HSBC Bank Malta saw its first-quarter pre-tax profit drop to €4.8m in the first quarter of this year, from €9.9m in the same period last year, mainly due to lower profit reported by its insurance subsidiary.

In a statement to the stock exchange, the bank said it had a satisfactory start to the year and its strategy remained on track.

In said revenues were €6.2m lower than those reported in the first quarter last year, with the insurance subsidiary reporting a decrease in revenue of €5.0m. This was a result of adverse market conditions which led to weaker performances in equity markets, compared with favourable movements in Q1 2021.

The bank also saw a decrease in net interest income as a result of tighter margins and an increase in cash placements at negative rates.

Net fee income improved, thanks to increased activity across cards and payments. Strong performance was also reported in foreign exchange income.

Credit losses were broadly maintained at the levels booked at the end of last year.

Operating expenses were €1.1m lower than those reported in Q1 2021.  Lower regulatory fees contributed to the reduction in expenses.

Net loans and advances to customers were marginally lower than those reported at 31 December 2021. Customer deposits increased by €122m compared to December 31.