Month: July 2025

HSBC Bank Malta p.l.c. and its subsidiaries (‘the local group’) reported strong results in the first half of the year, with profit before tax of €58.7m despite a lower interest rate environment. As a result of our continued strong profit generation, the directors are recommending a gross interim dividend of 10 cents per share, the same level as that paid in the same period last year. The local group remains highly profitable with a return on equity of 12.7% for the six months ended 30 June 2025. HSBC Bank Malta p.l.c. (‘the bank’) maintained its robust balance sheet and strong risk management with a Liquidity Coverage Ratio of 537% and Tier 1 Capital of 22.5% as at 30 June 2025, well above regulatory requirements. The bank continued investing in technology, people and customer service, including recent mortgage campaigns. The bank is positive on the Maltese economy despite global uncertainty.

Key Highlights

• Profit before tax (‘PBT’) for the period was €58.7m compared to €78.6m in the first half of 2024 reflecting lower revenue from declining interest rates and lower credit loss recoveries.
• Revenue decreased by €13.6m or 11% driven by lower net interest income. Growth was reported in all other sources of income, including insurance, trading, foreign exchange and trade.
• A release of €3.0m was reported in expected credit losses (‘ECL’) reflecting our continued adherence to prudent lending policies.
• Costs were €2.3m higher than the same period in 2024. This increase in costs was largely driven by investment in people, technology and the implementation of regulatory projects mainly delivered through intercompany services. Costs related to the strategic review were reimbursed by the HSBC Group.
• During the first six months, the local group grew customer deposits by €44.5m while loans to customers decreased by €82.3m when compared to 31 December 2024. New retail lending sales registered growth over the same period last year, mainly driven by secured lending.
• Profit attributable to shareholders of €38.3m for the six months ended 30 June 2025.
• Management recommends a gross interim dividend of 10 cents per share, unchanged from 1H 2024, supported by the bank’s strong capital base.
• The local group remains highly profitable with a return on equity of 12.7% for the six months ended 30 June 2025.
• The bank maintained its robust balance sheet and strong risk management underpinned by robust liquidity and excess capital position as at 30 June 2025 with a Liquidity Coverage Ratio of 537% and Tier 1 Capital of 22.5%, well above regulatory requirements.

Financial Performance

Profit before tax for the six months ended 30 June 2025 was €58.7m, a decrease of €19.9m over the same period in 2024. Lower profits were driven by the lower interest rate environment and lower recovery of expected credit losses.

Net interest income decreased by €16.8m to €89.8m compared with €106.6m in the same period in 2024. The sustained rate cuts since June 2024 led to narrower interest spreads and lower yields on investment portfolios.

Non-funds income (fees and commissions and trading income) increased by €0.5m as we reported improvement in both transactional and trading income. We continue seeing growth in our key strength area of transactional banking within Commercial Banking and Retail Banking. Of particular note, we achieved another record performance in foreign exchange sales to customers as well as the issuance of both domestic and international guarantees, with totals up 9% on prior year. The Wealth business continued to see steady growth, with assets under distribution increasing by 4% in the first six months of the year despite the volatile global market environment.

Operating expenses increased by €2.3m to €58.4m, compared with €56.1m in the same period in 2024. The main drivers were higher staff related costs, increased amortisation and depreciation and higher costs to ensure compliance with new regulatory requirements. Thus, increased costs reflect our continued investment in people, technology and infrastructure.

During the six months, we reported a release of expected credit losses (‘ECL’) of €3.0m, compared to a release of €7.0m reported in the same period last year. The net release of €3.0m is made up of a release of €3.3m in the retail business partially offset by a charge of €0.3m in the commercial business. The release in the retail business is mainly driven by a re-assessment of the loss rate and loss given default parameters used to calculate ECL on mortgages. On the other hand, a higher weighting was given to the downside scenario of both retail and commercial models in view of the heightened uncertainty in the global macroeconomic environment driven by tariff concerns and geopolitical uncertainty. Other movements in ECL relate to changes in the credit quality of individual customers.

