“HSBC Malta achieved record results in 2023, declares highest dividend in 10 years and accelerates investment plan…”

In 2023, the bank delivered strong revenue growth across all three global businesses, supported by higher interest rates, which enabled the company to deliver their best return on equity in more than a decade. As well as improving financial performance, the strategy is increasing shareholder returns. They will now reward their shareholders for their loyalty with the highest dividend per share since 2005. The directors are recommending a dividend pay-out ratio of 40% on the reported profits for the year ended 31 December 2023. The final gross dividend will be 9.0 cents per share (5.85 cents per share net of tax) which brings the total dividend for 2023 to 15.0 cents (9.75 cents net of tax).

Financial Performance (vs 2022 restated for IFRS 17 ‘Insurance Contracts’)

• Reported profit before tax of €133.9m for the year ended 31 December 2023, an increase of €78.3m or 141%.

• Increased profits driven by higher interest rates and higher profits from the insurance subsidiary. Experiencing improvement in the credit quality of the loan portfolio resulting in releases of expected credit losses. Operating costs increased mainly driven by investment in people and technology.

• Recommended a final gross dividend of 9.0 cents per share (5.85 cents per share net of tax) which brings the total dividend for 2023 to 15.0 cents (9.75 cents net of tax). • Cost efficiency ratio of 44% compared to 68% in 2022.

• Reported profit after tax attributable to shareholders of €86.8m for the year ended 31 December 2023, resulting in earnings per share of 24.1 cents, compared with 10.0 cents in the same period in 2022.

• Return on equity of 17.1% compared with 7.7% for 2022.

• Net loans and advances to customers decreased by €91.3m to €3,084m compared to 31 December 2022 while customer deposits increased by 3% to €6,142m at 31 December 2023.

• Strong capital and liquidity ratios well above minimum regulatory requirements

The company delivered a strong revenue growth across all three global businesses, supported by increasing net interest income, which enabled us to deliver our best return on equity in more than a decade. As well as improving financial performance, our strategy is increasing shareholder returns. The reported profit before tax for the year ended 31 December 2023 was €133.9m.

This represents an increase of €78.3m or 141% compared to prior year. Reported profit attributable to shareholders was €86.8m, resulting in earnings per share of 24.1 cents compared with 10.0 cents in the same period in 2022.

Net interest income increased by 81% to €195.8m compared to prior year due to the higher interest rate environment.

Prime Minister says increase in activity at Malta Stock Exchange reflects strength of the economy

Increased activity on the Malta Stock Exchange, which involves more than 110 different companies listed and around 300 different financial instruments traded on its markets, is another sign of the strength of the Maltese economy, the Office of the Prime Minister said on Friday.

During a visit to the Malta Stock Exchange, Prime Minister Robert Abela noted that over the past few years, companies listed with this institution and the various financial instruments traded on its markets have grown by almost double.

In just the last three years, over 20 new companies have been admitted to the lists of the Malta Stock Exchange. This happened at a time when, due to global compliance, Malta faced challenges that had an impact on international economies, the office said in a statement.

During this visit, the Prime Minister emphasised how the Malta Stock Exchange should serve as a catalyst to continue attracting investment to our country and create wealth, which can then be redistributed to help more people. Overall, this is also crucial for the economic transition.

“The financial services sector is a catalyst for these investments linked to the green and digital heart that is emerging to continue offering a better quality of life for families,” Abela said. He added that the regulatory framework that our country has in various sectors, including iGaming and Malta’s open economy for business, plays a crucial role for the Malta Stock Exchange.

Reports from international experts, including those from the International Monetary Fund, speak of impressive recovery and how the national economy is expected to outperform that of the Eurozone. All these indicators show a robust economy and fiscal stability, especially at a time when support for people continues to strengthen and is given to everyone, the statement continued.

Therefore, the Prime Minister said that our country needs to continue attracting quality investment based on the country’s priorities, including environmental ones.

Malta Company Announcements:

AX Real Estates

The Board of Directors of AX Real Estate p.l.c. is scheduled to meet on the 21st February 2024 to consider and approve the financial statements of the Company for the financial year ended 31st October 2023

Plaza Centres plc

The Board of Directors announces that the Company stands in the market to repurchase a further €1,000,000 in 3.9% unsecured bonds 2026 (MT0000121203) until the 31 July 2024 at a maximum price of €0.984 per Bond.

Loqus Holdings plc

The Company announces that the directors are scheduled to consider, on the 26th February 2024, and if thought fit, approve, the half-yearly report of the Company for the six months ended 31st December 2023.

Mapfre Middlesea

MAPFRE Middlesea p.l.c announces that the forthcoming Annual General Meeting (the “AGM”) is scheduled to be held on Tuesday, 30^th April 2024.

IZI Finance plc

The Board of Directors of IZI Finance p.l.c. (the “Company”) is scheduled to meet on 28 February, 2024 to consider and, if deemed appropriate, approve, the Company’s interim financial statements for the financial period ended 31 December, 2023

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