HSBC kick starts 2018 earnings season
The MSE Equity Price Index erased most of Monday's strong gains as it retreated by 1% to 4,497.972 points. Various equities trended lower while only PG, Plaza and Farsons ended the day on a positive note.
Most of Tuesday's activity took place in the equities of HSBC and BMIT as volumes in these two shares represented just over 50% of total trading.
HSBC Bank Malta plc shed 5.2% to a four-month low of €1.65 on heightened activity totalling 71,565 shares. On Tuesday morning, the bank published the preliminary statement of the 2018 annual results. The bank reported a deterioration in profitability reflecting the unfavourable interest rate scenario, lower profits from the bank’s insurance business as well as the impact of expected credit losses amounting to €3.49 million compared to a reversal of loan impairments of €1.17 million in the previous year.
The bank also slashed its final net dividend distribution to €0.012 per share which also takes into consideration new regulatory requirements imposed by the European Central Bank. Looking ahead, HSBC Malta’s CEO Andrew Beane commended the bank’s position to leverage on measured growth while retaining its highest global standards of...