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HSBC Bank Malta – Interim Directors’ Statement


HSBC BANK MALTA INTERIM DIRECTORS’ STATEMENT

HSBC Bank Malta p.l.c. performed strongly in the period 1 January 2010 to 11 May 2010. The bank has made further progress in improving revenue and costs disciplines during the period under review. Loan impairments weakened modestly, in line with expectations.

HSBC Bank Malta p.l.c. performed strongly in the period 1 January 2010 to 11 May 2010. The bank has made further progress in improving revenue and costs disciplines during the period under review. Loan impairments weakened modestly, in line with expectations.

The bank has seen a slight softening in demand for loans reflecting the economic slowdown. HSBC Malta continues to provide responsible support for its customers, both depositors and borrowers.

Deposits registered a slight increase in a period characterised by a number of local government and corporate bond issues and growing competitive pressures. The bank has maintained a strong liquidity position with a steady and stable loans to deposits ratio. The credit quality of the available-for-sale investments portfolio remains satisfactory and has improved over the reporting period. The capital ratio remains well above regulatory requirements.

Alan Richards, Director and Chief Executive Officer of HSBC Malta, said: “We are encouraged by the bank’s performance during the period to 11 May 2010. After five consecutive quarters of negative GDP growth, the local economy is stabilising, has returned to growth and should remain positive for the rest of the year. We are not entirely out of the woods as the broader Eurozone recovery is, at best, fragile and significant risks remain. We continue to monitor the current situation closely.

“We have made good progress in the quarter and we continue to emphasise our competitive advantage as an international bank. We remain well capitalised, liquid and very much open for business.”

 

Dr George Brancaleone LL.D.

Company Secretary

11 May 2010