HSBC Bank Malta has reported a profit before tax of €95 million for 2012, an increase of eight per cent or €7 million over the previous year.
While the Maltese economy has proved to be very resilient in times of crisis, we need to remain vigilant
The bank’s board of directors has declared a final gross dividend of 7.9 cent per share (5.1 cents net of tax), which will be paid on April 27 to shareholders who are on the bank’s register of shareholders on March 19.
The bank said the main factors driving the improvement in profit before tax were a strong performance from its life insurance company, reflecting a recovery in investment returns and available-for-sale gains as a result of the repositioning of the bond portfolio.
All the three main business lines, retail banking and wealth management, commercial banking and global banking and markets were profitable in 2012.
Mark Watkinson, bank director and CEO, said: “HSBC Malta has delivered another positive set of results that saw pre-tax profit increase by eight per cent with a return on equity of 15.4 per cent.”
This performance, he said, was achieved in spite of the continued travails of the eurozone, a low interest rate environment, heightened competition and softer demand.
“The bank’s capital and liquidity position remains strong. Despite all the current global and regional challenges, HSBC Malta has a clear strategy in place of assisting our customers, and Malta, to access broader global markets with faster growth, simplifying our business, improving the customer experience and driving greater organisational efficiency.”
Net interest income increased by three per cent to €133 million compared to €129 million in 2011. The increase reflected growth in mortgage lending from new business and improved balance sheet management returns.
HSBC Life Insurance (Malta) Ltd reported a profit before tax of €18 million compared to €11 million in 2011, reflecting a recovery in investment returns. Underlying new business performance generation, particularly with respect to life-insurance protection, was encouraging.
Operating expenses of €96 million were €2 million or two per cent lower than the previous year. Customer deposits rose by €114 million during the year and stood at €4,517 million at year end, reflecting an increase in both corporate and institutional deposits.
Mr Watkinson said: “Looking ahead, 2013 is likely to be another difficult year and, while the Maltese economy has proved to be very resilient in times of crisis, we need to remain vigilant.”