Banking deposits. The bank has a robust advances-to-deposits ratio of 64% and its liquidity ratios were well in excess of regulatory requirements.
The bank's common equity Tier 1 capital was 16.6% as at 30 June 2020, compared to 16.4% at the end of 2019 and well above regulatory requirements. Total capital ratio increased to 19.3% compared to 19.0% at 31 December 2019.
In line with the European Central Bank recommendation that Eurozone banks should not make dividend payments at this time, regardless of capital strength, no interim dividend is being declared.
Simon Vaughan Johnson, Director and Chief Executive Officer of HSBC Malta, said:
"The first six months of 2020 have been both challenging and transformative. Due to the Covid-19 pandemic, the economy slowed significantly and some sectors drew to a near standstill. This meant two things for the bank. First that the financial performance of the bank inevitably suffered in line with the rest of the economy. But second, that the real measure of our performance became our success in supporting our customers, colleagues and communities during the crisis, and in laying the groundwork for the recovery to come and the future safe growth of our franchise in Malta.
In difficult times, the bank's job has always been to support our communities, provide stability and help rebuild economic growth. I am proud of the way our people have delivered this purpose as the Covid-19 pandemic has unfolded.
Our approach has hinged on three things: securing a continuous service for all who rely on us; providing a financial bridge for our personal and business customers beyond the crisis and ensuring that the bank is in a strong position to help our customers thrive once restrictions begin to ease.
We maintained a high level of business continuity and we now have over 80% of colleagues enabled to work from the safety of their home if needed. We maintained a branch network presence throughout the Covid-19 period. We also maintained strong capital and liquidity positions.
The bank launched a series of proactive customer focused initiatives at the outset of the Covid-19 pandemic, including capital repayment holidays, fee free temporary short-term working capital facilities and trade finance support. In May, the bank also confirmed its participation in the Malta Development Bank Covid-19 Guarantee Scheme.
Throughout all of this, the well-being of our people and our customers has been our paramount concern. We have taken all steps necessary to enable our front-line colleagues to perform their jobs safely and effectively. For all our colleagues, we have maintained a regular flow of communication and listened closely to their needs, providing the support and flexibility to help them manage their lives during the pandemic.
This has been one of the most demanding periods that I can remember for all of our people and our valued customers. Many have had to juggle personal and professional priorities, while adapting to new and unfamiliar ways of working. I have been humbled by the dedication and commitment that my colleagues have shown in incredibly tough circumstances, and thank them sincerely for all they have done - and are doing - for our customers, communities and each other.
We are focused on the future and on successfully executing our Safe Growth strategy. We will strive to achieve revenue growth as and when market conditions improve, whilst maintaining a strong risk management culture, with zero appetite for financial crime risk."