HSBC Bank Malta reported a profit before tax of €44.4 million for the first six months of 2026, down from €58.7 million in the same period last year, as a lower interest rate environment, market volatility and one-off expenses weighed on earnings.

After excluding notable items, the bank's adjusted profit before tax stood at €51.7 million, compared to €58.7 million a year earlier. Despite the decline in profitability, HSBC described its performance as "strong and resilient", pointing to continued growth in lending, customer acquisition and deposits, alongside robust capital and liquidity positions.

Chief Executive Officer Geoffrey Fichte said the bank continued to see momentum across new-to-bank customers, personal lending, wealth and insurance, while new corporate lending also increased to support businesses and the wider economy.

"We delivered a strong and resilient first half performance... Backed by our strong capital and liquidity ratios, and solid first half profitability, we are well positioned for the future and continue to reward shareholders with quarterly dividends," he said. Mr Fichte also noted that the proposed transition to a new majority shareholder, CrediaBank, remains subject to regulatory approval and is progressing, while employees remain focused on serving customers.

The bank attributed the lower results primarily to reduced net interest income, which fell by €4.3 million to €85.6 million as market interest rates declined. Operating expenses also increased by €7.8 million to €65.9 million, largely due to €7.3 million in notable expenses related to accelerated software amortisation and staff-related payments connected to the industrial dispute with the Malta Union of Bank Employees (MUBE).

HSBC also reported a €6.5 million release in expected credit losses, reflecting the recovery of a long-standing non-performing corporate loan and improving credit quality within its retail portfolio. Meanwhile, non-performing loans fell by 6 per cent, reaching their lowest level in recent years. Customer deposits remained broadly stable year-on-year at €6.21 billion, while the bank's Common Equity Tier 1 capital ratio strengthened to 24.7 per cent, comfortably above regulatory requirements.

Operationally, the bank recorded continued growth across both its retail and corporate businesses. Retail lending increased by 27 per cent compared to the first half of 2025, while corporate and institutional new lending rose by 75 per cent, with activity spanning sectors including hospitality, real estate, retail and manufacturing. Wealth investment sales also achieved double-digit annual growth, supported by demand for protection, savings and investment products.

The board declared a second quarterly gross dividend of €0.043 per share, equivalent to €15.5 million, payable on 23 September 2026 to shareholders on the register as at 18 August. Together with the first-quarter dividend, HSBC will distribute a total gross dividend of €0.079 per share for the first half of the year.