HSBC reports €53 million profit before tax
Declares interim gross dividend of 10c per share
HSBC has reported a profit before tax of €53 million for the six months which ended June 30, an increase of €3 million, or six per cent over that in the same period last year.
The board declared an interim gross dividend of 10c per share (6.5c net of tax). This will be paid on August 22 to shareholders on the bank’s register at August 8.
The interim accounts were approved by the group’s board of directors this afternoon.
Director and chief executive Mark Watkinson said: “We have delivered another positive set of results that saw pre-tax profit increase by six per cent with a return on equity of 17.8 per cent.
The bank’s capital and liquidity position remained strong and it had a firm grip on risks and costs at a time of continuing pressure on revenue as a result of the challenges in the Eurozone.
“Despite the difficulties in Europe we have a clear strategy focused around simplifying our business, reducing bureaucracy and improving efficiency. As part of the world’s largest international bank we are well placed to service the needs of our customers and to support the Maltese economy,” he said.
Net interest income increased by five per cent to €68 million compared with €64 million in the first half of last year. The increase reflected growth in mortgage lending and improved positioning of the balance sheet management available-for-sale portfolio.
Net fee and commission income of €16 million for the six months ended June 30, compared with €17 million in June last year.
Growth in funds under administration and higher levels of custody fees more than off-set lower card fees following the sale of the merchant card acquiring business in December 2011, he said.
Mr Watkinson said that HSBC Life Assurance (Malta) Ltd reported a profit before tax of €7 million, compared with €13 million in the first half of 2011.
The first half of 2011 benefitted from a non-recurring gain of €7 million as a result of the refinement in the methodology used to calculate the present value of in-force long-term insurance business.
New business particularly with respect to life-insurance protection and higher investment income as a result of improved global market conditions partially offset this non-recurring gain.
A net gain of €2 million was reported on the disposal of available-for-sale securities compared to a net loss of €4 million in the comparable period in 2011.
Operating expenses at €45 million increased by €3 million six per cent, impacted by non-recurring staff cost recoveries in the first half of 2011 of €2 million, mainly relating to the release of an early voluntary retirement provision.
At a consolidated level, net impairments reduced from €4 million to €0.8 million. This was principally due to a €2 million impairment taken on Greek government bonds held by the life insurance subsidiary in its available-for-sale bond portfolio.
Following the Greek bonds restructuring programme, the life insurance subsidiary has disposed of all its Greek debt exposure and now holds no exposure to southern European government debt.
Loan impairments declined to €0.8m (five basis points of the overall loans book) against €1.8m in 2011 as the profit or loss benefitted from modest recoveries. At a bank level, non-performing loans remained stable at five per cent of gross loans and asset quality remains good.
Net loans and advances to customers increased marginally by €20 million to €3,364 million. Mortgage market share remained stable.
The bank saw a slight softening in loan demand due to slowing economic conditions. Gross new lending to customers amounted to €274 million which reflects the bank’s continued support to the local economy.
Customer deposits rose by €257 million to €4,660 million as at June 30 reflecting an increase in corporate and institutional deposits.
The levels of retail deposits were broadly unchanged despite significant competitive pressure for deposits including from local government bond issuance.
The bank’s available-for-sale investments portfolio remains well diversified and conservative.
The bank’s liquidity position remained strong with advances to deposits ratio of 72 per cent, compared with 76 per cent at last December 31.
The bank continued to strengthen its capital ratio to 11.8 per cent. This exceeded the eight per cent minimum regulatory capital requirement. The bank intended to maintain a conservative approach to capital and would continue to build capital where appropriate.
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A. Caruana
Jul 30th 2012, 21:38
Mhux ahjar kieku l-HSBC jiehu hsieb bis-serjeta' lil impjegati tieghu, mhux il-maggoranza taghhom imdejqin, bil-pressure u bil-kundizzjonijiet li ghandhom? Flok dik il-mizerja ta' somma li qed joffrilhom biex jitilqu, mhux ahjar joffrilhom somma sura ta' nies, halli jekk ma jsibux xoghol alternattiv ikunu jistghu jghixu hajja dicenti.
