APS Bank will be making its debut on the Malta Stock Exchange in the coming weeks as an offer to sell up to 110 million shares worth €0.62c each was oversubscribed. The Bank is raising capital to drive its future growth strategy.

The Initial Public Offering is the first in the Bank’s 112-year history and marks the start of the next phase of growth for a bank which has developed a reputation for its community-centric and ethical approach to business.

APS Bank was founded in 1910 by Jesuit Fr Michael Vella, with the aim of helping working class individuals, at a time when a national welfare state was virtually non-existent.

“More than a century later, our mission is still rooted in the community and in making the banking experience simple and accessible,” says the Bank’s Chief Executive Officer Marcel Cassar. “Of course, it’s an entirely different world in which we are delivering the service today, but the fundamentals haven’t changed.”

Besides its core banking services, APS Bank also dedicates considerable time and resources to supporting the arts, culture, and education in Malta. It has undertaken projects seeking to protect the country’s heritage, as well as help it meet the challenges posed by climate change.

In fact, APS has become synonymous with green financing, regularly promoting green opportunities through its portfolio of lending and investment products. As APS’s Chief Strategy Officer Liana DeBattista puts it, “Authenticity is one of the Bank’s core values and at the heart of everything we do. We try to reflect this in all our services, from keeping our products and the terms and conditions simple to be inclusive of everyone, to being first-to-market offering sustainable products.”

Like any other business, the Bank strives for profitability across its operations, but Chief Financial Officer Ronald Mizzi says it doesn’t allow profitability to become an obsession, as great value is also placed on its social agenda and long-term vision.

“Research shows that entities having a truly sustainable agenda tend to have a lower cost of debt and cost of equity and are able to generate higher returns because of the real value in having a strong ESG strategy,” Ronald Mizzi adds.

APS Centre, Swatar

Like Marcel Cassar, the Bank’s Chairman Martin Scicluna believes that APS Bank’s desire to be of service to the community is what sets it apart from the rest. This focus on the community as well as a sense of “collegiality” are both at the core of the Bank’s culture, he says.

“Our corporate values set are embodied through five tenets of excellence, authenticity, passion, inclusiveness and contemporary thinking, and they are communicated and entrenched in our behavioural ethos,” Martin Scicluna says.

This is evident from the Bank’s efforts to provide sources of finance to those who don’t meet the criteria for financial stamina, through partnerships with government and non-governmental organisations. It is also clear from the Bank’s relentless drive for a more sustainable Malta.

Opinion surveys have in recent years, repeatedly shown citizens’ growing concern about their quality of life and the need to protect the environment. By positioning itself as an ethical banking partner and the primary promoter of sustainable practices within the Maltese financial sector, the Bank and its leadership, have shown the vision required for it to remain relevant and forward-looking.

Following the successful Initial Public Offering (IPO), APS Bank will now have a larger and diverse investor-base, as it launches itself on a three-year trajectory of further growth. 

The increase in capital will lead to new opportunities, including the diversification of the Bank’s lending into currently unserved economic sectors, as well as growth in the value of assets under its management through new and innovative products that address customer needs.

“The IPO is not an end in itself but rather an important transaction which will unlock future value for the Bank. Our end goal here is the proper execution of the Bank’s strategy and ambition to grow further and continue generating sustainable and superior returns for investors,” concludes Ronald Mizzi.

APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The Bank is also registered as a Tied Insurance Intermediary under the Insurance Distribution Act 2018.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of APS Bank plc.