APS Bank eyes expansion and rights issue after record quarter, CEO says

APS Bank plc CEO Marcel Cassar has described the first half of 2025 as “a performance that is best described as one of two quarters, rather than a first half,” highlighting a strong rebound in net interest income during the second quarter.

The bank on Thursday (today) announced a group pre-tax profit of €9.1 million for the first half of 2025, compared to €10.1 million in the same period last year. At bank level, pre-tax profit reached €10.2 million, slightly higher than the €9.9 million reported in 1H 2024.

Mr Cassar explained that the reduction in European Central Bank (ECB) interest rates, after peaking in 2024, is easing funding costs and improving margins, which in turn is boosting the bank’s profitability and efficiency ratios. “The reduction in ECB interest rates is continuing to help the bank’s funding costs and ease margin pressures, resulting in a rebound in net interest income for 2Q which made it one of the best quarters ever – a trend that is expected to accelerate in the second half,” he said.

He emphasised that the bank’s capital and liquidity remain strong, while asset quality is at a multi-year high. This has allowed APS Bank to remain competitive with its pricing strategy, continue investing in digital transformation, and introduce new products and channels aimed at simplifying the banking experience.

Mr Cassar also stressed that APS Bank remains on a growth trajectory, driven by both organic and inorganic strategies. He noted that the bank is focusing on expanding its market share by cross-selling more to its growing customer base, which ranges from young families and SMEs to larger corporates.

The CEO pointed out that being Malta’s second-largest lender comes with a heightened systemic responsibility. He revealed that plans are well advanced for a Rights Issue of ordinary equity shares in the fourth quarter of 2025, which will further support the bank’s growth ambitions. “Further details about this important capital raise will be released in the coming weeks, as we approach another milestone aimed at creating greater value for our many stakeholders,” Mr Cassar added.

Looking ahead, he expressed confidence that the measures taken to strengthen profitability and efficiency will continue to bear fruit in the second half of the year, supported by a robust balance sheet and a sharper focus on customer engagement.