APS Bank plc has announced a group pre-tax profit of €9.1 million for the first half of 2025, compared to €10.1 million in the same period last year. At Bank level, pre-tax profit reached €10.2 million, slightly higher than the €9.9 million reported in 1H 2024.

The results reflect a strong rebound in net interest income and an improvement in profitability in the second quarter of 2025, despite the impact of one-off costs such as higher contributions to the Depositor Compensation Scheme and advisory fees related to the Bank’s attempted acquisition of HSBC Bank Malta plc.

Financial performance highlights
Net operating income grew by 10.6 per cent year-on-year, supported by a 7.3 per cent increase in interest income to €60.1 million, driven primarily by retail and commercial lending. Interest payable rose seven per cent to €24.5 million as customer deposits continued to expand, with the Bank maintaining competitive rates.

Operating expenditure climbed 17 per cent to €31.6 million due to higher regulatory, technology, and advisory expenses, raising the cost-to-income ratio to 77.4 per cent from 70 per cent in 1H 2024. Meanwhile, net impairment losses fell sharply to €0.5 million, reflecting improved credit quality and a reduction in non-performing loans to 1.4 per cent.

The group’s total assets stood at €4.3 billion, up 3.9 per cent since December 2024, while customer deposits grew to €3.85 billion. Total equity dipped slightly to €308.8 million, primarily due to dividend payments. The Bank’s Capital Adequacy Ratio improved to 20.6 per cent, with a CET1 ratio of 15 per cent.

The Board also declared an interim net cash dividend of €1.8 million (€0.00472 per ordinary share), payable on 19 September 2025, subject to regulatory approval.

Commenting on the results, CEO Marcel Cassar said: “We are pleased to report a performance that is best described as one of two quarters, rather than a first half. After peaking in 2024, the reduction in ECB interest rates is continuing to help the Bank’s funding costs and ease margin pressures, resulting in a rebound in net interest income for 2Q which made it one of the best quarters ever – a trend that is expected to accelerate in the second half."

He added that APS Bank is maintaining its growth trajectory with a focus on both organic expansion and selective inorganic opportunities, underlining its position as Malta’s second-largest lender.

“Being now the second largest lender to the Maltese economy, we are mindful of our growing systemic responsibility towards both local and international enterprise, and plans are at an advanced stage for a Rights Issue of ordinary equity shares to take place in 4Q 2025,” he said, noting that further details on the capital raise will be announced in the coming weeks.