The initiative recognises that buying a home is one of the most important financial and personal decisions a person can make. Through its Home Finance hubs, BOV is giving customers direct access to specialist expertise, clearer guidance and dedicated support throughout their home-buying journey, with a process designed to be simpler, more transparent and more responsive to individual needs.

The Gżira Home Finance hub was officially inaugurated by CEO Kenneth Farrugia, in the presence of director Diane Bugeja, chief Personal & Wealth officer Simon Azzopardi, chief Commercial officer Simon Grech, chief Operations officer Ernest Agius, and chief People & Culture officer Ray Debattista. The hub has been serving customers since May and builds on the experience gained through the successful launch of the bank’s first Home Finance hub in Mosta earlier this year.

Speaking during the inauguration, Farrugia explained: “Personalisation is a key strategic priority for Bank of Valletta because no two customers are the same. The Home Finance hub model reflects this philosophy in a very practical way. Purchasing a home is far more than a financial transaction. It is a significant life milestone, and customers rightly expect support that reflects their individual circumstances, aspirations and needs. Our ambition is not simply to open new locations, but to create a better experience for our customers. Through these hubs, we are bringing specialist expertise closer to customers, providing greater clarity throughout the process and strengthening ownership across every stage of the journey. This is how we translate strategy into meaningful improvements that customers can see, feel and value.”

The Home Finance hub model complements the bank’s branch network by bringing home loan specialists and supporting teams into a more coordinated operating model. Stronger collaboration between branches, consumer finance, credit and other supporting functions is intended to provide a smoother, more consistent experience, reduce avoidable delays and improve communication with customers.

Azzopardi said: “The Home Finance hubs are where strategy becomes visible to customers. They enable us to offer specialist support while remaining closely connected to the wider customer journey. Customers want clarity, reassurance and confidence that they have the right support at the right moment. The hub model allows us to deliver that in a more focused and effective way, combining specialist expertise with a personal approach.”

Addressing guests, Bugeja highlighted the importance of continued investment in areas that have a direct impact on customers’ lives. “Financing a home is one of the most significant decisions many people will ever make. Customers are looking not only for competitive solutions but also for guidance, transparency and confidence that their application is being managed with care and professionalism. The Home Finance hub model strengthens our ability to offer that consistently while reinforcing the trust customers place in the bank.”

Customers visiting the Gżira Home Finance hub can discuss first-time buyer home loans, property purchase financing, buy-to-let financing, refinancing of existing home loans, affordability assessments and property-related financial planning. The hub also provides guidance on government incentives, insurance requirements and other aspects related to home ownership.

The Gżira Home Finance hub is the second of four dedicated Home Finance hubs being established by BOV. Through this strategy, the bank is strengthening its position as a leading provider of home financing in Malta while continuing to invest in personalised service, specialist expertise and stronger customer relationships at every stage of the journey.

The post BOV inaugurates second Home Finance hub in Gżira first appeared on The Malta Business Weekly.

The Group also continued to expand its third-party hotel management business through the signing of new agreements for future Corinthia-branded properties, supporting the roll-out of its asset-light strategy which is expected to underpin accelerated growth over the coming decade.

Total Group revenues exceeded the €150 million mark for the first half of 2026, with like-for-like revenue increasing by six per cent year-on-year, after excluding the Lisbon hotel following its partial sale in April 2026, as well as the ramp-up phase for the Rome Hotel which was launched midway through the period under review.

On the same basis, excluding the impact of the Lisbon sale and Rome operations, EBITDA increased by 18 per cent to €19 million, compared to the €16 million generated in the first half of 2025. This reflects the strength of the Group’s underlying operations.

Year-end forecasts indicate EBITDA to stabilise at the same level to 2025 notwithstanding lower contributions from the Lisbon asset sold in 2026. Furthermore, mid-year reported losses after tax do not include property revaluations as will be reported at the year’s end financial statements.

The period under review included some significant milestones, including

• the opening of the flagship Corinthia Rome;
• the signing of a new management agreement to operate a luxury property to be developed in Puglia, Italy; and
• the disposal of a majority interest in the Corinthia Lisbon.

The Lisbon transaction was an integral part of the Group’s strategy to monetise its real estate investments over time, with the scheduling of individual asset sales carefully managed to maximise value and returns.

The proceeds from the sale of the majority stake in the Lisbon hotel enabled the Group to allocate over €100 million towards the repayment of bank and other borrowings and to fund an €18 million interim dividend, whilst retaining the Lisbon hotel’s management agreement and a 28 per cent interest in the property.

