During the period, the Group delivered a resilient core operating performance, supported by strong capital and liquidity positions. Solid business activity sustained core income, with net interest income benefiting from continued lending growth and disciplined treasury management, underpinned by a stable, high‑quality funding base. Net Fee and Commission Income remained stable, reflecting strong customer activity and reinforcing the Group’s income diversification strategy.

The bottom line profitability was shaped by specific, non‑recurring factors, including heightened geopolitical tensions that led to increased financial‑market volatility. While not impacting the Group’s core operating activities, customer behaviour or portfolio performance, this resulted in an unrealised valuation impact on the equity investment portfolio. Consequently, a net trading loss of €3.6 million was recorded when compared with a gain of €5.5 million in 2025. This was not material and did not affect the Group’s capital strength or liquidity position.

Profitability was also influenced by higher impairment charges, reflecting specific and identifiable credit developments rather than a deterioration in the broader credit environment. The Group recognised an impairment charge of €5.6 million during the period, primarily driven by the continued material growth in the commercial lending book and the increase in stage 1 assets. Notwithstanding these charges, asset‑quality indicators remained strong, supported by prudent underwriting standards and disciplined credit‑risk management.

Performance highlights

• Profit Before Tax amounted to €54 million, down from €67.1 million.
• Net Interest Income stood at €100.2 million, up from €92.5 million.
• Net Fee and Commission Income increased from €20 million to €20.2 million.
• Operating costs totalled €61.7 million, up from €52.8 million.
• Cost‑to‑income ratio increased to 51.8% from 44.7%.
• Return on Average Equity (pre-tax) decreased to 14.2% from 17.9%.
• Deposits increased by €351.9 million, surpassing the €14.1 billion mark.
• Total assets stood at €17 billion, up from €16.5 billion in December 2025.
• The credit portfolio reached €8.3 billion, up from €8 billion in December 2025.
• Net Asset Value per share stood at €2.4, up from €2.3 in December 2025.
• Capital ratios remained strong and above regulatory requirements.

The Group continues to monitor the evolving geopolitical environment and its potential impact on the Maltese economy and the financial system and maintains enhanced monitoring across key risk dimensions. The assessment remains that Malta entered the current period of heightened geopolitical uncertainty from a position of relative strength, supported by resilient economic growth, low unemployment, moderating inflation and sound public finances.

The Group’s risk management framework incorporates forward looking scenario analysis and early warning indicators to identify emerging stresses. To date, these have not signalled any material deterioration in customer behaviour or portfolio performance. This approach ensures that the Group remains well positioned to absorb potential shocks and continue supporting customers and the wider economy amid an increasingly uncertain global backdrop.

Commenting on the Group’s performance, Chairperson Dr Cordina stated, “The Group delivered a strong start to the year, reflecting resilience, a disciplined approach and solid fundamentals. This performance was achieved in a stable economic environment, alongside the expected normalisation of earnings, interest rate stability and a renewed period of geopolitical uncertainty.

From a market standpoint, the Share Buyback Programme continued to support trading activity in the Bank’s shares, while preparations are now underway for the issuance of a €300 million Senior Preferred Instrument, subject to regulatory approval. Supported by a strong capital base, resilient day‑to‑day performance and consistent execution of our strategy, the Bank’s share price rose to highs of €2.14 during the period.

Looking ahead, the Group remains well positioned to deliver a profit before tax for the year in the range of €210 million to €250 million, in line with previous guidance. We also remain committed to rewarding our shareholders and intend to maintain our policy of distributing up to 50% of after‑tax profits, subject to prevailing market conditions.”

CEO Kenneth Farrugia said, “I am pleased to report another strong performance by the BOV Group, building on the positive results delivered in 2025. During the first quarter of 2026, the Group sustained resilient operating performance, continued to grow its balance sheet and maintained sound asset quality, sustained lending and treasury activities, supported by a diversified business model.

The depth of our deposit base reflects the confidence our customers place in our credibility and long‑term approach. The growth and diversification of our corporate loan book support key commercial economic sectors, while the consolidation of our corporate services under one roof and the broadening of our service offer through non‑life insurance further strengthen our position as the Bank of Choice in Malta.

