APS Bank Posts Record Nine-Month Profit
APS Bank reported a record Group pre-tax profit of €34.5 million for the first nine months of 2026, almost double the €17.8 million earned a year earlier.
- Group pre-tax profit
- €34.5 million, up 94% from €17.8 million
- Bank pre-tax profit
- €35.4 million, up 94.7% from €18.2 million
- Group profit after tax
- €22.7 million, up from €10.5 million
- Return on average equity
- 8.6%, up from 4.7%
- Net interest margin
- 2.23%, up from 1.80%
Income
Net interest income rose 37.5% to €77.7 million, helped by lending growth in retail and commercial banking, a stronger return from the treasury portfolio and lower funding costs. Interest expense fell to €25.6 million from €34.7 million, even though the deposit base grew. The bank continued moving its funding towards overnight and demand deposits. Net fee and commission income rose 22.1% to €8.7 million, with gains across investment services, insurance and pensions, and transactional banking. Market volatility in September led to net unrealised losses of €1.8 million, compared with gains of €0.8 million a year earlier.
| Measure | 9M 2025 | 9M 2026 |
|---|---|---|
| Net interest income | €56.5 million | €77.7 million |
| Interest expense | €34.7 million | €25.6 million |
| Net fee and commission income | €7.1 million | €8.7 million |
| Operating expenses | €47.2 million | €48.9 million |
Costs and Credit Quality
Operating expenses rose 3.7%, mainly because of higher staff costs linked to investment in talent, technology, cyber security and operational resilience. The cost-to-income ratio improved sharply, falling to 56.6% from 72.8%. Impairment charges rose to €3.5 million from €0.5 million, largely because of extra provisions for certain Stage 3 commercial and syndicated loans. Even so, the non-performing loan ratio stayed low at 1.48%.
Financial Position
Group assets grew by €260.7 million since the end of 2025 to €4.91 billion. Retail and corporate loans rose 9.7%, and debt securities increased. Balances held with the Central Bank of Malta fell as surplus cash was put into higher-yielding investments. Customer deposits grew by €216.2 million, and group equity reached €367.1 million. The bank’s CET1 ratio was 16.43% and its capital adequacy ratio was 21.17%, both lower than at the end of 2025 but still strong.
Leadership Comments
CEO Marcel Cassar described the results as evidence of the bank’s momentum and of its progress towards a more efficient and profitable business. He said the bank had continued investing in people, technology, digital channels and operational resilience. Looking ahead, he pointed to cyber and geopolitical risks, and said the bank would keep diversifying across markets, sectors and business lines, including cross-border opportunities. He also thanked customers, staff and investors.