Group Chairman Alfred Pisani said: “Our focus is increasingly on expanding the Corinthia brand internationally through development and management agreements, generating recurring fee income while relying predominantly on third-party capital for new hotel developments. This asset-light model enables the Group to leverage its development and management capabilities without committing significant capital to property ownership.

“The opening of Corinthia Rome and the addition of Puglia to the Group’s management portfolio mark further progress in the execution of this strategy. These developments build on the recent openings of Corinthia-branded hotels in New York and Bucharest, both owned by third parties and managed by the Group, as well as the Group-owned hotel in Brussels, all of which are now beginning to contribute to earnings.”

Hotel development projects are also progressing in Beverly Hills, Turks & Caicos, Dubai, Doha, Riyadh, Tuscany, Lake Como, the Maldives and Chengdu. Group companies are involved in these projects as hotel operators, development partners or providers of technical services. Virtually all of the capital required for these developments is being provided by third-party partners, underscoring both Corinthia’s strong track record as an operator and developer and the asset-light nature of the Group’s growth strategy.

The Group continues to evaluate strategic options for its other owned assets, including a potential sale of its Prague property, with a view to allocating any proceeds towards debt reduction, further dividends, and strategic capital expenditure and investments. Amendments to the Prague Metropolitan Plan, approved by the Prague City Council and due to come into effect in September, will permit residential development alongside hospitality uses on the Group’s site. These amendments are expected to enhance the property’s development potential and underlying value.

The first half of 2026 demonstrates the resilience of the Corinthia Group’s underlying business model and progress in the strategic evolution of the Group towards a development and management company.

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During the first half of this year the financial performance of the Group reflected higher core Bank Operating Income and improved operational efficiency, the bank said in a statement on the Stock Exchange.

MaltaPost p.l.c., the Bank’s main subsidiary, also contributed to this positive result with a 12% increase in Profit Before Tax, reaching €3.6 million (H1 2025: €3.2 million).

During this period a one-off share of profit recorded in 2025 from the disposal of assets by an associate company was not repeated. Earnings per Share for the period, now stand at €0.04. Gross Interest Revenues rose by 11% to €21.8 million (H1 2025: €19.7 million), primarily driven by growth in customer lending, the bank said.

Treasury activities also contributed to the increase in interest income through continued optimisation of the Bank’s balance sheet with excess liquidity being employed in Treasury Bills and higher-yielding investment-grade debt securities. Interest Expense increased by 16% to €7.7 million (H1 2025: €6.6 million), driven by both higher volumes of customer deposits and higher interest rates paid on longer-term deposits.

Net Interest Income increased by 8% to €14.2 million (H1 2025: €13.1 million). Net Fee and Commission Income rose by 31% to €3.7 million (H1 2025: €2.8 million), supported by higher business volumes, particularly across commercial and retail lending and wealth management activities. Postal Sales and other Revenues were up by 8% to €23.1 million (H1 2025: €21.4 million), driven by a steady performance across key business areas, particularly parcel and logistics-related activities.

The continued shift from traditional Letter Mail to digital communication channels persisted during the reporting period, while e-commerce and parcel-related services continued as important contributors to revenue growth, the bank said.

Operating Income improved by 9% to €41.5 million from €38.1 million in H1 2025. Employee Compensation and Benefits increased by 7% to €15.2 million (H1 2025: €14.2 million), reflecting a tight and competitive labour market.

Other Operating Costs rose by 3% to €12.9 million (H1 2025: €12.6 million), reflecting continued investment in the business, while remaining well contained through ongoing operational improvements and cost management. Cost Efficiency Ratio of the Bank improved to 49.1% (H1 2025: 54.4%), reflecting stronger income growth and continued cost discipline. At Group level, the cost efficiency ratio also improved to 72.1% (H1 2025: 74.9%).

The higher ratio, when compared with that of the Bank reflects the nature of the postal services industry, which is typically characterised by high volumes, low margins and a labourintensive operating model. Expected Credit Losses (ECL), as set by International Financial Reporting Standard 9 (IFRS 9), resulted in a lower net release of €0.04 million during the first half of the year, compared with a release of €1.0 million in H1 2025.

Financial Position and Capital Loans and Advances to Customers rose by 8% to €1,002.7 million from €929.1 million at FYE 2025. Amounts Owed to Customers increased by 3% to €1,242.4 million from €1,207.3 million at FYE 2025, the bank said.

