HSBC published its 2015 interim results this morning revealing a 6.8 per cent drop in profitability to €23.9 million during the first six months of 2015.
The improvement achieved on the income side, largely relating to lower interest expense and the fees generated from the newly transferred insurance portfolio, was offset by higher costs (mainly linked to regulatory and compliance factors) as well as increased impairment charges.
The bank declared a gross interim dividend of 5c1 per share (to all shareholders as at the close of trading on August 12) representing a 25.9 per cent increase over the adjusted interim gross dividend declared with respect to the first six months of 2014.
The difference in dividend is attributable to a lower charge in connection with the general banking risk reserve as per the revised banking rule 09.
On the secondary market, the bank’s share price edged 1.6 per cent higher to regain the €1.82 level across 13 deals totalling 52,000 shares. The uplift in the bank’s share price helped the share index extend its recent positive run with a further 0.3 per cent increase to 4,219.479 points.
Malita Investments also performed positively with a 1.1 per cent increase to regain the 94c level across 43,764 shares. The equity will trade with the entitlement to the interim gross dividend of 1c44 per share until Thursday.
The only other positive performing equity was Mapfre Middlesea with a 0.5 per cent increase to the €2.02 level albeit on an insignificant trade of 57 shares.
On the other hand, the share price of MIDI slipped by 1.5 per cent back to the 34c level on shallow volumes of 9,500 shares.
Meanwhile, Bank of Valletta maintained the €2.30 level after managing to recover from an intra-day low of €2.28 on total volumes of 27,719 shares.
Also in the financial sector, FIMBank held on to the 49c5US level across 17,450 shares. Likewise, GO held on to the €3.50 level after touching an intra-day low of €3.45 across 16,060 shares.
Tigné Mall also closed the day unchanged at the 87c level across 38,500 shares. The company is scheduled to publish its interim results next Monday.
Shallow volumes were traded in the other two active equities with only 1,253 shares of Malta International Airport changing hands at the €3.95 level and RS2 Software holding on to the €2.19 level on a small deal of 50 shares.
Meanwhile on the bond market, the RF MGS Index climbed 0.2 per cent higher to 1,134.616 points as the benchmark 10-year German Bund yield remained under pressure in view of the worsening economic woes in Greece with the country’s manufacturing activity plunging to the lowest levels ever last month.
The recently issued 5.5 per cent Mediterranean Investments Holding 2020 bonds commenced trading today with the price jumping by 600 bp to 106 per cent on activity of €54,700 (nominal).
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