HSBC record profits of Lm41.4 million

HSBC Bank Malta plc's (HSB) results for the year ended December 31, 2006, were released yesterday immediately after the close of trading. They showed a pre -tax profit of Lm41.4 million - a 12.8 per cent increase over the same period in 2005. The April 2006 three-for-one bonus-adjusted Earnings per Share increased from 8c2 to 9c2 - a healthy jump of 12.2 per cent Net interest income increased by 5.4 per cent to Lm47 million, while non-interest income increased by 18.8 per cent.

The bank's cost to income ratio improved from 46.7 per cent to 45.5 per cent. Customer deposits increased by Lm108.2 million to Lm1,475.5 million, while loans and advances to customers increased by 10.8 per cent to Lm1,126.1 million. Total assets increased by Lm231.4 million to Lm1.88 billion.

Dividend policy: The board is recommending a total final gross dividend of 10c6 per share (6c9 net of tax) which is made up 50/50 of a final gross dividend and a special identical gross dividend. When added to last August's interim 5c3 gross dividend, the dividend yield is equal to 7.45 per cent. The final 10c6 dividend will be paid on April 21, to shareholders who are on the bank's register as at March 2, 2007, that is those who will have purchased shares three trading days earlier, by Tuesday, February 27.

The week's total trading volume was 102,238 shares with a market value of Lm217,714 - equivalent to two-thirds of the week's total equity turnover by value. HSB opened and closed the week at Lm2.135, where it had closed the previous Friday, and traded in a very narrow range, hitting an intra day peak yesterday was Lm2.149. At the end of trading, the price was supported by a bid for 1,500 shares at Lm2.135, while the best offer for 4,725 shares stood at Lm2.14.

Maltacom plc (MLC). For the first time since it was listed, MLC did not trade at all this week. Considering MLC's announcement last Tuesday of the acquisition of the entire shareholding of Multiplus Ltd, the Digital Terrestrial Television (DTTV) network operator, one wonders why current shareholders and potential investors seem to have given this news the cold shoulder. MLC may have lost its fixed line monopoly but is turning pro-active by challenging established operators in cable TV.

At the end of Friday's session, the best bid was for 500 shares at Lm1.431 and the best offer for 2300 shares at Lm1.472 - 8 mils lower than the last close at Lm1.48.

Bank of Valletta plc (BOV) had a very slow week with only 13,000 plus shares changing hands for a market value of Lm48,384. It traded in a narrow range of Lm3.69 to Lm3.72, the latter being the positive start last Monday; it slid gradually to Thursday's low of Lm3.69 before closing yesterday at Lm3.699 for a 2c - or 0.5% - drop on the week.

At the end of trading, best bids totalled 850 shares at Lm3.68, while supply of 1,075 shares started at Lm3.699.

Simonds Farsons Cisk plc was the week's top performer and the only one to close with a plus sign On Tuesday 2,200 shares changed hands at 82c whilst yesterday's single deal for 1,590 shares was struck at 83c, translating into a 1.2 per cent gain.

The following four Official List and one Alternative Companies List equities all ended the week unchanged on very thin turnover: On Monday 400 shares in Plaza Centres plc changed hands at 71c. On Wednesday and Thursday Lombard Bank plc saw a total turnover of 2,560 shares at Lm5.00, whilst Fimbank plc saw 16,897 shares changing hands at $1.74. Middlesea Insurance plc only traded yesterday when a minute 132 shares dealt at Lm1.98. There was only one 5000-share trade in Datatrak plc at 24c5.

After five winning weeks International Hotel Investments plc (IHI)'s ended with a drop of 3.4 per cent after hitting an all-time intra day peak of r1.17 on Wednesday. On Thursday and yesterday it succumbed to profit taking, closing the week at r1.12.

GlobalCapital plc was the second highest loser, falling, 2.4 per cent to Lm2.00.

Malta International Airport plc traded at Lm1.399 on Monday and one mil lower on Wednesday for a total turnover of 6400 shares to end the week a minimal 0.14 per cent lower. At the end of the session, best bids were for 1,000 shares at Lm1.351 while offers for 600 shares started at Lm1.394.

The Government Bond market was comparatively active with a turnover value of Lm2,131,635. The 7.8 per cent MGS 2018 was the most active, accounting for 38 per cent of the total. In the corporate bond market turnover reached Lm158,925 spread over 26 deals.

Report by Financial Planning Services Ltd, tel. 2134 4244, fax. 2134 1202, email: info@bonellofinancial.com

Financial Planning Services Ltd is licensed by the MFSA to provide investment services, including stockbroking (IS/3608). The Directors or related parties, including the company, and their clients, are likely to have an interest in securities mentioned. This article is only meant to provide information and is not intended to give investment advice. The value of securities, and the currencies in which they are denominated, may go down as well as up.