HSBC Malta has reported a pre-tax profit of €44.4 million for the first six months of 2026, while declaring its second quarterly dividend of the year and continuing preparations for its proposed transition to CrediaBank.

The bank said the results reflected strong profitability, supported by a solid balance sheet, excess capital and ample liquidity.

The bank’s adjusted profit before tax, which excludes notable expenses, stood at €51.7 million during the period.

HSBC Malta’s board declared an interim gross dividend of 4.3 cents per share, amounting to €15.5 million. It will be paid on 23rd September to shareholders appearing on the bank’s register at the close of business on 18th August.

Together with the gross dividend of 3.6 cents per share paid in the first quarter, the bank will have distributed 7.9 cents per share, equivalent to €28.5 million, during the first half of 2026.

The latest dividend represents a payout of 60% of after-tax profit, adjusted for the employee-benefits expense connected to the bank’s industrial dispute with the Malta Union of Bank Employees.

CEO Geoffrey Fichte described the results as a “strong and resilient first half performance”, pointing towards growth in new customers, lending, wealth and insurance activity.

“We are well positioned for the future and continue to reward shareholders with quarterly dividends,” he said.

The results come as HSBC Malta continues working with HSBC Continental Europe and CrediaBank on the proposed change in majority ownership.

The transaction remains subject to regulatory approvals, with the bank saying the transition is progressing and that its employees remain focused on serving customers.

Lending activity continued to grow during the first half of the year.

New retail lending increased by 27% compared with the same period in 2025, while new corporate lending rose by 75%.

The bank said this supported customers across sectors including hospitality, real estate, retail and manufacturing.

Net loans and advances to customers stood at €2.7 billion at the end of June, down €67 million, or 2%, from December 2025.

Non-performing loans decreased by 6% and were described by the bank as being at their lowest levels in recent years.

Customer deposits stood at €6.21 billion, marginally above the €6.2 billion recorded in June 2025. They were lower than at the end of December, primarily due to seasonal movements in corporate balances, while retail deposits increased.

The bank also selectively reintroduced fixed-rate mortgage offers during the first half of the year.

HSBC Malta’s Common Equity Tier 1 capital ratio rose to 24.7%, from 24.1% at the end of 2025, while its total capital ratio increased to 27.8%. Both remained comfortably above regulatory requirements, leaving the bank with excess capital alongside ample liquidity.

The bank’s reported pre-tax profit of €44.4 million was €14.3 million lower than the €58.7 million recorded during the first half of 2025.

Adjusted profit before tax declined by €7 million from the corresponding period last year.

The bank attributed the movement to lower interest rates, market volatility and notable expenses recorded during the period.

Net interest income fell by €4.3 million to €85.6 million, reflecting lower average market interest rates.

Non-funds income, which includes fees, commissions and trading income, decreased by €600,000.

Net fee income increased by €300,000, supported by new lending and higher wealth sales, while trading income fell by €900,000 following what the bank described as an exceptionally strong comparative performance in 2025.

Operating expenses rose by €7.8 million to €65.9 million.

This included €7.3 million in notable expenses related to accelerated software amortisation and staff payments connected to the MUBE dispute.

The bank also recorded a net release of €6.5 million in expected credit losses, compared with a €3 million release during the same period last year.

The release primarily reflected the recovery of a long-outstanding non-performing corporate loan, together with improved credit quality in the retail portfolio.

HSBC Life Assurance Malta reported a pre-tax profit of €1.9 million, compared with €6.5 million in the first half of 2025.

The insurer said its performance was affected by uncertain market conditions and movements in the yield curve. New business across protection and long-term savings nevertheless remained ahead of last year, while its solvency ratio stood at 252%.

Fichte said the bank remained backed by strong capital and liquidity levels as it moved towards its next phase under a proposed new majority shareholder.