APS Bank plc has reported a pre-tax profit of €26.5 million at group level for the financial year ended 31st December 2025, an increase from €23.8 million in 2024, according to its latest annual report and audited financial statements.

At bank level, pre-tax profit reached €26.9 million, up from €22.5 million in the previous year, supported by stronger revenues, lower funding costs and improved credit performance.

Net interest income increased by 20.1 per cent to €78.7 million, compared with €65.5 million a year earlier. The increase was driven by higher interest-earning assets and improved yields, while interest payable declined to €44.4 million following a strategic shift in the bank’s deposit mix and lower pricing.

The average cost of funds declined to 111 basis points, down from 140 basis points in 2024, contributing to a widening of the net interest margin to 186 basis points.

Net fee and commission income also rose to €9.3 million, reflecting higher activity across general banking services, investment services and card-related transactions.

Net impairment losses declined significantly to €0.7 million, compared with €3.0 million in the previous year. The reduction reflects lower expected credit loss charges in the bank’s commercial loan book and syndicated loan portfolio.

The bank’s non-performing loan ratio closed the year at 1.4 per cent, marking an improvement from the previous year and signalling continued strength in asset quality.

Operating expenses increased to €63.1 million, largely due to continued investment in human resources as well as one-off advisory and due-diligence costs and higher contributions to the Depositor Compensation Scheme.

Total group assets rose to €4.6 billion, representing an increase of €483.9 million compared with the previous year.

The loan book expanded significantly, reaching €3.55 billion, an increase of €357.6 million, reinforcing the bank’s position as one of the largest lenders to the Maltese economy.

Customer deposits also grew strongly, rising to €4.13 billion, while total equity increased to €362.3 million, supported by profits and a successful rights issue that boosted capital and share premium.

Capital ratios strengthened during the year, with the bank reporting a Common Equity Tier 1 (CET1) ratio of 17.6 per cent, up from 14.3 per cent in 2024.

The Capital Adequacy Ratio improved to 23.2 per cent, while liquidity remained robust, with a Liquidity Coverage Ratio of 178.1 per cent.

Dividend recommendation

The board has recommended a final gross dividend of €11.4 million, equivalent to €0.023 per share, payable in the form of scrip. Shareholders will have the option to receive the dividend in cash or in new shares.

Together with the interim dividend paid in September 2025, the total gross dividend for the year amounts to €14.2 million, or €0.029 per share.

The dividend remains subject to regulatory and shareholder approval at the upcoming annual general meeting.