HSBC Bank Malta p.l.c. reported a profit before tax of €25.9 million for the six months ended June 30, 2017 compared with €41.3 million for the same period in 2016. This represents a decrease of €15.4m or 37% on the previous period.

However, the reported results for the first six months of 2016 included the gain
on disposal of €10.8m arising on the sale of our membership interest in Visa Europe. On an adjusted basis, profit before tax was down 15% compared with the same period in 2016.

The performance during the first six months of 2017 was adversely impacted by
persistent low interest rates, risk management actions and increased compliance costs but was in line with the management’s expectations.

The Board proposes to maintain the current dividend pay - out ratio of 65% and recommends an interim gross dividend of 4.7 cents per share (3.0 cents
per share net of tax).

The cost efficiency ratio was 63% for the six months, compared with a ratio adjusted for the significant items of 60% for the same period in 2016. The ratio was primarily impacted by lower revenue.

The adjusted return on equity was 7.1%, compared with 8.5% for the same period in 2016.

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