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APS Bank plc – Quarterly Update

Jonathan Falzon

April 30, 2026

30 April, 2026
6 min read
30 April, 2026
6 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 30 April 2026, APS Bank plc published a Quarterly Financial Update providing information about its performance in Q1 2026 when compared to the same period in 2025.

Net interest income surged by 48% to €24.6 million driven by an increase in gross interest income (+€4.0 million to €33.6 million) and a sharp drop in interest expenses (-€4.0 million to €8.9 million). The growth in income was driven by the larger lending portfolio coupled with higher income from financial investments. Consequently, the net interest margin reached 2.2%, a notable improvement over the 1.6% level recorded in the same quarter last year.

Net fee and commission income rose by 11.1% to €2.81 million (Q1 2025: €2.53 million), partially offsetting net losses on financial instruments of €0.6 million, reflecting negative fair value movements within the APS Diversified Bond Fund, in which the bank holds a majority stake.

APS also recorded a net impairment loss of €1.1 million, compared to €0.3 million in the corresponding period last year. The bank explained that the charges relate to credit-related exposures across both the domestic and international syndicated loan portfolios. Nonetheless, the Group’s non-performing loan ratio remained stable at 1.3%.

Total operating costs increased by 2.5% to €16.4 million, driven primarily by higher staff costs of €1.1 millio, which was partly offset by a €0.9 million reduction in administrative expenses following the non-recurrence of costs relating to the potential HSBC Malta acquisition. The cost-to-income ratio fell sharply to 59.7% (Q1 2025: 83.7%).

Overall, the APS Group reported a sharp improvement in operating profit to €9.95 million from €2.76 million in the corresponding period last year.

The financial performance was dented by a loss from associates of €0.15 million.

Profit before tax amounted to €9.80 million (Q1 2024: €2.88 million) and following a tax charge of €3.95 million, the Group recorded a net profit for the period of €5.85 million (Q1 2025: €1.45 million), which translates into an annualised return on average equity of 6.5% (Q1 2024: 1.9%).

The Statement of Financial Position as at 31 March 2026, when compared to the position as at the end of 2025, shows that total assets increased by 1.5% (or €71 million) to €4.72 billion. Customer loans, including syndicated loans, grew by 3.3% to €3.66 billion and financial investments increased by 7.3% to €541 million while cash with the Central Bank of Malta decreased by 13% to €349 million.

Total liabilities also grew by 1.6% (or €70 million) to €4.35 billion, largely driven by a 1.4% increase in customer deposits to €4.19 billion. As a result, the loan-to-deposit stood at 87.4%.

Shareholders’ funds increased to €351.8 million, which translates into a net asset value of €0.724. The Bank’s CET1 ratio eased to 16.5% (31 December 2025: 17.6%) and the Capital Adequacy Ratio moved lower to 21.7% (31 December 2025: 23.2%).

Outlook

Commenting on the Q1 2026 performance, APS Bank CEO Marcel Cassar stated that the Bank achieved a threefold increase in profit and growth across its core business areas compared to the same period last year. He noted that net interest income benefited from active balance sheet management as the Bank shifted its mix towards lower-cost funding, while non-banking income streams continued to diversify and expand.

The CEO added that asset quality remains strong, reflecting a rational approach to risk, while the capital position continues to provide a solid foundation for future growth. The expressed confidence in maintaining and improving the Bank’s performance while remaining mindful of the need to uphold high credit underwriting standards and prudent provisioning policies.

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 30 April 2026, APS Bank plc published a Quarterly Financial Update providing information about its performance in Q1 2026 when compared to the same period in 2025.

Net interest income surged by 48% to €24.6 million driven by an increase in gross interest income (+€4.0 million to €33.6 million) and a sharp drop in interest expenses (-€4.0 million to €8.9 million). The growth in income was driven by the larger lending portfolio coupled with higher income from financial investments. Consequently, the net interest margin reached 2.2%, a notable improvement over the 1.6% level recorded in the same quarter last year.

Net fee and commission income rose by 11.1% to €2.81 million (Q1 2025: €2.53 million), partially offsetting net losses on financial instruments of €0.6 million, reflecting negative fair value movements within the APS Diversified Bond Fund, in which the bank holds a majority stake.

APS also recorded a net impairment loss of €1.1 million, compared to €0.3 million in the corresponding period last year. The bank explained that the charges relate to credit-related exposures across both the domestic and international syndicated loan portfolios. Nonetheless, the Group’s non-performing loan ratio remained stable at 1.3%.

Total operating costs increased by 2.5% to €16.4 million, driven primarily by higher staff costs of €1.1 millio, which was partly offset by a €0.9 million reduction in administrative expenses following the non-recurrence of costs relating to the potential HSBC Malta acquisition. The cost-to-income ratio fell sharply to 59.7% (Q1 2025: 83.7%).

Overall, the APS Group reported a sharp improvement in operating profit to €9.95 million from €2.76 million in the corresponding period last year.

The financial performance was dented by a loss from associates of €0.15 million.

Profit before tax amounted to €9.80 million (Q1 2024: €2.88 million) and following a tax charge of €3.95 million, the Group recorded a net profit for the period of €5.85 million (Q1 2025: €1.45 million), which translates into an annualised return on average equity of 6.5% (Q1 2024: 1.9%).

The Statement of Financial Position as at 31 March 2026, when compared to the position as at the end of 2025, shows that total assets increased by 1.5% (or €71 million) to €4.72 billion. Customer loans, including syndicated loans, grew by 3.3% to €3.66 billion and financial investments increased by 7.3% to €541 million while cash with the Central Bank of Malta decreased by 13% to €349 million.

Total liabilities also grew by 1.6% (or €70 million) to €4.35 billion, largely driven by a 1.4% increase in customer deposits to €4.19 billion. As a result, the loan-to-deposit stood at 87.4%.

Shareholders’ funds increased to €351.8 million, which translates into a net asset value of €0.724. The Bank’s CET1 ratio eased to 16.5% (31 December 2025: 17.6%) and the Capital Adequacy Ratio moved lower to 21.7% (31 December 2025: 23.2%).

Outlook

Commenting on the Q1 2026 performance, APS Bank CEO Marcel Cassar stated that the Bank achieved a threefold increase in profit and growth across its core business areas compared to the same period last year. He noted that net interest income benefited from active balance sheet management as the Bank shifted its mix towards lower-cost funding, while non-banking income streams continued to diversify and expand.

The CEO added that asset quality remains strong, reflecting a rational approach to risk, while the capital position continues to provide a solid foundation for future growth. The expressed confidence in maintaining and improving the Bank’s performance while remaining mindful of the need to uphold high credit underwriting standards and prudent provisioning policies.