Issue link: https://maltatoday.uberflip.com/i/358967
10 Business Today maltatoday, WEDNESDAY, 6 AuguSt 2014 HSBC Bank Malta reports an interim profit before tax of EUR 40 million Malta hosted record 511,243 passengers in July HSBC Bank Malta p.l.c. reported a profit before tax of €40m for the six months ended 30 June 2014 compared with €53m for the same period in 2013. This performance, which was an improvement on the performance in the second half of 2013, was prin- cipally impacted by lower interest earnings as a result of record low Eu- ropean Central Bank rates and muted loan growth, as well as an increase in costs as a result of compliance invest- ment and increased regulatory fees. In addition, the 2013 performance ben- efited from a one-off insurance gain, which was not repeated in the first half of 2014. Net interest income declined to €58m compared with €64m in the same period in 2013. The fall in net interest income reflected a decline in interest earned on investments as proceeds of higher yielding maturing bonds were re-invested at the lower prevailing rates and the lower interest earned on reduced average lending balances. The decline in net interest income was partially offset by lower cost of funds as customers migrated to lower yielding short-dated deposits. HSBC Life Assurance (Malta) Ltd. reported a profit before tax of €6m compared with €8m in the first half of 2013. The results in 2013 benefited from a one-off with-profits modelling reserves release not repeated in the first half of 2014. A net gain on disposals of available- for-sale securities of €2m was reported for the six months ended 30 June 2014, compared with €4m for the same period in 2013. Operating expenses of €46m were €2m, or 4%, higher than the first half of 2013 largely as a result of compliance investment and regulatory fees. Excluding these items expenses have been well controlled and marginally below the comparable period in 2013 as significant work continues around streamlining the business for greater efficiencies. Net impairment provisions of €1m were marginally higher than 2013, as the prior year benefited from a number of recoveries. Overall asset quality remains acceptable with a high percentage of tangible security held against the overall loan portfolio. Net loans and advances to customers were €3,287m, €14m lower than at 31 December 2013. Mark Watkinson, Director and Chief Executive Officer of HSBC Malta, said, "We continue to invest in our franchise, and the growth pipeline in both our commercial and retail businesses is looking more encouraging than it has done for some time, although the current record low rates of interest present their own set of issues. We remain confident in the growth opportunities ahead and, as part of one of the world's largest banking groups, HSBC Malta is well positioned to assist our customers in accessing some of the most promising markets around the world. "I would like to take this opportunity to thank our staff, Directors and shareholders for their commitment, hard work and support during the first half of 2014." The Board has declared an interim gross dividend of 4.5cents per share (2.9 cents net of tax). This will be paid on 4 September 2014 to shareholders who are on the bank's register of shareholders at 14 August 2014. Malta International Airport host- ed a record 511,243 passengers in July, marking an increase of 8.5% when compared to the same month last year. "We received more passengers in July than we did in August 2013 which was the best month ever recorded. We're now eagerly looking forward to this year's August figures" Malta International Airport CEO Markus Klaushofer said. These figures reinforce Malta International Airport's decision to revise its forecast for the rest of the year. Klaushofer announced last week that the airport was now expecting a year-on-year growth of 4.2%, revised from 2% originally forecast in January. This followed six record months which accounted for more than 1.8 million passenger movements. July's figures were due to an overall seat capacity increase of 8.2% and a 0.2% increase in seat load factor, reaching 82.8% for the month. Aircraft movements for the month rose by 8.2%. Traffic from the United Kingdom grew by 9.4% in July, as a result of the increased capacity to and from London Gatwick. Traffic from Italy and France rose by 15% and 19.9% respectively, due to further growth in these markets over the July period. Traffic to and from Germany increased by 6.1%. Mark Watkinson, Director and Chief Executive Officer of HSBC Malta during the announcement of the 2014 interim results mbank.com 2132 2100 FIMBank is an international trade nance specialist with an established reputation as a dynamic and customer-driven provider of trade nance solutions. FIMBank is headquartered in Malta and benets from a growing network of international oces. documentary collections bonds and guarantees treasury management structured trade nance commodity trade nance letters of credit ship nance payments forfaiting factoring Trade Finance Solutions engineered for business success FIMBank p.l.c. is a licensed credit institution in Malta with company registration C17003, is regulated by the Malta Financial Services Authority and listed on the Malta Stock Exchange.