Sparkasse Bank Malta plc reported a profit of €9.1 million for 2025, down from €11 million the previous year, as lower interest rates weighed on overall revenue.

The bank generated operating income of €26.1 million, compared to €30.4 million in 2024, reflecting the impact of rate cuts by major central banks during the year.

Net interest income remained relatively stable at €14.6 million, supported by balance sheet growth and a conservative asset allocation strategy. Meanwhile, net fee and commission income increased to €9.5 million, up from €8.8 million a year earlier.

Total assets stood at €951.6 million at the end of 2025, down from just over €1 billion in 2024, while customer deposits amounted to €863.6 million.

The bank continued to maintain a highly liquid position, with the majority of its assets held in cash balances with the Central Bank of Malta and other institutions, alongside investments in marketable debt securities.

Its custody and depositary business also expanded, with assets under custody rising to over €11 billion by year-end, reinforcing its position in this segment.

During the year, the bank focused on upgrading its IT infrastructure and expanding counterparty partnerships, initiatives aimed at improving operational efficiency and enhancing client connectivity.

On the capital side, share capital increased to €61.3 million following a bonus share issue, while total own funds reached €76.4 million.

The bank reported a Capital Adequacy Ratio of 44.6 per cent and a Return on Equity of 11.6 per cent, alongside liquidity ratios exceeding 400 per cent, indicating a strong capital and liquidity position.

Sparkasse Bank Malta said it will continue to focus on organic growth, investment in technology, and strengthening its operational framework, while maintaining a conservative risk profile centred on liquidity and capital preservation.