HSBC Bank Malta plc on Tuesday (today) announced that it reported €39.3 million in pre-tax profit during the first three months of 2024, a 48 per cent rise from the €26.5 million recorded in the same period last year.

The bank primarily attributed the increase in profitability to the higher interest rate environment, noting that this was the “biggest contributor” to the results. Good progress was report on non-interest income, while lower Expected Credit Losses (ECL) recoveries were registered.

During the first quarter, revenue increased by 29 per cent of €14.6 million when compared to the first three months of 2023. This was primarily driven by higher net interest income earnt on the placement of excess liquidity due to the higher interest rate environment. Additionally, the bank also registered higher business volumes, prompting an increase in net fee income, foreign exchange, and insurance income.

HSBC Bank Malta also recorded an improvement in the credit quality of its loan book, resulting in a release of ECL of €1.8 million in the first quarter of 2024, compared to a release of €3.7 million in the same period last year. This year’s release reflected a generic improvement in the credit quality of the bank’s loan book.

The bank stated that it managed to maintain costs at the same level as the previous period, despite the impacts of inflation and the continued investment in people, technology, and premises.

Net loans and advances to customers remained largely in line with those of last year, while customer deposits decreased marginally, mainly due to a decrease in operational corporate deposits.

HSBC Bank Malta affirmed that its liquidity positioned remained strong, while regulatory capital ratios “continued to exceed regulatory capital requirements.”

In a statement accompanying the results, CEO Geoffrey Fichte said: “I would like to thank our customers for their business. We continued our strong momentum with a 48 per cent growth in pre-tax profit over the prior year.”

HSBC Bank Malta plc CEO Geoffrey Fichte

He added that the bank continued to invest in technology during the past three months in a bid to improve its customer service.

“In January 2024, we signed a new collective agreement for the period 2024-2026 which is characterised by significant enhancements to employee pay, benefits, and retirement pension. We also continued to invest in our state-of-the-art office to offer a better working environment for our employees,” Mr Fichte continued.

He also referred to how HSBC Malta’s Global Trade and Receivables Finance team was awarded as the “Market Leader and Best Service Bank” in Malta for the second consecutive year in the Euromoney Trade Finance Survey 2024. “This prestigious recognition underscores HSBC Malta’s commitment to excellence and innovation in serving its customers,” Mr Fichte affirmed.