HSBC posts Lm18.5m profit for first six months

HSBC Bank Malta made a pre-tax operating profit of Lm18.5 million in the first half of this year, the bank said yesterday.

Operating profit before net loan impairment releases is recorded at Lm17.5 million and represents an increase of 14.3 per cent over the Lm15.3 million earned last year.

Tax on profits was Lm6.4 million, resulting in a net profit of Lm12.1 million for the first six months of the year.

Capital increased to Lm139 million and the capital ratio was 13.5 per cent.

At a meeting yesterday, the bank's board of directors recommended an interim dividend of 19.1c gross per share and additionally a special dividend of 27.4c gross per share, giving a total interim dividend of 46.5c gross per share. This represents a yield of 8.9 per cent on current share price of Lm5.20, the bank said. This will be payable to shareholders who are on the company's register of shareholders as at July 29, 2005.

The ordinary dividend payment of Lm9.1 million is 75 per cent of current year earnings and the special dividend payment of Lm13 million is paid out from retained reserves from earnings built up over the last five years and considered surplus to local regulatory capital ratio requirements (eight per cent), internal capital plans and normal global banking practice.

HSBC Bank Malta chairman Albert Mizzi, said: "The Group's excellent interim results reflect the continued strength and growth of the bank.

"The focus on the high quality of service we provide our customers and their own financial well-being underpins that growth".

Shaun Wallis, director and chief executive officer, said: "Our results for the first six months confirm the business momentum we have been building up, with solid growth in all three customer business lines. Our focus is geared towards maximising existing customer relationships and achieved through a clear understanding of clients' needs, delivering appropriate products and services together with the identification of new cost efficiencies within our core processes".

The bank said that in the coming days it will launch a "major new community initiative" and sponsorships worth Lm100,000.