HSBC Bank Malta plc on Wednesday announced it has registered a pre-tax profit of €33.5 million in the first nine months of the year.
Adjusted profits, which represent reported profits excluding significant items, amounted to €34.8 million compared to €28.6 million reported in 2021.
Announcing its financial results for the period ending 20th September 2022, the bank also registered a year-on-year increase in revenues for Q3 2022 of €2.9 million.
The bank’s insurance subsidiary reported an increase in revenues of €2.5 million because of favourable equity market trends. Net interest income was lower than that reported in the same period last year as some of the excess liquidity was still being placed at negative interest rates until 27th July 2022. Net fee income remained at 2021 levels.
Expected credit losses (ECL) decreased by €9.9 million as a release of €10 million was booked this year compared to a release of €0.1 million booked in the same period in 2021. This release was mainly attributable to a significant recovery on a commercial nonperforming loan which was largely provided for in prior years.
Adjusted operating expenses increased by €6.6 million compared with the same period last year. This was mainly due to higher regulatory fees as a change in the Depositor Compensation Scheme legislation was enacted in the first half of 2022 requiring banks to anticipate the cash contributions payable in 2023 and 2024.
The bank sustained that there was a further change in this legislation in October, which will result in a release of the additional regulatory fees booked prior to this period.
Net loans and advances to customers were in line with those reported as at 31st December 2021. Customer deposits increased by €351 million compared to 31st December 2021. The bank’s liquidity position remained strong, the bank stated.
The bank’s common equity tier 1 capital was 16.6 per cent as at 30th September 2022, compared to 18.4 per cent at the end of 2021. The total capital ratio decreased to 19.3 per cent compared to 21.1 per cent at 31st December 2021.
Speaking of HSBC’s results over the past nine months, CEO Simon Vaughan Johnson praised the bank’s performance and sustained that they have “also started experiencing an increase in net interest income on the back of rising interest rates.”