APS Bank reports whopping increase in pre-tax profits
Revenues rise, profits triple, customer deposits grow by €56.8 million
APS Bank reported a sharp increase in profitability for the first quarter of 2026, with pre-tax profit rising to €11.1 million, up from €3.6 million in the same period last year, up by a whopping 208%.
The group also registered strong growth, posting a pre-tax profit of €9.8 million compared to €2.9 million in the first quarter of 2025, reflecting improved margins, higher business volumes and tighter cost management.
Interest income rose to €33.6 million, up 13.4% from the same period last year, driven mainly by higher returns from loans and debt securities.
Net interest margins surged by 47.6% to €24.6 million, supported by stronger yields on assets and a reduction in funding costs. The bank said its net interest margin improved to 2.2%, up from 1.6% a year earlier.
Net fee and commission income also increased to €2.8 million, reflecting continued growth in lending and higher activity in investment and transactional banking services.
Operating expenses rose marginally to €16.4 million, largely due to higher staff costs, although this was partly offset by a drop in administrative expenses following one-off costs incurred last year.
The cost-to-income ratio improved significantly to 59.7%, down from 83.7% in the same quarter of 2025.
Total assets reached €4.72 billion, up by €71.3 million since the end of December, driven mainly by growth in retail and business lending, which climbed to €3.49 billion. Holdings of debt securities also increased, reflecting what the bank described as a prudent treasury strategy.
Customer deposits grew by €56.8 million to support overall liabilities of €4.35 billion, with a noticeable shift towards demand and savings accounts, helping reduce funding costs.
Total equity stood at €363.9 million, while the bank’s capital ratios remained strong, with a CET1 ratio of 16.5% and a capital adequacy ratio of 21.7%. Assets under management exceeded €800 million.
Chief executive Marcel Cassar said the results marked a strong start to 2026 despite ongoing market uncertainty and geopolitical challenges.
“This performance is not accidental but confirms the rebound we had been anticipating,” he said, adding that growth was driven by a focus on sustainable business and digital transformation.
Cassar noted that asset quality remained robust and capital levels continued to provide a solid base for future growth, while cautioning that the bank would maintain prudent risk and provisioning policies in the months ahead.