Back to Market News

APS Bank plc – Interim Results

Jonathan Falzon

July 31, 2025

31 July, 2025
7 min read
31 July, 2025
7 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Financial Performance

On 31 July 2025, APS Bank plc published its interim financial statements covering the six-month period ended 30 June 2025.

Net interest income increased by 7.5% to €35.6 million (H1 2024: €33.2 million) as the increase in gross interest income of 7.3% to €60 million outweighed the 7.0% increase in interest expenses to €24.5 million. In this respect, APS explained that the higher interest income is attributable to the continued growth of its core retail and commercial lending portfolios. Meanwhile, the higher interest costs reflect the growth in customer deposits. APS highlighted that the net interest margin improved in the second quarter following a realignment in pricing and in favour of overnight and demand deposits.

Meanwhile, non-interest income dropped by 4.0% to €5.1 million due to losses on foreign exchange of €0.53 million in contrast to gains of €0.65 million in the same period last year. In fact, nearly all other income streams registered growth with net fee and commission income increasing by 2.9% to €4.6 million. The performance was also positively impacted by the strategic partial divestment of shares in a sub-fund of APS Funds SICAV plc, which generated a gain of €0.7 million during the first six months.

APS also recorded a net impairment loss of €0.45 million, which however was lower than the €2.0 million impairment recognised in the first half of 2024. APS highlighted that the non-performing loans ratio as at the end of June 2025 stood at 1.4% compared to 1.9% as at the end of June 2024.

Overall, net operating income surged by 10.6% to €40.3 million compared to €36.5 million in the corresponding period last year.

On the expenditure side, total operating costs increased by 17.0% to €31.6 million (H1 2024: €27 million) driven by higher employee compensation, depositor compensation scheme contributions, and fees related to the advisory and due-diligence work in connection with the exercise to acquire HSBC Bank Malta plc. Overall, the cost efficiency ratio deteriorated to 77.4% compared to 70% H1 2024.

Moreover, APS also recorded a profit of €0.39 million from its share of results of associates, which is lower than the €0.62 million recorded in the first half of 2024.

Profit before tax dropped by 9.6% to €9.14 million from €10.1 million in H1 2024. After accounting for a tax charge of €4.28 million and minimal losses attributable to non-controlling interests, the profit for the period attributable to shareholders amounted to €4.87 million (H1 2024: €6.84 million), which translates into an annualised return on equity of 3.3% (H1 2024: 5.0%).

The Statement of Financial Position as at 30 June 2025, when compared to the end of 2024, shows that total assets increased by 3.9% (or €162 million) to €4.32 billion principally composed of customer loans (+5.3% or €159 million) to €3.17 billion. The Group also increased its fixed income investments by 11% (or €42 million) to €429 million.

Total liabilities expanded by 4.2% (or €163 million) to €4.01 billion largely reflecting the 4.9% (or €179 million) increase in customer deposits to €3.85 billion. Consequently, the loan-to-deposit ratio (including syndicated loans) was virtually unchanged at 87%. Similarly, shareholders’ funds remained practically unchanged at €296 million which translates into a net asset value of €0.775 per share. As at 30 June 2025, the CET 1 ratio stood at 15.0% (31 December 2024: 14.6%) and the Capital Adequacy Ratio strengthened to 20.6% (31 December 2024: 20.1%).

Dividend

The board declared a net interim dividend of €1.8 million (H1 2024: €2.0 million), which is equivalent to €0.00472 per share. This cash dividend is payable to all shareholders as at close of trading on 28 August 2025, and subject to regulatory approval, it will be paid on 19 September 2025.

Outlook

In his commentary, the CEO noted that the performance of the first half of 2025 showed different trends in the first quarter and second quarter. He highlighted that the net interest income rebounded in the second quarter and this trend is expected to accelerate in the second half of the year.

The CEO explained that the Group remains on a growth trajectory, with renewed focus on organic development by consistently improving the product and service offerings. The Group will also continue to pursue inorganic opportunities aimed at gaining more scale and market share. Furthermore, plans are at an advanced stage for a Rights Issue of ordinary equity shares to take place in the fourth quarter of 2025, with further details to be released in the coming weeks.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 31 July 2025, APS Bank plc published its interim financial statements covering the six-month period ended 30 June 2025.

