HSBC reports €109 million profit in 2025, down from €154.5 million

HSBC Bank Malta has reported a pre-tax profit of €109.0 million in 2025. 

Although this marks HSBC's third consecutive year surpassing the €100 million mark, the figure represents a 29%, or €45.4 million decrease compared to 2024.

The bank stated that the decline in profitability was primarily driven by lower interest rates. Following the European Central Bank’s decision to begin reducing interest rates in June 2024, the average prevailing rates in 2025 were notably lower than those of the previous year. 

According to the bank, this shift caused net interest income to fall by 15% to €175.4 million.

Also impacting the year-on-year results were lower releases of expected credit losses. In 2025, the bank reported a release of €9.5 million, which was significantly lower than the €14.6 million release recorded in 2024. 

Additionally, operating costs rose by 6% to €119.9 million. HSBC said this was attributed to continued strategic investments in talent, IT infrastructure, and real estate. 

The decrease in profit trickled down to shareholder returns, with reported profit after tax falling to €71.6 million. Consequently, earnings per share decreased to 19.9 cents, compared with 27.8 cents during the same period in 2024. The bank also saw a decrease in net loans and advances to customers, which fell by €111 million to €2,762 million.

Despite the 29% decrease, CEO Geoffrey Fichte described the results as a "successful performance" that shows the resilience of the bank's business model in the face of reduced recoveries and interest rate headwinds.