These results reflect strong fundamentals and continued customer trust. With the largest network of customer touchpoints in Malta, and a resilience underpinned by strong investment‑grade credit ratings, the Group is uniquely positioned to deliver stability and consistency while remaining deeply embedded in Malta’s economy. As we enter the final year of our strategic cycle, our focus remains on disciplined execution, responsible banking and the creation of long‑term value for all our stakeholders.”

Financial performance

Net Interest Income for Q1 amounted to €100.2 million, an increase of €7.7 million when compared to 2025. Growth was recorded in both loans and advances to customers underscoring the relevance of BOV’s products within the lending sector and equally important income from disciplined treasury management. Net Fee and Commission Income is reported at €20.2 million, a marginal increase of 1.1% from the same quarter last year, reflecting resilient customer activity with continued strength in cards and credit-related fees, consistent with ongoing shifts towards digital payment solutions.

Operating costs at end March 2026 totalled €61.7 million, an increase of €8.9 million over Q1 2025. This reflects higher personnel and IT costs, depreciation charges and contributions to the Depositor Compensation Scheme. As a result, the cost‑to‑income ratio increased from 44.7% in 2025 to 51.8%, consistent with the expected low‑to‑mid‑50% range outlined in the forward guidance.

The return on average equity (pre-tax) declined to 14.2%, down by 3.7 percentage points compared to 2025, consistent with the expected range communicated earlier this year and very much influenced by the one off profitability movements and the increased equity base. Earnings Per Share decreased to €0.056 compared to €0.069 for 2025 (restated for bonus issue in Q2 2025), reflecting the lower profit before tax for the quarter and the ongoing share buyback programme that partially mitigated the decline.

Asset quality indicators remain strong, with the NPL ratio improving to 1.57%, while ECL coverage ratio for credit-impaired assets stood at 55.1%, reflecting a sensible provisioning stance while continuing to benefit from improving portfolio quality and dynamics.

Financial position

Total assets stood at €17 billion in March 2026, up by approximately half a billion when compared with 2025. This represents a new high for the Group, with growth reflecting sustained balance-sheet expansion, consistent with the strategic focus on supporting domestic economic activity while maintaining strong liquidity and funding discipline. The Treasury portfolio has now reached €7 billion in Q1 2026, an increase of €119.3 million, reflecting the Group’s deployment of excess liquidity into high-quality debt securities.

The credit portfolio continued to grow, with the balance reaching €8.3 billion in the first quarter, reflecting strong momentum in customer lending. As a result, the gross loan-to-deposits ratio increased from 59% in December 2025 to 59.5% during the quarter. Deposits experienced another significant increase of €351.9 million or 2.6% during the first quarter of 2026, surpassing the €14.1 billion mark, reflecting the strength of the Group’s retail franchise driven by an increase in both retail and business deposits. As a result, the Group maintained very strong liquidity position, with the LCR ratio of 385.8% well above the minimum regulatory requirements.

The Group’s total equity closed at €1.5 billion, marginally higher from December 2025 with the Net Asset Value per share standing at €2.4 per share (December 2025: €2.3 per share), further strengthening the underlying book value position. The Group’s capital ratios remained strong and comfortably above regulatory requirements.

The post BOV reports profit before tax of €54 million for first quarter 2026 first appeared on The Malta Business Weekly.

The Bank of Valletta Group delivered a solid performance in 2025, generating a Profit Before Tax of €260.4 million and achieving a pre‑tax Return on Average Equity of 17.9%. This outcome reflects the strength of the Group’s underlying business model, the resilience of its core income streams, and the disciplined execution of its strategic priorities throughout the year. The Group continued to improve its balance sheet, enhance asset quality, diversify revenues and invest in its operational and digital capabilities. As a result, it enters 2026 with stronger financial foundations and clear momentum for the next phase of its strategic development.