Bank Loan-to-Deposit ratio increased to 82.9% (FYE 2025: 79.6%). The Bank continued to rely on a diversified funding base, which over the years has proven to be stable. The Bank’s liquidity ratios remained well in excess of minimum regulatory requirements. Group Total Assets rose to €1,555.0 million (FYE 2025: €1,497.6 million).

Equity Attributable to Equity Holders of the Bank increased by 2% to €227.7 million (FYE 2025: €223.7 million). Group Net Asset Value (NAV) per share stood at €1.47 (FYE 2025: €1.45). Group Earnings per Share (EPS) stood at €0.04 (H1 2025: €0.06). Group Return on Assets (ROA) was 1.0% (H1 2025: 1.1%) while Group Post Tax Return on Average Equity (ROAE) was 5.9% (H1 2025: 6.9%). Total Capital Ratio at 18.0% (FYE 2025: 19.9%) exceeded the minimum regulatory requirements. During the first half of 2026, the Group continued to focus on its strategic priorities, including investment in digital transformation, operational efficiency and customer service, the bank said.

The Bank’s planned replacement of legacy systems with a modern core banking platform and enhanced digital channels forms part of a wider programme aimed at improving service delivery, strengthening operational capacity in the areas of regulatory compliance and wealth management services, and enhancing the overall customer experience.

The Bank continued to strengthen its physical distribution channels, complemented by sustained investment in human resources and compliance. These initiatives are expected to contribute to the Bank’s long-term competitiveness while preserving the prudent and conservative business model that has historically underpinned its performance. At MaltaPost p.l.c., the traditional postal environment is expected to remain challenging, while the potential impact of Customs tariff measures on cross-border postal and logistics activities continues to unfold.

That said, MaltaPost remains on the lookout for new and diverse business opportunities. Looking ahead, the Group will continue to pursue measured growth, supported by a strong capital base, sound liquidity, and ongoing investment in technology, operational resilience and customer-facing capabilities. It anticipates sustained stability throughout the latter half of 2026, driven primarily by the continuation of its cautious business strategy, the bank said.

The post Lombard Bank Group registers €11.5 million in pre-tax profit in first half of 2026 first appeared on The Malta Business Weekly.

The bank reported a profit before tax of €44.4 million for the six months ended 30 June 2026, down from €58.7 million in the corresponding period last year. Excluding notable one-off items, adjusted profit before tax stood at €51.7 million, reflecting the impact of a lower interest rate environment, market volatility and exceptional expenses.

Despite the decline in profitability, HSBC Malta’s management emphasised that the underlying business remains strong, supported by growing customer activity, expanding lending volumes, increasing deposits and exceptionally robust capital and liquidity ratios.

Speaking following the presentation of the bank’s half-year results, CEO Geoffrey Fichte told the Malta Business Weekly that preparations for the transition to CrediaBank are progressing smoothly and remain on schedule.

“The transition is going very well,” Fichte said. “We are working very closely with HSBC Global and CrediaBank to make sure the transition is a success. We are very enthusiastic and motivated, and we are committed to a seamless transition for our customers.”

The acquisition, first announced in September 2025, will see Greek lender CrediaBank acquire HSBC Continental Europe’s 70 per cent shareholding in HSBC Malta for €200 million. The agreement was formally signed in December 2025 and remains subject to the necessary corporate and regulatory approvals.

Fichte said the bank expects regulatory approval during the final quarter of 2026, with completion anticipated approximately six months later.

“We expect the transaction to close during the second quarter of next year,” he said.

Reassurance for customers

With many customers closely following developments surrounding the ownership change, Fichte sought to reassure clients that the bank remains financially strong and fully committed to serving the Maltese market throughout the transition.

“We think clients have nothing to worry about,” he said.

Pointing to the bank’s latest financial results, Fichte noted that HSBC Malta continues to maintain the highest capital and liquidity ratios among Malta’s listed banks, with capital levels also ranking among the strongest across Europe.

“We have a very strong team that’s staying on, and we are committed to a smooth transaction. We are very much open for business, so we think clients have nothing to worry about. In fact, we hope they’ll be as excited as we are about the future.”

Addressing questions during the results presentation, Fichte also rejected suggestions that the transaction was facing delays, arguing that regulatory approval processes of this nature typically require time.

According to the CEO, the transaction is progressing faster than comparable banking acquisitions elsewhere in Europe.

He added that HSBC Malta remains confident of delivering what management describes as “a seamless transition and upgrade” under CrediaBank, with continued support from the Board of Directors.

