BOV Branches will now open from Monday to Friday between 8.30 am and 1.30 pm.  Cheque encashment and cash withdrawals will be accepted until noon as per normal pre-COVID procedures. All current procedures with regards to cashiering services and safety measures including limiting the number of customers inside the branch at any one time remain in force.  The Bank reminds its customers to avoid queuing and use ATMs at any time of the day for their cash requirements. Better still, customers should as much as possible opt to use the safer contactless payments such as BOV Cards, BOV Pay, BOV Mobile and Internet Banking.

“All throughout this pandemic we have been in close contact with the government and local health authorities. Any decisions we have taken, were taken to safeguard both our customers and employees. We adjusted our processes and procedures and opened new channels to ensure wider accessibility for our customers,” declared BOV CEO Rick Hunkin. “We have a large team of people working behind the scenes delivering banking services to customers at their homes, where previously these customers would have been required to visit a branch.” 

Mr Hunkin continued, “So while we reduced traffic towards physical branches, we offered alternatives for customers to stay safe and get served.  I am happy to say that these channels have worked so well during these past couple of months, that we shall continue using them.  In fact, I urge customers who require non-cashiering services to set up appointments with our branches so that they do not stay waiting in the queue and reduce contagion and exposure risks.” 

Customers can set up appointments for any non-cashiering services such as home loans, personal loans, investments, bank cards and internet banking applications by sending an email to info@bov.com with the type of service required, mobile number, ID Card number and preferred branch or by calling on +356 2275 3500 Monday to Friday 8am to 4pm.

Bank of Valletta is currently operating 28 branches, making it the largest network accessible to customers.  While a number of branches will remain temporarily closed due to staffing issues, the Bank is, on a roster basis, opening such branches on Saturdays to limit inconvenience to its customers.

The BOV CEO concluded, “The increase in our opening hours takes us another step towards normality. It is regretful that we are still not in a position to open all our branches as we still need to support our staff who are either in the vulnerable category or have young children to look after and thus have no other alternative but to work from home.  We will continue to support and protect our employees as required, while at the same time do all our utmost to continue supporting and serving our customers and all our stakeholders in the best possible way during these unprecedented times.”

The post Bank of Valletta increases its branch opening hours first appeared on The Malta Business Weekly.

“We evaluated a considerable number of vendors to partner for the PSD2 solution deployment and managed to find only one that was extremely knowledgeable and offered a hands-on approach. That was Fiorano with PSD2 Accelerator. They are assisting us in every step of the way with the local regulators and their assistance in understanding the regulation is essential in driving the project successfully,” said Gordon Briffa, Head of ICT at Izola Bank.

Izola Bank chose the Fiorano PSD2 Accelerator — a single preintegrated technology stack — for its capability to deliver ASPSP interfaces while addressing technical considerations for access to account, strong customer authentication, common and secure channels of communication, TPP identity and regulatory checking. Izola expects Fiorano to be substantially reducing implementation time, cost and uncertainty risks related to PSD2 by eliminating multiple products, installations and integration points.

Izola Bank was established in 1994 and today provides internet banking to customers in Belgium, France and Malta. The company says it has invested “heavily” in its IT and ebusiness infrastructure to ensure reliability and security of transactions.

Fiorano is a US Silicon Valley-based business founded in 1995 and provides digital business backplane and enterprise integration middleware, high performance messaging and peer-to-peer distributed systems, API management and banking solutions. Global companies including NASA, AT&T Wireless, Federal Bank, Bank of Kigali, Commercial Bank of Africa, Canadia Bank and the NHS have deployed Fiorano’s solutions.

The post Izola Bank teams up with Fiorano Software on compliance first appeared on The Malta Business Weekly.

Mr Beane says that the closure of the branches comes after the local board had spent quite some time analysing the changing behaviour of HSBC Malta customers, as well as the emerging technological solutions reshaping the banking industry globally — one vertical of many, if not all, that is being upturned by connectivity on the go and top-notch tech at our fingertips.

“Customers are leading different lives. People are now globally doing 80% of their transactions digitally. In Malta, this translates to a 60% year-on-year increase, and a 10% year-on-year decrease in traditional transactions. You have to organise your business around that,” Mr Beane tells Business Malta. In fact, HSBC Malta has recently revamped its mobile application, launched a new internet banking platform and has streamlined the onboarding process of new customers.