The strong financial performance enabled the Board to propose one of the most substantial dividend distributions in recent years, with a final gross cash dividend of €65.1 million (€42.3 million net) being recommended for approval from H2 profits, equivalent to €0.1014 per share gross (€0.0659 net). Over and above, the Board also proposed a special dividend of €10.4 million gross (€6.8 million net), equivalent to €0.0162 per share gross (€0.0105 net). This special distribution reflects the portion of profitability generated during the financial year that exceeded the upper bound of the Bank’s forward‑looking PBT guidance which amounted to €250 million.

This results in a total cash dividend for FY25 (including interim payment and special dividend) of €0.2032 gross (€0.1320 net) per share, and equivalent to a total gross dividend of €130.5 million (€84.8 million net) out of the year’s profits, with the payout being fully aligned with the Group’s Shareholder Distribution Policy. The distribution underscores the Board’s commitment to delivering sustainable shareholder returns while preserving the capital strength and strategic flexibility needed to support future growth.

Complementing this cash dividend, the Bank has also allocated a €7.8 million reserve during the year to operate the regulated share buyback programme, activated during FY2025. This contributed to improved equity liquidity and more efficient capital management, showing the ever-increasing trust that markets, shareholders and the wider community have in BOV.

During the year, the Group strengthening its long‑term funding through targeted capital‑markets activity, completing the issuance of €150 million in unsecured Tier 2 bonds, concluding the €250 million EMTN programme launched in prior year. The Bank subsequently obtained regulatory approval for a new €325 million programme, under which €125 million in unsecured subordinated (Tier 2) bonds were issued, further enhancing the capital structure and supporting future growth. In parallel, the Group has commenced engagement with international markets in preparation for a €300 million Senior Preferred issuance, aimed at broadening and diversifying its wholesale funding sources while ensuring continued alignment with evolving MREL and strategic funding requirements. Further details will be issued during FY2026, with the issuance being subject to regulatory approval.

Financial Performance and Prevailing Economic Conditions

Despite normalising interest rates and sector-wide cost pressures, the Group delivered a solid financial performance, exceeding profitability targets and forward-looking expectations. While profitability declined when compared to FY2024, core operating performance remained resilient, with operating income increasing by 2.3% year-on-year, supported by disciplined balance sheet management, credit portfolio expansion, non-funded income diversification, and active cost and impairment management.

The Group further strengthened its balance sheet, with total assets increasing by €1.4 billion, with year-end figures exceeding €16.5 billion. Expansion was driven by sustained growth in customer deposits, which increased by €937 million, together with a €277 million rise in long-term liabilities following the successful issuance of Tier 2 subordinated debt, supporting strong loan book performance and expansion of the investment portfolio beyond targets.

One of the most substantial dividend distributions in years – Dr Gordon Cordina, Chairperson

Speaking during the announcement of the Group Financial Results, Chairperson Dr Gordon Cordina, said that “The Bank delivered strong profits notwithstanding the significant geopolitical tensions abroad, the normalisation of interest rates, and upward pressures on operating expenses. This highlights the resilience of our business model, the prudence of our strategic decisions, and our commitment to sustainable performance and effective risk management. The Group’s performance for 2025, which exceeded the initial profit guidance, enabled us to declare one of the most substantial dividend distributions in recent years.”

Dr Cordina continued by stating that, “As the country’s largest bank, developments within the Maltese economy directly influence our performance, just as our actions have a significant impact on households and businesses. Against this backdrop, throughout 2026, we will shape our next three-year strategy, remaining mindful of the risks, opportunities, and responsibilities we carry as Malta’s leading financial services institution.” 

Enhancing Customer Value, Accessibility, and Market Leadership – Kenneth Farrugia, CEO

CEO, Kenneth Farrugia, said that “During 2025, the BOV Group strengthened its leadership position across key customer segments, supported by targeted product innovation and improved customer experience. In retail business, home and personal lending, the Bank achieved double-digit growth. We strengthened our advisory capabilities, upgraded and modernised branches, opened a new Investment Centre in Sliema and upgraded two thirds of our ATM network. Our commercial banking performance also remained strong, with the relocation of our commercial operations to the Quad Central and a new Business Branch marking a strategic upgrade in service delivery. This reinforces our position as the Bank of Choice for both personal and commercial banking needs in Malta.”

