HSBC Bank Malta has reported record half-year profits, with a record profit performance of €78.6m in the first half of the year. 

In a statement, the bank said that this has enabled it to continue the trend of rewarding shareholders with the highest interim dividend in the past decade. 

The bank directors have recommended a gross interim dividend of 10 cents per share. 

HSBC said that profit before tax increased by €19.3m to €78.6m, mainly driven by an increase in revenue due to the higher interest rate environment and higher credit recovery which was partially offset by higher costs as the bank continued to invest. 

Revenue increased by €21.5m or 20% driven by rising interest rates and a 34% increase in trading income. Progress was also reported in net fee income and income from the insurance subsidiary.

Costs are €6.6m higher than the same period in 2023. This increase was largely driven by the investment in people, technology as well as the new headquarters in Qormi.

During the first six months, loans to customers and deposits were slightly lower than those reported up until December 31, 2023.   

Profit attributable to shareholders of €50.7m for the six months ended June 30 and resulted in earnings per share of 14.1 cents which compared favourably with 10.7 cents in the same period in 2023.

Return on equity of 18.3% for the past six months compared favourably with 16.2% for the same period in 2023.

Cost efficiency ratio (‘CER’) improved to 43.9% from 46.6% in the same period last year as the increase in revenue outweighed the increase in costs.

The bank maintained a strong liquidity and capital position as of June 30, with a   Liquidity Coverage Ratio of 552% and Tier 1 Capital of 21.1%.