The APS group said Thursday it made a pre-tax profit of €24.1 million in 2021, an increase of 52.5% over the previous year. The APS bank posted a record pre-tax profit of €23.7 million (2020: €15.5 million).
"The group’s resilience and strength of its business model was again manifest in such unprecedented times. These results were achieved while the APS Group continued to support the community in its many facets, ensuring business continuity and absorbing the financial impact of the current economic climate," the group said in a statement.
Net interest income grew by 13.3% to €55.4 million, driven mainly by the continued growth in the bank’s lending book. Interest receivable on loans and advances increased by €6.8 million to €63.2 million.
Net fee and commission income totalled €7.0 million, an increase of 34.3% or €1.8 million higher than last year. Other operating income for the year was €0.8 million, down €0.3 million on 2020.
Operating expenses increased by 21.0% to €40.6 million, raising the cost to income ratio to 64.3%. The key drivers for the increase were investment in staff to sustain operational growth and strengthen risk and compliance management, and various projects aimed at improving the customer experience and the group`s position within the industry.
Impairment against expected credit losses for the year amounted to a writeback of €1.5 million compared with a net charge of €5.5 million in 2020.
Group total assets at 31 December 2021 expanded by a further €374.0 million, or 15.4% reaching €2.8 billion. Lending activity grew by 14.7% to reach €2.1 billion. The demand for home loans steered this expansion by largely contributing to this increase, followed by commercial lending. The syndicated loans portfolio also grew by 18.7% to €134.3 million. In terms of liquidity management, a further €99.4 million in liquidity balances were placed with the Central Bank of Malta.
Funding grew by 16.2% to reach €2.6 billion, resulting from increases in both customer deposits and amounts owed to banks. The year closed with group equity of €220.8 million, an increase of €14.6 million compared to prior year. The Group’s CET1 ratio stood at 13.0% (2020: 14.4%) and the Capital Adequacy Ratio at 16.9% (2020: 18.8%) – both ratios are being managed in line with regulatory thresholds including buffers.
The directors are recommending that a gross dividend of 1.85 cents per ordinary share (net dividend of 1.20 cents per ordinary share). The total gross dividend to be paid is €4,615,385 (total net dividend of €3,000,000).
Marcel Cassar, Chief Executive Officer, welcomed the 'excellent results' for a year when the Maltese economy was still trying to adapt to the new contours of a post-pandemic era with all the challenges that it still presents.
"These results confirm the strength of our business model which sees us gaining market share through improving our services and product lines, enriching the customer experience and continuing the strategic transformation of the Bank while supporting the community into the ‘new normal’."
2022 is a landmark year for APS Bank as it approaches the market to raise equity capital for the first time in its 112-year history.
"This long-awaited step is not a goal of prestige but an integral part of the plan agreed years back with the shareholders that sees us on a path of growth also through the diversification of the shareholder base," the group said.
"Our strategy of being a leading community bank has become increasingly about being a pillar of support for Maltese businesses and families, as the experience of recent years has shown. We look forward to the coming months with optimism for the successful execution of this important project.”
https://www.apsbank.com.mt/financial-information.