U xi nghidu ghall-branches li qed jaghlaq? Jew l-HSBC irid izid il-klijenti jew hu stess qed jghidilhom biex jitilqu 'l hemm ghax ikun ghalqilhom il-fergha li s-soltu jinqdew fiha.
Sharon Avola
Aug 18th 2012, 15:06
I totally agree with you.
Joe Sammut
Jul 29th 2012, 01:08
lil-min qed jeqred kontra l-HSBC nghidlu aqtaghha.
Ghaliex jekk inhu klijent imdejjaq kull m’ghandu jaghmel jaqleb ma bank iehor, jekk jahseb li kieku kien f’idejn il-gvern kien jaghmel il-qliegh qed jassumi hafna , u dan il-bank ikkonnettjana mal-kumplament tad-dinja.
Min jahseb li dan il-bank qed jaghmel hafna qliegh kull m’ghandu jaghmel imur jixtri l-ishma u jaqla’ euro bhala azzjonist.
Ta’ min jinnota li il-gvern idahhal it-taxxa mil-qliegh u 35% taxxa minn fuq id-dividends.
Ma nafx bl-ebda entita tal-Gvern li titmexxa bl-efficjenza tal-HSBC. Ta min jghid li hawn nies li jaqilghu it-tripplu per kapita minn negozju taghhom u jhallsu il-loqom f’taxxi.
Prosit lil HSBC talli jafu jhaddmu l-flus ,ihaddmu n-nies , ihallsu taxxi lil poplu Malti u dividends tajbin lil-azzjonisti.
Mario Camilleri
Jul 28th 2012, 19:24
What I pity the most is that the profit that the HSBC is making year after year could have been ours.
I don't know of any farmer selling his milking and healthy cows so that he then would have to buy the same milk from the same cows he sold. Surely, he would be a brainless farmer.
John Attard
Jul 28th 2012, 09:11
There are two issues here.....one which continues to haunt us to the day. Who was responsible to sell Mid Med to HSBC clearly will never have a clean conscience. One can try to bring about a million reasons but out here the public is morally convinced that this deal was shambolic, to say the least.
Secondly I do not agree with many of the bloggers who are stating that the Bank should provide more staff and more manual labour to solve a few issues and also stop closing branches. HSBC is a Bank with a worldwide reputation and has set criterias. It is there to operate and make a profit for its shareholders. It has no moral obligation to any one andno social obligation. The people out there have choices and they make the choices. The Bank offers services and it is your choice whether to use them or otherwise. But we as individuals her would be more than foolish if we tried to change the ways of the Bank.
Please ponder.......when one opens a business, any kind of business, does he or she or they not work hard to maximize their profits.? So what is wrong with the Bank doing this?
If the Government of Malta sold Mid Med for well below the market price, it's only because whoever we dealt with was strong enough to keep the price down. This is business you win some, you lose some! And this time around Malta was finitely not the winner! But whoever was responsible for that knows and by now it s a part of history.
Anthony A. Mifsud
Jul 28th 2012, 03:36
Well I hope this is not a hit and run job.
While the good is going all looks good
This once a Malta Bank has become a commercial bank
Simply creaming our money
Ninu
M. Attard
Jul 28th 2012, 01:17
It is in the interest of the government that the banks do a huge profit as they pay more tax. Maltese Government never went into bank policies much even though you are a big determent to the customers and very unjust. The maltese government still manipulates everything even though the banks have been sold for peanuts. It is just an indirect tax from us all to the government through the bank taxes on high profits.
m. borg (slm)
Jul 28th 2012, 18:04
Yes but Mid-Med was government owned and all the profits went to the country's coffers while the minority shareholders got their dividends as well.
A Galea
Jul 28th 2012, 00:47
You buy a property which costs X, by the time you pay the full amount you'd pay 2.5X.
They suck your pockets dry.
Without banks, the world wouldn't be in the mess it is.
mark borg
Jul 28th 2012, 00:27
50 million profit in just six months ...no big deal , under gonzi's regime the nations deficit is more than that in the past 6 months !
m. borg (slm)
Jul 27th 2012, 23:34
Rubbing salt into the wound year after year as HSBC keep making an average of €50 million a year profit having not only recovered their initial cost, the measely sum of Lm 80 million but have over the years multiplied this by at least 5 times.
