Shortly after the closing of today’s trading session, HSBC Bank Malta plc published its 2010 interim results. During the first six months of 2010, HSBC registered a 21.4 per cent increase in pre-tax profits to €42.2 million, mainly due to the improved level of revenues while the bank kept its costs flat.
On the balance sheet side, HSBC maintained deposits at a level of €4.1 billion but loan and advances to customers fell by €22.1 million.
HSBC CEO Alan Richards explained that the bank is encouraged by the strong performance registered during the period and the local economy is showing signs of stability and continued growth.
The board of directors declared an interim gross dividend of €0.07,9 per share (June 2009: €0.07,7) based on a reduced payout ratio of 55 per cent in order for the bank to preserve capital in anticipation of more stringent capital requirements in the near future.
The dividend will be paid on August 24 to those shareholders as at close of trading next Thursday.
This morning Malta International Airport plc also reported its financial results for the first six months of 2010.
During this period MIA’s revenue increased by a significant 7.9 per cent to €22.2 million over the same period of 2009 mainly as a result of a 10.3 per cent rise in passenger movements due to additional seat capacity.
Operating costs rose by 6.6 per cent mainly due to increases in utility rates. Nonetheless the larger growth in revenue resulted in a profit figure of €3.6 million representing a 16.5 per cent over the profitability in the comparable period last year.
The directors approved a net interim dividend of €0.03 per share, unchanged from last year’s interim dividend when adjusted for the recent share split.
The dividend is payable to those shareholders on the Company’s register as at close of trading on August 4.
This afternoon, Bank of Valletta plc issued their interim directors’ statement covering the third quarter of their current financial year.
The directors explained that during the three months ended in July 2010 net interest margin improved further whilst commission and trading activities remained strong and ahead of expectations whilst controlling expenses.
However, the third quarter experienced heightened concerns relating to the debt burden of certain Eurozone countries resulting in the reversal of the modest fair value gains reported at the half-year period.
BOV expects this downturn to eventually reverse. The directors concluded that the full-year results of the BOV Group will be largely influenced by the performance of credit markets in the last quarter.
BOV also reiterated that the results of the recent stress tests confirm that the Bank’s capital ratios are comfortably in excess of the required levels.
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