HSBC Bank Malta p.l.c. Half-Yearly Results for 2003

25 July 2003

The following is the text of an advertisement which is to be published in the press in Malta on 26 July 2003 by HSBC Bank Malta p.l.c., a 70.03 per cent indirectly-held subsidiary of HSBC Holdings plc.

HSBC Bank Malta p.l.c. and its subsidiaries recorded a profit on ordinary activities before tax of Lm12.7 million for the six months ended 30 June 2003. This represents an increase of Lm3.2 million, or 34.2 per cent, over the Lm9.5 million earned in the same period in 2002. Earnings per share increased to 23.2 cents compared to 19.3 cents for the same period last year.

• Profit attributable to shareholders of Lm8.5 million - up Lm1.4 million, or 20.4 per cent, over the same period in 2002.
• Net interest income of Lm17.2 million - up Lm1.3 million, or 8.1 per cent, over 2002.
• Other operating income increased by Lm0.8 million as a result of operating profit generated by life assurance business activity.
• Operating income of Lm26.6 million - up Lm2.4 million, or 9.7 per cent, over 2002.
• Operating expenses decreased by Lm0.1 million, or 1.1 per cent, on 2002 as a result of improving our productivity.
• Net impairment losses were Lm0.2 million, a decrease of Lm0.7 million on 2002. During the current period, Lm0.8 million in specific allowances against loan losses and Lm0.7 million in write-offs were raised, offset by the releasing of Lm1.3 million in general allowances against loan losses.
• A gross interim dividend of 10.8 cents per ordinary share - up from a previous gross interim dividend payment of 8.0 cents.
• Loans and advances to customers were Lm901.0 million at 30 June 2003 – up Lm10.3 million from a 31 December 2002 level of Lm890.7 million reflecting growth across all personal customer segments. Customer deposits were Lm1,297.6 million at 30 June 2003, marginally down from Lm1,303.1 million as at 31 December 2002.
• Shareholders’ funds increased by Lm7.2 million to Lm124.2 million. This represents an increase of 6.1 per cent and includes the retention of Lm5.9 million on the profit and loss account and a Lm1.9 million increase in revaluation reserves.

Chris Hothersall, Chief Executive Officer, said: “Our results for the first six months are encouraging. Within the domestic economy, we view the six months ahead with cautious optimism. Our operating revenues continue to grow and we have improved our efficiency while the bank continues to invest in its infrastructure and quality of customer service. Our key capital and liquidity ratios remain strong. We are grateful for the support of our customers and the commitment of our staff over this period. The directors have declared an interim dividend of 10.8 cents per ordinary share payable to shareholders who are on the Company’s register of shareholders as at 31 July 2003. The total dividend of Lm2.6 million represents a 35 per cent increase over the 2002 interim dividend.”

The full text of the news release can be downloaded using the link on the right.

Note:
The published figures, which are in compliance with International Accounting Standard 34 Interim Financial Reporting, have been extracted from the HSBC Bank Malta p.l.c.’s unaudited group management accounts for the six months ended 30 June 2003. These figures, which have been drawn up according to the accounting policies used in the preparation of the annual audited accounts, are being published in terms of section 6.05.06 (i) of the Malta Stock Exchange Bye-Laws.