BNF Bank’s Board of Directors is proposing a net dividend payout of €4.49 million, or €0.045 per share, after reporting year-end results showing a 6.75 per cent increase to €13 million in its profit before tax

This improved performance was in large part driven by higher interest rates, although bank Chairman Michael Frendo pointed out that the bank had partially absorbed the increase on behalf of its customers.

In his statement, Mr Frendo also noted that the bank’s non-performing loan ratio remained low, standing at 2.65 per cent, while assets grew by 6.3 per cent to €1.24 billion.

Net interest income increased to €32.5 million (2022: €25.8 million), and net fees and commission income and other ancillary income contributed to a net operating income for 2023 of €36.2 million (2022: €30.1 million).

The bank’s cost-to-income ratio increased, reflecting the technology investment the bank is undergoing. The cost-to-income ratio stood at 65.1 per cent for 2023 (2022: 61.7 per cent).

Mr Frendo added that 2023 saw BNF Bank complete its three-year Vision 2023 strategy, with the last three years being “incredibly successful” for the Bank, with key milestones including the launch of a subordinated bond on the Malta Stock Exchange, the full licensing of its UK branch, and the initiation of a digital transformation.