11th Feb 2005 09:16
HSBC Holdings PLC11 February 2005 The following is the text of an advertisement which is to be published in thepress in Malta on 12 February 2005 by HSBC Bank Malta p.l.c., a 70.03 per centindirectly-held subsidiary of HSBC Holdings plc. HSBC Bank Malta p.l.c. Preliminary Profit Statement for the year ended 31 December 2004 The preliminary profit statement is published in terms of Listing Rule 9.53 ofthe MFSA Listing Authority. Figures have been extracted from HSBC Bank Maltap.l.c.'s Annual Report and Accounts that have been audited by KPMG. Review of PerformanceHSBC Bank Malta p.l.c. and its subsidiaries generated a profit on ordinaryactivities before tax of Lm33.0 million during the year ended 31 December 2004,an increase of Lm6.9 million, or 26.3 per cent, compared with the year ended 31December 2003. Earnings per share increased from 46.0 cents in 2003 to 60.7 cents in 2004 withthe pre-tax return on average shareholders' funds increasing from 21.1 per centin 2003 to 24.9 per cent. Net interest income grew by 13.8 per cent, compared with 2003, and contributedLm39.5 million to total operating income. Local monetary policy conditionsremained stable and the market was characterised by a general preference forshorter term liquidity with low international and local interest rates. Therewas significant growth in mortgage lending. Non-interest income levels grew by 6.8 per cent, contributing Lm19.9 million tototal operating income. Administrative expenses reached Lm27.4 million, an increase of Lm0.1 millionover 2003. Depreciation was 3.9 per cent higher as a result of the increasedcarrying cost of tangible fixed assets. The group's cost:income ratio improved to 51.1 per cent from 56.8 per cent in2003. The directors are proposing a final gross dividend of 27.3 cents per share (17.7cents net of tax). This follows the interim gross dividend of 19.4 cents andadditional special dividend of 35.4 cents paid in August 2004. The specialdividend to shareholders marked the fifth anniversary of HSBC Bank Malta p.l.c.The final dividend will be paid on 24 March 2005 to shareholders who are on theregister of shareholders as at 16 February 2005. Shaun Wallis, Director and Chief Executive Officer of HSBC Bank Malta p.l.c.,said: "The year under review was very successful across many areas and we againproduced record results. We are confident that there is good potential tocontinue to grow our business in Malta. We thank our shareholders, staff andcustomers for their support." HSBC Bank Malta p.l.c. is a member of the HSBC Group, whose ultimate parentcompany is HSBC Holdings plc. Headquartered in London, HSBC Holdings plc is oneof the largest banking and financial services organisations in the world. TheHSBC Group's international network comprises about 10,000 offices in 76countries and territories in Europe, the Asia-Pacific region, the Americas, theMiddle East and Africa. Profit and Loss Account for the year 1 January 2004 to 31 December 2004 Group Bank 2004 2003 2004 2003 Lm000 Lm000 Lm000 Lm000Interest receivable and similar income - on loans and advances, balances with Central Bank of Malta and Treasury Bills 56,574 58,648 53,088 54,679- on debt and other fixed income instruments 10,410 10,712 11,817 12,017Interest payable (27,505) (34,660) (27,717) (34,637)Net interest income 39,479 34,700 37,188 32,059Fees and commissions receivable 10,105 10,805 7,685 8,841Fees and commissions payable (759) (659) (646) (607)Dividend income 117 125 5,709 125Trading profits 6,562 5,817 6,552 5,779Net gains on disposal of non-trading financial instruments 1,716 649 1,019 700Other operating income 2,201 1,931 50 21Operating income 59,421 53,368 57,557 46,918 Administrative expenses (27,407) (27,325) (26,548) (26,630)Depreciation (2,745) (2,643) (2,680) (2,574)Amortisation of goodwill (339) (291) (189) (205)Other operating charges (206) (322) (206) (320)Operating expenses (30,697) (30,581) (29,623) (29,729) Operating profit before impairment reversals and provisions 28,724 22,787 27,934 17,189Net impairment reversals 4,012 3,386 3,649 2,937Reversals/(provisions) for liabilitiesand other charges 301 (9) 301 (9)Profit on ordinary activities before tax 33,037 26,164 31,884 