HSBC Bank Malta p.l.c. 2017 Annual Results - highlights

  • Reported profit before tax of €49.8m for the year ended 31 December 2017, a decrease of €12.4m, or 19.9%, compared with prior year
  • Adjusted profit before tax, which excludes the effect of notable items, was €55.6m, 9.5% down on 2016
  • Net dividend for 2017 was €40.2m, up 54.0% compared with prior year. It includes a special dividend of €20m to be distributed from surplus retained earnings
  • Common equity tier 1 ratio increased to 13.9% at 31 December 2017 from 13.2% at 31 December 2016. The total capital ratio was 14.4% at 31 December 2017, compared with 14.2% at 31 December 2016
  • Adjusted cost efficiency ratio was 66.2%, compared with 58.7% in 2016
  • Adjusted return on equity for the year ended 31 December 2017 was 7.2% compared with 8.4% in 2016
  • Earnings per share of 8.6 cent compared with 11.2 cent in 2016
  • The advances to deposits liquidity ratio remained stable at 65.6%
  • Net loans and advances to customers were €3,129m, down 5.8% compared with 2016
  • Customer deposits decreased by 4.7% to €4,766m at 31 December 2017


HSBC Bank Malta p.l.c. (‘the bank’) reported a profit before tax of €49.8m for the year ended 31 December 2017. This represents a decrease of €12.4m or 19.9% on the previous year.

The reported profit before tax incorporates three notable items which are excluded from the adjusted results as this is considered a better reflection of management’s performance.

In 2016, the bank recognised the gain on disposal of the bank’s membership interest in Visa Europe amounting to €10.8m and raised a provision totalling €8m in relation to a remediation of the legacy operational failure in the bank’s brokerage business. During 2017, the remediation programme was largely completed and it was assessed that a partial reversal of the conservatively estimated provision was warranted. In this regard, a reversal of €1.8m was effected in 2017.

During the year, the bank re-examined its approach to the provision for the collective agreement clauses related to future employee benefits. A longer-term view was assumed in the application of the current clauses which resulted in an additional charge of €7.6m in 2017 as compared with the charge of €2m in 2016. While the movements in this provision will periodically occur depending on the changes in the composition of the bank’s employee base, the provision adjustment in 2017 was not related to the business performance of the year.

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