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 February 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 announcement which is to be published in the
press in Malta on 17 February 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. Preliminary Profit Statement
for the year ended 31 December 2005
The preliminary profit statement is published persuant to Listing Rule 9.39 of
the MFSA Listing Authority and Article 4 (2) (b) of the Prevention of Financial
Markets Abuse (Disclosure and Notification) Regulations, 2005. Figures have been
extracted from HSBC Bank Malta p.l.c.'s Annual Report and Accounts which have
been audited by KPMG.
All figures are stated in Maltese lira, the functional currency of HSBC Bank
Malta p.l.c. The euro exchange rate ruling on 31 December 2005 was EUR1 =
Lm0.4293. The US dollar and sterling exchange rates ruling on the same day were
US$1 = Lm0.3637 and GBP1 = Lm0.6245. Average exchange rates for 2005 for euro,
US dollar and sterling EUR1 = Lm0.4299, US$1 = Lm0.3453 and GBP1 = Lm0.6285.
Review of Performance
During the year ended 31 December 2005, HSBC Bank Malta p.l.c. and its
subsidiaries generated a profit before tax on ordinary activities of Lm36.7
million, an increase of Lm3.9 million or 11.7 per cent compared with the year
ended 31 December 2004.
Profit attributable to shareholders was Lm24.1 million, an increase of Lm2.1
million on the previous year.
Earnings per share increased from a 2004 figure of 30.2 cents to 33.0 cents,
with the pre-tax return on average shareholders' funds increasing from 24.7 per
cent in 2004 to 27.6 per cent.
Tax on profit on ordinary activities for 2005 increased to Lm12.6 million from
Lm10.8 million in 2004.
Net interest income grew by 13.2 per cent over prior year and contributed Lm46.9
million to total operating income.
Non-interest income levels grew by 16.3 per cent, contributing Lm21.8 million to
net operating income.
Operating expenses were Lm32.1 million, an increase of Lm0.5 million over prior
year figures.
As a result, the group's cost:income ratio improved to 46.7 per cent from 52.5
per cent in 2004.
Net impairments reduced and recoveries contributed Lm0.1 million to
profitability.
The Board is recommending a final ordinary dividend of 19.1 cents gross per
share and a special dividend of 21.1 cents gross per share, giving a total final
dividend of 40.2 cents gross per share. The dividends will be payable to
shareholders who are on the register of shareholders as at 21 February 2006. A
gross interim dividend of 19.1 cents and a special dividend of 27.4 cents were
paid in August 2005.
The Board is also recommending a three-for-one bonus share issue. The bonus
shares will be allotted to shareholders on the register of members as at close
of trading on the Malta Stock Exchange on 18 April 2006. These bonus shares will
be available for trading by the shareholders at the opening of business on 19
April 2006.
Shaun Wallis, Director and Chief Executive Officer of HSBC Bank Malta p.l.c.
said: "2005 has been another successful year for HSBC Bank Malta p.l.c. with
strong sales growth across all our key lines of business, reflecting the
increased economic activity of our customers.
"These results were achieved by building the market leading bank in Malta with a
strong customer-driven culture and a strong sense of community spirit and social
responsibility."
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 9,700 offices in 77 countries
and territories in Europe, the Asia-Pacific region, the Americas, the Middle
East and Africa.
