HSBC Bank Malta plc Interim Directorsâ

HSBC Bank Malta plc Interim Directors’ Statement

On Friday 16 May 2008 HSBC Bank Malta plc issued an Interim Directors’ Statement where the Directors noted that although the period under review was characterised by a general slowdown in business activity, primarily due to the currency transition to the euro and the general elections, the Group recorded satisfactory progress.

Profit before tax was lower than that of the same period last year. Interest income was below expectations because of tighter margins and heightened competition, while non-interest income was lower mostly due to significantly reduced foreign exchange dealing income as a result of Malta’s adoption of the euro.  At the same time operating expenses have been kept under tight control. HSBC confirmed that the quality of the overall loan book remains good. The Balance Sheet continued to grow at a steady pace with strong growth in customers’ deposits and a further increase in loans and advances to customers. There was no deterioration in the quality of credit lending while liquidity and solvency indicators remain sound and above regulatory levels.

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