HSBC Life Assurance (Malta) Ltd reported a profit of €6.5m compared to €4.5m in the same period last year. The increase in profits was a result of an improvement in the yield curve partially offset by a non-recurring reversal of losses on onerous insurance contracts reported last year. New business generation on protection and long-term savings, tracked favourably in the first half of the year amid intense competition. The insurance company continued to maintain a very strong capital position with a Solvency ratio as at 30 June 2025 of 247%.

Our Asset Management subsidiary generated a PBT 31% higher than same period last year driven, by an increase in net revenue and lower costs. The growth in revenue is reflective of the higher Assets Under Management of the company.

The effective tax rate was 35% in both periods. This translated into an interim tax expense of €20.4m.

Financial Position and Capital

Net loans and advances to customers amounted to €2,791m, a decrease of €82m or 3% when compared to 31 December 2024. The loan portfolio showed stronger credit performance, with declining delinquency and default rates resulting in further releases of ECL.

The bank’s investment portfolio increased by €197m to €2,488m as the bank continues to invest in the long term to mitigate interest rate risk inherent in the balance sheet. The investment portfolio is composed of highly rated securities and remains conservatively positioned with the lowest investment grade of A-.

Customer deposits stood at €6,203m as at 30 June 2025, an increase of €45m compared to 31 December 2024. While commercial customer balances decreased marginally when compared to 31 December 2024, average commercial deposits for 1H 2025 were higher than 1H 2024. Retail deposits increased by 2%.

The bank continued to maintain very strong capital ratios which exceed regulatory capital requirements. The bank’s common equity tier 1 capital was 22.5% as at 30 June 2025, compared to 22.6% at the end of 2024. The total capital ratio was 25.4% compared to 25.6% as at 31 December 2024.

The bank maintained its commitment to rewarding shareholders with high dividends. We decided to maintain the same level of dividend as last year despite the lower profit in view of the bank’s capital strength. The Board has thus recommended a gross interim dividend of 10 cents per share which amounts to a gross dividend of €36.0m. The interim dividend will be paid on 23 September 2025 to shareholders who are on the bank’s register of shareholders on 20 August 2025.

Customer and Business Initiatives

Wealth and Personal Banking

The bank continued to welcome new customers while deepening its relationship with existing customers with continuous focus on improving how we serve our customers.

Retail deposit balances grew by 2% during the reporting period, and new lending values also improved for the first time in the last four years.

Our Wealth investment business continued to experience robust growth as we aim to support more customers on their protection, regular savings and investment needs, thanks to our personalised relationship-managed service for premium customers, in-house insurance and asset management manufacturing capabilities. Our insurance subsidiary continues to deliver on its commitment to policy holders, reporting a claims payout ratio in excess of 95% for last year.

Throughout the reporting period, we maintained ongoing marketing visibility across various channels promoting our unique customer propositions, credit cards and our various Wealth and Insurance product offers. More recently, we have launched our students’ campaign with a record cashback incentive.

During July, we introduced two limited-time home loan offers with a guaranteed fixed rate of 1.5% until 30 September 2029, aimed at customers purchasing high-value residential properties and/or those investing in energy-efficient homes. The campaign forms part of the bank’s strategy to provide more attractive lending options while encouraging eco-friendly purchases.

We continued to maintain rapid response times for credit applications and for customer servicing queries received through customer calls and secure electronic messaging. Furthermore, work is ongoing to identify and implement process efficiency improvements enabling our front-line teams to serve customers better and in less time.

We continued with the rollout of our new ATM fleet, with 82% of our ATM locations installed with new machines and ongoing work to replace the rest of the fleet by the end of the year. This has reflected well in machine reliability, improving availability and convenience for our customers. Furthermore, we continued to invest in our cards platform and in upgrading customer journeys on SEPA payments. In December 2024, our customers were able to start receiving SEPA payments instantly. We are now aiming to enable customers to originate instant payments through our digital channels in the coming months.