Thanks to Dalli and EFA for selling Mid-Med a succesful bank for next to nothing. I am that both of them don't have nightmares about this great blunder of their political acumen.
p grima
Jul 27th 2012, 23:23
So this bank is making profits. I didn't when I invested with this bank. I lost time and money. I'm doing my banking elsewhere now.
Mark Amaira
Jul 27th 2012, 22:12
Bank m'għandux jagħmel dal-qligħ kollu. Jidhirli li din hija inġustizzja soċjali.
m. borg (slm)
Jul 27th 2012, 23:37
Meta ma tmurx xi fehra bhal tas-Sliema u issib kaxxier wiehed/wahda jaqdu kju daqsxhiex.
Jew jghalqu ferhat li jaqdu xi zewgt irhula sew imbasta jaqtghu l-ispejjez tal-haddiema.
Mark Mifsud
Jul 28th 2012, 01:43
Tini raguni valida ghalfejn dan m'ghandux jkun.
Mr leo attard
Jul 27th 2012, 20:56
and the customers who deposit their money to make the bank get all that profit get shitty interest in return! now that is ironic! why do i feel like a cow --- i get a little dry hay while the other guy takes my milk and eats my cheese!
mark borg
Jul 27th 2012, 20:04
mhux ovvju jghamlu il qlih .....mill interessi tad djun li dahhal il pn lil wliedna fih ......
mark borg
Jul 27th 2012, 19:58
Il bank li il Pn seraq lil poplu malti ! ....tiftakruh meta kien hemm gharef malti (illum wkoll skartat mil tal klikka) u kien qal, wara li biegh bank tal poplu bix xejn?.....kien qal ghaxar miljuni l hawn u ghaxar miljun l hemm ma jghamlux differenza......dak kien zmien ta money no problem ...ghax kien hemm gharef iehor u qalilna tinkwetawx id dejn issa jhallsuh wlieda.
Francis Sammut
Jul 27th 2012, 19:12
A profit of 53 million euros (before tax) in six months? And Mid Med was sold for a measly 85 million Liri! The mind boggles! I'm not against the selling per se, but I'm sure we could have bargained for much more. And please leave politics out of it.
Brian Bonnici
Jul 27th 2012, 21:21
Francis..much more than 85 million it was sold. The difference went into the pockets of the clever ones!!
D Borg
Jul 27th 2012, 19:11
Mark Watkinson has been quoted as saying that HSBC is......
servicing the needs of customers and supporting the Maltese economy
pull my other leg will you?
Elvin Muscat
Jul 27th 2012, 19:02
I'm not sure if anyone is aware of this not so well known saying; a country in recession makes banking a healthy profit, a country in a boom makes a monkey of a bank. At the moment its a win win situation for a bank like HSBC, and I am rather intrigued as the complaints have risen whilst the people I hear complain have all withdrawn from using the bank. Strange bad fellows indeed.
Victor Vella
Jul 27th 2012, 18:55
HSBC reports €53 million profit before tax- To whom expense and at what cost? At the expense of the customers and customers have to pay for the costings of the bank services that are part and parcel with the services offered. So, making profits from undifferentiated products and taking money from the people`s pockets. The most important to make profits, while the customers` pay for making the bank rich.
W Cassar
Jul 27th 2012, 18:44
And they have the cheek to charge for on line banking!
pete camilleri
Jul 27th 2012, 17:30
Prosit HSBC........perhaps now..... you can add to the one clerk.... another one.....that would make it two...but...it would eat into your profits!!!...You can get away with this poor service as you do not have much competition!!!!...( I will not say which branch for obvious reasons ).....!!!
Rose Agius
Jul 27th 2012, 17:55
If HSBC are doing so well, why are they reducing staff and closing down branches? To make more millions of course and who suffers? The customers of course - but who cares? Bugibba Branch has been reduced to one cashier but HSBC doe not care that at times it takes one hour to be served on account of the many tourists who use this branch for service.