Income Statement for the year 1 January 2005 to 31 December 2005
Group Bank
2005 2004 2005 2004
Lm000 Lm000 Lm000 Lm000
Interest receivable and similar
income
- on loans and advances, balances
with Central Bank of Malta and
Treasury Bills 60,994 56,531 58,048 53,088
- on debt and other fixed income
instruments 13,205 12,276 12,196 11,817
Interest payable (27,327) (27,413) (27,648) (27,717)
Net interest income 46,872 41,394 42,596 37,188
Fees and commissions receivable 11,866 9,567 9,342 7,685
Fees and commissions payable (814) (765) (686) (646)
Net fee and commission income 11,052 8,802 8,656 7,039
Dividend income 473 363 22,604 5,709
Trading profits 7,206 6,562 7,215 6,552
Net income from insurance financial
instruments designated at fair
value through profit or loss 8,523 3,496 - -
Net gains on disposal of non-trading
financial instruments 1,204 1,716 1,266 1,019
Net earned insurance premium 16,236 14,198 - -
Other operating income 723 737 24 50
Total operating income 92,289 77,268 82,361 57,557
Net insurance claims incurred and
movement in policyholders'
liabilities (23,661) (17,168) - -
Net operating income 68,628 60,100 82,361 57,557
Employee compensation and benefits (20,132) (19,656) (19,203) (18,698)
General and administrative expenses (9,075) (8,590) (8,527) (8,026)
Depreciation (2,197) (2,311) (2,157) (2,253)
Amortisation of intangible assets (635) (797) (556) (616)
Other operating charges (26) (206) (6) (206)
Net operating income before
impairment reversals and provisions 36,563 28,540 51,912 27,758
Net impairment reversals 142 4,012 121 3,649
Reversals of provisions for
liabilities and other charges 1 301 1 301
Profit before tax 36,706 32,853 52,034 31,708
Tax on profit (12,642) (10,843) (17,854) (10,627)
Profit for the year 24,064 22,010 34,180 21,081
Profit attributable to shareholders
of the bank 24,057 22,010 34,180 21,081
Profit attributable to minority
interest 7 - - -
Earnings per share 33.0c 30.2c 46.8c 28.9c
Balance Sheet at 31 December 2005
Group Bank
2005 2004 2005 2004
Lm000 Lm000 Lm000 Lm000
Assets
Balances with Central Bank of
Malta, Treasury Bills and cash 77,121 106,806 77,118 106,781
Cheques in course of collection 9,727 4,458 9,727 4,458
Financial assets held for
trading 3,907 4,826 3,907 4,826
Financial assets designated at
fair value through profit
or loss 93,131 72,533 - -
Investments 224,500 238,446 254,468 268,226
Loans and advances to banks 162,882 131,283 202,332 172,363
Loans and advances to customers 1,016,084 976,296 937,813 884,868
Shares in subsidiary companies - - 20,350 19,850
Intangible assets 9,433 8,782 829 964
Property, plant and equipment 29,746 30,647 29,755 30,620
Investment property 961 346 - -
Assets held for sale 4,918 3,150 5,864 3,150
Current tax recoverable 1,895 1,372 1,607 1,310
Other assets 3,522 3,715 2,699 2,856
Prepayments and accrued income 12,868 16,486 12,945 15,716
Total assets 1,650,695 1,599,146 1,559,414 1,515,988
Liabilities
Financial liabilities held for
trading 4,050 9,917 4,050 9,917
Amounts owed to banks 22,667 48,336 22,667 48,336
Amounts owed to customers 1,367,214 1,288,618 1,381,683 1,296,687
Debt securities in issue 12 12 - -
Deferred tax liability 3,843 2,251 349 564
Liabilities to customers under
investment contracts 8,297 - - -
Liabilities under insurance
contracts issued 81,096 65,996 - -
Other liabilities 16,755 14,522 16,192 13,306
Accruals and deferred income 15,035 15,101 14,942 14,818
Provisions for liabilities and
other charges 25 26 25 26
Subordinated liabilities - 19,914 - 20,000
Total Liabilities 1,518,994 1,464,693 1,439,908 1,403,654
Equity
Called up share capital 9,120 9,120 9,120 9,120
Revaluation reserves 13,105 11,473 13,041 11,479
Other reserve 4,242 4,242 4,242 4,242