Strong underlying performance

While reported profits declined year-on-year, HSBC Malta highlighted solid underlying business momentum across several core activities.

Net interest income fell by €4.3 million to €85.6 million, reflecting the lower interest rate environment compared with the exceptionally favourable conditions experienced in 2025.

Non-funded income also declined slightly, although fee income increased thanks to higher lending activity and stronger wealth management sales. Trading income moderated following an exceptionally strong comparative performance in the previous year.

Operating expenses increased to €65.9 million, largely driven by €7.3 million in notable items, including accelerated software amortisation and staff-related payments linked to the industrial dispute with the Malta Union of Bank Employees (MUBE).

The bank also benefited from a €6.5 million release of expected credit losses, supported by the recovery of a long-standing non-performing corporate loan and improved credit quality within its retail portfolio.

Despite continuing geopolitical uncertainty globally, HSBC noted that Malta’s domestic economy remained resilient.

Lending growth continues

The bank continued expanding lending across both retail and corporate segments despite heightened competition.

Retail lending increased by 27 per cent during the first half of the year compared with the same period in 2025, while new corporate lending surged by 75 per cent.

Business financing remained particularly strong across hospitality, real estate, retail and manufacturing, with HSBC indicating that a healthy lending pipeline is expected to support further growth over the coming months.

Although total customer loans declined marginally to €2.7 billion due to repayments and portfolio optimisation, the quality of the loan book continued improving.

Non-performing loans fell by six per cent and now stand at their lowest level in recent years.

Customer deposits remained broadly stable at €6.2 billion, with retail deposits increasing despite seasonal reductions in corporate balances.

Strong capital position

Perhaps the bank’s strongest message was its continued financial resilience.

HSBC Malta reported a Common Equity Tier 1 capital ratio of 24.7 per cent and a total capital ratio of 27.8 per cent as at 30 June 2026, comfortably exceeding regulatory requirements.

Liquidity also remained exceptionally strong, providing the bank with significant capacity to continue supporting customers while navigating the ownership transition.

Reflecting this strength, the Board declared another quarterly interim dividend of €0.043 gross per share, amounting to €15.5 million.

Combined with the first-quarter dividend of €0.036 per share, shareholders will receive total gross dividends of €0.079 per share for the first half of 2026, equivalent to €28.5 million.

The latest payment represents a 60 per cent payout of adjusted profits after accounting for employee benefit expenses related to the industrial dispute.

Wealth and insurance

HSBC Malta also continued strengthening its wealth management and insurance businesses.

Wealth investment sales recorded double-digit growth year-on-year as customers increasingly sought long-term savings and investment products.

During April, the bank introduced eight additional Target Dated Funds to its HSBC Life pension platform, expanding retirement planning options for customers.

HSBC Life Assurance (Malta) reported profit before tax of €1.9 million compared with €6.5 million during the same period last year, reflecting more challenging market conditions and movements in financial markets.

Nevertheless, the insurer maintained a strong solvency ratio of 252 per cent while continuing to generate new business across protection and long-term savings products.

Continuing investment

Alongside financial performance, HSBC Malta continued investing in customer service and infrastructure.

The refurbishment of its Rabat branch was completed during the first half of the year, while modernisation works have commenced at the Gżira branch.

The bank also maintained investment in digital services, customer support and credit processing, while continuing marketing initiatives focused on lending, wealth management and insurance solutions.

Within corporate banking, HSBC renewed its Gold Sponsorship Agreement with The Malta Chamber of Commerce, Enterprise and Industry, reaffirming its support for Malta’s business community.

Earlier this year, HSBC Malta was also recognised with the Environment and Resources Authority’s Corporate Award for Environmental Innovation and Sustainability for the €30 million sustainable redevelopment of its Qormi headquarters.

Looking ahead

As HSBC Malta prepares for its next chapter under CrediaBank ownership, management believes the bank is entering the transition from a position of considerable financial strength.

“Our adjusted profit, strong capital and liquidity ratios, growing transaction volumes and continued momentum across customer acquisition and lending leave us well positioned for the future,” Fichte said.

With regulatory approval expected later this year and completion targeted for the second quarter of 2027, HSBC Malta says its immediate priorities remain unchanged: supporting its 180,000 customers, maintaining business growth and ensuring a smooth transition for employees, customers and shareholders alike.

The post HSBC Malta posts resilient first-half results as CEO expects CrediaBank takeover to close in Q2 2027 first appeared on The Malta Business Weekly.

