APS Bank plc has announced the publication of its Condensed Interim Financial Statements for the six months ended 30 June 2026, approved by the Board of Directors on 30 July 2026.

The Group results show a record interim profit before tax of €23.9 million (1H 2025: €9.1 million) with €23.5 million at Bank level (1H 2025: €10.2 million), thanks to sustained growth in business volumes, leading to more robust and diversified revenue streams and effective margin and cost management. Reflecting this outstanding first-half performance and strong capital position, the Board also declared an interim net dividend of €4.0 million, to be paid in the form of scrip and subject to regulatory approval.

Operating income before net impairments increased by €17.9 million, or 43.9%, to €58.7 million, reflecting stronger customer activity and sustained growth across APS Bank’s core business lines.

Interest income for the period amounted to €67.8 million, an increase of €7.7 million, or 12.8%, on 1H2025. At the same time, interest payable declined by €7.7 million, or 31.3%, to €16.8 million, reflecting the continued optimisation of the Group’s funding mix. As a result, net interest income reached €51.0 million, up by €15.4 million, or 43.2%, on the corresponding period last year with the Net Interest Margin strengthening to 2.23%, compared with 1.72% in 1H2025, reflecting improved asset yields and funding efficiency.

The strong performance was also supported by growing non-interest income. Net fee and commission income rose to €6.1 million, an increase of €1.5 million, or 32.6%, on 1H2025. Growth was recorded across lending, investment services, pensions, treasury and transactional banking activities, highlighting the growing contribution of non-interest income to the Group’s overall performance.

Net impairment charges for the period amounted to €2.5 million, compared with €0.5 million in 1H2025. Despite this increase, asset quality remained strong, with the Group’s Non-Performing Loan ratio remaining stable at 1.44%.

Operating costs increased by €1.2 million to €32.8 million, representing an increase of approximately 4% on 1H2025. The increase was principally driven by continued investment in people, talent and organisational capability, while administrative expenses declined as the Bank maintained a strong focus on efficiency, operational resilience and technology investment.

Operational efficiency improved markedly during the period, with the cost-to-income ratio falling to 55.9% from 77.4% in 1H2025, reflecting the Bank’s ability to grow revenues at a substantially faster pace than costs.

Group profit after tax for the six months ended 30 June 2026 reached a record €16.3 million, up by €11.4 million, or 234.9%, on 1H2025 (€4.9 million). Return on Average Equity, calculated on post-tax profits, improved to 9.2%, compared with 3.3% in the corresponding period last year.

Financial position

Total Group assets increased to €4.8 billion at 30 June 2026, up by approximately €151 million on 31 December 2025. Growth was principally driven by continued expansion in the lending portfolio, with loans and advances increasing by €261 million to €3.8 billion. The Bank also continued to optimise the deployment of liquidity into interest-earning assets while maintaining a strong liquidity position.

Customer deposits grew to €4.24 billion, representing an increase of €108 million over the period and supporting the continued expansion of the Bank’s lending and everyday banking activities.

Total equity at Group level stood at €371 million as at 30 June 2026, supported by the strong profitability achieved during the period. The Bank maintained a robust capital position, with a Capital Adequacy Ratio of 21.5% as at 30 June 2026.

Presenting the results to financial intermediaries and the media at the Bank’s Head Office, Chairman Martin Scicluna said that the performance “confirms the Board’s confidence that we are on the right trajectory, and that the momentum achieved so far reinforces the belief in our strategy, as one that will continue to deliver positive outcomes in the months ahead”. He also emphasised the Bank’s commitment to “continue investing in capabilities that enhance service quality, strengthen operational resilience and position the Bank for long term value creation”.

In his comments, CEO Marcel Cassar said that the results “are not the outcome of a one-off event, but of prudent management, ongoing transformation and an unwavering commitment to putting our customers first.” He added that “they also establish APS Bank and Group as one of Malta’s top corporate performers, demonstrating the power that can emanate when a strong sense of purpose, sound governance, innovation and diligent management work hand in hand.” But he also cautioned about the need to “keep diversifying our markets and sectors, increasingly mindful that Malta’s economic model is not immune from geopolitical risks and also has sustainability challenges that need to be taken seriously.”

The Condensed Interim Financial Statements for the period ended 30 June 2026 can also be viewed on the Bank’s website https://www.apsbank.com.mt/financial-information/.

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