Malta-based MeDirect Group (MDB Group) has announced a pre-tax loss of €3.9 million for the first six months of 2025, a significant drop in performance from the €0.55 million pre-tax loss recorded in the same period last year, mainly driven by the bank's de-risking drive that has seen it reduce its international credit portfolio.
These figures were published in the bank’s interim report for the six months ended 30th June 2025.
The group reported a net operating loss of €1.6 million during the first half of 2025, compared to a €5.4 million profit in the same period in 2024. This downturn was influenced by multiple factors, including a reduction in operating income and higher operating costs.
Operating income decreased by €5.1 million, or 11.4 per cent, to €39.6 million (H1 2024: €44.7 million). This decline was primarily due to ongoing de-risking of the group’s balance sheet through the International Corporate Lending (ICL) portfolio, which lowered net interest income by approximately €10 million.
Operating costs grew by €1.9 million to €41.2 million, up from €39.3 million in the first half of 2024. This increase was largely driven by a €3.2 million rise in regulatory costs, including Depositor Compensation Schemes and supervisory fees in Belgium and Malta.
However, when excluding these regulatory expenses, operating costs actually fell by €1.3 million, or four per cent, compared to the same period last year, thanks to lower personnel and amortisation costs.
Expected credit losses (ECLs) also had a significant impact, amounting to €2.3 million in the first half of 2025, down from €6 million in the previous year. These losses were predominantly linked to adverse changes within the ICL portfolio.
Its Maltese operation continued to grow, registering a 7 per cent increase in mortgage lending and a 14 per cent increase in corporate lending.
Looking ahead, the bank said that during the second half of 2025, a final decision will be taken on last year’s announcement of Banka CREDITAS, which is set to acquire 100 per cent of MDB Group’s shares.
The financial statements highlighted how the regulatory filings to finalise the acquisition were made with the Malta Financial Services Authority and the National Bank of Belgium. Meanwhile the application of Banka CREDITAS to acquire MeDirect is currently being reviewed by the European Central Bank.
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