The MSE Equity Total Return Index (MSE) closed the month higher by 0.8%, to settle at 9,988.394 points. A total of 30 equities were active, as nine advanced and 18 declined. Total monthly turnover reached €5.4m, generated across 884 transactions. Since the beginning of the year the MSE is up by 12.2%.

The MSE Corporate Bonds Total Return Index closed 0.9% higher, as it reached 1,164.118 points. Out of 110 active issues, 71 headed north, while another 26 closed in the opposite direction. The 4% Stivala Group Finance plc Secured € 2027 recorded the best performance, up by 3.1%, to close at €99. Conversely, the 4% Shoreline Mall plc Secured € 2026 closed 28.2% lower at €70.

The MSE MGS Total Return Index declined by 0.3%, closing at 967.606 points. Out of 40 active issues, nine traded higher while another 31 declined. The 1.4% MGS 2046 headed the list of gainers, as it closed 2.1% higher at €60.64. On the other hand, the 1.8% MGS 2051 closed 3.4% lower at €59.63.

Top 10 Market Movers

Bank of Valletta plc posted a 4.3% monthly gain, settling at its monthly high of €2.17 after dipping to a low of €2.07 during the period. The banking equity was the most liquid of the month, with 1,149,508 shares crossing the market across 222 transactions, generating €2.4m in turnover.

APS Bank plc closed higher for the fourth consecutive month. The banking equity gained 1.8% to finish at €0.58, climbing off a monthly low of €0.55. A total of 290,814 shares were dealt across 86 transactions, with €166,566 recorded in turnover.

Having declined 13.5%, FIMBank plc ended the month at its low of $0.16. The USD-denominated equity saw 172,193 shares dealt across 15 transactions, with $25,130 changing hands.

Having now registered losses in three consecutive months, Lombard Bank Malta plc dropped a further 5.6%, closing at €0.68 after ranging between a low of €0.655 and a high of €0.73. A total of 21 transactions of 59,657 shares were executed.

International Hotel Investments plc closed the month on a high, as the equity of the hotels’ operator rallied 7.3% to close at €0.585, recovering from a low of €0.545. Across 48 deals, €132,880 in turnover was recorded, involving 238,234 shares.

Mapfre Malta plc advanced 8.4% over the month, closing at €1.42 after recovering from a low of €1.33. A total of 22,258 shares were transacted across 11 deals, producing €31,572 in trading value.

Malta International Airport plc edged 0.8% higher over the month, closing at its monthly high of €6.25 after dipping to a low of €6.05. A combined 59,007 shares changed hands across 50 deals, bringing total turnover to €364,796.

Among the month’s notable decliners, Simonds Farsons Cisk plc shed 8.2% to close at €5.60, having reached a high of €6 earlier in the period. A total of 19,328 shares were dealt across 28 transactions, amounting to €108,834 in traded value.

PG plc tanked 6.1% over the month, closing at €1.55 after trading as high as €1.65. The consumer staples equity saw 160,672 shares dealt across 26 transactions, with total traded value reaching €256,453.

Having fallen 8.2% from a high of €0.438, Malita Investments plc closed the month at €0.38, its monthly low. A total of 79,158 shares were transacted across 13 deals, amounting to €31,514 in turnover.

Company Announcements

Bank of Valletta plc has announced that during the six-month period ended June 30, 2026, the Group registered operating income of €251.3m, up 3% from €244m in the corresponding period, driven by higher net interest income from continued growth in the lending book. Profit after tax nonetheless fell to €79m from €89.5m, a decline of 11.8%, for basic earnings of €0.1231 per share, primarily reflecting a net credit loss charge in the period against a release in the prior year, together with higher operating costs arising from ongoing investment in staff, technology and regulatory initiatives. The Board declared an interim net dividend of €0.0523 per share, representing a payout ratio of 42.5% of profit after tax, payable on August 21, 2026.

APS Bank plc has announced that, at its board meeting held on July 30, 2026, the Board approved the Group’s condensed interim financial statements for the six-month period ended June 30, 2026. The Group delivered a record interim result, with profit after tax rising to €16.3m from €4.9m in the corresponding period, for earnings of €0.0082 per share. The strong performance was driven by robust growth in business volumes and a stronger, more diversified revenue base. The Board declared an interim net dividend of €4m or €0.0082 per share.

During thesix months ended June 2026, Malta International Airport plc has generated revenue of €82.5m, up 14.8% from €71.9m in the corresponding period, driven by a 15.6% increase in traffic to 5.2m passenger movements, while profit after tax rose to €29m, an increase of 18.5%. The Board approved an interim net dividend of €0.06 per share.

