APS Bank plc has posted impressive growth across several key financial metrics for the year ending December 31, 2024.

The Bank reported a pre-tax profit of €23.8 million, lower than the €30.2 million registered in 2023.

Profitability was impacted by narrowing net interest income, which faced competitive pressures on both asset yields and cost of funding. Nevertheless, the results highlight robust operating fundamentals driven by the Bank's ongoing digital transformation and strategic focus on customer experience.

Marcel Cassar, CEO of APS Bank, commented on the results, saying: “Despite global economic challenges and margin pressures, APS Bank has delivered its strongest ever all-round growth. We continue to support Maltese businesses and households, with double-digit growth in deposits, lending, and liquidity.

“However, this was not reflected in profits due to ongoing margin pressures. Our digital transformation is central to our strategy, and we are actively pursuing strategic acquisitions to scale our operations and expand our market reach."

He added, “Our model focuses on supporting customers and the economy, not simply capitalizing on the interest cycle. We are committed to growth through innovation and enhancing value for our stakeholders.”

Financial Performance Overview

At Group level, the profit before tax for 2024 stood at €23.8 million, a decrease from the previous year’s €30.2 million. The Bank itself recorded a pre-tax profit of €22.5 million, compared to €27.8 million in 2023. Despite the decrease in profitability, APS Bank experienced solid growth in its balance sheet, with total assets increasing by €500 million to reach €4.2 billion.

Key highlights include:

• Net interest income decreased to €65.5 million (2023: €73.6 million), mainly due to higher interest expenses which rose from €32.1 million to €49.2 million, reflecting MREL funding costs and higher interest rates passed on to depositors.

• Net fee and commission income rose by 7.3 per cent, reaching €8.9 million, driven by increased business activity, particularly in investment services and card-related transactions.

• Other income surged to €8.4 million, boosted by a €4.8 million uplift in the valuation of investment properties.

• The non-performing loan ratio improved to 1.5 per cent, the lowest in years, underscoring the strength of the Bank's credit underwriting standards.

Operating expenses for 2024 amounted to €56.9 million, up from €52.6 million in 2023, reflecting significant investments in human resources and technology. The cost-to-income ratio rose to 68.7 per cent, mainly due to the contraction in net interest income.

Balance Sheet Growth

APS Bank’s total assets grew to €4.2 billion, an increase of €500 million from 2023. This growth was driven by:

• A €314.7 million increase in net loans and advances to customers.

• A substantial rise in liquidity stock, with cash and Central Bank of Malta balances reaching €379.7 million.

• Customer deposits grew by €532.8 million to €3.7 billion, attributed to term deposit campaigns and the launch of new Kapital Plus issuances.

Equity for the year rose by 7.8 per cent to €309.9 million, reflecting the profit for the period and revaluation reserves, which were bolstered by property and financial instrument valuations.

Dividend Proposal

The Board of Directors is recommending a final dividend of €0.026 per share, which can be taken either in cash or as new shares at €0.57 per share. This would bring the total gross dividend for 2024 to €13.0 million, subject to regulatory and shareholder approval.