Retained earnings 104,906 109,618 93,103 87,493
Equity attributable to
shareholders 131,373 134,453 119,506 112,334
Minority interest 328 - - -
Total equity 131,701 134,453 119,506 112,334
Total liabilities and equity 1,650,695 1,599,146 1,559,414 1,515,988
Memorandum items
Contingent liabilities 51,513 44,127 51,523 44,537
Commitments 419,573 330,584 430,401 346,758
Statement of Changes in Equity for the year 1 January 2005 to 31 December 2005
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 1 January 2004 9,120 11,365 4,242 106,435 131,162 - 131,162
Release of net gains on
available-for-sale assets
transferred to the income
statement on disposal - (1,357) - - (1,357) - (1,357)
Net fair value adjustments
on investments - 615 - - 615 - 615
Surplus on revaluation of
freehold and long leasehold
properties - 850 - - 850 - 850
Net gains not recognised in
the income statement - 108 - - 108 - 108
Profit for the year - - - 22,010 22,010 - 22,010
Dividends - - - (18,827) (18,827) - (18,827)
At 31 December 2004 9,120 11,473 4,242 109,618 134,453 - 134,453
At 1 January 2005 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 1 January 2005 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 - (783) - - (783) - (783)
Net fair value adjustments on
investments - 757 - - 757 - 757
Release of revaluation reserve
on disposal of property - 30 - (45) (15) - (15)
Movement in deferred tax on
revaluation of property - 1,628 - - 1,628 - 1,628
Net gains not recognised in
the income statement - 1,632 - (45) 1,587 - 1,587
Share capital of subsidiary - - - - - 321 321
Profit for the year - - - 24,057 24,057 7 24,064
Dividends - - - (28,525) (28,525) - (28,525)
At 31 December 2005 9,120 13,105 4,242 104,906 131,373 328 131,701
Called up
share Revaluation Other Retained Total
capital reserves reserve earnings equity
Lm000 Lm000 Lm000 Lm000 Lm000
Bank
At 31 December 2003 as
previously stated 9,120 32,456 4,242 85,239 131,057
Effect of change in
accounting policy for
valuation of investment in
subsidiary companies - (21,752) - - (21,752)
At 31 December 2003 as
restated 9,120 10,704 4,242 85,239 109,305
At 1 January 2004 9,120 10,704 4,242 85,239 109,305
Release of net gains on
available-for-sale assets
transferred to the income
statement on disposal - (660) - - (660)
Net fair value adjustments
on investments - 585 - - 585
Surplus on revaluation of
freehold and long leasehold
properties - 850 - - 850
Net gains not recognised in
the income statement - 775 - - 775
Profit for the year - - - 21,081 21,081
Dividends - - - (18,827) (18,827)
At 31 December 2004 9,120 11,479 4,242 87,493 112,334
At 1 January 2005 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 - (823) - - (823)
Net fair value adjustments
on investments - 727 - - 727
Release of revaluation reserve
on disposal of property - 30 - (45) (15)
Movement in deferred tax on
revaluation of property - 1,628 - - 1,628
Net gains not recognised in
the income statement - 1,562 - (45) 1,517
Profit for the year - - - 34,180 34,180
Dividends - - - (28,525) (28,525)
At 31 December 2005 9,120 13,041 4,242 93,103 119,506
Cash Flow Statement for the year 1 January 2005 to 31 December 2005
Group Bank
2005 2004 2005 2004
Lm000 Lm000 Lm000 Lm000
Cash flows from operating
activities
Interest and commission
receipts 101,511 84,933 77,419 63,919
Interest and commission
payments (30,381) (31,843) (28,359) (30,256)
Payments to employees and
suppliers (29,547) (25,841) (27,938) (25,133)
Operating profit before
changes in operating
assets/liabilities 41,583 27,249 21,122 8,530
(Increase)/decrease in
operating assets:
Trading instruments 419 (1,742) 419 (1,742)
Reserve deposit with
Central Bank of Malta (1,823) (4,827) (1,823) (4,841)
