FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of July, 2006
HSBC Holdings plc
42nd Floor, 8 Canada
Square, London E14 5HQ, England
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
Form 20-F X Form 40-F ......
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934).
Yes....... No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ..............)
The following is the text of an advertisement which is to be published in the
press in Malta on 28 July 2006 by HSBC Bank Malta p.l.c., a 70.03 per cent
indirectly-held subsidiary of HSBC Holdings plc.
HSBC Bank Malta p.l.c.
Half-Yearly Results for 2006
Review of Performance
The published figures, which have been prepared in accordance with International
Financial Reporting Standards for interim financial statements (IAS 34 'Interim
Financial Reporting'), have been extracted from HSBC Bank Malta p.l.c.'s
unaudited group management accounts for the six months ended 30 June 2006. The
half-yearly results are being published in terms of Chapters 8 and 9 of the
Listing Rules of the Listing Authority - Malta Financial Services Authority and
the Prevention of Financial Markets Abuse Act 2005. These figures have been
drawn up according to the accounting policies used in the preparation of the
annual audited accounts.
All figures are stated in Maltese lira, the functional currency of HSBC Bank
Malta p.l.c. The euro exchange rate ruling on 30 June 2006 was EUR1=Lm0.4293.
The US dollar and sterling exchange rates ruling on the same day were
US$1=Lm0.3375 and GBP1=Lm0.6196. Average exchange rates for 2006 for euro, US
dollar and sterling were EUR1=Lm0.4293, US$1=Lm0.3491 and GBP1=Lm0.6251.
HSBC Bank Malta p.l.c. and its subsidiaries recorded a profit before tax of
Lm20.6 million for the six months ended 30 June 2006 which represents an
increase of 11.3 per cent over the Lm18.5 million earned during the same period
in 2005.
- Profit after tax attributable to shareholders of Lm13.4 million, an increase
of 11.0 per cent over the Lm12.1 million earned during the same period in
2005.
- Net interest income increased by 7.1 per cent over prior year to Lm22.8
million.
- Non-interest income increased by 24.8 per cent, contributing Lm15.1 million
to net operating income.
- Administrative expenses increased by 8.8 per cent, primarily due to higher
performance-based compensation for all staff. However, the cost: income ratio
improved from 47.5 per cent to 45.5 per cent.
- Risk provisions were at low levels supported by an unchanged conservative
policy in the assessment of credit risk and effective risk management.
Impaired loans reduced from Lm61.7 million to Lm58.8 million.
- Customer deposits increased to Lm1,407.2 million at 30 June 2006 compared
with Lm1,367.2 million at 31 December 2005. Funds, life insurance
contracts and amounts under custody increased by Lm53.0 million in aggregate
during the period.
- Loans and advances to customers increased to Lm1,075.2 million at
30 June 2006 - up Lm59.1 million or 5.8 per cent over 31 December 2005.
- Total assets of Lm1.71 billion at 30 June 2006 when compared with
Lm1.66 billion at 31 December 2005.
- Earnings per share for the first six months ended 30 June 2006 increased
to 4.6 cents compared to 4.1 cents for the first six months of 2005.
Comparative data has been adjusted for the April 2006 three-for-one bonus
share issue.
- Return after tax on capital employed increased to 10.9 per cent compared
with 8.3 per cent for the first six months of last year.
Shaun Wallis, Director and Chief Executive Officer of HSBC Bank Malta p.l.c.,
said:
"Our results for the first six months reflect continued business growth in all
customer groups and across all product lines. Our focus continues to be on
maximising customer relationships.
"The Board is recommending an interim gross dividend of 5.3 cents per share (3.4
cents net of tax) which equates to a cash payment of Lm10.1 million. This will
be paid on 17 August 2006, to shareholders who are on the bank's register of
shareholders as at 4 August 2006.
"We would like to thank our customers for their business during the first six
months of this year, to thank our staff for their continued high level of
customer service and to thank the community for their support.
"We remain optimistic about economic activity and HSBC's business prospects in
Malta."
HSBC Bank Malta p.l.c. is a member of the HSBC Group, whose ultimate parent
company is HSBC Holdings plc. Headquartered in London, HSBC Holdings plc is one
of the largest banking and financial services organisations in the world. The
HSBC Group's international network comprises over 9,500 offices in 76 countries
and territories in Europe, the Asia-Pacific region, the Americas, the Middle
East and Africa.
