HSBC Bank Malta plc has released its interim financial result for the third quarter of 2021, depicting a positive outlook, with profit before tax hitting €25.2 million, an increase of €13 million over the same period last year.

The strong quarter brought year-to-date revenues to €5.8 million above what was recorded at the same stage last year, with the bank attributing this to an increase in revenue mainly attributable to higher insurance income, partially offset by a decrease in interest income.

In 2020, HSBC Malta's insurance offering was negatively impacted by adverse market to market movements compared to positive movements reported during the current year-to-date, the bank also notes.

Costs were €0.9 million higher than those recorded in the same period during 2020, as, while the bank continues to realise cost savings from implemented cost strategies and ongoing “proactive” cost management measures, regulatory fees increased, linked to higher customer deposits held at the prior year end.

The bank also notes that new loans and advances to customers were maintained during the period at the levels reported at the end of 2020. While it has seen a “healthy level” of new lending, it says this was overshadowed by increased prepayments as a result of the current interest rate environment.

Customer deposits increased by €242 million compared to 31st December 2020. The bank’s liquidity position remained strong and regulatory capital ratios continued to exceed regulatory requirements.

HSBC Malta’s CEO Simon Vaughan Johnson commented on the results, saying: “Whilst we reported a good performance during the nine-month period ended 30 September 2021, delivering strong growth in profitability, we retain a cautious outlook on the external risk environment.

“We remain determined to pursue our safe growth strategy and to continue supporting our customers and the community that we serve as we emerge from the pandemic. Sustainability is a key element of this strategy and we are fully committed both to providing our customers in Malta with sustainable investment choices and to facilitating the transition to net zero.”