Financial Performance

Operating income increased by 2.3% year-on-year, reflecting momentum across core business lines, optimisation of the funding and investment mix, and progress in revenue diversification. Commercial, Retail and Treasury remained the main pillars of income generation, delivering stable and recurring revenues.

Net Interest Income remained central to operating performance, increasing to €387.4 million as the Bank mitigates interest‑rate volatility through focused balance sheet optimisation and strong loan and investment activity. Net Fee and Commission Income also strengthened, rising by 8.2% to €88.1 million, driven by higher customer activity and the shift towards a more diversified, fee‑based earnings model.

Operating costs increased by 13.9% to €246.8 million over the prior year, reflecting a multi‑year investment programme aimed at strengthening technology, risk‑management and customer‑facing channels. Higher technology and cybersecurity expenditure mirrors accelerated digital implementation, transformation and resilience initiatives. Despite this, operating efficiency remains solid, with the cost‑to‑income ratio standing at 49.7% (FY2024: 44.6%).

The Non‑Performing Exposures ratio declined to 1.68%, supported by active remediation, improved portfolio monitoring and continued reduction of legacy positions. The coverage ratio increased to 59.4%, reflecting a resilient provisioning and approach to asset‑quality.

The Group’s profitability translated into a pre‑tax Return on Average Equity of 17.9%, comfortably above the 15% guidance. The year‑on‑year movement reflects both lower overall earnings when compared to the exceptional 2024 base and a higher average equity position driven by retained profits.

Profits from insurance associates increased to €10.4 million, reflecting the solid performance of the Group’s insurance operations in partnership with MAPFRE and their continued contribution to diversified earnings.

ESG remained a core priority, with progress on the Climate Transition Plan and further reductions in Scope 1 and Scope 2 emissions.

Outlook and Risk Management

The Group continues to monitor economic and geopolitical developments through risk monitoring frameworks, with assessments indicating no material emerging risks. Stress‑testing under ICAAP confirms strong capital buffers and resilience, while the Group remains vigilant towards maintaining transparent market disclosure.

The Board remains confident in the Group’s strategic direction, having delivered another year of strong performance underpinned by solid fundamentals, disciplined risk management and investment. Entering FY2026 from a position of strength, the Group remains focused on delivering sustainable growth, shareholder value and continued support for the Maltese economy.

The post BOV closes financial year 2025 with €260.4m profit before tax first appeared on The Malta Business Weekly.

Since its establishment in 2017, the Malta Development Bank (MDB) has supported around 750 firms, more than 90% of which are small and medium-sized enterprises (SMEs), CEO Alison Micallef said in an interview with this media house.

Micallef stressed that the MDB’s role is to intervene where “market failures” exist – in other words, where viable projects struggle to secure financing through commercial banks because of factors such as insufficient collateral, conservative lending appetites, or the long-term nature of the investment.

This focus on SMEs reflects their central role in Malta’s economy. Citing NSO data, Micallef said that 99.6% of all non-financial corporations in Malta are SMEs. Yet despite their dominance in numbers, they generate less than half of the country’s total net turnover.

“While SMEs are the backbone of the economy in terms of numbers and activity, revenue remains concentrated among a relatively small number of large enterprises,” she said, adding that SMEs therefore need greater support.

The MDB works alongside commercial banks rather than replacing them, stepping in through risk-sharing arrangements to make projects more bankable. “We do not want to displace private lenders,” Micallef said. “We want to work alongside them and help them make a project.”

As a development bank, the MDB is barred from financing speculative construction and real estate. Instead, it focuses on projects that create long-term economic and social value, particularly in areas such as productivity, innovation, energy resilience, and infrastructure.

One flagship example is the StudentAssist scheme, which helps students finance higher education in Malta or abroad. Around 900 students have benefited so far, with total support reaching approximately €38 million. Under the scheme, students can access interest-free loans of up to €100,000 to cover tuition, accommodation, and related expenses through partner banks BOV and APS.

Micallef said the scheme is an investment in Malta’s future workforce. “By removing financial barriers, we are helping to develop a skilled workforce in Malta that will materialise in the future,” she said.

