HSBC Bank Malta Plc

HSBC Hldgs PLC
8 February 2000


The following is the text of an advertisement issued today by
HSBC Bank Malta plc which is to be published in Malta tomorrow:

HSBC BANK MALTA p.l.c. Preliminary Profit Statement for the
period ended 31 December 1999 (Published in terms of Section
6.05.06 (iii) of the Bye Laws of the Malta Stock Exchange)


                                     Group                 Bank
                           15 mths to  12 mths to  15 mths to 12 mths to
                                                              
                             31/12/99     30/9/98    31/12/99    30/9/98 
                                Lm000       Lm000       Lm000      Lm000 
Interest receivable and            
  similar income              101,449      77,414      94,449     72,699
Interest payable              (66,143)    (49,544)    (65,581)   (49,786)
Net interest income            35,306      27,870      28,868     22,913 
Other net operating income     18,793       9,852      17,079     10,000 
Total operating income         54,099      37,722      45,947     32,913 
Operating expenses            (30,889)    (21,219)    (28,666)   (19,590)
Net charge for bad and         
  doubtful debts               (6,741)     (2,138)     (6,756)    (1,912)
Share of profits of                
  associated companies            278         248          -          -
Profit on ordinary              
  activities before tax        16,747      14,613     10,525      11,411
Tax on profit on ordinary      
  activities                   (2,692)     (3,245)    (1,966)     (2,747)
Special tax on profit at 15%        -      (1,476)         -      (1,476)
Profit on ordinary              
  activities after tax         14,055       9,892      8,559       7,188
Profit attributable to            
  minority interests             (243)       (315)         -          -
Profit for the financial                                                
  period/year attributable
  to shareholders              13,812       9,577      8,559       7,188 
Net transfer to other                
  reserve                           -        (222)         -          -
Dividends, net of income tax   (2,608)     (2,134)    (2,608)     (2,134)
Retained profit for the         
  period/year                  11,204       7,221      5,951       5,054
                                                                        
Earnings per share               
  (excluding special tax)       37.9c       30.3c      23.5c      23.8c
Earnings per share                           
  (including special tax)                   26.3c                 19.7c
                                                                        

Balance sheet extracts as at 31/12/99     30/9/98   31/12/99    30/9/98 
(Figures in Lm millions)                                                
Total assets                    1,342       1,220      1,305      1,183 
                                                                        
Loans and advances to              
  customers                       817         753        707        646
                                                                        
Amounts owed to customers       1,147       1,025      1,028        927 
                                                                        
Shareholders' funds                84          69         83         70 
                                                                        
Review of group performance

1.   The published figures have been extracted from HSBC Bank
     Malta p.l.c.'s (previously Mid-Med Bank p.l.c.) audited
     accounts for the 15 month period ended 31 December 1999 as
     approved by the Board of Directors on 8 February 2000.
     Comparative figures refer to the 12 month period to 30
     September 1998.

2.   HSBC Bank Malta registered profit before tax of Lm16.747
     million for the 15 months ended 31 December 1999 (12
     months ended 30 September 1998: Lm 14.613 million).

3.   Profit after tax attributable to shareholders is
     registered at Lm13.812 million (1998: Lm9.577 million).

4.   The net charge for bad and doubtful debts was Lm6.741
     million, which was Lm4.603 million higher than 1998, reflecting
     a revised assessment of asset quality in the loan book.

5.   Total assets increased by 10 per cent to reach Lm1,342
     million (1998: Lm1,220 million). Loans and advances to
     customers, net of provisions, are reported at Lm817 million
     (1998: Lm753 million). Amounts owed to customers were Lm1,147
     million, an increase of Lm122 million over the 1998 position of
     Lm1,025 million.

6.   A revaluation of the group's property was carried out in
     December 1999. This increased shareholders' funds by Lm1.696
     million.

7.   The group net asset value per share as at 31 December 1999
     is Lm2.30 (30 September 1998: Lm1.89).

8.   Earnings per share for the group is 37.9 cents (1998: 30.3
     cents).

9.   A final gross dividend of 2 cents per share is being
     proposed by the Board of Directors, taking overall gross
     dividend for the 15 month period to 11 cents per share (1998: 9
     cents).

10.  The group's solvency ratio which is computed in accordance
     with the Banking Directive on the Solvency Ratio of Credit
     Institutions issued by the Central Bank of Malta in terms of
     the Banking Act, 1994 is 14.53 per cent (1998: 15.21 per cent).

The dividend, which will be approved at the next Annual General
Meeting, will be paid to shareholders who are registered on the
Register of Members of the company on 12 February 2000.