Malta’s reporting season ahead

The interim reporting season in Malta commenced earlier this week as companies with a December financial year-end are obliged to publish their half-year results within two months from the end of the reporting period, namely the end of August.

As such, in the next few weeks, several announcements will be issued via the Malta Stock Exchange which will enable financial analysts, market participants as well as retail and institutional investors to obtain important updates from companies whose equity is listed on the MSE.

A number of companies also have semi-annual dividend policies and such dividends are normally also declared in conjunction with the half-year results publication.

Focus on the banks

Across the three largest retail banks in Malta, namely Bank of Valletta plc, HSBC Bank Malta plc and APS Bank plc, the key area of focus by the investor community ought to remain on the evolving market share across loans and deposits and any shifts taking place due to ongoing developments in the banking sector.

These three banks are now publishing investor updates on a quarterly basis and as such, one should not expect any major surprises from an operational perspective. The recent upturn in eurozone bond yields as well as the hike in interest rates by the European Central Bank should continue to support robust profitability levels for these retail banks.

The investing community would surely remain attentive to any updates on the upcoming change in the majority shareholder of HSBC Bank Malta plc following the definitive agreement for the sale and purchase of the 70 per cent stake in HSBC Malta entered into on 23 December 2025 between HSBC Continental Europe and CrediaBank S.A.

Following the strong performance in Q1 2026 by APS Bank, investors will not only focus on the trajectory in Q2 as well as any changes to the 2026 key performance indicators announced by the bank earlier this year, but will also pay particular attention to updates on any of the extraordinary resolutions approved by shareholders on 6 May 2026.

Apart from the share buy-back programme which has yet to commence, any news on whether new capital instruments are aimed to be issued during the second half of the year will be of particular relevance as the bank continues to expand its market share. During the AGM, shareholders authorized the board of directors to issue up to €150 million in debt securities and also to issue new equity securities either to honour capital requirements or as a form of consideration for any business opportunities or acquisitions that may be contemplated.

Will MIA upgrade its guidance?

The publication of the financial statements by Malta International Airport plc due today should not surprise any investors who follow the publication of the monthly traffic results. The 15.6 per cent increase in passenger movements during the first half of 2026 to 5.25 million will undoubtedly lead to record operating performance for the airport operator. Given the double-digit growth in traffic also since the start of the summer schedule reflecting the large increase in seat capacity and continued strength in the seat load factor, the company ought to continue to report strong growth in passengers also during July, August and September which are the most important months as they typically account for more than 30 per cent of annual volumes.

MIA had published its annual guidance at the start of the year with expectations of a 4.4 per cent rise in passenger movements to 10.5 million. As a result of the robust growth in the first six months and strong indications of continued momentum in the second half, it should not be a surprise if the company also upgrades its traffic and financial guidance for 2026.

The company had projected revenue of €162 million for the current financial year, EBITDA of €98 million and a net profit of €51 million.

On a trailing 12-month basis between 1st July 2025 and 30 June 2026, the company has registered passenger movements of 10.8 million and this should be a clear indication of the lower end of the market’s expectations for 2026. Nonetheless, the investing public will continue to monitor the ongoing capital expenditure and the impact on the company’s free cash flow as retail investors remain interested in ongoing dividend distributions.

What’s in store for MIDI shareholders?

Following the repayment of the €50 million in bonds last Friday 24th July ahead of the redemption date of 27th July, specific attention will be given by the shareholders of MIDI not only to the publication of the interim financial statements expected in the last week of August but more importantly to the commentary within the half-year report to gather insight on any cash distributions being planned to shareholders.

The financial statements ought to confirm the receipt of the compensation after the signing of the public deed of 13th May 2026 with the Government of Malta and Transport Malta for the rescission and termination of the Emphyteutical Concession over Manoel Island and Fort Tigné. Moreover, since then, MIDI announced the disposal of the T15 Building on 2nd June for the amount of €5.5 million as well as the sale of eleven commercial outlets which underlie the Pjazza Blocks together with the building known as Unit T3 for an amount of €10.2 million.

Apart from these recent disposals, the important information for shareholders in the upcoming publication should be that related to the progress of sale of the numerous apartments within the Q3 – Fortress Gardens residential development. The company had noted that as at the end of December 2025, a total of 59 units were subject to a promise of sale agreement from the 63 apartments and 2 commercial units within the development. The timing of the final deeds of sale could determine the amount that shareholders ought to receive as the company begins to distribute excess cash and concurrently continue with the sale of any remaining assets for the eventual winding-down of the company.

In the midst of the interim reporting season, PG plc will also be publishing its annual financial statements as at 30th April 2026. Given the intensifying competition across the supermarket sector, the key performance metrics will be of utmost importance together with updates on the ongoing business expansion with the recent opening of the St George’s Mall and the ongoing works related to the major expansion of the PAVI site.

Despite the continued subdued investor sentiment across the Maltese equity market, the reporting season remains a very important time for all stakeholders to pay close attention to statements being made by the various companies. In the meantime, with the continued increase in deposits across the domestic banking system, it is hoped that the required policies and reforms are urgently considered for Malta to abide by the recommendations of the European Commission within the Savings and Investments Union (SIU) to increase investor participation across capital markets.

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