HSBC's record results

In its press release dated February 16, HSBC announced record profits for 2005; no doubt a great achievement, and all at HSBC deserve credit for such a success.

What disturbs me is the fact that the HSBC board of directors found it appropriate to include in its announcement the fact that the minority shareholders received a dividend of some Lm19 million, inclusive of tax credits, but failed to mention the substantial slice of the profits that went to the majority shareholder, HSBC Holdings, in the UK.

The release also informed the public that some Lm13 million of the bank's profits for the year went into the government's coffers in the form of tax. Another section of the press reported that, since the government disposed of its 70 per cent plus Mid-Med shareholding, the local exchequer has received no less than Lm45 million in taxes. The release would have been more balanced, and hence in order, had it also said that in the short period of time that HSBC took over Malta's leading bank, it more than recovered its original investment of some Lm80 million.

This goes to prove further, if proof was ever need, how valid the criticism levelled at the government was when it disposed of the country's heirloom at the give-away price of Lm2.90 per share.

The handsome return to the minority shareholders definitely proves the worth of the five gentlemen who got together under the umbrella of the Mid-Med Banks Private Shareholders Association, to confront the mighty HSBC in the interest of the small fry.