Despite technology storming into industries and forcing businesses to rethink operations at their core, the HSBC Malta CEO says that branches will not go extinct in the future. “It is not our vision that banks will become totally digital. Actually, I think successful banks will be a blend of the best of digital and the best of human beings. Branches will remain important.”

“We have looked at the range of services that we want to offer and we have looked at the cost that we can afford to invest in them. This is a considered strategic decision by the local board.”

HSBC Malta CEO Andrew Beane

Nevertheless, he insists HSBC Malta envisages a banking landscape offering a fine balance between more digital services and less — but more efficient — physical branches.

“The branches that we have will be different; I genuinely believe in a better way for customers and colleagues. There will be a number of roles that we will reduce, but that will be on a voluntary basis; which means that it is subject to discussion with the Malta Union of Bank Employees [MUBE], which we can only start now,” according to the CEO.

“It is about having better branches, but less of them in an absolute sense. What you will see when you see our flagship branch in Qormi next year that it will be different with more services and more flexibility. I think it will have a better customer experience to it. So it is not as simple as saying some branches are closing, actually it is about building a sustainable model for the future,” Mr Beane adds.

Keeping staff in house

Closures always create inflated headlines, especially in business news. While such news can easily cause concern among investors, it can also jolt staff working at the closing-down facilities into insecurity about their future. Still, Mr Beane tells Business Malta that HSBC is negotiating with MUBE, and is ready to assist staff through this period.

“Colleagues, if they are interested in, applying for early retirement can do so. No one will be asked to do what they do not want to. If somebody works in an area that is changing and they do not want to do that, we would work with them to allocate them for a new job in the organisation,” the HSBC Malta CEO says.

When asked whether the bank would consider training colleagues to fill new roles in the organisation, the CEO did not sweep the idea off the table. “We are delighted to work with people and teach them new skills and help them grow and flourish as individuals.”

Nevertheless, the CEO did not give a figure on how many people might be affected in the seven branches that are closing down — as the Balzan branch is said to be merging with a “flagship” branch being established in Qormi.

“We have only just started the negotiation with the union and we want to respect their opinion. At the same time, as I mentioned before, the programme will be voluntary” and at this point, it is yet unclear what the intentions of staff will be.

When asked whether it is coincidental that HSBC Malta’s announcement of closing branches comes after the Financial Times reported that HSBC could be laying off 10,000 people globally, Mr Beane insisted that the decision was a local one.

“This is a decision that the board has been thinking about for some time. One of the board’s roles is to look at the macro trends that are changing the way that the customers behave. We have looked at very carefully how digital trends that we have seen in other countries are now affecting Malta,” Mr Beane says.

“We have looked at the range of services that we want to offer and we have looked at the cost that we can afford to invest in them. This is a considered strategic decision by the local board,” Mr Beane concludes.

In a recent editorial, the Financial Times says that it appears to be in the HSBC group’s “DNA to be ahead of the curve” in crucial decisions players of the banking sector would need to make related to changing customer behaviour and changing economic trends. “All of that comes on top of slowing global growth and the mounting pressure on lending margins from looser monetary policy,” the Financial Times editorial says.

The post HSBC Malta CEO says ‘strategic considerations’ lead to closures, insists on ‘voluntary’ job reductions first appeared on The Malta Business Weekly.

“I have worked closely with Rita in the past, and I have full confidence in her capacity to enhance and support the work carried out by the association in these increasingly challenging times for the banking industry,” said MBA Secretary-General Karol Gabarretta.

Ms Sammut Buontempo holds an Honours and a Masters degree, both in accountancy, as well as she is a Certified Public Accountant and Fellow of the Malta Institute of Accountants (MIA). Beyond having worked in the banking industry, she also has experience in the field of property management where she worked as a finance manager.

After joining Mid-Med Bank Ltd in 1984, she worked in regulatory, finance, credit and retail banking. In 1999 — the same year when HSBC bought 70.03% of Mid-Med Bank in June and changed the name to HSBC Bank Malta — Ms Sammut Buontempo became a senior manager with HSBC Bank Malta Plc, specialising chiefly in regulatory and finance, until 2014 when she took early retirement from the bank.