20,117Tax on profit on ordinary activities (10,907) (9,383) (10,688) (7,352)Profit for the financial year attributable to shareholders 22,130 16,781 21,196 12,765 Earnings per share 60.7c 46.0c 58.1c 35.0c Balance Sheet at 31 December 2004 Group Bank 2004 2003 2004 2003 Lm000 Lm000 Lm000 Lm000AssetsBalances with Central Bank of Malta, Treasury Bills and cash 106,806 133,574 106,781 133,512Cheques in course of collection 4,458 5,637 4,458 5,637Financial assets held for trading 4,826 2,444 4,826 2,444Investments 245,737 235,059 268,226 256,191Loans and advances to banks 131,281 130,700 172,363 187,945Loans and advances to customers 979,446 922,526 888,018 813,101Shares in subsidiary companies - - 42,023 41,602Intangible fixed assets 1,022 1,762 964 1,528Tangible fixed assets 30,647 30,511 30,620 30,458Deferred tax asset - 1,607 - 2,195Other assets 76,912 59,102 2,231 1,246Prepayments and accrued income 16,634 16,062 15,716 15,432Total assets 1,597,769 1,538,984 1,536,226 1,491,291 LiabilitiesFinancial liabilities held for trading 9,917 8,611 9,917 8,611Amounts owed to banks 48,336 32,367 48,336 32,368Amounts owed to customers 1,288,940 1,267,378 1,296,687 1,271,058Debt securities in issue 12 12 - -Deferred tax liability 2,318 - 625 -Other liabilities 78,546 62,080 11,195 11,032Accruals and deferred income 15,101 15,676 14,818 15,419Provisions for liabilities and other charges 26 1,698 26 1,746Subordinated liabilities 20,000 20,000 20,000 20,000 1,463,196 1,407,822 1,401,604 1,360,234 Shareholders' fundsCalled up share capital 9,120 9,120 9,120 9,120Revaluation reserves 11,086 10,978 33,265 32,069Other reserve 4,242 4,242 4,242 4,242Profit and loss account 103,652 100,989 81,522 79,793Dividend reserve 6,473 5,833 6,473 5,833 134,573 131,162 134,622 131,057Total liabilities and shareholders' funds 1,597,769 1,538,984 1,536,226 1,491,291 Memorandum itemsContingent liabilities 44,127 38,818 44,537 39,238Commitments 330,584 297,631 346,758 315,397 Statement of Changes in Equity for the year 1 January 2004 to 31 December 2004 Group Called up Revaluation Other Profit and Dividend Total share capital reserves reserve loss account reserve Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 At 1 January 2003 9,120 7,933 4,242 92,572 3,130 116,997Release of net gains on available-for-sale assets transferred to the profit and loss account on disposal - (610) - 30 - (580)Net fair value adjustments on investment - 3,239 - - - 3,239Surplus on revaluation of freehold and long leasehold properties - 416 - - - 416Net gains not recognised in the profit and loss account - 3,045 - 30 - 3,075Profit attributable to shareholders - - - 16,781 - 16,781Dividends - - - (8,394) 8,394 -Dividends paid - - - - (5,691) (5,691)At 31 December 2003 9,120 10,978 4,242 100,989 5,833 131,162 At 1 January 2004 9,120 10,978 4,242 100,989 5,833 131,162Release of net gains on available-for-sale assets transferred to the profit and loss account on disposal - (1,357) - - - (1,357)Net fair value adjustments on investments - 615 - - - 615Surplus on revaluation of freehold and long leasehold properties - 850 - - - 850Net gains not recognised in the profit and loss account - 108 - - - 108Profit attributable to shareholders - - - 22,130 - 22,130Dividends - - - (19,467) 19,467 -Dividends paid - - - - (18,827) (18,827)At 31 December 2004 9,120 11,086 4,242 103,652 6,473 134,573 Bank Called up Revaluation Other Profit and Dividend Total share capital reserves reserve loss account reserve Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 At 1 January 2003 9,120 24,939 4,242 75,392 3,130 116,823Release of net gains on available-for-sale assets transferred to the profit and loss account on disposal - (661) - 30 - (631)Net fair value adjustments on investments - 7,375 - - - 7,375Surplus on revaluation of freehold and long leasehold properties - 416 - - - 416Net gains not recognised in the profit and loss account - 7,130 - 30 - 7,160Profit attributable to shareholders - - - 12,765 - 12,765Dividends - - - (8,394) 8,394 -Dividends paid - - - - (5,691) (5,691)At 31 December 2003 9,120 32,069 4,242 79,793 5,833 131,057 At 1 January 2004 9,120 32,069 4,242 79,793 5,833 131,057Release of net gains on available-for-sale assets