HSBC Bank Malta has reported a pre-tax profit of €23.5m for the first half of this year, an increase of €6m from the same period in 2021.

"Higher profits reflect a significant recovery on a non-performing loan partially offset by an increase in regulatory fees as a result of the change in legislation regulating the Depositor Compensation Scheme," the bank said in a statement. 

Non-funds income (fees and commissions and trading income) increased by €1.9m. Increased fees. Commissions were mainly a result of higher credit card usage, account fees and growth in transaction banking revenues within the Commercial Banking business, including good progress made on foreign exchange income resulting in higher trading income. 

Net interest income decreased by €3.2m to €46.2m compared with €49.4m in the same period in 2021.  Customer deposits increased by €652m compared to the same period last year.

The bank said its operating expenses increased by €5.3m to €57.4m, compared with €52.2m in the same period in 2021.

HSBC Life Assurance (Malta) Ltd reported a profit of €2.7m compared to €4.2m in the same period last year.  

Simon Vaughan Johnson, Director and Chief Executive Officer said economic uncertainty remained as Malta, like many other countries, emerges from the Covid-19 pandemic, government support measures unwind and inflationary pressures prevail as a result of the Russia-Ukraine war.