HSBC Bank Malta Results -Pt 1

HSBC Holdings PLC
19 July 2001


The following is the text of an advertisement which is being issued locally
by HSBC's subsidiary

HSBC Bank Malta p.l.c. - Half-yearly results for 2001

Profit and Loss Account for the period 1 January to 30 June 2001

                                               Group             Bank

                                           6 mths   6 mths   6 mths   6 mths
                                               to       to       to       to
                                          30/6/01  30/6/00  30/6/01  30/6/00
                                            Lm000    Lm000    Lm000    Lm000

Interest receivable and similar income
- on loans, advances and balances
with Central Bank of Malta                 31,615   32,422   28,803   29,318
- on debt securities                        9,618    9,131    9,274    9,633
Interest payable                         (26,970) (26,618) (27,011) (27,150)
Net interest income                        14,263   14,935   11,066   11,801

Dividend income                                72      354       72    1,798
Fees and commissions receivable             4,581    4,455    3,408    3,369
Fees and commissions payable                (233)    (240)    (198)    (191)
Dealing profits                             3,643    3,466    3,420    3,303
(Deficit)/surplus on long-term life
 assurance fund                              (63)       89        -        -
Other operating income                       (21)    1,486     (86)      459
Operating income                           22,242   24,545   17,682   20,539
Administrative expenses                  (13,116) (12,405) (12,331) (11,699)
Depreciation                              (1,299)  (1,139)  (1,222)  (1,073)
Provisions for bad and doubtful debts     (3,014)  (4,591)  (2,902)  (4,492)
Adjustments to provisions for bad and
 doubtful debts                             2,555    3,146    2,536    2,987
Provisions for contingent liabilities
and
 charges                                        -     (11)        -     (11)
Amounts written off financial fixed
 assets                                      (33)        1        -        1
Net amortisation of goodwill                (145)    (151)    (103)    (103)
Profit on ordinary activities before
 tax                                        7,190    9,395    3,660    6,149
Tax on profit on ordinary activities      (1,883)  (2,526)  (1,102)  (1,742)
Profit on ordinary activities after tax     5,307    6,869    2,558    4,407
Profit attributable to minority                 -     (74)        -        -
interests
Profit for the financial period
 attributable to shareholders               5,307    6,795    2,558    4,407
Earnings per share                          14.5c    18.6c     7.0c    12.1c


Balance Sheet at 30 June 2001

                                          Group             Bank

                                     30/6/01   31/12/00   30/6/01   31/12/00
                                       Lm000      Lm000     Lm000      Lm000
Assets
Cash and balances with Central Bank of
 Malta                                10,844     16,470    11,421     16,687
Reserve deposit with Central Bank of
 Malta                                62,509     60,008    62,263     59,742
Cheques in course of collection       11,960      6,027    11,889      6,011
Treasury bills                        16,512     20,212    15,319     17,939
Loans and advances to banks           84,434     76,963   171,750    123,123
Loans and advances to customers      876,592    847,568   734,961    717,398
Debt securities                      312,436    304,890   291,616    299,832
Equity shares                         23,666     23,919    12,242     13,276
Shares in subsidiary companies             1          1    42,933     41,189
Intangible fixed assets                1,062      1,208       701        804
Tangible fixed assets                 24,944     23,734    24,684     23,466
Other assets                           8,390      9,467     6,945      8,279
Prepayments and accrued income        23,225     22,535    20,285     20,853
Total assets                       1,456,575  1,413,002 1,407,009  1,348,599

Liabilities
Amounts owed to banks                 78,763     54,976   203,467    169,458
Amounts owed to customers          1,208,899  1,183,409 1,052,383  1,034,556
Debt securities in issue                  12     16,122         -          -
Other liabilities                     13,173     12,182    12,275     11,302
Accruals and deferred income          21,415     20,642    20,771     19,346
Provisions for liabilities and other  15,766     11,924       214        214
charges
Subordinated liabilities              19,990     19,990    20,000     20,000
                                   1,358,018  1,319,245 1,309,110  1,254,876

