APS Bank plc reported a sharp rise in profitability in the first quarter of 2026, with pre-tax profit at bank level increasing by 208 per cent to €11.1 million, up from €3.6 million in the same period last year. At group level, pre-tax profit reached €9.8 million, compared to €2.9 million a year earlier.
The performance was driven by higher revenues and improved cost efficiency, supported by stronger margins and increased business volumes. Interest income rose by 13.4 per cent to €33.6 million, while net interest margins climbed by 47.6 per cent to €24.6 million. The bank’s net interest margin improved to 2.2 per cent, up from 1.6 per cent in Q1 2025.
Fee and commission income also increased to €2.8 million, reflecting growth in lending activity and higher revenues from investment and transactional services. Meanwhile, operating expenses rose marginally to €16.4 million, as higher staff costs were partly offset by lower administrative expenses following one-off costs incurred in 2025. The cost-to-income ratio improved significantly to 59.7 per cent from 83.7 per cent a year earlier.
On the balance sheet, total assets grew to €4.72 billion, driven primarily by an expansion in retail and business lending to €3.49 billion. Customer deposits increased by €56.8 million, with a shift towards overnight and savings accounts contributing to a lower cost of funding.
Asset quality remained stable, with the non-performing loan ratio holding at 1.3 per cent. However, net impairment losses rose to €1.1 million due to credit-related charges across loan portfolios.
The bank’s capital position remained solid, with a CET1 ratio of 16.5 per cent and a total capital adequacy ratio of 21.7 per cent. Assets under management continued to grow, surpassing €800 million.
Commenting on the results, CEO Marcel Cassar said the strong start to the year reflects disciplined execution and a rebound anticipated since early 2025, supported by digital transformation and active balance sheet management. He added that the Bank remains cautious amid ongoing economic uncertainty, while maintaining focus on sustainable growth and risk management.
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Written By
Nicole Zammit
When she’s not writing articles at work or poetry at home, you’ll find her taking long walks in the countryside, pumping iron at the gym, caring for her farm animals, or spending quality time with family and friends. In short, she’s always on the go, drawing inspiration from the little things around her, and constantly striving to make the ordinary extraordinary.
