BNF Bank has posted solid financial results for the year ending 31st December 2024.

The bank’s net operating income rose by 3.1 per cent, reaching €37.3 million in 2024 compared to €36.2 million in the previous year. This improvement provided the financial headroom necessary to absorb the cost of a key phase in BNF’s ongoing digital transformation strategy, while profit before tax remained steady at €13.3 million, up slightly from €13 million in 2023.

The bank attributed its strong performance to prudent risk management practices that have sustained a high asset quality and a robust balance sheet. Total equity rose from €106.2 million to €110.5 million.

BNF Bank’s liquidity position remained exceptionally strong, with a liquidity coverage ratio of 213.3 per cent, ensuring it is well-positioned to navigate market fluctuations and continue investing in growth opportunities.

While overall income increased, net interest income saw a 3.3 per cent decline, mainly due to a €7 million rise in interest payable. Despite this, the bank noted that it continued offering competitive interest rates to depositors, successfully attracting new demand and term deposits throughout the year.

A notable contributor to income growth was a €1.4 million gain from the disposal of debt instruments, a revenue stream that had not contributed in 2023.

Operating expenses rose to €25.7 million in 2024, up from €23.6 million the previous year, reflecting the costs associated with implementing new digital systems and infrastructure improvements. This resulted in a cost-to-income ratio of 68.8 per cent, compared to 65.1 per cent in 2023.

Balance sheet strength and customer confidence

BNF Bank’s total assets increased by 11.3 per cent, reaching €1,375.7 million by year-end. This growth of €139.3 million was primarily driven by a €130.7 million increase in customer deposits, underlining strong customer trust and confidence in the institution.

The bank also highlighted that this deposit growth was complemented by a €4.3 million rise in total equity, further supporting its balance sheet expansion.