For thesix months ended June 2026, Mapfre Malta plc registered profit after tax of €9.2m, down from €9.8m in the corresponding period, for earnings of €0.07 per share. The reduction was primarily attributable to a lower insurance service result, reflecting the impact of Storm Harry and the fireworks factory explosion earlier in the year as well.

Malta Properties Company plc registered rental income of €2.9m for the six months ended June 30, 2026, up 29% from €2.3m in the corresponding period, driven mainly by the renovation and re-letting of previously vacant properties to new tenants. Profit after tax more than doubled to €1m from €0.5m.

Plaza Centres plc (PZC) has entered into a promise of sale agreement to acquire a property in Tigné, Sliema. The property is leased to an established childcare operator, and the acquisition is expected to enhance the Company’s earnings upon completion. The transaction remains subject to several conditions that must be satisfied by the seller. The Board believes the acquisition aligns with the Company’s strategy of strengthening and diversifying its property portfolio and will update the market on any material developments.

AX Group plc has announced that, by virtue of a deed dated July 15, 2026, its majority-owned subsidiary AX Business Park Limited acquired an immovable property in Marsa measuring circa 6,923m² from Marsa Investments Limited, previously used as the match box factory known as “The Modern Match Factory Marsa”. The total consideration of €15m was paid in full upon execution of the final deed of sale. The acquisition consolidates the adjacent properties already owned by AX Business Park Limited, with the Group currently working on plans for the development of the overall site and a development application to be submitted to the Planning Authority soon.

RS2 plc has announced that its wholly owned subsidiary, RS2 Financial Services GmbH, has been selected by the Euro system to participate as an acquiring payment service provider in the European Central Bank’s Digital Euro Pilot. The subsidiary is one of 36 payment service providers selected for the programme, which is intended to test the practical application of a potential digital euro in real-world payment scenarios and is expected to commence during the second half of 2027.

This article, which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a Member of the Malta Equity Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited, 16 Central Business Hub, Level 3, Mdina Road, Attard ATD 9036, or on Tel: 21224410, or email info@jesmondmizzi.com

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The R&D expenditure was primarily dedicated to Basic Research, which accounted for 42.3% of total R&D in 2024, followed by Applied Research (30.7%) and Experimental Development (27%). 

Both the Business sector and the Government sector reported an increase in R&D expenditure compared to 2023. The highest increase in outlay of €21.5 million was registered under the Business sector while the Government sector increased by €0.8 million. The Higher Education sector reported a decrease of €3.2 million. Labour costs represented 67% of total R&D expenditure, followed by Other recurrent expenditure (24.3%) and Capital expenditure (8.7%).

The highest R&D expenditure by scientific field was recorded in Engineering and technology, which accounted for 56.1% of total expenditure, followed by Medical sciences (15.8%) and Natural sciences (11.1%). Most of the R&D activity in Engineering and technology and Medical sciences was undertaken in the Business Enterprise sector, whereas research in relation to Social sciences and Humanities was mainly carried out by the Higher Education sector.

Year-on-year comparisons show that the highest increase was registered in Engineering and Technology (€16.7 million), followed by Medical sciences (€9.7 million). These increases outweighed a decrease of €11.4 million in Natural sciences.

Each sector mostly funds its own research, supplemented by foreign funds. R&D in the Business Enterprise sector is mainly funded by local business enterprise funds, General university funds are directed to the Higher Education sector and Direct government funds service the Government sector. Foreign funds for R&D reached €10.2 million, or 7.3%, of total funds.

R&D employment

3,760 employees were engaged in R&D work, of whom 2,148 spent a portion of their time on R&D projects, while the remaining 1,612 employees dedicated their entire working time on R&D projects. The highest R&D employment was registered in the Business Enterprise sector, at 1,864 employees, followed by the Higher Education sector, with 1,800 employees.

Male employment was predominant among researchers and technicians. Females accounted for 36% of total R&D employment.

With regard to R&D employment by major field of science, the highest employment was recorded in Engineering and technology with 1,906 employees, followed by Social and Natural sciences, with 634 and 459 employees respectively.

R&D government budget allocations

The government budget allocations for R&D (GBARD) for 2025 amounted to €42.3 million, a decrease of €0.3 million when compared to 2024. The highest GBARD outlay was recorded in General advancement of knowledge: R&D financed from General University Funds of €25.2 million.

