HK Bourse: Overseas Regulatory Announcement From Hsbc Hldgs Plc -2-

2nd Aug 2010 01:34

HSBC Bank Malta p.l.c. First Half 2010 Results/3 In a period of growing competitive pressures, characterised by a number of local government and corporate bond issues, deposit levels of 4.1 billion were maintained. The banks liquidity position remains strong with an advances-to-deposits ratio of 77.3 per cent, compared with 79.0 per cent at 31 December 2009. Alan Richards, Director and Chief Executive Officer of HSBC Bank Malta p.l.c., said: We are encouraged by the banks strong performance during the first half of 2010. After a period of negative GDP growth, the local economy is showing clear signs of stability and we anticipate continued growth in the foreseeable future. However, challenges within the international economy remain and the broader Eurozone recovery is at best fragile, as the recent sovereign bond crisis has highlighted. We have made good progress during these six months and we continue to emphasise our competitive advantage as an international bank. We remain well capitalised, liquid and very much open for business. The Board is declaring an interim gross dividend of 7.9 euro cent per share (5.1 euro cent net of tax). This will be paid on 24 August 2010 to shareholders who are on the banks register of shareholders as at 10 August 2010. HSBC Bank Malta p.l.c. First Half 2010 Results/4 Income Statements for the period 1 January 2010 to 30 June 2010 Group Bank 6 mths to 6 mths to 6 mths to 6 mths to 30/06/10 30/06/09 30/06/10 30/06/09 000 000 000 000 Interest receivable and similar income - on loans and advances, balances with Central Bank of Malta and Treasury Bills 75,360 78,720 75,362 78,719 - on debt and other fixed income instruments 8,292 6,994 6,437 6,622 Interest payable (22,883) (37,552) (23,226) (38,100) Net interest income 60,769 48,162 58,573 47,241 Fees and commissions receivable 18,122 16,124 15,931 14,906 Fees and commissions payable (1,209) (911) (1,075) (750) Net fee and commission income 16,913 15,213 14,856 14,156 Dividend income - 43 538 9,658 Trading profits 2,877 3,644 2,877 3,644 Net income from insurance financial instruments designated at fair value through profit or loss 10,866 6,391 - - Net gains on sale of available-for-sale financial assets - 453 - 453 Net earned insurance premiums 28,693 26,478 - - Net other operating income 5,841 (4,957) 550 355 Total operating income 125,959 95,427 77,394 75,507 Net insurance claims incurred and movement in policyholders liabilities (41,548) (20,561) - - Net operating income 84,411 74,866 77,394 75,507 Employee compensation and benefits (24,042) (23,821) (22,893) (22,340) General and administrative expenses (13,257) (13,392) (12,415) (12,797) Depreciation (3,009) (3,172) (2,998) (3,160) Amortisation (527) (588) (483) (534) Net operating income before impairment charges and provisions 43,576 33,893 38,605 36,676 Net impairment (1,408) 883 (1,408) 883 Net provisions for liabilities and other charges 29 (11) 8 (10) Profit before tax 42,197 34,765 37,205 37,549 Tax expense (14,818) (12,291) (13,073) (11,587) Profit for the period 27,379 22,474 24,132 25,962 Profit attributable to shareholders 27,379 22,474 24,132 25,962 Earnings per share 9.4c 7.7c 8.3c 8.9c (MORE TO FOLLOW) Dow Jones Newswires August 01, 2010 20:34 ET (00:34 GMT)