HSBC sees €17.5m half-year profit thanks to life insurance results
HSBC Malta said Monday that its pre-tax profit in the first half of the year increased by €15.6m to €17.5m. Revenue increased by 16% driven by favourable market movements (equity and interest rates) positively impacting the life insurance subsidiary results. (HSBC Life Assurance (Malta) Limited reported a profit of €4.2m compared to a loss reported in the same period last year of €8.9m.) Excluding the insurance subsidiary, revenue decreased by 5% as a result of lower interest rates and subdued demand for corporate borrowing, credit cards and personal loans. The bank said the satisfactory financial performance in the first half of the year reflected favourable market movements which impacted the life insurance subsidiary and lower expected credit losses (‘ECL’) booked in relation to the bank’s lending portfolio. "The underlying business performance continues to be adversely impacted by lower and negative interest rates and reduced demand for corporate borrowing, credit card utilisation and personal loans arising from customer behaviour directly influenced by the Covid-19 pandemic," it said. Operating expenses increased marginally, principally due to increased regulatory fees as...