HSBC Malta announces special dividend after nine-year absence

HSBC Bank Malta plc kicked off the financial reporting season last week with the publication of its 2017 annual financial statements. The bottom-line figure should not have surprised the market. HSBC Malta reported a 9.5 per cent drop in adjusted pre-tax profits to €55.6 million, reflecting lower revenues due to the negative interest rate environment and the change in the business model in recent years coupled with higher operating costs mainly due to increased regulatory obligations. At the interim stage in June 2017, HSBC had in fact announced a 15 per cent decline in adjusted pre-tax profits. Furthermore, in the Interim Directors’ Statement published on November 20, 2017, the bank had explained that between July 1 and November 15, 2017, it continued to suffer a decline in profitability when compared to the same period last year. Notwithstanding the drop in profits, the directors of HSBC are recommending the payment of a €20 million special dividend in addition to the customary ordinary dividend based on a 65 per cent payout ratio. HSBC Malta is recommending that at the upcoming annual general meeting, shareholders approve an ordinary net dividend of €0.0251 per share as well...