APS Bank plc, a key player in the Maltese banking sector, has reported strong growth across critical financial metrics for the year ending December 31, 2024. While profitability experienced a slight dip due to narrowing net interest income, the Bank’s performance underscores its strong fundamentals, robust asset growth, and ongoing digital transformation efforts.

Key Financial Metrics:

• Profit Before Tax: €23.8 million, down from €30.2 million in 2023, driven by increased costs and competitive pressures on interest margins.

• Total Assets: A notable increase of €500 million, bringing total assets to €4.2 billion.

• Customer Deposits: Grew by €532.8 million, reaching €3.7 billion, indicating strong customer trust and engagement.

• Equity: Increased by 7.8 per cent, reaching €309.9 million, reflecting solid profit and valuation gains.

Despite a decline in net interest income from €73.6 million to €65.5 million, APS Bank demonstrated resilience, with growth in key business segments such as net fee and commission income (up by 7.3 per cent), and a surge in other income, particularly from an uplift in investment property valuations.

Growth Drivers:

• Balance Sheet Expansion: The Bank saw a €314.7 million increase in net loans and advances to customers, indicating strong lending activity.

• Liquidity Position: A substantial increase in cash and balances with the Central Bank of Malta, which rose to €379.7 million, boosting the Bank’s liquidity coverage ratio (LCR) to 197.4%.

• Customer Confidence: A rise in customer deposits shows continued consumer trust, driven by term deposit campaigns and new Kapital Plus issuances.

Strategic Investments and Digital Transformation: APS Bank is positioning itself for long-term growth with a continued focus on digital transformation and strategic acquisitions. The Bank is investing in cutting-edge technology, enhancing customer-facing solutions, and expanding its market reach. This forward-thinking approach, alongside its strong capital and liquidity position, supports its ability to weather economic challenges and position itself for future growth.

Dividend Proposal and Investment Opportunity: The Bank’s Board of Directors has proposed a final dividend of €0.026 per share, with shareholders offered the choice to receive the dividend in cash or as new shares at an attractive attribution price of €0.57 per share, with a total dividend payout for 2024 reaching €13.0 million.

Key Takeaways for Investors:

• Strong asset growth and balance sheet expansion.

• Continued investment in digital transformation and customer experience.

• Resilient performance amidst global economic pressures.

• A steady dividend payout reflecting robust financial health.