HSBC Malta H1 Interim Statmnt

HSBC Holdings PLC
18 May 2007


The following is the text of an announcement made today by HSBC Bank Malta plc,
a 70.03 per cent indirectly held subsidiary of HSBC Holdings plc.

                              HSBC BANK MALTA PLC
                          INTERIM DIRECTORS' STATEMENT

HSBC Bank Malta plc is required to publish the following Interim Directors'
Statement covering the period from 1 January 2007 to the date of the Statement
under Listing Rule 9.51 of the Malta Financial Services Authority.

HSBC Bank Malta plc has made solid progress to date in 2007. The bank continues
to explore growth opportunities across all customer segments.

Profit before tax, net interest income and non-interest income show good
improvement over the same period^ in 2006. Net interest income includes interest
recognised on a sizeable exposure previously categorised as non-performing.

Against a background of strong income flows, the bank has succeeded in keeping
operating expenses under tight control. A number of customer focused initiatives
have been started to reduce operational costs and improve customer service
delivery.

Overall, credit quality remains sound. Growth in loans and advances during 2007
has been largely mortgage-related. Balance sheet growth has been driven by
increased customer deposits and the issue of a subordinated bond.

Shaun Wallis, Director and Chief Executive Officer of HSBC Bank Malta plc,
commented: "We have had a good start to 2007 with our results up strongly
compared to the same period last year. The Bank continues to deliver on our
strategy of building sustainable growth by focusing on our main customer groups
- putting customers at the centre of everything we do - and by using technology
to increase our business efficiencies and to reduce our costs.

"During this period we have rolled out a branch refurbishment programme. We have
also invested in a number of major projects and initiatives to enhance our
automated banking channels and processes. The improvement in customer experience
and sales, and in the bank's processing efficiency has resulted in a
significantly improved cost:income ratio compared to the same period in 2006.

"We are confident that we can continue to grow our business successfully and in
a sustainable manner through 2007."

Notes to editors:

^ This statement is based on the unaudited management accounts of HSBC Bank
  Malta plc up to 30 April 2007 and other financial information.

HSBC Holdings plc
HSBC Bank Malta plc is a 70.03 per cent indirectly held subsidiary of HSBC
Holdings plc. Headquartered in London, the Group serves over 125 million
customers worldwide through some 10,000 offices in 82 countries and territories
in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
With assets of US$1,861 billion at 31 December 2006, HSBC is one of the world's
largest banking and financial services organisations. HSBC is marketed worldwide
as 'the world's local bank'.
                                   




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