Issue link: https://maltatoday.uberflip.com/i/269668
Events 42 maltatoday, Sunday, 2 march 2014 Health and safety, quality and environment appointment at Gasco Energy HSBC Malta delivers resilient performance for 2013 Ing Edward Sultana has joined Gas- co Energy's top management team after being appointed health and safety, quality and environment of- ficer. Situated at Bengħisa, Gasco Energy is one of the most modern LPG sea importation terminals, storage and cylinder filling facilities in the Mediterranean region and has recently added a new cylinder testing plant. Gasco Energy's CEO Paul Agius Delicata said: "Health and safety, quality and the environment have always been fundamental elements rigorously integrated within the op- erating systems of Gasco Energy's €23 million facility at Bengħisa. This new senior management ap- pointment will bring to Gasco Energy the added benefit of many years of considerable experience and knowledge gained in setting up and operating advanced engineer- ing systems." Launched in November 2012, following a joint venture between Liquigas Italia S.p.A and Multigas Limited established in 2008, Gasco Energy's facility is one of the key energy assets for Malta. It has more than doubled the LPG storage ca- pacity in Malta which now stands at 4,800 metric tonnes. The facility is equipped with the latest technology for fire detection and fire fighting. HSBC Bank Malta p.l.c. delivered a re- silient performance for the year ended 31 December 2013 against a challeng- ing economic backdrop. As a result of the combination of the continuing difficult market conditions in Europe, the low interest rate envi- ronment, costs associated with regula- tory changes both at home and abroad and a subdued local economy, reported profit before tax of €90m declined by 5%, or €5m compared to 2012. The fall in 2013 results reflected lower levels of net interest income and a lower contribution from the Life In- surance Company which had benefit- ted from favourable equity markets in 2012 which was not repeated in 2013. All three main business lines, Retail Banking and Wealth Management, Commercial Banking and Global Banking and Markets, remained prof- itable during the year. Mark Watkinson, Director and Chief Executive Officer at HSBC Malta, said: "In a year of considerable challenges, we have continued to deliver resilient results for our shareholders. Global conditions look to remain difficult for the medium term, however we are starting to see green shoots of growth as the market becomes more optimis- tic. We continue to look for growth op- portunities both in Malta and also in the wider global market place where HSBC Malta is well positioned to con- nect our customers to some 74 other countries in which HSBC, one of the world's largest financial groups, oper- ates. "I would like to take this opportunity to thank our staff, directors and share- holders for their continued commit- ment, hard work and support during 2013." Net interest income reduced by 6% to €125m compared with €133m in 2012. The fall in interest income reflected a tightening in interest margin on lower average lending balances and a decline in interest earned on investments as the proceeds of higher yielding matur- ing bonds were re-invested at lower rates. This was partially offset by lower cost of funds as customers migrated to more liquid but lower yielding short- dated deposits. Net fee and commission income of €30m was broadly in line with 2012. HSBC Life Assurance (Malta) Ltd. reported a profit before tax of €13m compared with €18m in 2012. The re- sults in 2012 benefited from higher in- vestment returns in a more favourable equity market. A net gain of €4m was reported as a result of a re-positioning of the invest- ment portfolio. Operating expenses of €93m were €3m or 4% lower compared to the previous year which included a €6m provision in relation to a staff early vol- untary retirement scheme. Excluding this item, expenses rose by 3%. The in- crease of €2m, or 8% in administrative expenses reflected an increased cost of compliance, regulatory projects and security and fraud-risk related costs. Sustainable cost savings from the sim- plification and re-engineering of proc- esses funded continuing investment to improve technology. The cost efficiency ratio was 49.9% compared to 49.0% in 2012. Net impairment provisions of €3m were lower compared with the €5m in 2012. Overall asset quality remains ac- ceptable with a high percentage of tan- gible security held for the overall loan portfolio. Net loans and advances to custom- ers at €3,301m were €53m lower than at 31 December 2012. The demand for new commercial loans from customers remained subdued as commercial cus- tomers have used surplus cash to repay borrowings and delay investments in times of uncertainty. However, there are early indications of an increase in activity in the beginning of 2014. The residential mortgage portfolio contin- ued to record steady growth. Gross new business lending to customers amounted to €597m (2012: €507m) re- flecting the HSBC Bank Malta's con- tinued support