APS Bank registers ‘excellent’ 2021 results ahead of ‘landmark year’

APS Group registered a pre-tax profit of €24.1 million for the year ending 31st December 2021 – an increase of 52.5 per cent over the previous year (€15.8 million).

The bank also recorded a pre-tax profit of €23.7 million, well above the amount registered in 2020 (€15.5 million).

“We are pleased to be announcing these excellent results for a year when the Maltese economy was still trying to adapt to the new contours of a post-pandemic era with all the challenges that it still presents,” CEO Marcel Cassar said.

“These results confirm the strength of our business model which sees us gaining market share through improving our services and product lines, enriching the customer experience and continuing the strategic transformation of the bank while supporting the community into the ‘new normal’,” he continued.

The bank noted that said results were achieved while it continued to support the community in its many facets, ensuring business continuity and absorbing the financial impact of the current economic climate.

“We are conscious of new uncertainties ahead, especially in view of the evolving conflict in Ukraine and the geopolitical and economic repercussions that it is causing on a global scale,” Mr Cassar noted.

“While the group’s exposure in the region is immaterial, including to payment flows that might be impacted by cross border economic decisions, we have heightened our risk and compliance monitoring as necessary, including enhanced sanctions screening,” he added.

In 2021, APS Bank’s net interest income grew by 13.3 per cent to €55.4 million, driven mainly by the continued growth in the bank’s lending book. Interest receivable on loans and advances increased by €6.8 million to €63.2 million.

Interest expense remained at 2020 levels despite the significant growth in customer deposits, demonstrating the Group’s efficient asset-liability and funding management in the face of compressed interest margins.

“2022 is a landmark year for APS Bank as it approaches the market to raise equity capital for the first time in its 112-year history. This long-awaited step is not a goal of prestige but an integral part of the plan agreed years back with the shareholders that sees us on a path of growth also through the diversification of the shareholder base,” Mr Cassar said.

“Our strategy of being a leading community bank has become increasingly about being a pillar of support for Maltese businesses and families, as the experience of recent years has shown. We look forward to the coming months with optimism for the successful execution of this important project,” he concluded.