Toni Botta
Jul 27th 2012, 17:27
waiting for JM to make his statement now....all the labour voters in a shock, more excuses and twist n turns the reality.......instability hahahaha
pete camilleri
Jul 27th 2012, 17:34
why is it political....profits of a bank....???????? You confuse me Mr. Botta.........
john muscat
Jul 27th 2012, 18:07
If the bank was owned by the Govt.(who are the Maltese in general) those profits would have been in our coffers, but now the govt. gets only 35% and HSBC gets 65% and goes in foreign pockets.
pete camilleri
Jul 27th 2012, 18:27
Mr. John Muscat, I beg to differ.....do you remember the BAD DEBTS Mid Med had.....?? At least the Maltese are getting 35% tax on profits & some dividends..if it was still run by the gov..mmmmmmmmmm I wonder & I do not involve politics..I NEVER DO.....!!!
mark borg
Jul 27th 2012, 20:01
x ghandu x jaqasm il profitti ta bank !!!!! int bis serjeta ???? int tahseb li id depositi tal generazzjoni tal lum qedin ??????? il generazzjoni tal lum djun sa xfar tghajnejhom ghandhom ualla hares ma jghejnuhomx il generazzjoni ta bla djun u zmien il middle class ta mintoff !!!!!
P. Attard
Jul 27th 2012, 17:12
50 million Euros in just six months...wow! I suggest that now the management should seriously consider upgrading the interest rates of their investors, especially the savings accounts which in reality do not render any gains!
P. Attard
Jul 27th 2012, 17:06
53 Million Euros in just six months...not bad at all! I think that now the management should seriously consider upgrading the interest rates, especially those of savings accounts which in reality do not render any profit at all!
David Galea
Jul 27th 2012, 17:03
All the year round banks say that they are finding difficulty like other business but at the end of their financial year nearly all state that they made profits. The big make money on the same citizens... ::((
J Cassar
Jul 27th 2012, 16:43
Can't wait for August to withdraw all my capital from HSBC and invest it in higher fixed rate giving banks
Jessica Smith
Jul 27th 2012, 16:41
L-aqwa li inghalqu hafna ferghat u l-klijenti jkollhom imorru postijiet ohra, inkluzi anzjani u dawk li ma tantx jifilhu.
Dan barra milli ma jkunx hemm kaxxiera bizzejjed u jekk ikun hemm tliet postijeit ghall-kaxxiera jkun hemm tnejn jew anki wiehed jew wahda biss jaqdu n-nies. Dak huwa l-ezempju tal-kapitalizmu sfrenat li jsallab lill-haddiema u l-klijenti biex jithaxxnu l-bwiet ta' dawk li ghandhom l-ishma.
Gianninu Saliba
Jul 27th 2012, 16:21
Ms Sharon Avola, what really matter is not if HSBC is making a profit or not. What really matters is that customer deposit rose by €257 million to €4,660 million. That's in six (6) months. Money must be growing on trees, because according to Joseph, the country is getting poorer and Dr. Gonzi has created instability. Here we are talking of the first six months of this calendar year... the same six months that the Malta Labour Party is claiming that there is a political crises and hence the government should call it a day and resign as they are damaging the economy. The truth always prevails. This government is performing miracles. But then, I do not blame the Malta Labour Party for not publishing any of their plans if they were to be in government. They have no plans, they believe that things will just happen. I think that they believe that money falls off trees and maybe that's the reason why monkeys hang on to branches.
Rose Agius
Jul 27th 2012, 18:09
Why do you have to bring politics into everything - we are so childish. This only means that the rich are getting richer - does not mean that it has any reflection on the most of the Maltese who earn an average salary or are on the minimum wage. These people can hardly make ends meet with their low income let alone save and deposit thousands of euros a year. The cost of living is always going up and many of the food stuff and services are not reflected in the basket of commodities that make up COLA on which the cost of living is worked on. Which ever party is in power, prices will always go up as we depend mostly in imports.
Gianninu Saliba
Jul 27th 2012, 18:50
Rose, try and convince me that you are not socialist. If you really believe that only a few people have invested the €4,660 million with just one bank, then there is something really wrong with you. Please do not hide behind the sick excuse that the cost of living goes up irrespective of which Party is in government. When Labour was in government there were more than 20,000 unemployed (how could they make ends meet) and some other 20,000 in the Labour Corps (earning peanuts). Then again, there were never in the history of our beloved country so many, employed full time and so many others working part time. The 80,000 or so, of more people today earning an income, compared to those earning an income in the 70s and 80s are definitely better off; and that is only thanks to the various PN governments. By the way, when Labour was in government there were some 10,000 people working a three or four day week and that' was the time when people could hardly make ends meet with there low income. Not today.. I do agree with you, however, that there are those that really got rich under a PN government. A good example is a particular journalist working for the MLP who, thanks to Malta joining the EU (and that's no thanks to him) now can boast that he owns a house in Italy and at least another in Malta.