The post Total expenditure on Research and Development amounted to €140.2m in 2024 first appeared on The Malta Business Weekly.

This increase in debt was partially offset by a drop in Foreign Loans (€80.1 million) and in the 62+ Malta Government Savings Bond (€37.8 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.7 million, the NSO said.

By the end of June, the government’s Consolidated Fund reported a deficit of €463.5 million.

Between January and June, Recurrent Revenue amounted to €4,155.2 million, €681 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€287.7 million), Grants (€156.8 million) and Value Added Tax (€137.4 million). On the other hand, lower revenue was recorded under Fees of Office (€13.8 million), Reimbursements (€2.1 million) and Sales – Others (€0.9 million).

Total expenditure by the close of June stood at €4,618.7 million, €687.1 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €3,952.9 million, an increase of €506.5 million compared to the €3,446.4 million reported the year prior. The main contributor to this increase was a €262.2 million rise reported under Programmes and Initiatives. Further increases were also recorded under Operational and Maintenance Expenses (€96.3 million), Personal Emoluments (€82.6 million), and Contributions to Government Entities (€65.5 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€88.1 million), Medicines and surgical materials (€25.7 million) and EU own resources (€24.4 million).

The interest component of the public debt servicing costs totalled €158.5 million, an increase of €14.6 million when compared to the previous year.

By the end of June, government’s capital spending amounted to €507.3 million, €165.9 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the Acquisition of property for public purposes (€49.1 million), Property, Plant and Equipment (€18.6 million) and Road construction and improvements (€15 million). The rise in spending was partially offset by drops recorded under the Investments in Physical Assets (Agricultural EU funds) (€5.3 million) and Investment Incentives (€5.1 million).

The difference between total revenue and expenditure resulted in a deficit of €463.5 million being reported in the government’s Consolidated Fund at the end of June, in comparison to the €457.4 million deficit registered the year prior. This difference mirrors an increase in total Recurrent Revenue (€681 million), offset by a higher rise in total expenditure, which consists of Recurrent Expenditure (€506.5 million), Interest (€14.6 million) and Capital Expenditure (€165.9 million).

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While several sectors experienced a moderation in growth, the Central Bank noted that the overall picture remains one of resilience, supported by strong consumer confidence, a robust labour market, healthy tourism activity and relatively stable conditions in the property market.

The Bank’s Business Conditions Index showed that annual growth in business activity during June was slightly below its historical average. However, this was largely attributed to timing effects related to tax revenue rather than a broad-based slowdown in economic performance.

Manufacturing and retail trade both registered slower growth during May, while services production eased in April. Nevertheless, activity in all three sectors remained above their respective long-term averages, suggesting that underlying economic conditions continue to be favourable.

Tourism continued to stand out as one of the strongest performing sectors, recording sustained growth during May and providing continued support to the wider economy.

One of the report’s most encouraging findings was the sharp improvement in consumer sentiment. Confidence among consumers rose significantly during June, reaching levels close to historic highs. At the same time, expectations regarding unemployment declined further, falling below their historical average and reflecting continued optimism about labour market conditions.

The labour market itself remained exceptionally strong. Malta’s unemployment rate stood unchanged at 3.5% in June compared with the previous month, although marginally higher than the exceptionally low level recorded during the same period last year.

Inflationary pressures also continued to ease. Annual inflation based on the Harmonised Index of Consumer Prices (HICP) declined from 2.1% in May to 2.0% in June, placing Malta comfortably below the euro area average, where energy prices continued to exert upward pressure on inflation. Core inflation, which excludes food and energy, stood at 2.2% and likewise remained below the euro area figure.

Meanwhile, the Retail Price Index (RPI) showed inflation easing further to 2.5% during June, reinforcing signs that price pressures are gradually moderating.

The property market continued to display resilience despite mixed signals. On the supply side, approved permits for residential developments increased compared with the same month last year, while commercial building permits declined. Demand indicators presented a mixed picture, with residential promise-of-sale agreements falling year-on-year during June, although final deeds of sale increased, suggesting that completed transactions remain healthy.

On the public finance front, the Consolidated Fund recorded a deficit in May, contrasting with a surplus during the corresponding month in 2025. The Central Bank attributed this primarily to the timing of income tax receipts together with increased capital expenditure by government.

Financial conditions also remained broadly supportive. The annual growth rate of deposits held by Maltese residents accelerated during May, while credit growth remained broadly unchanged from April, indicating continued stability in household and business financing.