MDB-backed projects typically involve long repayment periods and are monitored continuously, with formal annual reviews carried out jointly with partner banks. This allows the bank to track growth, market traction, and the overall impact of the financing.

The MDB’s importance was especially visible during the Covid-19 pandemic, when it estimates that its support helped safeguard around 40,000 jobs. According to Micallef, the bank’s contribution during that period amounted to 13% of Malta’s gross value added, or around €1.7 billion.

The bank has also recently strengthened its position internationally. In early 2026, it became the smallest bank in Europe to pass the European Commission’s pillar assessment, allowing it to access the InvestEU budget directly. This means the MDB can now help Maltese businesses tap into EU-backed guarantees without relying solely on intermediaries.

Looking ahead, Micallef said the MDB is concentrating on sectors critical to Malta’s long-term competitiveness, particularly innovation and energy resilience. She noted that these are precisely the areas where private markets can be more reluctant to take risks, especially during periods of uncertainty.

On innovation, the MDB is working with Xjenza Malta on a blended finance instrument to help businesses commercialise research and development. Rather than relying solely on grants, the new tool will provide longer-term loan financing to help ideas reach the market.

Infrastructure is another core pillar. The MDB focuses on sustainable, bankable projects that address clear market gaps, particularly those with long repayment periods that may exceed local banks’ risk appetite. As Malta’s only implementing partner for the Alternative Fuels Infrastructure Facility (AFIF), the MDB can also help entrepreneurs secure cheaper financing for eligible projects, provided they meet strict EU environmental and technical standards.

Despite its policy alignment with Malta Vision 2050 and EU green and digital priorities, Micallef insisted that “policy alignment never comes at the expense of financial discipline.”

“Our decisions are banking decisions, not political decisions,” she said.

This is an abridged version of an interview which was carried in The Malta Independent on Sunday on 22 March

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The proportion of counterfeit euro banknotes remains insignificant when compared to the 30.22 million genuine euro banknotes in circulation in Malta in 2025.

Among the 1,097 counterfeit euro banknotes seized in Malta during 2025, the middle denominations continued to be the most counterfeited. Nevertheless, the €20 denomination lost in importance, while the share of the €50 denomination increased. Together, these two denominations accounted for 87.5% of all seized counterfeits. The share of the lower denominations (€5 and €10) also decreased, while the percentage of the highest denominations remained very low.

The table below provides a percentage breakdown by denomination of the total number of counterfeits withdrawn from circulation in Malta during 2025, compared with the distribution by denomination across the entire euro area. It must be noted that while the €20 denomination predominates in Malta, the €50 is the most frequently detected counterfeit banknote in the euro area.

Notwithstanding the low figures of counterfeits reported locally, the Central Bank of Malta continues to advise the public to remain alert with regards to banknotes received in cash transactions. Most counterfeits are easy to detect as they have no security features, or only poor imitations of such features.

The post Counterfeit euro banknotes in Malta drop by nearly 30% in 2025 first appeared on The Malta Business Weekly.

The commencement of this series of announcements reflects improvements in the technical and governance systems and structures being used by the Bank for the determination of base rates. It also highlights the Bank’s continued commitment to improve and strengthen its communications with the financial markets, and to meet and exceed regulatory expectations.

The Bank Base Rates operate as a core component within the Bank’s enterprise‑wide pricing framework. It works in tandem with product‑specific parameters (such as risk‑based add‑ons, customer‑level adjustments, and contractual terms) to deliver pricing outcomes that are fair, transparent, and consistent with the principles laid out in the Bank’s internal pricing governance.

By anchoring lending rates to an internally governed benchmark, the Bank promotes coherence between individual credit decisions and broader balance sheet objectives, including profitability, capital efficiency, and portfolio risk appetite. These internal benchmark rates are subject to a structured governance and review process every quarter, the bank said.

In determining the Base Rate levels for the forthcoming period, the Bank undertook a comprehensive assessment grounded in its formal Base Rate Policy. This framework requires that every decision, whether to maintain or amend the rates, be evaluated holistically across key principles that safeguard financial resilience, prudent balance sheet management, and fair outcomes for customers.

