HSBC Malta doing well in challenging times - CEO

At the annual meeting, HSBC Bank Malta chief executive officer Alan Richards told over 900 shareholders that despite the financial turmoil being experienced worldwide, HSBC remains in a strong and healthy position.

"While we remain in unchartered waters and the outcome of the current crisis remains unclear, there is strong consensus that the crisis has some way to run and the consequences to the global economy will be profound and long term," Mr Richards said. "This will leave its mark on Malta."

Mr Richards said that as a subsidiary of the world's largest bank by market value, with a strong liquidity position and one of the highest capital ratios in the world, HSBC continues to outperform its peers.

He said Malta is relatively well-placed given the current turmoil, and that banks in Malta are generally well capitalised, are not highly geared and have limited offshore exposures. The policies of the government, the Central Bank of Malta and the Malta Financial Services Authority have resulted in a well-regulated market. Membership of the European Union and the move to the euro at the beginning of the year significantly reduced the risks of any seismic shocks to the Maltese economy.

HSBC has over 10,000 local shareholders.

Mr Richards emphasised that HSBC was "travelling well in difficult times and was in a very strong position due to its long-term commitment to capital, liquidity and its conservative risk management policy."

Mr Richards expected the Maltese economy to slow given the likely world recession: "There would be significant challenges ahead for all banks in Malta" but HSBC was well placed and would continue to work closely with its customers for the long-term benefit of shareholders.

Chief operating officer Sally Robson focused on the operational aspects of the bank and how it is upgrading technology and processes and using group systems to increase efficiency.