of 4.6 cents per share, representing a 60% payout of profit after tax, ex- cluding the employee-ben- efits expense referred to in Company Announcement HSBC469. The dividend will be paid on 11 December 2026 to shareholders registered on the Bank's shareholder regis- ter as at 10 November 2026. Revenue decreased by €7.8m, or 5%, compared with Q3 2025 YTD. This was pri- marily due to lower returns from the insurance subsidiary, which decreased by €4.1m as a result of significant market fluctuations during the peri- od; lower net interest income, which dropped by €2.2m ow- ing to lower average market interest rates; and a €1.4m re- duction in trading income, fol- lowing the exceptionally high level recorded in the same period last year. From an underlying business perspec- tive, the insurance subsidiary recorded higher gross written premiums compared with Q3 2025 YTD. Wealth sales also continued to show strong growth, despite heightened market volatility and its im- pact on investor sentiment. This performance was sup- ported by ongoing marketing activity focused on Wealth Management. Trade Finance maintained its strong mo- mentum in Q3 2026, support- ed by new client onboarding and higher utilisation of ex- isting facilities. Guarantees were the standout performer, achieving growth on the back of rising demand from both domestic and international clients. The Bank recorded a release of expected credit losses ("ECL") of €6.9m, compared with a release of €4.6m in Q3 2025 YTD. The ECL release during the period was main- ly driven by the recovery of a long-outstanding non-per- forming corporate loan and improved credit quality in the retail portfolio. ECL calcula- tions continued to reflect el- evated global uncertainty and geopolitical risks, while the Maltese economy remained resilient. Operating costs increased by €7.3m, or 8%, compared with Q3 2025 YTD. The increase was primarily driven by nota- ble expenses of €9.9m. These mainly comprised accelerated software amortisation follow- ing a revision to the estimat- ed useful life of the relevant assets due to the transition to CrediaBank and staff-relat- ed payments connected with the industrial dispute with the Malta Union of Bank Employ- ees ("MUBE"), as announced in Company Announcement HSBC469. These costs were partly offset by lower staff costs resulting from costs recovered in relation to the transition programme, as well as net savings in other operat- ing expenses, particularly pro- fessional fees. Net loans and advances to customers decreased by €68m compared with 31 De- cember 2025. Corporate lend- ing remained broadly stable over this period. Although overall retail lending balanc- es were slightly lower than at year-end, the Bank achieved double-digit growth in new personal lending, including home loans, compared with Q3 2025 YTD. Retail and commercial de- posits increased by a com- bined €261m when compared to the same period last year, even if overall deposits are lower than balances as at 31 December 2025 due to sea- sonal movements in corpo- rate deposits. The Bank's liquidity position remained strong, and its capi- tal ratios continued to exceed regulatory requirements by significant margins.