Louis Craus
Jul 27th 2012, 16:20
Mhux ghalhekk inghalqu hafna ferghat tal- HSBC?
L-importanti li jaghmel, il- qliegh.
ANTHONY PAVIA
Jul 27th 2012, 17:19
A commercial enterprise without profits is like a human body without blood. Do you prefer living and kicking businesses or dead ones?
Jesmond Degabriele
Jul 27th 2012, 16:15
IL-BAQAR IT -TAJBIN DOWN THE DRAIN.
LOTTU,SUPER 5 W L-HBC ,IL= GVERN TA MALTA BIEGH KOLLOX.
john muscat
Jul 27th 2012, 18:10
Kieku dak il-qliegh kien jibqa ghand il-gvern u kien inaqqas ftit mid-dejn.
W Cassar
Jul 27th 2012, 18:53
The thing is if they stayed under government control... they would probably be making a loss now.
Daniel Borg
Jul 27th 2012, 19:06
Ma nafx xjonqos ibieh iktar... Bix ma nsemux is sea malta wkol, limportanti li lpoplu jibqa jamel tajeb al decizjonijiet ta klikka ta nies u xibka ta hazen skond xi hadd
john muscat
Jul 27th 2012, 19:54
Kieku dak il-qliegh kien jibqa ghand il-gvern u kien inaqqas ftit mid-dejn.
mark borg
Jul 27th 2012, 20:02
sewwa qed tghid
Sharon Avola
Jul 27th 2012, 15:36
What matters for HSBC is profit, clients are not important. Customer Care is hopeless and some employees don't even know certain bank instructions, unbelievable!!!!
ANTHONY PAVIA
Jul 27th 2012, 17:17
I am a client of their's and I feel I am well treated. Of course their fees could be more reasonable. Then they would be unbeatable.
albert aquilina
Jul 27th 2012, 15:26
they made 4 million profit in 6 months and then they pay employees with pea nuts
Nicki Gatt
Jul 27th 2012, 15:03
and this same bank got sold for 83million when in half a year they made 53million profit. Scandalizing when 1 thinks of it!
Andrew Gatt
Jul 27th 2012, 16:33
This 1 thinks that the figure was actually Lm83 million = €193 million, hux?
And give me a profitable bank anytime before a bust one.
John Borg
Jul 27th 2012, 14:58
Not bad eh, in a country in a recession?
G Vella
Jul 27th 2012, 14:52
Isn't it amazing how many of those large organisations which provide us with real services such as Air Malta, GO, Enemalta, are all losing money while those institutions whose role is to play around with this artificial construct, money, all make tons of profits.
Kevin Muller
Jul 27th 2012, 18:03
@G.Vella - You are so right, but most people still believe that everything is fine with our system not realising that it's the biggest fraud ever happened.
Henry Ford said once : It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
Who wants to understand why our world is in such a mess and what is the real reason for that, read the crash course of chris martenson - http://www.peakprosperity.com/crashcourse - You may not believe what you learn there, but it's reality!
W Cassar
Jul 27th 2012, 18:50
GO would not be losing money if it was not for a certain Greek investment!
Robert Caruana
Jul 27th 2012, 13:56
Certifikat iehor ghal ghaqal ekonomiku tal Gvern!!
Prosit. Bank ma jkollux rizultati bhal dawn jekk mhux f pajjiz ekonomikament b sahhtu!!!!
Daniel Dimech
Jul 27th 2012, 21:12
jien nahseb l imaxxijiet tad djun mela ekonomija b sahhita xi dwejjaq ta nies
Daniel Borg
Jul 27th 2012, 13:48
Mux ovja li jamel daqsek qlieh, pagament daqsiex fix xahar tad dar u l loan jibqa listess
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