HSBC Malta is a larger and financially stronger institution, with significantly higher capital adequacy, consistent profitability, and operations governed by a different regulatory framework.
CrediaBank and HSBC Malta have entered into exclusive negotiations over the potential acquisition of a controlling stake in the Maltese bank. The deal would see CrediaBank purchase HSBC Holdings' 70.03% share in HSBC Bank Malta p.l.c., while the remaining stake would stay listed on the Malta Stock Exchange.
For CrediaBank, the move is an ambitious one. HSBC Malta is a larger and financially stronger institution, with significantly higher capital adequacy, consistent profitability, and operations governed by a different regulatory framework. Completing such a transaction would almost certainly require CrediaBank to raise fresh capital or take on debt to finance the purchase and maintain healthy capital ratios post-acquisition. Industry observers also question whether the bank and its shareholders can successfully manage two major integration processes at once, given their current commitments.
HSBC Malta's latest financial results underscore the scale of the target. In the first half of 2025, the bank delivered strong performance, maintaining high profitability and exceptionally robust capital and liquidity levels despite the drag of lower eurozone interest rates. Pre-tax profit came in at €58.7 million, down from €78.6 million in the same period last year, largely due to shrinking net interest income following interest rate cuts since mid-2024, and lower recoveries from bad loan provisions. Total revenue fell 11% to €110.1 million, with net interest income dropping to €89.8 million from €106.6 million. Non-interest income, however, inched up to €20.3 million, driven by record-breaking foreign exchange sales—up 9% year-on-year—as well as strong results in trade finance, guarantees, and insurance services.
Operating expenses rose by €2.3 million to €58.4 million, reflecting higher wages, increased depreciation, and the cost of meeting new compliance requirements. The bank recorded a net release of €3 million from expected credit loss provisions, compared with €7 million a year earlier, aided by revised risk parameters for mortgages.
By the end of June, net customer loans stood at €2.79 billion, a 3% decline from year-end 2024, while customer deposits increased by €45 million to €6.20 billion, with retail banking deposits rising 2%. The investment portfolio expanded by €197 million to €2.49 billion, composed entirely of high-rated securities.
HSBC Malta's capital strength remains a standout feature: its Common Equity Tier 1 ratio was 22.5% and its total capital adequacy ratio 25.4%, both well above regulatory minimums. The liquidity coverage ratio was a striking 537%. Net profit attributable to shareholders was €38.3 million, and the board has proposed an interim gross dividend of €0.10 per share, amounting to €36 million in total, payable in September. Return on equity stood at 12.7%.
Its insurance subsidiary, HSBC Life Assurance (Malta) Ltd, also posted improved results, with profits rising to €6.5 million from €4.5 million in 2024, thanks to a more favorable yield curve and the absence of last year's contract losses. The solvency ratio reached an impressive 247%.
The talks between CrediaBank and HSBC Malta are still in progress, and a final agreement will hinge not only on price and regulatory approval, but on whether the Greek bank can match the scale and resilience of the institution it seeks to acquire.
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