HSBC Bank Malta plc has reported a profit before tax of €82.5 million for the first nine months of 2025, reflecting a 30 per cent decrease compared to the same period last year.

The bank attributed the reduction in profitability to the return of a normalised interest rate environment and lower recoveries from expected credit losses, although it emphasised that it “remains highly profitable with strong capital and liquidity positions.”

Revenue decreased by €24.6 million, or 13 per cent, year-on-year due to lower interest rates, partly offset by structural hedges. Growth was registered in net fee income, foreign exchange revenues, and transaction banking services, particularly Global Trade Services, which saw revenue rise by around 15 per cent. Wealth assets under management also increased.

The bank continued to experience an improvement in loan book quality, reporting a release of €4.6 million in expected credit losses compared to €10.8 million in the same period last year. Operating expenses rose by six per cent driven by higher staff costs following an enhanced collective agreement, as well as continued investments in technology and property.

During the quarter, HSBC launched SEPA Instant Payments and introduced new mobile banking functionality designed to improve the digital customer experience. The refurbishment of its new Qormi headquarters has been completed, while an ATM upgrade programme is nearing finalisation.

Customer deposits remained stable while business lending increased. Capital and liquidity ratios continue to exceed regulatory requirements.

The bank also reiterated earlier communications regarding HSBC Continental Europe’s agreement with CrediaBank S.A. relating to the potential sale of its majority shareholding in HSBC Bank Malta, noting that planning for a seamless transition has begun, subject to consultations and regulatory approvals.