Loans and advances to banks
with contractual maturity
of over three months (4,952) (7,079) (4,952) (7,080)
Loans and advances to
customers (41,414) (52,911) (54,538) (71,273)
Treasury Bills with
contractual maturity of
over three months 42,144 30,701 42,144 30,700
Cheques in course of
collection (5,269) 1,179 (5,269) 1,179
Other receivables (206) (1,261) (242) (1,610)
Increase/(decrease) in
operating liabilities:
Amounts owed to banks
with contractual maturity
of over three months (22,999) 14,561 (22,999) 14,560
Amounts owed to customers 67,563 25,735 73,962 27,297
Other payables 2,444 4,670 3,002 1,865
Net cash from/(used in)
operating activities
before tax 77,490 36,275 50,826 (2,415)
Tax paid (9,784) (10,412) (8,953) (9,504)
Net cash flows from/(used
in) operating activities 67,706 25,863 41,873 (11,919)
Cash flows from investing
activities
Dividends received 397 323 14,798 3,887
Interest received from
financial instruments
designated at fair value
through profit or loss 2,399 1,605 - -
Interest received from
available-for-sale debt
and other fixed income
instruments 6,821 5,083 6,821 5,083
Interest received from
held-to-maturity debt and
other fixed income
instruments 4,978 7,429 6,328 8,802
Proceeds on disposal of
financial instruments
designated at fair value
through profit or loss 9,454 4,031 - -
Proceeds on disposal of
available-for-sale
instruments 15,498 10,814 15,354 5,224
Proceeds on maturity of
held-to-maturity debt and
other fixed income
instruments 41,707 70,488 41,707 70,488
Proceeds on disposal of
property, plant and
equipment 264 57 255 47
Purchase of financial
instruments designated at
fair value through
profit or loss (21,506) (23,319) - -
Purchase of
available-for-sale
instruments (37,330) (35,332) (37,330) (30,764)
Purchase of held-to-maturity
debt and other fixed income
instruments - (57,805) - (57,805)
Purchase of property,
plant and equipment and
investment property (2,143) (1,290) (1,553) (1,244)
Purchase of intangible assets (712) (86) (421) (81)
Purchase of shares in
subsidiary companies - - (1,500) -
Net cash flows from/(used in)
investing activities 19,827 (18,002) 44,459 3,637
Cash flows from financing
activities
Dividends paid (28,525) (18,827) (28,525) (18,827)
Maturity of subordinated
loan stock (19,914) - (20,000) -
Issue of units to minority
interest 321 - - -
Cash used in financing
activities (48,118) (18,827) (48,525) (18,827)
Increase/(decrease) in cash
and cash equivalents 39,415 (10,966) 37,807 (27,109)
Effect of exchange rate
changes on cash and cash
equivalents 2,558 (1,139) 2,558 (1,139)
Net increase/(decrease) in
cash and cash equivalents 36,857 (9,827) 35,249 (25,970)
39,415 (10,966) 37,807 (27,109)
Cash and cash equivalents
at beginning of year 97,053 108,019 138,108 165,217
Cash and cash equivalents
at end of year 136,468 97,053 175,915 138,108
Segmental Information
a Class of business
Personal Commercial Corporate, Investment Total
Financial Services Banking Banking and Markets
2005 2004 2005 2004 2005 2004 2005 2004
Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000 Lm000
Group
Profit before tax
Segment operating
income 33,732 29,606 23,517 22,136 11,379 8,358 68,628 60,100
Segment impairment
allowances (507) 107 649 3,905 - - 142 4,012
Common costs (32,064) (31,259)
Profit before tax 36,706 32,853
Assets
Segment total
assets 577,333 476,124 610,844 653,122 462,518 469,900 1,650,695 1,599,146
Average total
assets 526,728 444,835 631,983 648,577 466,209 475,653 1,624,920 1,569,065
Total equity 38,261 39,451 79,806 82,069 13,634 12,933 131,701 134,453
b Geographical segments
The group's activities are carried out within 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: February 16, 2006