News Details

APS Bank announces first quarter 2021 results

27/04/2021 12:00:00

APS Bank

For the quarter ended 31 March 2021, APS Group announced a pre-tax profit of €3.8 million (1Q2020: €2.0 million), and €3.9 million for the Bank (1Q2020: €5.2 million). This and other information is extracted from the Group and Bank unaudited financial statements presented at a recent meeting of the Board of Directors.

As COVID-19 economic disruption started to be balanced by cautious optimism with vaccination programmes gathering momentum, and Government continuing its direct intervention in favour of the sectors most affected by the pandemic, APS Bank remained committed to support its business and personal clients during this delicate period. It is satisfying to note that more retail customers are successfully exiting the moratoria period, a trend started in 4Q2020 that has continued.

The Group's loans portfolio grew by a net €48 million (+2.7%) to reach €1.85 billion with households and mortgage financing being the main contributors. The continued availability of market liquidity resulted in an increase of high-quality treasury assets by 23% to €522 million - a balanced mix of debt securities and bank balances. The Group's customer deposit base also grew by €96 million (+4.5%). Against this background of continued growth in the lending book, net interest income grew by 11.3% to €12.8 million. Other operating income rebounded as last year's net fair value losses of €1.5 million resulting from market volatility at the early stages of the pandemic were not repeated this quarter. Fees and other operating income remained at last year's levels while operating expenses increased by €2.4 million to €10.3 million as a result of continuous investment in technology, staff, support, as well as increased regulatory and pandemic-related costs, pushing the cost-to-income ratio to 68.6%.

Impairments for expected credit losses of €1.0 million largely reflect the quarterly growth in the lending book at broadly unchanged expected default rates and also taking into account changes to the credit risk and behaviour of borrowers. During the quarter ended March 2021, there have been no material changes to the IFRS9 staging composition. Group profit after tax for the quarter was €2.4 million (1Q2020: €0.2 million), an annualised return on average equity of 4.8% compared to 0.5% in the comparative period. At end-March, the Bank's equity stood at €191.4 million in line with the position at end-2020 with a CET1 ratio of 13.7% and a Capital Adequacy Ratio of 18.0%.

CEO Marcel Cassar commented: "Usually our first quarter is the most challenging, this year especially so as the pandemic effects continue to bite. We are confident that our business model will endure and overcome the current uncertainty, yet the extent of the rebound of key sectors such as tourism is going to be critical even for the short-to-medium term economic recovery. As we experience a gradual pickup in business sentiment we shall maintain a prudent watch on credit underwriting and asset quality, mindful that pandemic-related developments will continue to shape the landscape for quite some time to come."

To view the published information extracted from the Group and Bank unaudited financial statements for the quarter ended 31 March 2021 please click here


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APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The Bank is also registered as a Tied Insurance Intermediary under the Insurance Distribution Act 2018.