APS Bank has reported a pre-tax profit of €16.5 million for the first nine months of the year – a drop from the €23.6 million registered during the same period of 2023.

The bank noted that the drop had been anticipated, saying that despite a progressive improvement in performance over the past months, the results continue to lag those of 2023 mainly due to a contraction in net interest income, primarily driven by margin compression on loans and deposits.

APS Bank nonetheless spoke positively about its performance, pointing to the strong results registered in areas like its loan book, which grew by €226.6 million to now stand at €3.1 billion.

Much of this growth was driven by the bank’s continued attractiveness for those looking for a mortgage, with its home loan portfolio growing to top the €2 billion mark, representing a quarter of the entire market.

Fielding stakeholders’ questions following the report, APS Bank CEO Marcel Cassar shared that a rights issue initially anticipated to take place by the end of the year is instead being planned for the first half of 2025.

He said that a draft prospectus is already written up, and that the processes required are in motion.

The rights issue is expected to significantly dilute the shareholding of the Catholic Church, which remains the bank’s majority owner.

Responding to questions about its negotiations with HSBC Bank Malta about a potential acquisition, first reported by this newsroom, the CEO said the bank's desire to scale is "common sense" - while refraining from confirming the reported deal. 

Mr Cassar addressed the bank’s performance within a challenging economic landscape shaped by geopolitical risks, economic deceleration in China, and upcoming US elections. He acknowledged that while higher interest rates have buoyed profits for banks across Europe, including Malta, the bank is adapting to mounting cost pressures driven by inflation, technology needs, and rising credit risks.

Cassar emphasised APS Bank’s strategic commitment to “simpler banking,” with investments in technology and talent to enhance the customer experience. He added that the bank’s competitive pricing measures, introduced in the second quarter, have contributed to revenue stability while supporting profitability.

Mr Cassar underscored APS Bank’s ongoing efforts to expand its market presence and increase efficiency, confident that the bank’s technology-driven transformation will strengthen its competitive position and benefit all stakeholders.