APS Bank plc - Full-Year Results

On 7 March 2024, APS Bank plc published its Annual Report and Financial Statements for the financial year ended 31 December 2023, which was the first full financial year following the IPO that was concluded in June 2022.

Performance Overview

Net interest income increased by 13.1% to €73.6 million (2022: €65.1 million) as gross interest income advanced by 32.3% to €105.7 million whilst interest costs more than doubled to €32.1 million. In this respect, APS explained that the growth in net interest income was mainly driven by the continued expansion of the Group’s loan book, combined with improved opportunities on the syndicated loan book. Meanwhile, the surge in interest expenses was attributed to higher repricing on domestic deposits, and the subordinated bond issuance at the last quarter of 2024.

Excluding movements of financial instruments, non-interest income remained virtually unchanged at €8.7 million as the increase in net fees and commission income was dented by lower income from foreign exchange activities and other income. However, the Group performance was boosted by fair value movements of financial instruments totalling €3.1 million compared to a negative movement of €9.8 million recognised last year in relation to the APS Diversified Bond Fund.

Meanwhile, the financial performance was dented by a net impairment loss of €3.5 million compared to the net reversal of €0.25 million recognised in 2022. APS explained that the impairment in 2023 in principally related to a credit charge on an international syndicated loan.

Overall, net operating income amounted to €82 million compared to €64.9 million in 2022.

On the expenditure side, operating costs increased by 11.9% to €52.6 million reflecting higher employee and administrative expenses as well as depreciation and amortisation reflecting the implementation of the Group’s growth strategy.

The financial performance benefitted from a €0.9 million share of net profits from associates, compared to a €2.2 million share of loss of associates in 2022, mostly related to a number of APS Funds in which the Bank holds an equity interest.

Overall, the APS Group reported a record profit before tax of €30.2 million which is nearly double the €15.7 million figure of 2022. After accounting for a tax charge of €9.7 million, and profits attributable to non-controlling interests of €0.78 million, the net profit attributable to equity holders amounted to €19.8 million (equivalent to €0.052 per share), which translates into a return on average shareholders’ funds of 7.6%.

The Statement of Financial Position as at 31 December 2023 shows that total assets increased by 17.6% (or €549 million) to €3.66 billion principally composed of ‘Loans and advances to customers’ of €2.69 billion compared to €2.22 billion as at the end of 2022. The Bank also held financial investments of €442 million and ‘Cash and balances with the Central Bank of Malta’ of €131 million.

On the liabilities side, the major movement was the 15.8% increase (€427 million) in customer deposits to €3.14 billion. As a result, the loans-to-deposits ratio (including syndicated loans) increased to an all-time high of 91.7%.

Shareholders’ funds as at 31 December 2023 amounted to €273.1 million, which translates into a net asset value per share of €0.723. The bank’s Common Equity Tier 1 capital ratio eased to 14.6% from 15.2% at 31 December 2022 while the Total Capital Ratio rose to 20.6% from 18.8% as at the end of 2022.


The Directors of APS are recommending the payment of a final net dividend of €0.015 per share to shareholders as at close of trading on 5 April 2024, subject to regulatory and AGM approvals. Shareholders will have the option to receive the dividend either in cash or in new ordinary shares at an attribution price of €0.55 per share. Coupled with the net interim dividend of €0.0056 per share that was paid in October 2023, the total net dividend attributable for the 2023 financial year amounts to €0.0206 per share, which represents a payout ratio of 39%.


APS CEO Mr Marcel Cassar stated that the strong operating results across the main business segments of retail, corporate banking and investment services, reflect the robust growth enjoyed by the Bank in 2023, based on a business model centred around the provision of credit, savings and financial products to Maltese businesses and families.

The CEO explained that the rolling 3-year Business Plan, which now covers 2024-2026, identifies a number of strategic priorities, including to lower funding costs and increasing market share as a primary bank of choice. Mr Cassar noted that 2024 will present exciting prospects for APS which will enable further growth and more value creation for customers, communities and investors.