Malta’s domestic banking sector generated more than €422 million in combined pre-tax profits during the 2025 financial year, according to annual results published by the country’s main locally operating banks.

The figures reflect another highly profitable year for the sector overall, although results varied significantly between institutions, with some banks reporting record or near-record performances while others saw profitability impacted by lower interest rates and continued investment costs.

Bank of Valletta remained the country’s most profitable bank by a considerable margin, reporting a Profit Before Tax of €260.4 million for the financial year ended 31st December 2025. The result exceeded the bank’s own guidance of €250 million.

The bank also announced a final dividend payout of €75.5 million, including a one-off special dividend linked to profits generated above its projected target.

Meanwhile, HSBC Bank Malta reported a pre-tax profit of €109 million for 2025, marking its third consecutive year with profits exceeding €100 million, despite a 29 per cent decrease over the previous year.

The bank said the decline reflected lower interest rates and lower releases of expected credit losses. Customer deposits nevertheless increased by €370 million during the year, reaching a record €6.5 billion.

APS Bank registered a pre-tax profit of €26.5 million at group level, up from €23.8 million in 2024.

The bank said the increase was supported by stronger revenues, lower funding costs, and improved credit performance. Net interest income rose by 20.1 per cent to €78.7 million, while the average cost of funds declined to 111 basis points.

Lombard Bank Malta reported a 22 per cent increase in group pre-tax profit to €23.8 million.

At bank level, pre-tax profit rose to €19.1 million, while subsidiary MaltaPost posted a 37 per cent increase in pre-tax profit to €6.4 million.

The group’s performance was driven largely by continued growth in lending activity, with loans and advances to customers increasing by 6 per cent to €929 million.

Meanwhile, BNF Bank remained profitable but recorded a significant drop in earnings, with pre-tax profit falling to €2.9 million from €13.3 million in 2024.

The bank attributed the decline primarily to lower net interest income resulting from the downward interest rate environment, as well as higher operating expenses linked to ongoing investment in technology and infrastructure.

Combined, the five banks generated approximately €422.6 million in pre-tax profits during 2025.

Compared to the financial results for 2023, less profit was made as in that year, the domestic banks in Malta generated profits over €450 million.