Malta Stock Exchange-listed Izola Bank ended 2024 with a loss after tax of €3 million, impacted by record-high interest rates, increased funding costs, and rising regulatory expenses. This follows a loss of €1.2 million in 2023.

Despite growing interest income by 18 per cent to €22.4 million, net interest income dropped by 11.6 per cent due to higher interest expenses, which rose to €16.2 million. Operating costs also increased, with regulatory-related expenses, IT support, and credit servicing fees all contributing to the higher spend.

The bank reported a total comprehensive loss of €1.2 million, cushioned by €1.8 million in gains from property revaluations and financial instruments.

On a positive note, customer deposits grew to €448.6 million, and total assets reached €508.7 million. Loans and advances to customers rose to €194 million, and equity strengthened to €35.6 million, supported by fresh capital injections.

Izola Bank maintained a solid Tier 1 capital ratio of 14.2 per cent, up from 11.24 per cent mid-year, remaining well above regulatory requirements.

Strategically, 2024 saw major progress in the Bank’s digital transformation, a successful head office relocation to Castile Place in Valletta, and the implementation of a capital action plan aimed at long-term sustainability and efficiency.