HSBC Bank Malta has delayed paying its 2019 dividends, in line with a recommendation by the European Central Bank.

The recommendation requires all Eurozone banks not to make dividend payments at this time, irrespective of the strength of their own capital positions. This is to ensure that the banking system as a whole deploys capital in support of the economy.

HSBC Malta said its board concluded that the bank is obliged to delay the payment
of all dividends. This applies to the final dividend of 2019 already announced, and to potential future dividends.

"The bank has sufficient capital to support the previously announced dividend payment of 2019. When it is appropriate to do so, but not before the fourth quarter of this year, the Board will re-examine the situation and will update the market accordingly," the bank said.

A similar decision was announced by Bank of Valletta on Wednesday.