APS Bank plc - Quarterly Update
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.