Following this scheduled review of interest rate trends and prevailing market conditions, the Bank’s Base Rates applicable to its Credit Portfolio will remain unchanged for the forthcoming three‑month period up to end June 2026. Effectively, the Business Bank Base Rate remains at 2.15% per annum, the Home Loans Bank Base Rate remains at 2.15% per annum and the Personal Loans Bank Base Rate remains at 2.45% per annum.

The decision to retain the Base Rates for its credit portfolio unchanged for the forthcoming three‑month period is underpinned by internal financial projections which continue to indicate consistency with its strategic, budget and risk appetite, Key Performance Indicators and Key Risk Indicators. The capital and liquidity positions of the Bank remain strong without any indications of stresses.

Current geopolitical tensions abroad, the outlook for the economy, the Bank’s competitiveness in the market, and the safeguarding of the interests of the Bank’s clients also vouch for the need for continued stability in interest rates in Malta and in the Bank’s base rates in particular. The Bank also noted that, over recent years, it was able to maintain the Base Rates at stable levels notwithstanding changes in market conditions, including shifts in the European Central Bank’s monetary policy stance.

These rates will remain in effect, at least, until the next review scheduled for June 2026, the bank said.

The post BOV to issue quarterly announcements on credit portfolio base rates first appeared on The Malta Business Weekly.

The Group delivered a pre-tax profit of €26.5 million (2024: €23.8 million), with the Bank posting €26.9 million pre-tax (2024: €22.5 million), driven by higher revenues and transaction volumes, and reduced cost of funding. Net interest income rose by 20% to €78.7 million, supported by increased credit and treasury activity, improved yields, and a strategic shift from fixed-term to overnight deposits that lead to wider net interest margins.

Operating income rose by 8% to €89.3 million, while net impairment losses dropped to €0.7 million, reflecting strong asset quality and disciplined underwriting with the NPL ratio closing the year at an all-time low of 1.4%. Operating costs increased due to continued investment in human resources, multiple technology projects, advisory overheads and regulatory costs, with the cost-to-income ratio closing at 70.7%.

The Bank’s financial position also strengthened, with total assets and customer deposits now exceeding €4.6 billion and €4.1 billion, respectively. Total equity increased to €355 million, boosted by the successful 2025 Rights Issue and retained earnings. Capital ratios improved markedly, with the CET1 ratio of 17.6% and Capital Adequacy Ratio of 23.2%. The Board is declaring a final net dividend of €7.4 million, bringing the total net dividend for the financial year to a highest ever distribution of €9.2 million.

APS Bank CEO Marcel Cassar commented: “We are proud to announce a standout performance marked by double‑digit growth over 2024 and a strong rebound in banking income in 4Q2025 – one of our best quarters on record for both operating and profit results. We strengthened margins, expanded retail and commercial lending, and increased revenues across every business line. Last year we promised an uplift in profitability, we are now delivering that consistently and aim for more – despite a volatile geopolitical and economic environment. With strong liquidity, capital and asset quality, we are exceptionally well positioned for the next phase of growth and confident in delivering even higher returns for our shareholders.”

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Joined by Minister Silvio Schembri, the Prime Minister noted that the project serves as a clear signal of confidence in the national economy during a period of global uncertainty. He emphasised that Malta’s consistent stability remains a primary factor in attracting international investment and maintaining a competitive edge.

Abela described the hub not merely as a new workspace but as a vote of confidence in the bank, its workforce, and the country’s broader economic trajectory. In an era marked by geopolitical tension and rapid technological shifts, he argued that stability has become a vital asset.

He also referenced recent evaluations by the International Monetary Fund, which highlighted Malta’s strong economic momentum. The Prime Minister specifically pointed to the IMF recommendation to move to a 24-month consultation cycle as a formal recognition of the country’s responsible economic management and a reminder to remain disciplined and resilient.

Addressing the bank’s international role, the Prime Minister noted that the financial and insurance sectors sent a clear message that capital continues to choose Malta because the country offers certainty. This sentiment was echoed by the Bank of Valletta leadership, who viewed the opening as a milestone in the bank’s evolution toward more client-centric and sustainable operations.

