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APS Bank plc – Quarterly Update

Jonathan Falzon

October 27, 2025

27 October, 2025
6 min read
27 October, 2025
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.

On 27 October 2025, APS Bank plc published a Quarterly Financial Update providing information about its performance during the nine-month period ended 30 September 2025.

Net interest income rose by 15.1% to €56.5 million (3Q 2024: €49.1 million) driven by the continued growth in gross interest income (+7.8% to €91.3 million) as well as lower interest expenses (-2.4% to €34.7 million). The Directors explained that interest income growth was across both retail and commercial product lines as well as from fixed income instruments. Meanwhile, the decline in interest expenses was driven by lower customer deposit costs. Consequently, the net interest income margin improved to around 2% compared to 1.7% in September 2024.

Net fees and commission income increased by 12.4% to €7.2 million reflecting the general business growth across advances, investment services, cards, and transaction banking.

APS also registered gains of around €1.2 million from other non-interest income streams including fair value gains on financial assets, which however, is lower than the gains of €2.6 million recognised in the same period last year.

The financial performance included a €0.5 million impairment charge on expected credit losses (3Q 2024: €1.1 million). APS noted that the non-performing loans ratio improved further to 1.4% (September 2024: 1.7%).

Net operating income amounted to €64.2 million, which is 13.0% higher than the comparable figure of €56.9 million recorded in the first nine months of 2024.

On the expenditure side, total operating costs increased by 14.8% to €47.2 million which included one-off costs incurred in the bid for HSBC Bank Malta plc, as well as higher contributions to the Depositor Compensation Scheme.

Net operating profit increased by 8.2% to €17.1 million from €15.8 million in the same period last year. APS also recorded an unchanged contribution of €0.7 million from its share of results of associates.

Profit before tax amounted to €17.8 million, which is 7.7% higher than last year’s comparable figure of €16.5 million. After accounting for a tax charge of €7.3 million, the Group reported a net profit of €10.5 million (3Q 2024: €11.6 million), which translates into an annualised return on average equity of 4.7%. APS highlighted that the return on average equity during the third quarter of 2025 stood at 7.4%.

The Statement of Financial Position as at 30 September 2025, when compared to 31 December 2024, shows that total assets increased by 5.3% (or €222 million) to €4.38 billion, principally composed of customer and syndicated loans of €3.42 billion (+€230 million), investments of €442 million (+€3 million), and cash balances of €334 million (-€45 million).

Total liabilities increased by 5.7% (or €220 million) to €4.07 billion largely reflecting the increase of 6.6% (or €243 million) in customer deposits to €3.91 billion. As a result, the loan-to-deposit ratio remained relatively unchanged at 87.5% compared to 87.0% as at end of 2024. Shareholders’ funds increased by 1.0% (or €2.8 million) to €298.5 million, which translates into a net asset value per share of €0.782.

The Bank’s CET1 ratio stood at 14.7% as at 30 September 2025 (31 December 2024: 14.6%) and the Capital Adequacy Ratio amounted to 20.2% (31 December 2024: 20.1%).

Commenting on the performance, APS Bank CEO Mr Marcel Cassar stated that the improvement in quarterly results stemmed from improved interest margins, expanding lending activity, and revenue growth across all business lines. The CEO explained that the Bank will continue to invest in its ongoing transformation and introducing new products and digital channels to enhance the customer experience.

The CEO highlighted that through the Bank’s €45 million Rights Issue, APS intends to invest more across resources, technology, distribution channels, product offerings, and overall business growth. The CEO also stated that APS is aiming for €9 to €10 million in pre-tax profits per quarter.

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 27 October 2025, APS Bank plc published a Quarterly Financial Update providing information about its performance during the nine-month period ended 30 September 2025.

Net interest income rose by 15.1% to €56.5 million (3Q 2024: €49.1 million) driven by the continued growth in gross interest income (+7.8% to €91.3 million) as well as lower interest expenses (-2.4% to €34.7 million). The Directors explained that interest income growth was across both retail and commercial product lines as well as from fixed income instruments. Meanwhile, the decline in interest expenses was driven by lower customer deposit costs. Consequently, the net interest income margin improved to around 2% compared to 1.7% in September 2024.

Net fees and commission income increased by 12.4% to €7.2 million reflecting the general business growth across advances, investment services, cards, and transaction banking.

APS also registered gains of around €1.2 million from other non-interest income streams including fair value gains on financial assets, which however, is lower than the gains of €2.6 million recognised in the same period last year.

The financial performance included a €0.5 million impairment charge on expected credit losses (3Q 2024: €1.1 million). APS noted that the non-performing loans ratio improved further to 1.4% (September 2024: 1.7%).

Net operating income amounted to €64.2 million, which is 13.0% higher than the comparable figure of €56.9 million recorded in the first nine months of 2024.

On the expenditure side, total operating costs increased by 14.8% to €47.2 million which included one-off costs incurred in the bid for HSBC Bank Malta plc, as well as higher contributions to the Depositor Compensation Scheme.

Net operating profit increased by 8.2% to €17.1 million from €15.8 million in the same period last year. APS also recorded an unchanged contribution of €0.7 million from its share of results of associates.

Profit before tax amounted to €17.8 million, which is 7.7% higher than last year’s comparable figure of €16.5 million. After accounting for a tax charge of €7.3 million, the Group reported a net profit of €10.5 million (3Q 2024: €11.6 million), which translates into an annualised return on average equity of 4.7%. APS highlighted that the return on average equity during the third quarter of 2025 stood at 7.4%.

The Statement of Financial Position as at 30 September 2025, when compared to 31 December 2024, shows that total assets increased by 5.3% (or €222 million) to €4.38 billion, principally composed of customer and syndicated loans of €3.42 billion (+€230 million), investments of €442 million (+€3 million), and cash balances of €334 million (-€45 million).

Total liabilities increased by 5.7% (or €220 million) to €4.07 billion largely reflecting the increase of 6.6% (or €243 million) in customer deposits to €3.91 billion. As a result, the loan-to-deposit ratio remained relatively unchanged at 87.5% compared to 87.0% as at end of 2024. Shareholders’ funds increased by 1.0% (or €2.8 million) to €298.5 million, which translates into a net asset value per share of €0.782.

The Bank’s CET1 ratio stood at 14.7% as at 30 September 2025 (31 December 2024: 14.6%) and the Capital Adequacy Ratio amounted to 20.2% (31 December 2024: 20.1%).

Commenting on the performance, APS Bank CEO Mr Marcel Cassar stated that the improvement in quarterly results stemmed from improved interest margins, expanding lending activity, and revenue growth across all business lines. The CEO explained that the Bank will continue to invest in its ongoing transformation and introducing new products and digital channels to enhance the customer experience.

The CEO highlighted that through the Bank’s €45 million Rights Issue, APS intends to invest more across resources, technology, distribution channels, product offerings, and overall business growth. The CEO also stated that APS is aiming for €9 to €10 million in pre-tax profits per quarter.