Corporate and Institutional Banking

In a period characterised by international market volatility, the bank continued to successfully deliver on its strategy to offer best in class services to our local and international customers by offering a comprehensive range of award-winning transaction banking services, including foreign exchange and other hedging products, underpinned by expert relationship management.

During the first half of the year, we welcomed customers and key stakeholders to two exclusive economic presentations led by HSBC Global Economist, James Pomeroy. These events provided attendees with valuable insights into the global economic outlook amid uncertain times, reinforcing the bank’s commitment to informed financial decision-making.

We were delighted to celebrate with TradeMalta, which helps Maltese businesses with their internationalisation plans, on its 10-year anniversary in May. We have been supporting it through our sponsorship since its inception, enabling Maltese businesses to grow beyond our shores.

Through our partnership with the Malta Development Bank, we provide access to loans under the SME Guarantee Scheme and the Guaranteed Co Lending Scheme with favourable terms which include longer tenor and reduced collateral requirements. Through these schemes we finance new business investments, particularly in support of a more digitally oriented and sustainable economy. Both schemes were extended until the end of 2027.

We hosted numerous events with top customers to thank them for their trust and collaboration.

Geoffrey Fichte, Chief Executive Officer of HSBC Malta, said:

“We achieved strong results with profit before tax of €58.7m reflecting the strength of our business despite lower interest rates. As a result of our continued strong profit generation in the first half of the year, the directors are recommending a gross interim dividend of 10 cents per share. I would like to thank our customers for their business and my colleagues for their unwavering support to our customers.

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. We renewed important commercial agreements with the Malta Development Bank, Trade Malta, Chamber of Commerce and others in order to grow our commercial banking business.

We are positive on the Maltese economy despite global uncertainty. Malta’s robust and diversified economic growth is well positioned for future success given global trends.

The local group remains highly profitable with a return on equity of 12.7% for the six months ended 30 June 2025. The bank maintained its solid balance sheet and strong risk management underpinned by robust liquidity and excess capital position as at 30 June 2025 with a Liquidity Coverage Ratio of 537% and Tier 1 Capital of 22.5%, well above regulatory requirements.

Our main shareholder continues its strategic review of their shareholding. We are committed to informing the market of any developments aligned to capital market listing rules.’’

Bank of Valletta (BOV) has reaffirmed its steadfast commitment to supporting the local community through a recent visit to Hospice Malta by members of its leadership team. The delegation, which included Chairperson Dr Gordon Cordina, CEO Kenneth Farrugia, Chief Operations Officer Ernest Agius, and Antoinette Caruana on behalf of the BOV Foundation, toured the St. Michael Hospice complex to gain further insight into the organisation’s holistic palliative care services.

The visit underscored BOV’s long-standing support for Hospice Malta, whose mission is to provide free palliative care to patients with life-limiting illnesses, offering essential physical, psychological, and emotional support to both patients and their families. During the visit, the Hospice Malta team offered a tour of the state-of-the-art complex and shared their future vision and current needs in delivering specialised care with compassion and dignity.

“Our commitment to Hospice Malta is a reflection of our values as a community bank,” said Dr Gordon Cordina. “The care and compassion shown here is a powerful reminder of the importance of supporting the most vulnerable among us.”  BOV CEO, Kenneth Farrugia added, “As an organisation with deep roots running across our community, we believe in making a positive impact beyond financial services. Hospice Malta’s work touches the lives of many, and we are honoured to continue contributing to this essential service.”

Speaking on behalf of the BOV Foundation, Ernest Agius stated, “Supporting Hospice Malta goes hand in hand with our responsibility to create a positive social impact. Beyond financial support, the Bank, through the BOV Foundation, is keen to explore opportunities for collaboration, such as volunteering initiatives and awareness campaigns, to ensure that this exceptional service continues to thrive.”

The visit also served as a platform to explore new avenues for cooperation, reinforcing BOV’s ongoing commitment to strengthening its relationship with Hospice Malta through both financial and non-financial means.