transferred to the profit and loss account on disposal - (660) - - - (660)Net fair value adjustments on investments - 1,006 - - - 1,006Surplus on revaluation of freehold and long leasehold properties - 850 - - - 850Net gains not recognised in the profit and loss account - 1,196 - - - 1,196Profit attributable to shareholders - - - 21,196 - 21,196Dividends - - - (19,467) 19,467 -Dividends paid - - - - (18,827) (18,827)At 31 December 2004 9,120 33,265 4,242 81,522 6,473 134,622 Cash Flow Statement for the year 1 January 2004 to 31 December 2004 Group Bank 2004 2003 2004 2003 Lm000 Lm000 Lm000 Lm000 Cash flows from operating activitiesInterest and commission receipts 69,537 73,413 63,919 67,914Interest and commission payments (30,276) (39,214) (30,256) (39,116)Payments to employees and suppliers (25,841) (25,756) (25,133) (24,966)Operating profit before changes in operating assets/liabilities 13,420 8,443 8,530 3,832(Increase)/decrease in operating assets:Trading instruments (1,742) (209) (1,742) (209)Reserve deposits with Central Bank of Malta (4,827) 5,756 (4,841) 5,736Loans and advances to banks (7,079) 4,431 (7,080) 4,432Loans and advances to customers (52,913) (29,220) (71,273) (47,962)Treasury Bills with contractual maturity of over three months 30,701 9,004 30,700 9,000Cheques in course of collection 1,179 (1,651) 1,179 (1,651)Other receivables (16,122) (23,027) 325 (344) Increase/(decrease) inoperating liabilities:Amounts owed to banks 14,561 (14,550) 14,560 (15,102)Amounts owed to customers 23,234 (28,844) 27,297 (20,758)Other payables 18,415 24,115 (70) 3,094Net cash from/(used in)operating activities before tax 18,827 (45,752) (2,415) (59,932)Tax paid (10,412) (6,239) (9,504) (5,459)Net cash flows from/(used in) operating activities 8,415 (51,991) (11,919) (65,391)Cash flows from investing activitiesDividends received 77 125 3,887 125Interest received from available-for-sale debt and other fixed income instruments 5,083 5,196 5,083 5,196Interest received from held-to-maturity debt and other fixed income instruments 7,429 8,083 8,802 8,824Proceeds on disposal of available-for-sale instruments 10,814 9,986 5,224 7,095Proceeds on maturity of held-to-maturity debt and other fixed income instruments 70,488 72,588 70,488 67,395Proceeds on disposal of tangible fixed assets 52 26 47 26Purchase of available-for-sale instruments (35,332) (1,812) (30,764) (741)Purchase of held-to-maturity debt and other fixed income instruments (57,805) (50,295) (57,805) (50,295)Purchase of tangible fixed assets (1,276) (5,286) (1,244) (5,225)Purchase of intangible fixed assets (86) (66) (81) (66)Net cash flows (used in)/from investing activities (556) 38,545 3,637 32,334Cash flows from financing activitiesDividends paid (18,827) (5,691) (18,827) (5,691)Cash used in financing activities (18,827) (5,691) (18,827) (5,691)Decrease in cash and cash equivalents (10,968) (19,137) (27,109) (38,748)Effect of exchange rate changes on cash and cash equivalents (1,139) (6,066) (1,139) (6,021)Net decrease in cash and cash equivalents (9,829) (13,071) (25,970) (32,727) (10,968) (19,137) (27,109) (38,748)Cash and cash equivalents at beginning of year 108,019 127,156 165,217 203,965Cash and cash equivalents at end of year 97,051 108,019 138,108 165,217 Segmental Informationa Class of business Personal Corporate, Total Financial Commercial Investment Banking Services Banking and Markets 2004 2003 2004 2003 2004 2003 2004 2003 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000Group Profit before taxSegment operating income 28,927 25,549 22,136 20,363 8,358 7,456 59,421 53,368Segment impairment allowances 107 993 3,905 2,393 - - 4,012 3,386Common costs (30,396) (30,590)Profit on ordinary activities before tax 33,037 26,164 Assets Segment total assets 476,682 413,546 651,187 644,033 469,900 481,405 1,597,769 1,538,984 Average total assets 445,114 383,779 647,610 649,653 475,653 521,227 1,568,377 1,554,659 Net assets 39,534 38,531 82,104 80,024 12,935 12,607 134,573 131,162 b Geographical segmentsThe group's activities are carried out within Malta. There are no identifiable geographical segments orother material concentrations. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSBC Holdings