In 1998, Ms Sammut Buontempo headed the technical delegation, representing Mid-Med Bank Plc, on the Malta Financial Services Authority (MFSA) Technical Working Group, which implemented the Capital Requirements Directive BD08. From 2005-2006 she headed the technical delegation representing HSBC Bank Malta Plc on the Malta Financial Services Authority (MFSA) Technical Working Group, which implemented the Basel II regime (EU Directive – Recast 2000/12).

Subsequent to her banking career, Ms Sammut Buontempo also worked in the field of banking advisory services in senior managerial positions with KPMG Malta and Deloitte Malta, respectively.

The post MBA appoints new Assistant Secretary-General first appeared on The Malta Business Weekly.

During the summer, interns from JAYE Malta Foundation and MCAST spent time at HSBC, learning about the functions at the bank’s retail and commercial businesses, customer service operations, accounting, communications, business technology services, marketing, human resources, and other areas. Interns also had the chance to meet members of the senior leadership, in addition to their dedicated mentors, who supported the interns on a daily basis.

“We are incredibly happy with the work of our talented interns and dedicated employees this summer,” said HSBC Malta Head of HR Caroline Buhagiar Klass. “Our 22 interns came from diverse backgrounds, but all shared a passion for the constructive impact of banking on social and personal prosperity. We hope we have instilled in them an expanded world view and a willingness to contribute positively to the society in which they will be active citizens in the coming future,” said Ms Buhagiar Klass.

HSBC tags its Future Skills programme as a key part of its updated sustainability strategy.

The post HSBC’s third internship programme educates 22 interns first appeared on The Malta Business Weekly.

Common equity Tier 1 capital ratio rose to 16.2% by the end of H1, up from 14.6% at the end of 2018, which the bank says is “well above regulatory requirements”. The total capital ratio increased to 18.8% compared to 17.0% on 31 December 2018.

HSBC Malta’s cost efficiency ratio improved to 73% by end-June from 74% for the same period in 2018. However, return on equity dropped to 5.8% for the six months ended 30 June 2019, from 6.1% for the same period in 2018.

Net loans and advances to customers were up by €73m to €3.183b, as compared to 31 December 2018 with strong growth across the RBWM mortgage portfolio and marginal growth in the commercial lending book.

Customer deposits, however, dropped by 1% €38m to €4.850b compared to 31 December 2018 with increases in retail deposits offset by a reduction in commercial banking deposits. The bank says it maintained a “healthy” advances-to-deposits ratio of 66% and its liquidity ratios were well in excess of regulatory requirements.

The bank’s financial investments portfolio increased by €53m to €958m and composed of highly-rated securities and is conservatively positioned with the lowest investment grade of A-, the press statement sent to BM says.

Profit attributable to shareholders amounted to €13.6m resulting in earnings per share of 3.8 cents compared with 4.0 cents in the first half of 2018. The board proposes to maintain the current dividend payout ratio of 30% and recommends an interim gross dividend of 1.7 cents per share — 1.1 cents per share net of tax. The interim dividend will be paid on 18 September to shareholders who are on the bank’s register as at 16 August.

‘Good set of results’

“These are a good set of results as the bank emerges from the implementation of its successful risk management strategy with increasing momentum. Strategically we are now focused on the delivery of world-class customer service to support growth,” said Andrew Beane, Director and Chief Executive Officer of HSBC Bank Malta Plc.

“Progress in retail banking is ahead of expectations with significant market share gains achieved in new customer acquisition and home loans without increasing risk appetite. Retail banking will also benefit from a number of digital innovations the bank will launch in the second half of the year,” the CEO added.

Net interest income (NII) decreased marginally to €53.6m compared with €54.1m in the same period in 2018 with contraction in the commercial bank loan book interest and a further decline in the average yield on the investment book. The decline was largely offset by the growth in NII within the mortgage book and effective management of excess liquidity, HSBC says.

Non-interest income (fees and commissions and trading income) dropped by €0.6m, which is largely driven by a reduction in fees due to the disposal of a specific insurance portfolio in December 2018 and a reduction in management fees within the Asset Management Company partly offset by strong performance in foreign exchange.

HSBC Life Assurance Malta Ltd reported a profit before tax of €2.4m, some 39% higher than the same period of 2018. The increase was partly driven by positive market movements in 2019 which were not seen in the first half of 2018. In addition, the insurance subsidiary registered a 2% increase in premium income, as a result of the growth in pensions posts the launch of the new Employee Pension Plan to all HSBC Bank Malta employees in December 2018.

