APS CEO Marcel Cassar expressed concern that the Iran war could develop into a cyber conflict, with potentially catastrophic effects on global economies and financial systems.
Mr Cassar said that while he isn’t aware of a specific risk and that the bank invests tens of millions on cybersecurity, local and European authorities have long flagged cyber incidents as a main area of risk, particularly for banks.
“It’s not specific to us and it’s not that we’re anticipating or have an inkling that an incident could occur, but it’s a fact that cyber incidents and cyber risk have increasingly become a major threat for financial systems,” he tells WhosWho.mt.
“Supervisory authorities, the MFSA but also at a European level, have for a number of years in succession identified cyber risk as one of the main areas of risk for banks in particular.”
“The risk is ultimately what could happen to airline reservation systems, airports, travel in general, the internet. Imagine a crash on internet systems and airline traffic systems that could disrupt transportation worldwide.”
“This is also the kind of warfare that we’re seeing developing more and more nowadays, and which can bring systems, economies, countries and banks to their knees.”
Mr Cassar said that APS has invested, and continues to invest, tens of millions in upgrading its cyber security systems.
While acknowledging that cybersecurity measures can sometimes be an inconvenience to clients and customers, he pointed out that it is an overriding objective for banks to ensure their clients feel secure.
Mr Cassar said that market volatility in light of the Iran war hasn’t had much of an effect on APS so far, and that the bank has even taken advantage of market turbulence to lock in bonds and instruments at very good yields.
“Otherwise we don’t have direct credit exposure to the Gulf; we had some but they were paid weeks ago,” he said.
“We have relationships in the region but we don’t depend on funding from it and we don’t source deposits from that part of the world. In terms of volatility on oil prices and shocks, it’s yet to be seen how long the conflict will last and what impact it will have on inflation and multiplier effects.”
“Closer to home, its still early to say how it could impact the Maltese economy but the government declared that it will keep subsidising energy prices if the shocks continue at length. Supply chain disruption might follow, but tourism might actually benefit if it is redirected to our part of the world.”
Mr Cassar spoke following a market briefing in which APS Bank plc 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.
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.
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