HSBC Bank Malta plc has announced a profit before tax of €27.9 million for the first quarter of 2025, marking a 29 per cent decline compared to the same period last year. The Bank attributed this drop primarily to shifts in the interest rate environment, particularly following European Central Bank (ECB) rate cuts which began in June 2024.
Despite the lower interest rate backdrop, the Bank reported growth across several other income streams, including net fee income, foreign exchange, and insurance income. These gains added a combined €1.9 million to its income, helping to offset some of the revenue pressure. Overall revenue fell by €6.7 million, or 10 per cent, with net interest income taking the brunt of the hit, declining by €8.6 million due to lower average interest rates.
Credit losses also weighed on the results. HSBC Malta booked €0.6 million in expected credit losses (ECL), contrasting with a €1.8 million release in Q1 2024. This shift reflects increased global uncertainty and heightened geopolitical risk, according to the Bank. Nonetheless, management expressed confidence in Malta’s economic resilience and its diversified structure.
Operating costs rose by €2.3 million, equivalent to an 8 per cent increase year-on-year. These higher costs were driven by continued investment in people and technology, particularly through increased salaries, employee benefits, and digital infrastructure improvements.
HSBC Malta noted that both net loans and advances to customers, as well as customer deposits, remained broadly stable compared to the fourth quarter of 2024. Its liquidity position remained strong, and regulatory capital ratios continued to exceed minimum requirements.
Commenting on the results, Geoffrey Fichte, CEO of HSBC Bank Malta plc, said:
“I would like to thank our customers for their business and my colleagues for their patience and resilience as we progress through the strategic review process as first announced on 11th September 2024. We remain open for business and committed to providing enhanced customer service and high standards to support growth in the Maltese market.”
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Nicole Zammit
When she’s not writing articles at work or poetry at home, you’ll find her taking long walks in the countryside, pumping iron at the gym, caring for her farm animals, or spending quality time with family and friends. In short, she’s always on the go, drawing inspiration from the little things around her, and constantly striving to make the ordinary extraordinary.