Overall, the Central Bank’s latest assessment suggests that while the pace of economic expansion has moderated, Malta’s economy continues to demonstrate solid underlying fundamentals. Strong consumer confidence, resilient employment, easing inflation and sustained tourism activity continue to underpin economic performance, even as certain sectors return to more sustainable growth rates.

The post Malta’s economy holds firm despite slower momentum, CBM says first appeared on The Malta Business Weekly.

This increase in debt was partially offset by a drop in Foreign Loans (€80.1 million) and in the 62+ Malta Government Savings Bond (€37.8 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.7 million, the NSO said.

By the end of June 2026, the Government’s Consolidated Fund reported a deficit of €463.5 million.

Between January and June 2026, Recurrent Revenue amounted to €4,155.2 million, €681.0 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€287.7 million), Grants (€156.8 million) and Value Added Tax (€137.4 million). On the other hand, lower revenue was recorded under Fees of Office (€13.8 million), Reimbursements (€2.1 million) and Sales – Others (€0.9 million).

Total expenditure by the close of June 2026 stood at €4,618.7 million, €687.1 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €3,952.9 million, an increase of €506.5 million compared to the €3,446.4 million reported the year prior. The main contributor to this increase was a €262.2 million rise reported under Programmes and Initiatives. Further increases were also recorded under Operational and Maintenance Expenses (€96.3 million), Personal Emoluments (€82.6 million), and Contributions to Government Entities (€65.5 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€88.1 million), Medicines and surgical materials (€25.7 million) and EU own resources (€24.4 million).

The interest component of the public debt servicing costs totalled €158.5 million, an increase of €14.6 million when compared to the previous year.

By the end of June 2026, Government’s capital spending amounted to €507.3 million, €165.9 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the Acquisition of property for public purposes (€49.1 million), Property, Plant and Equipment (€18.6 million) and Road construction and improvements (€15.0 million). The rise in spending was partially offset by drops recorded under the Investments in Physical Assets (Agricultural EU funds) (€5.3 million) and Investment Incentives (€5.1 million).

The difference between total revenue and expenditure resulted in a deficit of €463.5 million being reported in the Government’s Consolidated Fund at the end of June 2026, in comparison to the €457.4 million deficit registered the year prior. This difference mirrors an increase in total Recurrent Revenue (€681.0 million), offset by a higher rise in total expenditure, which consists of Recurrent Expenditure (€506.5 million), Interest (€14.6 million) and Capital Expenditure (€165.9 million).

The post Government debt edges closer to €12 billion – NSO first appeared on The Malta Business Weekly.

The Dear CEO Letter provides greater transparency on the work undertaken by the Insurance and Pensions Supervision Function (IPS) in reviewing quarterly and annual financial regulatory returns submitted by (Re)Insurance Undertakings. The publication also outlines the MFSA’s supervisory expectations relating to financial reporting, solvency monitoring, governance and data quality.

(Re)Insurance Undertakings are required to submit a range of financial regulatory returns to the MFSA, including management accounts, quantitative reporting templates, solvency reports and audited financial statements. These submissions support the authority’s ongoing assessment of firms’ financial strength, risk exposure and long-term solvency.

The Dear CEO Letter explains the supervisory review process applied by the MFSA’s Financial Analysts, including risk assessments, solvency analysis, review of key performance indicators, investment portfolio oversight, and the assessment of intra-group and related party transactions.

Particular emphasis is also placed on the importance of accurate, complete and consistent regulatory reporting. The MFSA notes that high-quality data remains essential to effective supervision, financial stability monitoring and collaboration with the European Insurance and Occupational Pensions Authority (EIOPA).

The publication further outlines the authority’s expectations for (Re)Insurance Undertakings when preparing and submitting quarterly and annual financial regulatory returns. These expectations include enhanced narrative reporting, detailed financial breakdowns, updated rolling budgets, and strengthened governance and sign-off procedures.

Commenting on the publication, MFSA head of Insurance and Pensions Supervision, Ray Schembri, stated: “A financially sound and solvent (Re)Insurance Undertaking plays a vital role in safeguarding the public interest by ensuring that claims are honoured, economic stability is preserved, and trust in the insurance market is upheld. In this context, the MFSA’s responsibility to deliver strong and effective regulatory oversight is central to maintaining confidence, resilience, and integrity across the insurance sector.”

The Dear CEO Letter forms part of the MFSA’s ongoing efforts to strengthen regulatory engagement with the insurance market, promote supervisory transparency, and reinforce prudent financial and solvency practices across the sector.

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