HSBC Bank Malta p.l.c. reported a profit before tax of €82.5 million for the first nine months of 2025, representing a 30% decrease compared to the same period last year. The decline was primarily attributed to a return to normalised interest rates and lower recoveries from expected credit losses (ECL), though the bank said it remains “highly profitable with strong capital and liquidity positions.”

Revenue fell by €24.6 million, or 13%, compared to 2024, as lower interest income was partly offset by stronger performance in other areas. Net fee income, foreign exchange, and transaction banking all grew, with Global Trade Services reporting a 15% revenue increase and record guarantee issuances. The bank also recorded an increase in wealth assets under management.

Credit quality improved, leading to an ECL release of €4.6 million, down from €10.8 million a year earlier. Operating expenses rose by 6%, largely due to higher staff costs under the latest collective agreement and continued investment in technology and property.

The bank highlighted recent innovations including the launch of SEPA Instant Payments, enabling customers to send or receive euro payments across Europe in under 10 seconds, and an upgrade of its ATM network across Malta and Gozo. The refurbishment of its new Qormi headquarters has also been completed, offering enhanced customer access and facilities.

Net loans and advances to customers decreased slightly compared to December 2024, while the non-performing loan ratio remained very low. Business lending increased during the quarter, and corporate deposits showed growth, with total customer deposits stable year-on-year.

HSBC Malta’s capital and liquidity levels continued to exceed regulatory requirements, positioning the bank strongly amid changing market conditions.

The statement also noted progress following HSBC Continental Europe’s signing of a put option agreement with CrediaBank S.A. in September regarding the potential sale of its majority shareholding in HSBC Malta. The process remains subject to regulatory approvals and consultation procedures.

CEO Geoffrey Fichte reaffirmed the bank’s resilience and customer focus, saying: “Our profitability remains strong, and our levels of capital and liquidity are among the highest in the market. We remain fully open for business, supporting customers and investing in our people, technology, and services.”