HSBC Malta
A strong performance in 2002, especially on the profits front, makes HSBC Malta the best bank on the island in the eyes of the judges.
HSBC Malta’s performance last year amid a sluggish European economy was quite an achievement. It boosted net profit by 34% and lifted its ROE to 16.64% from 13.58% the previous year. The bank’s cost-to-income ratio also improved to 55.4% in 2002 from 57.29% in 2001.
Clearly, the bank’s fine performance is largely attributable to its dominance of nearly every banking business on the island. HSBC Malta has a 51% share of the local lending market and a 44% share of Maltese deposits. It also has lead positions in asset management (a 45% share), life assurance (42%) and home loans markets (52%). The success of these business lines is further assured by a high degree of automation.
HSBC Malta also leads by example, setting the highest standards for the island in the areas of customer service, ethics and business practice. Chris Hothersall, HSBC chief executive, commented: “The adoption of strict loan classification standards and tight credit control are regarded as best practice by domestic regulators as they contribute significantly to safeguarding the stability of the Maltese economy.”
