HSBC reports improved profitability

Shortly after the closure of this morning’s trading session, HSBC Bank Malta plc issued its interim directors’ statement explaining that the positive trend in revenue and profitability reported in the first half of the year continued during the subsequent months.

During the first six months of 2010 HSBC Malta registered a 21 per cent increase in pre-tax profits to €42.2 million.

In today’s statement, HSBC also indicated that the bank’s cost to income ratio remained stable and loan impairments only increased marginally whilst profits from life insurance remained volatile.

The directors also stated that the bank registered further growth in deposits whilst it experienced a softening in demand for loans. In conclusion, HSBC confirmed that it is liquid and well capitalised.

Earlier on in this morning’s trading session HSBC’s equity shed 0.4 per cent to close at the €2.88 level representing a weekly decline of 0.7 per cent.

Meanwhile, renewed demand for Bank of Valletta plc shares lifted its share price by 1.1 per cent to regain the €3.66 level.

BOV’s share price closed in positive territory (+1.7 per cent) for the second consecutive week following the full-year results publication on October 29. Since the start of the year BOV’s equity has strongly outperformed that of its major competitor.

The share price of Malta International Airport plc dropped three per cent to the €1.60 level on volumes of 5,000 shares as the equity traded for the first time in the last five sessions.

Following today’s downturn the airport operator ended this week as the worst performing equity but still boasts a 33.3 per cent rise since the beginning of the year on the back of strong growth in passenger numbers.

GO plc edged minimally higher to €1.88,5 across 8,000 shares whilst International Hotel Investments plc again closed unchanged as a further 15,000 shares changed hands at the €0.77 level (-1.3 per cent during the week).

Following yesterday’s press release by the Treasury indicating that the €100 million Malta Government Stocks were snapped up by the public, the market eagerly awaits the total amount raised and the allocation policy to be adopted.

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