HSBC Malta announced on Monday that its pre-tax profit increased by 15.6 million euros to 17.5 million euros in the first half of the year.

Sales rose 16% due to favorable market movements (stocks and interest rates), which had a positive impact on the results of the life insurance subsidiary. (HSBC Life Assurance (Malta) Limited has a profit of 4.2 million muted demand for corporate loans, credit cards and personal loans.

The bank said the satisfactory financial performance in the first half reflected favorable market movements affecting the life insurance subsidiary and lower expected credit losses (“ECL”) related to the bank’s loan portfolio.

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“The underlying business development will continue to be affected by lower and negative interest rates and lower demand for corporate credit, credit card usage and personal loans resulting from customer behavior directly influenced by the Covid-19 pandemic,” it said.

Operating expenses increased slightly, mainly due to increased regulatory fees due to higher customer deposits in 2020.

In the first six months, lending decreased slightly by € 8.9 million (0.3%) and deposits rose by € 56.6 million (1%).

The profit of € 11.4 million attributable to the shareholders for the six months to the 30th

The bank said no interim dividend would be proposed.

“As the European Central Bank continues to exercise extreme caution when it comes to dividend payments and there is still uncertainty in the market, no interim dividend is being proposed. The capital distribution restrictions will end after September 30, 2021 when the current ECB recommendation is due to expire. ”

Simon Vaughan Johnson, Director and CEO of HSBC Malta, said the performance in the first half of 2021 reflected the favorable impact of the market on the life business as well as the persistent adverse impact of further declining interest rates.

“In the first half of the year we continued to offer our customers stability and continuity of service in an extremely uncertain environment. We invested in new customer journeys to improve the customer experience and successfully introduced two-factor authentication via HSBC. Malta’s existing mobile banking app that is easy to run for customers. We will continue to focus on the future and the successful implementation of our safe growth strategy. We are confident that despite the challenging external environment, there will be plenty of opportunity for a bank with the competitive strengths of HSBC and we will continue to focus on delivering these services to the Maltese market as we strive to open up a world of opportunity. “

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