“Following completion of significant risk management actions, commercial banking has now stabilised and the performance of our insurance company improved. Both of these divisions require further work to increase profitability and are a strategic focus for the board. We have launched a quarter of a billion euro lending fund to signal to the market that our commercial division has returned to a growth focus,” the CEO said.

Dropping expenses

Operating expenses dropped by 2% to €53.6m compared with €54.9m in the same period in 2018. HSBC says that this reduction reflects the bank’s continuous focus on cost control and the implementation of initiatives at cost base streamlining through outsourcing and processes optimisation.

Expected Credit Loss (ECL) was a release of €1.0m versus a charge of €3.4m in 2018. Results of the first half benefited from the non-reoccurrence of the significant ECL seen in 2018. The bank says it continues to maintain a conservative provisioning approach. Overall asset quality remained satisfactory and total nonperforming loans further declined from €136m to €125m during the first six months of 2019.

“Progress on costs is encouraging and the bank is committed to further reduce its cost-efficiency ratio over time. Additionally, HSBC’s signature credit discipline has delivered further reductions to the risk profile of our portfolio. While Malta’s economic performance and outlook remain positive, we are positioning the bank for the long-term economic cycle and remain cautious in growing exposure to higher risk sectors such as corporate real estate,” Mr Beane said.

“We welcome actions being taken by the local authorities to reform corporate insolvency practices and augur this be completed at pace. The bank’s capacity to better use its capital to support lending into the economy and, if appropriate, higher dividends will significantly increase once these reforms are concluded,” the CEO he added.

The effective tax rate in the first half of the year came to 35%, which translated into a tax expense of €7.3m, some €5.5m higher than the same period in 2018. During the first six months of 2018, the bank benefited from a specific tax treatment applied on a one-off transaction.

“Finally, as is the case with all Domestic Systemically Important Banks in the Single Supervisory Mechanism, HSBC is in early-stage discussions with the European Central Bank Single Resolution Board to understand the requirements that will apply for new Required Eligible Liabilities, commonly known as MREL. MREL is likely to further increase capital requirements for the sector and the bank intends to provide more detail with the 2019 annual results as these requirements become clearer,” Mr Beane concluded.

EDITORIAL NOTE: The present article has been updated by adding HSBC Malta CEO Andrew Beane’s photo as the cover picture.

The post HSBC Malta’s pretax profit jumps 30% to €20.9m in H1 first appeared on The Malta Business Weekly.

“With Michel, Joyce and Gerard’s appointments we are clearly signalling that following completion of our successful risk management programme, HSBC is now increasing focus on growth. I am also proud that in line with our merit-based commitment to diversity and inclusion, two of HSBC’s three business divisions are led by talented female executives,” said Andrew Beane, HSBC Malta’s Chief Executive Officer.

Appointed Chief Risk Officer in April 2013, Ms Grech has worked with HSBC for 22 years. During her career, she has undertaken a number of roles, principally in Malta. She started her career in trade finance and commercial banking before moving to the bank’s credit department where she spent over five years, the last three of which as Deputy Head of Credit. Before taking up her role as Chief Risk Officer she worked in the bank’s retail banking and wealth management division where she headed the customer value management department.

In her new capacity, Ms Grech will lead the commercial banking business to deliver products and services to the bank’s diverse business customers, supporting them locally and internationally.

“I am very excited at this opportunity to support our business customers directly, helping them to achieve their aspirations. My intention is to work more closely with our customers and to employ our resources in ways which help us better understand their needs and, using the HSBC Group’s international reach and capabilities, deliver products and services to them to meet those needs,” Ms Grech said.

Mr Walsh is originally from South Africa and served previously as Chief Risk Officer for HSBC Mauritius before joining HSBC in Malta as Head of Risk Governance and Lending Services in 2018. He has been with HSBC since January 2007 and during his tenure as Chief Risk Officer, in the Mauritius office, covering both the domestic and offshore operations. Mr Walsh is a certified anti-money laundering specialist. He will build on strong risk management practices already in place, ensuring that growth is achieved in a safe and sustainable manner.

“I am delighted to join the Bank’s executive management team and look forward to working with the retail and commercial businesses in partnering for growth, to support Maltese corporates and individuals in achieving their aspirations,” Mr Walsh said.

