HSBC Bank Malta plc has reported solid results for the first half of 2025, leading to the recommendation of a gross interim dividend of 10 cents per share – matching the dividend issued in the same period last year.

For the six months ended 30th June 2025, the local group reported a profit before tax of €58.7 million. The figure represents a decrease from €78.6 million in the same period of 2024, primarily due to lower interest rates and reduced credit loss recoveries.

Revenue decreased by 11 per cent or €13.6 million, driven by lower net interest income. However, the bank reported how growth was still registered in all other sources of income, including insurance, trading, foreign exchange and trade.

Operating expenses rose by €2.3 million year-on-year, reaching €58.4 million. This increase reflects continued investment in people, technology, and regulatory compliance.

Retail deposits rose by two per cent, and new retail lending also increased, marking the first lending growth in four years. Although loans to customers fell by €82.3 million compared to the end of 2024, deposit balances rose by €44.5 million, reaching €6.2 billion.

HSBC Life Assurance (Malta) Limited delivered a profit of €6.5 million, up from €4.5 million the year before, supported by favourable yield curve movements.

Commenting on these results, Chief Executive Officer (CEO) Geoffrey Fichte said the bank is “positive on the Maltese economy despite global uncertainty.”

Regarding HSBC’s ongoing efforts to divest of the Maltese operation, Mr Fichte noted that the bank’s main shareholder continues to conduct a strategic review of its holding. “We are committed to informing the market of any developments aligned to capital market listing rules.”

Looking ahead, Mr Fichte reaffirmed the bank’s commitment to investment across core areas of its business.

“We continue to invest in technology, people and customer service while promoting our services through ongoing marketing efforts. We remain committed to helping our customers achieve their aspirations and have recently launched competitive new mortgage campaigns designed to support our customers, both current and future,” he said.

On the commercial front, HSBC Malta has renewed strategic agreements with key institutions including the Malta Development Bank, Trade Malta and the Chamber of Commerce.

In the latest twist in the ongoing HSBC Malta acquisition process, Armenia’s Ardshinbank has officially confirmed submitting a bid for a majority stake, marking its first foray into the European Union’s banking sector.