HSBC Bank Malta plc reported a profit before tax of €21.3 million for the first quarter of 2026.

This is a 24 per cent decrease when compared to the same quarter in 2025.

“The reduction in profitability was mainly driven by the lower interest rate environment and reduced returns from the Bank’s insurance subsidiary, reflecting volatility in market prices of international investments. This was partly offset by the progress in the recovery of legacy non-performing loans, with a material recovery reported during Q1 2026,” the bank said.

Revenue decreased by €8.1m when compared to Q1 2025, HSBC Malta said. This was mainly driven by lower net interest income (€3.4m) reflecting reduced average market interest rates in Q1 2026 compared to Q1 2025, and lower net investment return from the insurance subsidiary (€4.2m) due to significant market fluctuations during the quarter.

It said that from an underlying business perspective, the insurance subsidiary reported higher gross written premium compared to Q1 2025. “This is in line with the strong sales growth achieved across the retail and commercial businesses.”

In terms of costs, the bank said they increased by €3.7 million compared to Q1 2025, adding that this was primarily due to higher salaries and employee benefits and legal provisions, as well as accelerated amortisation of intangible assets in view of the change in their estimated useful lives, it said.

Customer deposits decreased by €200m when compared to balances as at 31 December 2025, which it said reflects mainly a decrease in corporate deposits due to seasonality. “Deposits were, however, €120m higher than those reported as at 31 March 2025.”

The bank said it will start announcing dividends each quarter. The bank’s directors are recommending a gross interim dividend of 3.6 cents per share, representing a 60 per cent payout. The dividend will be paid on 30 June 2026 to shareholders who are on the Bank’s register of shareholders on 19 May 2026.

Geoffrey Fichte, Chief Executive Officer of HSBC Bank Malta pls said: “Our strong results in Q1 2026 reflect growing customer confidence in the future. I am pleased to report growth in both new retail and commercial lending, wealth management and insurance.”