Income Statement for the period 1 January 2006 to 30 June 2006
Group Bank
6 mths 6 mths 6 mths 6 mths
to to to to
30/6/06 30/6/05 30/6/06 30/6/05
Lm000 Lm000 Lm000 Lm000
Interest receivable and
similar income
- on loans and advances
and balances
with Central Bank
of Malta and
Treasury Bills 32,542 29,430 31,736 27,877
- on debt and other
fixed income instruments 4,729 5,536 5,155 6,232
Interest payable (14,464) (13,671) (14,685) (13,808)
Net interest income 22,807 21,295 22,206 20,301
Fees and commissions
receivable 6,738 5,587 5,167 4,427
Fees and commissions
payable (445) (359) (338) (287)
Net fee and commission
income 6,293 5,228 4,829 4,140
Dividend income 32 38 357 338
Trading profits 3,525 3,598 3,525 3,607
Net income from insurance
financial instruments
designated at fair value
through profit or loss 1,147 3,860 - -
Net gains on disposal
of non-trading
financial instruments 2,293 1,221 2,293 1,267
Net earned insurance
premium 7,327 8,305 - -
Other operating income 1,415 677 508 2
Total operating income 44,839 44,222 33,718 29,655
Net insurance claims
incurred and movement
in policyholders'
liabilities (6,965) (10,857) - -
Net operating income 37,874 33,365 33,718 29,655
Employee
compensation
and benefits (10,668) (9,938) (10,198) (9,478)
General and
administrative
expenses (5,088) (4,472) (4,815) (4,233)
Depreciation (1,188) (1,127) (1,176) (1,105)
Amortisation
of intangible
assets (286) (296) (243) (262)
Net operating
income before
impairment reversals
and provisions 20,644 17,532 17,286 14,577
Net impairment
reversals 54 953 14 938
(Provisions)/reversals
for liabilities
and other charges (130) 1 - 1
Profit before tax 20,568 18,486 17,300 15,516
Tax on profit (7,136) (6,396) (5,712) (5,297)
Profit for the
period 13,432 12,090 11,588 10,219
Profit attributable
to shareholders
of the bank 13,419 12,090 11,588 10,219
Profit attributable
to minority
interest 13 - - -
Earnings per share 4.6c 4.1c 4.0c 3.5c
Balance Sheet At 30Jun06
Group Bank
30/6/06 31/12/05 30/6/06 31/12/05
Lm000 Lm000 Lm000 Lm000
Assets
Balances with Central Bank
of Malta, treasury
bills and cash 105,658 77,121 105,658 77,118
Cheques in course of
collection 5,245 9,727 5,245 9,727
Financial assets held
for trading 3,631 3,907 3,631 3,907
Financial assets
designated at fair value
through profit or loss 101,410 93,131 - -
Investments 183,610 224,500 183,608 254,468
Loans and advances
to banks 160,594 162,882 161,332 202,332
Loans and advances
to customers 1,075,192 1,016,084 1,075,245 937,813
Shares in subsidiary
companies - - 9,682 20,350
Intangible assets 10,240 9,433 754 829
Property, plant
and equipment 29,259 29,746 29,274 29,755
Investment property 2,911 961 1,950 -
Assets held for sale 4,455 4,918 4,519 5,864
Current tax recoverable - 1,895 - 1,607
Deferred tax asset - - 925 -
Other assets 10,159 8,701 3,503 2,699
Prepayments and
accrued income 13,840 12,868 13,034 12,945
Total assets 1,706,204 1,655,874 1,598,360 1,559,414
Liabilities
Financial liabilities
held for trading 4,311 4,050 4,331 4,050
Amounts owed to banks 32,082 22,667 32,082 22,667
Amounts owed to customers 1,407,231 1,367,214 1,420,097 1,381,683
Debt securities in issue - 12 - -
Provision for current tax 3,653 - 3,861 -
Deferred tax liability 3,589 3,843 - 349
Liabilities to customers
under investment contracts 7,865 8,297 - -
Liabilities under insurance
contracts issued 92,625 86,275 - -
Other liabilities 14,419 16,755 13,544 16,192
Accruals and
deferred income 17,065 15,035 16,840 14,942
Provisions for liabilities
and other charges 155 25 25 25
Total liabilities 1,582,995 1,524,173 1,490,780 1,439,908
Equity
Called up share capital 36,480 9,120 36,480 9,120
Revaluation reserves 10,568 13,105 10,568 13,041
Other reserve - 4,242 - 4,242
Retained earnings 76,161 104,906 60,532 93,103
Equity attributable
to shareholders 123,209 131,373 107,580 119,506
Minority interest - 328 - -
Total equity 123,209 131,701 107,580 119,506
Total liabilities
