HSBC Bank Malta has reported a pre-tax profit of €109.0 million for 2025, marking the third consecutive year in which the bank has exceeded the €100 million threshold. The result, however, represents a 29% decrease compared to 2024, reflecting the impact of lower interest rates and reduced releases of expected credit losses. Despite the decline, the bank described the performance as resilient, citing underlying revenue growth driven by increased customer activity. Profit after tax attributable to shareholders stood at €71.6 million, resulting in earnings per share of 19.9 cents, down from 27.8 cents the previous year. The Board has recommended a final gross dividend of 8.4 cents per share, bringing the total dividend for 2025 to 18.4 cents per share. This represents a payout ratio of 60%, one of the highest in recent years. The final dividend is subject to shareholder approval at the Annual General Meeting scheduled for 29 April 2026. Customer deposits increased by €370 million during the year, reaching a record €6.5 billion at year-end. The bank said this growth contributed to an increase in deposit market share of over 1%. Wealth management and investment balances grew by 28% to €1.1 billion, while life insurance sales rose by 21%. Retail lending also expanded, with new lending volumes increasing by 10% during the year. Operating costs rose compared to 2024, reflecting continued investment in talent, digital capabilities and accelerated amortisation of software. During the year, the bank implemented SEPA Instant payments, upgraded its IT infrastructure and completed a replacement of its ATM fleet across Malta and Gozo. From a capital perspective, HSBC Malta reported a total capital ratio exceeding 27% and a liquidity coverage ratio above 500%, positioning it among the most capitalised and liquid banks locally. Chief Executive Officer Geoffrey Fichte said the results demonstrate the strength of the bank’s diversified model despite a lower interest rate environment. Looking ahead, the bank said it has entered 2026 with a strong balance sheet and momentum across its core business segments. It also referenced ongoing preparations related to its proposed transaction with CrediaBank, subject to regulatory approval.What do you make of this?•