Mr Cordina started his banking career in 1981 with Mid-Med Bank Limited and HSBC in 1999. He has worked in various areas of banking in both personal banking and commercial banking business units. He has also led a number of operational and support functions of the bank. Mr Cordina has occupied various executive roles within HSBC Malta including, Deputy Head of Operations and Head of Business Transformation. He was also the programme manager responsible for bringing the HSBC UK Contact Centre to Malta. In 2010, he was seconded to HSBC Commercial Banking in London where he performed the role of Head of Sales Performance.

He will work to develop the bank’s business with its primary clients and external stakeholders as it focuses on a balanced return to growth. Facilitating growth in HSBC’s corporate business will be a particular priority.

“I am honoured and privileged to be appointed as a Director on the bank’s Board and very excited to take on this new executive role in my more than 37-year-long association with the bank. I am fortunate to be part of the HSBC Group and I look forward to strengthening our business in Malta and connecting our customers to opportunities, both locally and internationally, enabling them to thrive and supporting the Maltese economy to prosper,” Mr Cordina said.

HSBC Malta appointed Michel Cordina as Executive Director and as the bank’s first Executive Head of Business Development in May. Michel Cordina was Head of Commercial Business for the past eight years, prior to moving his current position.

The post HSBC Malta names new commercial head, new risk chief first appeared on The Malta Business Weekly.

“We are delighted to be corporate sponsors of KSJC. At Bank of Valletta, we believe strongly in the importance of youths in our community and through such agreements, we strengthen our relationships with students throughout their different life stages,” said Vanessa Borg from BOV PR & Marketing Departments.

“We look forward to working hand in hand with this student body, assisting them to familiarise themselves with the world of financial services and supporting them throughout their education journey. Our first project together was, in fact, the participation of these students in this year’s BOV Club campaign, which will be launched in the coming weeks,” Ms Borg added.

KSJC is an independent organisation that represents Junior College students on a national and international level. Moreover, it is interested in the students’ opinion safeguarding their rights. It also promotes educational and cultural activities amongst them.

“We are extremely happy that we signed this agreement with Malta’s leading Bank, through which we can guarantee interesting initiatives and opportunities for all Junior College students to benefit from”, Mr Dimech commented.

In addition, Ms Gauci thanked BOV for its support and said that KSJC is eager to collaborate with them and is already looking into different possibilities to take this partnership further.

The post BOV supports the Kunsill Studenti Junior College first appeared on The Malta Business Weekly.

“Selecting the best AML solution plays a huge part in eliminating risks and protecting your business from being associated with illegal financial activity,” according to the Computime Software.

Using artificial intelligence (AI), AML software works to identify what deviates from the norm as defined by the programmed rules. As such, Computime software urges that the rules must be set up well, in order to filter out suspicious transactions.

Furthermore, the company says that if there are too few or too many alerts of possible suspicious activity based on the number of transactions, it might be a sign that the transaction monitoring system does not work as intended. Therefore, testing and tweaking the software is needed.

Nevertheless, Computime software notes that using the right technology solutions is useless on its own; the hiring of compliance officers with previous investigative and forensic accounting training, along with knowledge of the business line is crucial. It also must be accompanied by proper training to help them what to look for and how to correctly handle generated alerts.

“It is also vital to have a solid controls process, which involves superiors analysing and verifying the results of AML alerts,” the company’s blog entry underscores.

The post Computime Software sees gravity of AML monitoring first appeared on The Malta Business Weekly.

FIMBank says it “owns a strong position” in contributing to the development of this platform.

The bank is, in fact, highly active in major export markets such as India, the Middle East and Egypt, where it can partner with FCI — the global representative body for factoring and financing of open account domestic and international trade receivables — members through the 3+ and 4 “corner model”, according to the press release.

The bank’s global presence and specialised teams allow it to effectively implement FCIReverse type facilities.

FIMBank’s presence in import markets will be a key business driver for other participants in the program, under revenue sharing agreements. FIMBank shares were listed in June 2001 in Malta for the first time.

The FIMBank Group has built an international factoring network — securing debt collection and improving cash flow. The Bank’s Mediterranean Factoring Department (MED) factors in Malta, offering a comprehensive range of factoring services.

The post FIMBank vows support for FCIReverse platform first appeared on The Malta Business Weekly.