and equity 1,706,204 1,655,874 1,598,360 1,559,414
Memorandum items
Contingent liabilities 52,329 51,513 52,339 51,523
Commitments 414,151 401,216 414,151 412,044
The interim financial statements were approved by the Board of Directors on
27 July 2006 and signed on its behalf by:
Albert Mizzi, Chairman Shaun Wallis, Chief Executive Officer
Statement of Changes in Equity for the period 1 January 2006 to 30 June 2006
Attributable to shareholders of the bank
Called up Reval-
share uation Other Retained Minority Total
capital reserves reserve earnings Total interest equity
Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000
Group
At 01Jan05 as
previously
stated 9,120 11,473 4,242 109,618 134,453 - 134,453
Impact of
adoption of
IFRS 4 - - - (199) (199) - (199)
At 01Jan05 as
restated 9,120 11,473 4,242 109,419 134,254 - 134,254
Release of net
gains on
available-for-
sale assets
transferred to
the income
statement on
disposal - (779) - - (779) - (779)
Net fair value
adjustments on
investments - 257 - - 257 - 257
Release of
revaluation
reserve on
disposal of
property - 52 - (52) - - -
Net gains not
recognised
in the income
statement - (470) - (52) (522) - (522)
Profit for the
period - - - 12,090 12,090 - 12,090
Dividends - - - (6,473) (6,473) - (6,473)
At 30Jun05 9,120 11,003 4,242 114,984 139,349 - 139,349
At 01Jan06 9,120 13,105 4,242 104,906 131,373 328 131,701
Release of net
gains on
available-for-
sale assets
transferred to
the income
statement on
disposal - (1,490) - - (1,490) - (1,490)
Net fair value
adjustments on
investments - (1,035) - - (1,035) - (1,035)
Release of
revaluation
reserve on
disposal of
property - (12) - 18 6 - 6
Net gains not
recognised in
the income
statement - (2,537) - 18 (2,519) - (2,519)
Bonus share issue 27,360 - (4,242) (23,118) - - -
Increase in
share capital
of subsidiary - - - - - 91 91
Profit for
the period - - - 13,419 13,419 13 13,432
Disposal of
subsidiary - - - - - (432) (432)
Dividends - - - (19,064) (19,064) - (19,064)
At 30Jun06 36,480 10,568 - 76,161 123,209 - 123,209
Called up Reval-
share uation Other Retained Total
capital reserves reserves earinings equity
Bank Lm000 Lm000 Lm000 Lm000 Lm000
At 01Jan05 9,120 11,479 4,242 87,493 112,334
Release of net gains
on available-for-
sale assets
transferred to
the income statement
on disposal - (825) - - (825)
Net fair value
adjustments on
investments - 248 - - 248
Release of revaluation
reserve on disposal of
properties - 52 - (52) -
Net gains not
recognised in the
income statement - (525) - (52) (577)
Profit for
the period - - - 10,219 10,219
Dividends - - - (6,473) (6,473)
At 30Jun05 9,120 10,954 4,242 91,187 115,503
At 01Jan06 9,120 13,041 4,242 93,103 119,506
Release of net
gains on
available-for-
sale assets
transferred to
the income
statement on disposal - (1,490) - - (1,490)
Net fair value
adjustments
on investments - (971) - - (971)
Release of revaluation
reserve on disposal
of properties - (12) - 18 6
Net gains not
recognised in
the income statement - (2,473) - 18 (2,455)
Bonus share
issue 27,360 - (4,242) (23,118) -
Effect of
amalgamation
of subsidiary - - - (1,995) (1,995)
Profit for
the period - - - 11,588 11,588
Dividends - - - (19,064) (19,064)
At 30Jun06 36,480 10,568 - 60,532 107,580
Cash Flow Statement for the period 1 January 2006 to 30 June 2006
Group Bank
6 mths 6 mths to 6 mths to 6 mths to
30/6/06 30/6/05 30/6/06 30/6/05
Lm000 Lm000 Lm000 Lm000
Cash flows from
operating activities
Interest and
commission
receipts 50,101 50,554 39,289 38,015
Interest and
commission
payments (13,966) (13,989) (12,911) (12,913)
Payments to
employees and
suppliers (16,791) (15,829) (15,030) (14,902)
Operating
profit before
changes in
operating
assets/liabilities 19,344 20,736 11,348 10,200
(Increase)/decrease in
operating assets:
Trading instruments (392) 809 (392) 809
Reserve deposits
with Central Bank
of Malta 214 73 214 73
Loans and advances
to banks with
contractual
maturity of
over three months 3,609 (6,513) 3,609 (6,515)
Loans and advances
