HSBC Bank Malta's commitment to the local mortgage market is "unquestioned" and the bank will continue to support its 260,000 personal, corporate and investment clients, while working internally to keep costs in check, chief executive officer Alan Richards told The Times Business in an interview.
While the bank continually reviews its lending policies "in light of the prevailing economic environment and changing sector market dynamics, HSBC's commitment to the key mortgage market in Malta is unquestioned, though in the current climate and as a responsible lender, a more critical assessment of affordability criteria for higher loan to value requests is considered even more appropriate," he says.
Asked which expenses were to be cut, Mr Richards replies: "In the current economic environment characterised by slower business activity, low interest rates and uncertainty, we shall retain our focus on cost containment. However, this will not be done at the expense of reducing the levels of our high quality service or investment in technology and our automated delivery channels, including the ATM network."
Mr Richards describes the bank's commitment to corporate social responsibility as "strong as ever" and although some budget adjustments are possible, the overall strategy is unaffected for this year.
"We remain very much open for business," he says." All our fundamentals are strong, we have no direct exposure to the sub-prime market and a prudent loan-to-deposit ratio of 77 per cent at end 2008. We primarily fund our business activity through raising deposits from our network and diversified customer base." While recession in key parts of the world will "clearly leave its mark on Malta" Mr Richards is confident that with the backing of HSBC Group, the local bank is strong enough to face even unprecedented challenges.
"The bank has continued to experience growth across its main business activities, has a prudent loan-to-deposit ratio, and a strong liquidity position. Our capital adequacy ratio is 11 per cent, well in excess of the regulatory requirement of eight. Our gross dividend paid and payable to shareholders for 2008 amounts to €40.8 million."
On February 20, HSBC Bank Malta plc and its subsidiaries reported a pre-tax profit of €96.1million for the year ended December 31, down €18.6 million (16.2 per cent) on the previous year. Assets were worth €5,296.1 million.
Internationally, HSBC Holdings plc on Monday reported pre-tax profits for 2008 of $9.3 billion, down from $24.2 billion in 2007. It also launched a discounted €14 billion rights issue - its first in over 20 years - in a bid to re-establish HSBC among the world's best capitalised banks. HSBC announced it would halt new consumer loans through HSBC Finance Corporation in the US and shut down 800 American branches.
While the bank continually reviews its lending policies "in light of the prevailing economic environment and changing sector market dynamics, HSBC's commitment to the key mortgage market in Malta is unquestioned, though in the current climate and as a responsible lender, a more critical assessment of affordability criteria for higher loan to value requests is considered even more appropriate," he says.
Asked which expenses were to be cut, Mr Richards replies: "In the current economic environment characterised by slower business activity, low interest rates and uncertainty, we shall retain our focus on cost containment. However, this will not be done at the expense of reducing the levels of our high quality service or investment in technology and our automated delivery channels, including the ATM network."
Mr Richards describes the bank's commitment to corporate social responsibility as "strong as ever" and although some budget adjustments are possible, the overall strategy is unaffected for this year.
"We remain very much open for business," he says." All our fundamentals are strong, we have no direct exposure to the sub-prime market and a prudent loan-to-deposit ratio of 77 per cent at end 2008. We primarily fund our business activity through raising deposits from our network and diversified customer base." While recession in key parts of the world will "clearly leave its mark on Malta" Mr Richards is confident that with the backing of HSBC Group, the local bank is strong enough to face even unprecedented challenges.
"The bank has continued to experience growth across its main business activities, has a prudent loan-to-deposit ratio, and a strong liquidity position. Our capital adequacy ratio is 11 per cent, well in excess of the regulatory requirement of eight. Our gross dividend paid and payable to shareholders for 2008 amounts to €40.8 million."
On February 20, HSBC Bank Malta plc and its subsidiaries reported a pre-tax profit of €96.1million for the year ended December 31, down €18.6 million (16.2 per cent) on the previous year. Assets were worth €5,296.1 million.
Internationally, HSBC Holdings plc on Monday reported pre-tax profits for 2008 of $9.3 billion, down from $24.2 billion in 2007. It also launched a discounted €14 billion rights issue - its first in over 20 years - in a bid to re-establish HSBC among the world's best capitalised banks. HSBC announced it would halt new consumer loans through HSBC Finance Corporation in the US and shut down 800 American branches.