APS Bank plc - Quarterly Update

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.