HSBC focusing on long-term sustainability, CEO tells shareholders

HSBC Bank Malta's chief executive Mark Watkinson told shareholders the bank had delivered a solid financial performance in very challenging market conditions during the presentation of the 2011 financials, where the bank registered a profit before tax of €88.3 million, increasing by 6.3%, or €5.2 million, over the comparable period in 2010.

"HSBC Malta's capital and liquidity position remained strong and we have a firm grip on both our risks and costs. While we are well placed for the challenging environment in 2012, we will continue to focus on improving productivity and cost effectiveness to ensure long-term business sustainability," Watkinson said.

"The bank's strategy is clear, and we will continue to emphasise our competitive advantage as an international bank and as an important member of HSBC, one of the world's largest, best capitalised and strongest financial institutions in the world."

Watkinson said that during 2011, the bank continued to invest in long-term sustainability by de-risking its available-for-sale book, selling its card acquiring business, and cuttind down its branch network. A voluntary early retirement scheme was concluded. A new €10 million banking computer system was introduced while the Bank continued to roll-out an €11 million upgrade of its branches and ATMs.

HSBC remains one of the largest employers in Malta. In 2011 alone, its loans portfolio has increased by €656 million to go over the €3.3 billion mark.

With €36.8 million, the dank is a major tax contributor. In terms of corporate social responsibility, during the last 10 years, the HSBC Malta Foundation has donated over €3 million to support disadvantaged children, the environment, and Malta's heritage.

"The outlook for 2012 is very challenging. While GDP growth in Malta is expected to remain positive, it will be lower than that of 2011, as the continuing uncertainty in the eurozone will likely affect the domestic economy," Watkinson said.

"Reasons for optimism also exist as, among others, tourism and real estate sectors remained resilient in 2011 and Malta's financial services platform continues to register growth. Confident in its abilities to rise to the challenges of these 12 months, HSBC Bank Malta remains cautiously optimistic and focused on long-term sustainability and as the Bank continues to invest in HSBC Malta franchise and its stakeholders."

The AGM confirmed the Directors appointed by the majority shareholder HSBC Europe BV: Mr Albert Mizzi (Chairman), Mr Mark Watkinson (Chief Executive Officer), Mr Philip Farrugia (Chief Technology & Services Officer), Mr Peter Boyles, Dr Philip Farrugia Randon and Mr Charles J Farrugia. Mr James Dunbar Cousin, Mr Peter Paul Testaferrata Maroni Viani and Mr Sonny Portelli were elected as non-Executive Directors.

All the ordinary resolutions presented during the meeting were approved by the shareholders in accordance with the company's Memorandum and Articles of Association.