Shareholders' funds
Called up issued share capital         9,120      9,120     9,120      9,120
Revaluation reserves                   6,059      7,790    26,610     25,914
Other reserves                         4,242      4,242     4,242      4,242
Profit and loss account               77,950     71,183    56,741     53,025
Dividend reserve                       1,186      1,422     1,186      1,422
                                      98,557     93,757    97,899     93,723
Total liabilities                  1,456,575  1,413,002 1,407,009  1,348,599

The financial statements were approved by the Board of Directors on 19 July
2001 and signed on its behalf by

Albert Mizzi, Chairman

Tom Robson, Chief Executive Officer


Statement of Changes in Equity for the period 1 January to 30 June 2001

Group
                                                          Profit
                                                             and
                              Share Revaluation    Other    Loss Dividend
                            Capital    Reserves Reserves Account  Reserve Total
                              Lm000       Lm000    Lm000   Lm000    Lm000 Lm000

At 1 January 2000             9,120       8,121    4,242  62,339      474 84,296
Surplus on revaluation of
investments
 net of deferred tax              -          26        -       -        -    26
Revaluation reserve
released on
 disposal of freehold
 property and investments
 net of deferred tax              -       (334)        -       -        - (334)
Minority interests' share         -         (1)        -       -        -   (1)
Net losses not recognised
in the
 profit and loss account          -       (309)        -       -        - (309)
Profit attributable to            -           -        -   6,795        - 6,795
shareholders
Dividends, net of income          -           -        - (1,186)    1,186     -
tax
Dividends paid                    -           -        -       -    (474) (474)
At 30 June 2000               9,120       7,812    4,242  67,948    1,186 90,308

At 1 January 2001             9,120       7,790    4,242  71,183    1,422 93,757

Restatement in accordance
 with IAS39 net of deferred       -           -        -   2,652        - 2,652
tax
Net movements in fair
values of
 'available for sale'
financial
 instruments under IAS39          -       (262)        -       -        - (262)
Transfer between reserves
 on disposal of property          -           4        -     (6)        -   (2)
Deficit on revaluation of
 investments net of               -     (1,361)        -       -        -(1,361)
deferred tax
Revaluation reserve
released
 on disposal of investments
 net of deferred tax              -       (112)        -       -        - (112)
Net gains and losses not
 recognised in the profit
 and loss account                 -     (1,731)        -   2,646        -   915
Profit attributable to            -           -        -   5,307        - 5,307
shareholders
Dividends, net of income          -           -        - (1,186)    1,186     -
tax
Dividends paid                    -           -        -      -   (1,422)(1,422)
At 30 June 2001               9,120       6,059    4,242  77,950    1,186 98,557




Bank

                                                          Profit
                                                             and
                              Share Revaluation    Other    Loss Dividend
                            Capital    Reserves Reserves Account  Reserve Total
                              Lm000       Lm000    Lm000   Lm000    Lm000 Lm000

At 1 January 2000             9,120      19,199    4,242  50,201      474 83,236

Revaluation reserve
released on
 disposal of investment           -       (298)        -       -        - (298)

Net gains not recognised in
the
 profit and loss account          -       (298)        -       -        - (298)

Profit attributable to            -           -        -   4,407        - 4,407
shareholders

Dividends, net of income          -           -        - (1,186)    1,186     -
tax
Dividends paid                    -           -        -       -    (474) (474)
At 30 June 2000               9,120      18,901    4,242  53,422    1,186 86,871


At 1 January 2001             9,120      25,914    4,242  53,025    1,422 93,723

Restatement in accordance
 with IAS 39 net of               -           -        -   2,350        - 2,350
deferred tax
Net movements in fair
values of
 'available for sale'
financial
 instruments under IAS39          -        (70)        -       -        -  (70)
Transfer between reserves
 on disposal of property          -           4        -     (6)        -   (2)
Surplus on revaluation
 of investments                   -         762        -       -        -   762

Net gains and losses not
 recognised in the profit
 and loss account                 -         696        -   2,344        - 3,040

Profit attributable to            -           -        -   2,558        - 2,558
shareholders
Dividends, net of income          -           -        - (1,186)    1,186     -
tax
Dividends paid                    -           -        -       -  (1,422)(1,422)
At 30 June 2001               9,120      26,610    4,242  56,741    1,186 97,899