As one of Malta’s leading community-driven institutions, Bank of Valletta remains dedicated to promoting care, and well-being across the Maltese Islands, building strong partnerships with organisations that make a real difference in people’s lives.

Local business leaders remain resilient amid global uncertainty, while Malta’s economy continues to outperform the eurozone.

PwC Malta has published two new editions of its flagship barometers this month: the first CEO Confidence Tracker for 2025 and the second instalment of the Economic Outlook for the year. These publications offer decision-makers timely analysis of current sentiment and forward-looking trends; backed by data, insight and direct input from Malta’s business leaders.

Two-thirds of local CEOs anticipate no or minimal impact from US tariffs

According to PwC Malta’s latest CEO Confidence Tracker, two-thirds of CEOs expect little to no impact from the newly imposed US tariffs. This measured response reflects Malta’s limited direct trade exposure to the US, which accounts for just 3–5% of international activity. The survey, conducted in June and covering over 50 CEOs across major industries, also reveals that business performance has improved significantly over the previous quarter, reaching one of its highest levels since PwC Malta began tracking sentiment in 2021. This aligns with national economic indicators, such as the Central Bank of Malta’s Business Conditions Index, which shows a modest rise above the historical average. Looking ahead, most CEOs share a cautiously optimistic six-month outlook, underpinned by solid fundamentals: projected GDP growth above the euro area average, stable unemployment at 2.8%, and increasing building permits, an important signal of future investment.

Malta’s economic growth slows, but still outpaces the eurozone

According to PwC’s Economic Outlook, Malta’s economy is expected to grow by 4.1% in 2025, outpacing the euro area’s forecast of 0.9%. While this marks a slowdown from the post-pandemic rebound, Malta remains among the most resilient economies in the EU. The report points to a mixed economic picture. Externally oriented sectors like financial services and ICT are driving growth, while construction, real estate and manufacturing are showing signs of contraction. Consumption growth is becoming more selective, with categories like hospitality, education, and communication remaining strong, but broader household spending is showing signs of softening. While Malta’s resilience stands out, the data also flags a slowdown in private consumption per capita and a dip in economic sentiment entering mid-2025.

These indicators suggest that while the country remains ahead of the curve, the pace of growth is beginning to ease. Commenting on the release of both reports, David Valenzia, Territory Senior Partner at PwC Malta, stated: “Understanding where business confidence stands and how economic dynamics are shifting is vital, not just for policymakers but for businesses charting their next move. At PwC, we’re committed to providing data-driven insights that help our clients cut through uncertainty and make decisions with clarity and purpose. Reports like these are part of our responsibility to keep the market informed, so we can all move forward, together.”

Access the full CEO Confidence Tracker from here.
Access the full Economic Outlook from here.

The HSBC Malta Foundation has partnered with Mater Dei Hospital to sponsor custom-designed mugs aimed at raising awareness about the critical importance of recognising and acting immediately in the case of a stroke.

The mugs, which carry clear messaging to dial 112 at the first signs of a stroke, are being distributed among healthcare professionals and the public as a practical reminder of the life-saving value of timely action.

Strokes are one of the leading causes of long-term disability and death in Malta, but research shows that if patients receive emergency treatment within the first few hours of symptom onset, such patients have significantly improved functional outcomes and reduced disability compared to those who do not receive these interventions. In some cases, with timely intervention, a significant neurological deficit can be reversed.

Perit Joseph Attard, COPM at Mater Dei Hospital, said: “This is a simple yet powerful awareness campaign that underscores an urgent truth: time is brain. The faster someone seeks emergency care when experiencing stroke symptoms, the greater the chances of full recovery. We’re grateful to the HSBC Malta Foundation for supporting this initiative, which aligns perfectly with our mission to save lives through education and rapid intervention.”

