In 2023, out of the 28 bond issues and share issues, 13 of these were entrusted to CC Group, with the company handling just over €200m of the €496.34m in terms of deal value and fund management. Business achieved record revenue of €2.87m during 2023, an increase of 10 per cent over the previous year. “We look at this as a reflection of growing trust we are being shown as a financial services organisation,” say Nick Calamatta and Alan Cuschieri, co-CEOs of Calamatta Cuschieri Moneybase plc.
What initiatives were implemented over the past years that contributed to the remarkable revenue growth reported in your latest financial results?
AC: Over the past years, we continued to invest relentlessly in our product, our people, our structure and our customer experience. We worked on our long-term goals, prioritising them over short-term gains. It is the group’s dedication and commitment towards reaching our goals that ultimately led to the results we are enjoying today. Another decisive factor is the fact that the diversification we invested in two decades ago has brought stable revenue streams such as Fund Administration which has grown consistently by an average of 20 per cent for the past five years.
Moneybase was pivotal in sustaining the group’s strategy. Can you share insights into the platform’s evolution and its role in driving revenue?
AC: When we entered the fintech space in 2005, we set out to innovate through the development of our proprietary system. We first launched CCTrader which pioneered local online trading in Malta and more recently, Moneybase, Malta’s first ‘Neobank’, offering investments and payments. Today we are proud that this award-winning financial institution is servicing a diverse customer base, from high-net-worth wealth management to digital-first customers on its platform. We have the best overall platform locally, but also one which can compete internationally.
More recently you opened Moneybase to business clients. How successful has this been? What could be the remaining obstacles and how are you addressing them?
AC: This move was triggered by popular demand and in fact, it was very well received. The rate of take-up has been steady, and we are fast approaching 1,000 business customers on Moneybase. Apart from the functionality, one of our strengths is that we are enabling local businesses to open an account in a matter of hours and giving them the peace of mind of being supported by an established, locally regulated, and ISO9001 certified firm.
You mentioned positive revenue indicators for the first months of 2024. Can you provide more insights?
NC: The first quarter of the year was a continuation of the momentum of 2023. We achieved double-digit revenue growth over the previous year across the board thanks to buoyant international equity trading, several local corporates and government bond issues, an increase in pension transactions and an increase in subscription-based corporate accounts. This overall growth can also be attributed to client acquisition and an increased momentum of net flows that has been our focus from a business development perspective.
If you exclude retail and institutional offers by the Government of Malta, 28 companies issued private or unlisted debt and out of 28 such issues, practically half of them, 13, trusted CC to carry out this activity, with the company handling just over €200m of €496.34m in terms of deal value. Our fund management business, CC Fund Services also achieved a record revenue of €2.87m during 2023, an increase of 10 per cent over the previous year, which reflects the growing trust in us as a financial services organisation.
The company has a good market share in capital markets and was the first to issue a green bond. What was its success and do you see potential for more sustainable finance?
NC: Clearflowplus was Malta’s first green bond and an important step which saw Malta joining the growing industry present throughout Europe for several years. The success achieved by Clearflowplus hinges on the fact that it is a subsidiary of the government’s Water Services Corporation. It also reflects the investing public’s growing interest in sustainable bonds. This, however, is just the start. Hopefully, more fiscal incentives will lead to broader participation in this market from the private sector.
What plans do you have to continue on this successful trajectory?
NC: Over the years, the local capital markets grew exponentially, with corporate bonds taking centre stage over the last five years. This corporate bond market has helped bridge the funding gap for local corporates and supported economic growth together with bank funding and other government initiatives. We are expecting this growth to speed up and this is why we have continued to invest resources in our capital markets team and the wider business to remain poised to service larger transactions and more investors.
Regulatory changes in finance, new EU regulations and the upcoming Digital Operational Resilience Act (DORA) will mandate significant shifts in the Maltese financial services sector. How do you see Malta reacting to these realities?
AC: I believe DORA is a much needed milestone for financial services across Europe. However, there is more that companies need to be doing to ensure they strengthen their financial resilience. Ultimately more resources need to be allocated by businesses to ensure they maintain their reputation and integrity. Digital resilience is an area we have consistently invested in, and I am confident the Maltese market will continue to demonstrate its ability to reinvent itself. This new reality can be seen as an opportunity for innovation and to stay ahead. DORA will continue to evolve over time and provided that the regulation remains reasonable and focused on what really matters, I believe it is very positive for the industry. It is therefore important for stakeholders and regulators to continue to work closely to ensure standards are raised sustainably and logically.