of the local economy. Customer deposit levels at €4,518m were broadly unchanged despite con- tinued competitive pressures. The bank's available-for-sale invest- ments portfolio remains well diversi- fied and conservatively positioned. The bank's liquidity position is strong with an advances-to-deposits ratio of 73% compared with 74% at 31 December 2012. The bank continued to strengthen its total capital ratio to 12.9% as at the end of year and the tier 1 capital ratio improved to 9.4%. In December 2013, the Malta Fi- nancial Services Authority's revised Banking Rule 09 (BR09) came into ef- fect, with the ultimate aim of increas- ing the level of bank reserves. BR09 requires the bank to hold a Reserve for General Banking Risk, calculated as a percentage of non-performing loans. This reserve is required to be funded from planned dividends. Under the three year transitionary rules, the bank has set aside €4m in 2013 (40% of the currently estimated reserve). The remainder will be set aside in two equal instalments over the next two years. As a consequence, it is antici- pated there will be lower levels of dis- tributions made to shareholders over the next two years. During 2014 HSBC Malta will be participating in the European Central Bank ('ECB') comprehensive assess- ment that includes an asset quality re- view ('AQR') and a stress test. In 2013, the bank analysed the impact of sev- eral stress scenarios, including several different macroeconomic scenarios. The results of this analysis indicated that the bank would remain adequate- ly capitalised. The Board is recommending for the approval of the Annual General Meet- ing a final gross dividend of 5.2 cent per share (3.4 cent net of tax). This will be paid on 25 April 2014 to share- holders who are on the bank's register of shareholders at 17 March 2014. The Board is also recommending a bonus issue of one share for every nine shares held by shareholders on the bank's share register as at close of business on the 29 April 2014 by capitalisation of reserves amounting to €10m increas- ing share capital from €87m to €97m. Bingo 75 strikes again with another snowball winning! February brought joy and good fortune to one lucky winner who won the snowball jackpot in the Bingo 75 game amount- ing to €8,215. The ticket was bought from a Maltco's Au- thorized shop in Bugibba. "The concept we wanted to create for our players, that is giving them the opportunity to play their favorite games in a relaxed ambiance like cof- fee shops or bars is picking up at a fast pace. Players have commented very positively about this new initiative by the company," a spokesperson for Maltco said. The company also said that the number of Maltco's Sellers has increased significantly over the past months. In this way the players will have the option to choose their preferred place from where to buy their tickets and play their games. Bingo 75 is amongst the fa- vorite games with Maltco's players. It is a numerical game of chance, which is played us- ing a field of numbers from 1 through to 75. Players can try their luck in four differ- ent categories; Corners, Cross, Snowball and the House. The game can be played from any of Maltco's Points of Sale and Au- thorized Maltco's shops spread all over Malta and Gozo. The game is aired daily at 6:15pm on Smash TV. For more information on Bingo 75 and other games or- ganized by Maltco Lotteries, one can call either Maltco's Helpline Centre on 23883333 or visit the company's website: www.maltco.com RS2 Software p.l.c announced that its BankWORKS system has been chosen by OKQ8 in Sweden. OKQ8 has selected the RS2 sys- tem "BankWORKS" to power their continued expansion into specialist petroleum cards for companies and consumers across the Scandinavian region. OKQ8, having been an indirect user of the BankWORKS system for many years through one of Norway's largest IT Service companies which uses the BankWORKS system as the core for their Card issuing and acquiring Services, have chosen to work directly with RS2 in order to meet their business growth plans. The BankWORKS system devel- oped by RS2 over the last 25 years will provide OKQ8 with a flexible, secure and scalable system through which it will be able to manage all aspects of Card issuing enabling the business to achieve greater differen- tiation in the increasingly complex and rapidly changing fuel card mar- ket. Speaking about the decision of OKQ8, Radi El Haj the CEO of RS2 Software PLC commented, "we are very delighted to work directly with OKQ8 in supporting their growth and ambitions to a leader in their market. The highly flexible Bank- WORKS system is well suited to OKQ8's requirement for customer tailored products and services," This latest win comes on the back of a very successful year for RS2 where it launched it managed serv- ices division, announced major wins with the World's leading processors and the decision by Barclays Bank PLC to use BankWORKS. Gasco Energy CEO Paul Agius Delicata with Ing Edward Sultana, health and safety, quality and environment officer (right) Sweden's OKQ8 Bank selects BankWORKS