“We are proud to support Mater Dei Hospital in its efforts to promote stroke awareness. These mugs are more than just a daily item, they’re a visual cue that could prompt someone to act quickly and save a life. We believe that small, well-targeted actions like this can lead to a big impact in public health outcomes,” added Glenn Bugeja, Secretary of the HSBC Malta Foundation.

The mugs were presented to Perit Joseph Attard during a brief ceremony in front of the Stroke Ward at Mater Dei Hospital some weeks ago, reinforcing the ongoing collaboration between the national health service and corporate partners committed to improving community wellbeing. Dr Malcolm Vella – Clinical Chairman Department of Neurosciences, Consultant Neurologist and Clinical Neurophysiologist, and top-level nursing staff of the Stroke Ward were also present for the presentation.

This initiative forms part of the HSBC Malta Foundation’s broader health awareness efforts, with a particular focus on prevention, education, and timely access to care.

On Friday 18 July 2025, Her Excellency Myriam Spiteri Debono, President of Malta, officially inaugurated the 15th edition of the BOV Volleyball Marathon in aid of Id Dar tal Providenza. Forty players, selected from a total of seventy applicants, started the challenge of 53 hrs of non stop volleyball.

In a short speech at the opening of the marathon, the President of Malta, H.E. Myriam Spiteri Debono described Id Dar tal Providenza as a pioneer of inclusion in Malta. The President remarked that the Maltese and Gozitan people are aware of and grateful for the hard work carried out by Id Dar tal Providenza for the benefit of its residents and their families.

President Myriam Spiteri Debono stressed the need for the Maltese people to continue to understand the difficulties that persons with disability and their relatives are going through, while appealing for the generosity of the Maltese and Gozitans so that Id Dar tal Providenza can continue to assist and offer a dignified life to these persons, and be a relief to their families.

In his inaugural address Mgr Martin Micallef, Director of Id Dar tal Providenza welcomed all those present to the 15th edition of the BOV Volleyball Marathon which he described as an annual appointment of sport, solidarity and generosity in support of a cause that is truly close to the hearts of all the Maltese.
He added that this year is particularly special, not only because Id Dar tal Providenza is celebrating 15 years of this marathon, but also because it is marking a historic milestone – the 60th anniversary of the founding of the Home by the visionary priest Mgr Mikiel Azzopardi. Sixty years ago, Mgr Azzopardi dreamed of a home where persons with disabilities would be not only cared for but respected, included, and treated as full members of society.

Today, that dream lives on, stronger than ever. Over the next 53 hours, forty dedicated players will give their all, not just for the love of volleyball, but also to support a just cause. Their endurance, commitment, and team spirit mirror the very values at the heart of Id Dar tal Providenza – the sacredness of life, respect for all, support for families, and a community spirit that empowers persons with disabilities to live with dignity, autonomy, and inclusion. Mgr Micallef thanked all those who made this event possible: Bank of Valletta the main sponsor of this event, the organising committee, the players, volunteers, sponsors and the media.

Kenneth Farrugia, CEO of Bank of Valletta, stated that the Bank is proud of its long standing relations with Id Dar tal Providenza. This is the fifteenth year that the Bank is supporting this marathon, which exemplifies the link between sport and volunteering.

Mr Farrugia added: “As a leading Bank in Malta, we believe it is our responsibility to give back to the community and in this way support Id Dar tal Providenza and the invaluable work done in carrying out its mission. The Bank remains committed to foster this partnership that ties in well with its values, in particular inclusion, and continue helping the more vulnerable members of society.”

Present for the official opening were the Hon. Julia Farrugia, Minister for Inclusion and the Voluntary Sector, the Hon. Dr Jo Etienne Abela, Minister for Health and Active Ageing, the Hon. David Agius, Deputy Speaker and Shadow Minister for Sports, the Hon. Graziella Galea, Shadow Minister for Inclusion and the Voluntary Sector, the Hon. Rosianne Cutajar, Mr Kenneth Farrugia, CEO of Bank of Valletta the main sponsor of the Marathon, Mr Ernest Agius, Chief Operations Officer at Bank of Valletta, representing the BOV Foundation and the Vice-Mayor of Siġġiewi, Mr Ryan Cachia.