to customers (59,557) (49,491) (63,937) (55,695)
Treasury bills
with contractual
maturity of
over three
months 2,000 29,907 2,000 29,907
Cheques in
course of
collection 4,482 (866) 4,482 (866)
Other
receivables (578) (1,031) 297 (938)
Increase/(decrease) in
operating liabilities:
Amounts owed
to banks with
contractual
maturity of
over three
months 8,752 (22,367) 8,752 (22,367)
Amounts owed
to customers 43,996 25,118 42,665 26,941
Other payables (4,409) 4,578 (3,720) 4,262
Net cash
from/(used in)
operating
activities
before tax 17,461 953 5,318 (14,189)
Tax paid (454) (1,100) (436) (933)
Net cash flows
from/(used in)
operating
activities 17,007 (147) 4,882 (15,122)
Cash flows from
investing
activities
Dividends
received 12 25 512 325
Income received
from financial
instruments
designated at
fair value
through profit
or loss 1,579 695 - -
Interest
received from
available-for-
sale debt and
other fixed
income
instruments 3,888 3,351 3,888 3,351
Interest
received from
held-to-maturity
debt and
other fixed
income
instruments 2,673 2,759 3,084 4,116
Proceeds on
disposal of
financial
instruments
designated
at fair value
through profit
or loss 4,180 7,463 - -
Proceeds on
disposal of
available-for-
sale instruments 30,411 11,401 30,411 11,299
Proceeds on
maturity of
held-to-maturity
debt and other
fixed income
instruments 17,189 25,293 47,177 25,293
Proceeds on
disposal of
property, plant
and equipment 56 439 56 431
Purchase of
financial
instruments
designated at
fair value
through profit
or loss (14,185) (14,388) - -
Purchase of
available-for-
sale instuments (11,967) (27,961) (11,967) (27,961)
Purchase of
property,
plant and
equipment and
investment property (761) (591) (755) (584)
Purchase of
intangible assets (171) (344) (168) (52)
Proceeds on disposal
of shares in
subsidiary company 450 - 450 -
Net cash flows
from investing
activities 33,354 8,142 72,688 16,218
Cash flows
from financing
activities
Dividends paid (19,064) (6,473) (19,064) (6,473)
Decrease in
debt securities
in issue (12) - - -
Maturity of
subordinated
loan stock - (19,914) - (20,000)
Issue of units to
minority interest 91 - - -
Cash used in
financing
activities (18,985) (26,387) (19,064) (26,473)
Effect of
amalgamation
of subsidiary
company on
cash and cash
equivalents - - (65,840) -
Increase/(decrease)
in cash and
cash equivalents 31,376 (18,392) (7,334) (25,377)
Effect of exchange
rate changes on
cash and cash
equivalents (5,447) 2,588 (5,447) 2,538
Net increase/
(decrease) in
cash and cash
equivalents 36,823 (20,980) (1,887) (27,915)
31,376 (18,392) (7,334) (25,377)
Cash and cash
equivalents at
beginning of
period 136,468 97,051 175,915 138,108
Cash and cash
equivalents
at end of
period 167,844 78,659 168,581 112,731
Segmental Information
a Class of business
Personal Corporate,
financial Commercial investment banking
services banking and markets Total
6 mths 6mths 6mths 6mths 6mths 6mths 6mths 6mths
to to to to to to to to
30/6/06 30/0/05 30/6/06 30/6/05 30/6/06 30/6/05 30/6/06 30/6/05
Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000
Group
Profit before
tax
Segment
operating
income 18,814 16,048 12,920 11,204 6,140 6,113 37,874 33,365
Segment
impairment
allowances (20) (174) (56) 1,128 - - (76) 954
Common costs (17,230) (15,833)
Profit before
tax 20,568 18,486
30/06/06 31/12/05 30/06/06 31/12/05 30/6/06 31/12/05 30/6/06 31/12/05
Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000
Assets
Segment
total
assets 627,968 582,512 631,162 610,844 447,074 462,518 1,706,204 1,655,874
Average
total assets 602,651 500,335 621,003 654,596 454,796 457,678 1,678,450 1,612,609
Total equity 36,359 38,261 75,517 79,806 11,333 13,634 123,209 131,701
b Geographical segments
The group's activities are carried out in Malta. There are no identifiable
geographical segments or other material concentrations.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HSBC Holdings plc
By:
Name: P A Stafford
Title: Assistant Group Secretary
Date: 27 July, 2006