Net interest income increased by 7.5% to €35.6 million (H1 2024: €33.2 million) as the increase in gross interest income of 7.3% to €60 million outweighed the 7.0% increase in interest expenses to €24.5 million. In this respect, APS explained that the higher interest income is attributable to the continued growth of its core retail and commercial lending portfolios. Meanwhile, the higher interest costs reflect the growth in customer deposits. APS highlighted that the net interest margin improved in the second quarter following a realignment in pricing and in favour of overnight and demand deposits.

Meanwhile, non-interest income dropped by 4.0% to €5.1 million due to losses on foreign exchange of €0.53 million in contrast to gains of €0.65 million in the same period last year. In fact, nearly all other income streams registered growth with net fee and commission income increasing by 2.9% to €4.6 million. The performance was also positively impacted by the strategic partial divestment of shares in a sub-fund of APS Funds SICAV plc, which generated a gain of €0.7 million during the first six months.

APS also recorded a net impairment loss of €0.45 million, which however was lower than the €2.0 million impairment recognised in the first half of 2024. APS highlighted that the non-performing loans ratio as at the end of June 2025 stood at 1.4% compared to 1.9% as at the end of June 2024.

Overall, net operating income surged by 10.6% to €40.3 million compared to €36.5 million in the corresponding period last year.

On the expenditure side, total operating costs increased by 17.0% to €31.6 million (H1 2024: €27 million) driven by higher employee compensation, depositor compensation scheme contributions, and fees related to the advisory and due-diligence work in connection with the exercise to acquire HSBC Bank Malta plc. Overall, the cost efficiency ratio deteriorated to 77.4% compared to 70% H1 2024.

Moreover, APS also recorded a profit of €0.39 million from its share of results of associates, which is lower than the €0.62 million recorded in the first half of 2024.

Profit before tax dropped by 9.6% to €9.14 million from €10.1 million in H1 2024. After accounting for a tax charge of €4.28 million and minimal losses attributable to non-controlling interests, the profit for the period attributable to shareholders amounted to €4.87 million (H1 2024: €6.84 million), which translates into an annualised return on equity of 3.3% (H1 2024: 5.0%).

The Statement of Financial Position as at 30 June 2025, when compared to the end of 2024, shows that total assets increased by 3.9% (or €162 million) to €4.32 billion principally composed of customer loans (+5.3% or €159 million) to €3.17 billion. The Group also increased its fixed income investments by 11% (or €42 million) to €429 million.

Total liabilities expanded by 4.2% (or €163 million) to €4.01 billion largely reflecting the 4.9% (or €179 million) increase in customer deposits to €3.85 billion. Consequently, the loan-to-deposit ratio (including syndicated loans) was virtually unchanged at 87%. Similarly, shareholders’ funds remained practically unchanged at €296 million which translates into a net asset value of €0.775 per share. As at 30 June 2025, the CET 1 ratio stood at 15.0% (31 December 2024: 14.6%) and the Capital Adequacy Ratio strengthened to 20.6% (31 December 2024: 20.1%).

Dividend

The board declared a net interim dividend of €1.8 million (H1 2024: €2.0 million), which is equivalent to €0.00472 per share. This cash dividend is payable to all shareholders as at close of trading on 28 August 2025, and subject to regulatory approval, it will be paid on 19 September 2025.

Outlook

In his commentary, the CEO noted that the performance of the first half of 2025 showed different trends in the first quarter and second quarter. He highlighted that the net interest income rebounded in the second quarter and this trend is expected to accelerate in the second half of the year.

The CEO explained that the Group remains on a growth trajectory, with renewed focus on organic development by consistently improving the product and service offerings. The Group will also continue to pursue inorganic opportunities aimed at gaining more scale and market share. Furthermore, plans are at an advanced stage for a Rights Issue of ordinary equity shares to take place in the fourth quarter of 2025, with further details to be released in the coming weeks.