In the evening during the three days of the marathon there will be live music on the main stage. On Friday evening from 9:00 pm to midnight, the band Zone 5 will be invited, on Saturday the band Kantera and on Sunday the Spiteri Lucas Band.

On Sunday morning during the marathon, the Archdiocese of Malta will be celebrating the Jubilee of Sport with a fun run for all, that will start at 8.00am from near the San Niklaw Chapel in Siġġiewi and ends up at Id Dar tal Providenza carpark where all those taking part will be given a commemorative medal and will be invited to attend mass celebrated by Archbishop Charles J. Scicluna at the Home’s chapel at 9.30am.

The marathon will be broadcast on the local TV channels.

The public can help by calling the numbers below, using BOV Mobile or PayPal and Revolut or donating online through these Home’s bank accounts.
€15 5170 2012
€25 5180 2013
€50 5190 2070
€100 5130 2044
Pledge Line: 2146 3686
BOV Mobile: 7932 4834

For more information about how one can give a donation one can visit the site: www.sabihlitaghti.org.

To protect customers from fraud and financial crime, Bank of Valletta has introduced new initiatives aimed at enhancing security when customers call the Customer Service Centre or conduct transactions in person at its Branches. The latest initiatives include a more secure customer authentication process when calls are made to the Bank’s Customer Service Centre, along with an SMS notification sent directly to accountholders when they withdraw cash in person at a BOV Branch.

Customers who call the Customer Service Centre are used to replying to security questions before receiving assistance from one of the Bank’s Call Centre Agents. With the recent changes, customers who are registered for BOV Electronic Banking services can log onto their BOV Internet and Mobile Banking once they initiate the call, triggering a legitimate automated process rendered more secure by a customer’s unique login password or biometrics. Customers then identify themselves by stating their name and surname, date of birth and ID number. This combines multiple verification methods in a simpler and faster manner, saving around five minutes of authentication along the way, thereby increasing both efficiency and security simultaneously.

Another recent introduction is the SMS notification being sent out when a transaction occurs over the counter at one of the Bank’s branches. As a result of this new notification service, all cash withdrawal transactions effected will trigger a notification to alert customers and enhance peace of mind and security. This is also very useful in specific instances where a third party can legitimately transact on behalf of the account holder. By means of an SMS on their registered mobile number, customers are being informed of the transaction that has just occurred.

Citing the latest operational improvements, BOV Chief Operations Officer, Ernest Agius, praised the teams involved in improving the Bank’s processes while at the same time enhancing the experience of its customers. “At Bank of Valletta, change is constant. We strive to improve our internal processes, as they, in turn, lead us to better serve our customers. Every process improvement requires time, dedication and commitment from various units across the Bank, and the latest enhancement was a collaborative effort that had one single objective – that of improving customer security. While it is important that customers provide us with the latest updated personal information, and in the case of account notifications, the correct mobile number, we invite our customers who as at today are not registered for BOV Electronic services to call at our Branches or contact our Customer Service Centre to facilitate the registration.”

The Head of BOV Personal Banking Channels, Geoffrey Ghigo welcomed the new initiatives and promised that the Bank will keep on prioritising customer security. “Our 24/7 platforms offer convenience and easy access to finances and also provide real-time account activity. I encourage customers to log in often and check balances and transactions. Authenticating customers when calling our Customer Service Centre is essential. We understand that it may have been lengthy at times, but it remains important nonetheless. The new process is now faster and even more secure. When it comes to over-the-counter transactions, the new SMS notification will offer our customers further peace of mind, offering additional layers of security.”

The Bank reminds its customers that these notifications never ask customers to click on links or visit specific websites. This is in line with the Bank’s continuous efforts to protect customers and encourage them to remain vigilant in the wake of increased fraudulent activity and threats from scammers and fraudsters. If at any time customers become suspicious of any transaction, they are asked to immediately inform the Bank.