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HSBC Bank Malta half-yearly results for 2005
22 July 2005
HSBC Bank Malta p.l.c. and its subsidiaries recorded a profit before tax of Lm18.5 million for the six months ended 30 June 2005.
The tax charge for the period amounted to Lm6.4 million. Operating profit before net loan impairment releases is recorded at Lm17.5 million and represents an increase of 14.3 per cent over the Lm15.3 million earned during the same period in 2004.
- Earnings per share for the first six months ended 30 June 2005 decreased to 16.6 cents compared to 18.0 cents for the first six months of 2004. Comparative data have been adjusted for the April 2005 two-for-one share split.
- Profit attributable to shareholders of Lm12.1 million, a decrease of 8.1 per cent over the Lm13.2 million earned during the same period in 2004 which was influenced by a much higher level of impairment releases.
- Net interest income up by 11.9 per cent over prior year to Lm21.3 million.
- Non-interest income increased by 8.7 per cent, contributing Lm12.1 million to net operating income.
- Administrative expenses increased by 8.7 per cent, mainly due to higher performance-based compensation for all staff. The cost:income ratio improved from 49.1 per cent to 47.5 per cent.
- The net release in impairment provisions totalled Lm1.0 million. New specific allowances of Lm0.5 million were raised and bad debt write-offs of Lm2.4 million were effected. An overall improvement in the credit quality of the lending book reduced non-performing loans from Lm82.3 million to Lm70.7 million. This contributed towards the release of Lm3.3 million in specific allowances and Lm0.6 million in collective allowances.
- Customer deposits amounted to Lm1,331.5 million at 30 June 2005 compared with Lm1,295.8 million at 31 December 2004. Collective investment schemes managed by the group grew by Lm28.7 million, whilst life assurance assets grew by Lm9.5 million during the period.
- Loans and advances to customers were Lm1,026.7 million at 30 June 2005 - up Lm50.4 million or 5.2 per cent over 31 December 2004.
- Total assets amounted to Lm1.63 billion at 30 June 2005 compared with Lm1.60 billion at 31 December 2004.
Shaun Wallis, Director and Chief Executive Officer of HSBC Bank Malta p.l.c., said: "Our results for the first six months confirm the business momentum we have been building, with solid growth in all three customer groups. Our focus is on maximising existing business relationships through a clear understanding of clients’ needs."
HSBC Bank Malta Half-Yearly Results
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