16 February 2006
The following is the text of an announcement which is to be published in the press in Malta on 17 February 2006 by HSBC Bank Malta p.l.c., a 70.03 per cent indirectly-held subsidiary of HSBC Holdings plc.
The preliminary profit statement is published pursuant to Listing Rule 9.39 of the MFSA Listing Authority and Article 4 (2) (b) of the Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations, 2005. Figures have been extracted from HSBC Bank Malta p.l.c.’s Annual Report and Accounts which have been audited by KPMG.
All figures are stated in Maltese lira, the functional currency of HSBC Bank Malta p.l.c. The euro exchange rate ruling on 31 December 2005 was €1 = Lm0.4293. The US dollar and sterling exchange rates ruling on the same day were US$1 = Lm0.3637 and £1 = Lm0.6245. Average exchange rates for 2005 for euro, US dollar and sterling were €1 = Lm0.4299, US$1 = Lm0.3453 and £1 = Lm0.6285.
Review of Performance
During the year ended 31 December 2005, HSBC Bank Malta p.l.c. and its subsidiaries generated a profit before tax on ordinary activities of Lm36.7 million, an increase of Lm3.9 million or 11.7 per cent compared with the year ended 31 December 2004.
Profit attributable to shareholders was Lm24.1 million, an increase of Lm2.1 million on the previous year.
Earnings per share increased from a 2004 figure of 30.2 cents to 33.0 cents, with the pre-tax return on average shareholders’ funds increasing from 24.7 per cent in 2004 to 27.6 per cent.
Tax on profit on ordinary activities for 2005 increased to Lm12.6 million from Lm10.8 million in 2004.
Net interest income grew by 13.2 per cent over prior year and contributed Lm46.9 million to total operating income.
Non-interest income levels grew by 16.3 per cent, contributing Lm21.8 million to net operating income.
Operating expenses were Lm32.1 million, an increase of Lm0.5 million over prior year figures.
As a result, the group’s cost:income ratio improved to 46.7 per cent from 52.5 per cent in 2004.
Net impairments reduced and recoveries contributed Lm0.1 million to profitability.
The Board is recommending a final ordinary dividend of 19.1 cents gross per share and a special dividend of 21.1 cents gross per share, giving a total final dividend of 40.2 cents gross per share. The dividends will be payable to shareholders who are on the register of shareholders as at 21 February 2006. A gross interim dividend of 19.1 cents and a special dividend of 27.4 cents were paid in August 2005.
The Board is also recommending a three-for-one bonus share issue. The bonus shares will be allotted to shareholders on the register of members as at close of trading on the Malta Stock Exchange on 18 April 2006. These bonus shares will be available for trading by the shareholders at the opening of business on 19 April 2006.
Shaun Wallis, Director and Chief Executive Officer of HSBC Bank Malta p.l.c. said: “2005 has been another successful year for HSBC Bank Malta p.l.c. with strong sales growth across all our key lines of business, reflecting the increased economic activity of our customers.
“These results were achieved by building the market leading bank in Malta with a strong customer-driven culture and a strong sense of community spirit and social responsibility.”
HSBC Bank Malta p.l.c. is a member of the HSBC Group, whose ultimate parent company is HSBC Holdings plc. Headquartered in London, HSBC Holdings plc is one of the largest banking and financial services organisations in the world. The HSBC Group’s international network comprises over 9,700 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
