APS Bank plc has announced a strong 2019 operating performance for both Group and Bank, with revenue, activity and profit again reaching record levels as it reiterated its support to all customers in these difficult and challenging times.
“As we announce these excellent results our mood and thoughts turn to the challenging times ahead for the Maltese economy as the pandemic raises the likelihood of a deep international slowdown. We are responding with priority to the requests of our customers for support - we will stand by them and reciprocate their trust. Each case is being dealt with expeditiously and on its specific merits,” chief executive Marcel Cassar said as he commented on the results.
In an environment that remained marked by low or negative interest rates, increased regulatory obligations, a dynamic and challenging risk panorama and cost pressures, including labour and compliance, APS Bank’s pre-tax profit increase by 44 per cent to €26.8 million from €18.6 million.
An important contributor to the exceptional group results was the bank’s equity investment in the APS Funds SICAV and other debt securities where significant gains, classified differently as trading or FVTPL, were recorded.
All the main revenue streams contributed strongly to these results. Despite aggressive competition in the domestic market, home finance remained an important source of credit activity and 2019 saw the bank increasing market share despite a softening in the speed of new house purchases.
The year under review also saw more diversification taking place towards commercial and corporate lending with new facilities reaching record levels. APS is now a principal banker for some of Malta’s leading corporate names while equal attention is being given to young students at the start of their life’s journey.
Further credit diversification is pursued through a growing book of international loan participation, with the benefit of exposing the bank to different geographies, industries and shorter maturities than the domestic corporate book.
The Group’s balance sheet growth was again strong, with total assets increasing by 14.7% to €2.17 billion. This reinforcement of capital adequacy is part of the bank’s capital development plan which in 2019 saw a fully-subscribed rights issue of €13 million, a revaluation surplus of office premises and buildings of €16 million and retained earnings all contributing to the strengthened ratios.
Dr Cassar said: "Once again APS Bank has demonstrated the power of its transformation across a number of fronts. Despite a competitive and challenging environment, we have been able to draw on our strengths and values, maximise on the opportunities that they offer and gain further market share. But 2020 is going to present us with unanticipated challenges ranging from urgent action to repair the weaknesses disclosed in the MONEYVAL Report to the consequences of the COVID-19 pandemic.”