No major impact on HSBC from subprime credit crisis

HSBC Malta shareholders have been assured that there will be no major impact on the bank from the present subprime credit crisis or the global liquidity crisis affecting international markets.

The issue was raised during the bank's annual general meeting.

With regard to concerns of the local property market, shareholders were informed that analysts from HSBC Group stress-tested the banls Home Loan Lending Book, and the results showed that the bank had a well diversified and healthy portfolio, members of senior management said.

It was also announced that new HSBC Bank Malta CEO Alan Richards will take over from Shaun Wallis in early May.

Mr Richards has been at HSBC for 24 years and his latest appointment was director and deputy chief executive at HSBC Australia. Mr Wallis, who has served in Malta for four years, will be moving on to another senior appointment within HSBC .

Mr Wallis said that last year's financial performance was transformational for HSBC with record volumes of business registered.

In reply to other questions, bank officials explained the bank's policy on security and the measures taken to mitigate risk while ensuring the safety of staff and customers at all times, as well as the carrying of very low levels of cash in bank branches.

The AGM re-elected Victor Scicluna, Peter Paul Testaferrata Moroni Viani and Sonny Portelli to the board of directors. The directors appointed by the majority shareholder HSBC Bank p.l.c. were Albert Mizzi as Chairman, Shaun Wallis, Sally Robson (Chief Operating Officer), David Budd, Dr Philip Farrugia Randon, and Mr Charles J Farrugia.

The shareholders approved all ordinary resolutions presented during the meeting. The audited accounts for the year ended 31 December 2007 were approved. A final ordinary dividend of €0.148 gross per share was approved and KPMG were re-appointed as auditors.

The shareholders also approved the extraordinary resolutions changing the Authorised Share Capital from Lm40 million to €141million. The nominal value of the shares was changed from Lm0.12,5 to €0.30. This resulted in the fully paid-up capital of the bank being changed from Lm36,480 million to €87,552 million.

The shareholders also approved that all future dividend payments will be made electronically.