HSBC Malta has reported a profit before tax increase of €4.8 million when comparing the first half of 2019 with that of 2018. This amounts to a reported profit before tax of €20.9 million for the period of January-June 2019.
The bank also reported that its cost efficiency ratio improved to 73% from 74% for the same period in 2018.
Return on equity decreased slightly when comparing the same periods in 2019 with 2018, at 5.8% and 6.1% respectively. Net loans and advances to customers were €3,183m, up €73m compared with 31st December 2018. Customer deposits stood at €4,850m at 30 June 2019, down €38m compared with 31st December 2018. The advances to deposits liquidity ratio increased from 64% at 31st December 2018 to 66%.
The bank reports that it has maintained a successful risk management strategy, supporting growth in profitability. It noted that progress has been made in retail banking through delivering “record new customer acquisition and home loan performance”.
In a press release issued on Monday, the bank said that commercial banking has stabilised following the completion of risk management actions, however it was noted that the commercial banking outlook remains more challenging than in retail.
A quarter of a billion-euro fund was launched to accelerate revenue development, connecting Maltese businesses to international markets through the bank’s networks and staff around the world.
It noted that good progress was made on cost management in the first half of the year.