Malta’s big 5 banks amount to 211% of GDP
The total assets of the five “core domestic banks” which have strong links with Malta’s economy amounted to €14.3 billion or 211 per cent of the Gross Domestic Product.
The combined balance sheet total of the 26 banks which form part of the Malta Bankers’ Association stood at €53bn as at the end of 2012.
“Non-core domestic banks”, which play a more restricted and limited role in the economy, had assets totalling €5.3bn or 78 per cent of the Gross Domestic Product (GDP), while total assets of the “international banks”, which have virtually no link with the domestic economy, amounted to €33.3 billion or 492 per cent of GDP.
The recently appointed chairman of the Board of the Malta Bankers’ Association said that these numbers put the size Malta’s banking sector vis-à-vis GDP in its proper perspective.
The direct contribution of the banking sector to the local economy remains significant. The number of full time bank employees is close to 4,000, payroll last year amounted to €130 million, taxation on profit on ordinary activities reached €168 million and dividends paid to resident shareholders amounted to €59 million.
Mr Borg also noted with satisfaction that credit to the private sector continued to increase in 2012, as observed in the IMF’s 2013 Report on Malta. Loans and advances to customers by the “core domestic banks” increased to €8.3 billion, while aggregate lending by all the banks amounted to just under €19 billion.
Customers’ deposits with the “core domestic banks” also increased to €12 billion, reflecting public trust and confidence in the system, with total deposits of all the banks now exceeding the €20 billion mark.
“The Maltese banking sector is very well capitalized, highly liquid and profitable, and it is gratifying that in its 2013 Report on Malta, the IMF recognized that the remarkable resilience shown by Malta in the face of a major crisis in Europe was underpinned by our sound banking system,” added Mr Borg.
The other Board members are Edward Cachia, Mario Gauci, Thomas Haag, Cenk Kahraman, Margrith Lutschg-Emmenegger, Joseph Said, Henry Schmeltzer, Joaquim Silva Pinto and Mark Watkinson.