Bank of Valletta CEO Kenneth Farrugia explained the vision behind the modern centre, noting that commercial services have evolved at a rapid pace. He stated that the bank felt the need to consolidate its services under one roof to provide business clients with a more integrated and efficient experience. The new hub offers central access, specialised banking services, and a dedicated commercial branch.

Farrugia also highlighted that the facility is located within a LEED Platinum-certified building, which represents the highest global standard for sustainable construction and reflects the bank’s commitment to green financing.

BOV chairperson Gordon Cordina added that the investment reflects a commitment to quality, offering better services for clients and a superior environment for employees. He remarked that the project complements ongoing investments in information technology and digital transformation.

Cordina concluded by stating that focusing on client needs, human resources, and sustainability is the core recipe for long-term development, aligning with the objectives set out in the Malta 2050 Vision.

The post Economic stability cited as key driver for investment at new BOV Business Hub opening first appeared on The Malta Business Weekly.

In 2025, the local group achieved a profit before tax of €109 million demonstrating resilience and consistent performance across all business units despite operating in a lower interest rate environment.

HSBC Bank Malta plc confirmed its commitment to delivering sustainable shareholder returns, recommending a final gross dividend of 8.4 cents per share, following another period of resilient financial performance and disciplined capital management.

This represents the highest dividend payout ratio in recent years, which together with the interim dividend paid in September 2025, represents a 60% dividend payout ratio. The final proposed dividend will be paid on 6 May to shareholders who are on the bank’s register of shareholders on 30 March, subject to approval at the Annual General Meeting scheduled for 29 April.

Key Highlights

• Positive outlook on Malta’s economy, which continues to outperform Europe. Malta’s high Gross Domestic Product (GDP) growth and diversification and low unemployment, provide economic resilience despite global uncertainties. Property sector remains strong.
• Reported profit before tax of €109 million for the year ended 31 December 2025, a decrease of €45.4 million or 29% over 2024. The decrease in profit reflects the impact of lower interest rates and lower releases of expected credit losses. The bank achieved solid underlying revenue growth, driven by increased customer activity. Operating costs increased reflecting continued strategic investment in talent and accelerated amortisation of software.
• Strong customer growth and confidence led to deposit growth of €370 million during the year, reaching a record high of €6.5 billion at year-end. Deposit market share increased by over 1%. Additionally, there was growth of 28% in client wealth management and investment balances to €1.1 billion. Life insurance sales increased by 21%.
• Reported profit after tax attributable to shareholders amounted to €71.6 million for the year ended 31 December 2025, resulting in earnings per share of 19.9 cents, compared with 27.8 cents in the same period in 2024.
• The board has recommended a final gross dividend of 8.4 cents per share (5.46 cents per share net of tax), bringing the total dividend for 2025 to 18.4 cents (11.96 cents net of tax). This represents a payout ratio of 60%.
• The bank’s total capital ratio grew to over 27% and the liquidity coverage ratio remained over 500%, making HSBC Bank Malta plc one of the most capitalised and liquid banks in Malta and among the highest in Europe, well above regulatory requirements

Geoffrey Fichte, CEO at HSBC Bank Malta plc, said he was proud to report another year of successful results, marking the third consecutive year of pre-tax profit exceeding €100 million – a first in the history of HSBC in Malta.

“This performance, delivered despite lower interest rates and reduced recoveries, underscores the strength and resilience of our diversified business model, disciplined execution and the continued trust of our customers,” he said.

“We continue to serve our customers with the same high standards of service and banking, insurance and investments. Throughout the year, we continued to invest in the future of the bank – enhancing our digital capabilities through the implementation of SEPA Instant payments, upgrading our IT infrastructure, and completing the replacement of our ATM fleet across Malta and Gozo.”

Testament to this, Fichte said, is the bank’s recognition as 2025 Bank of the Year Malta by The Banker, the Financial Times’ internationally-renowned publication covering global banking and financial affairs.

HSBC Bank Malta’s recognition reflects the bank’s significant progress across key performance metrics, including earnings growth, capital strength, operational efficiency, and continued investment in digital and technological capabilities.

The post HSBC Malta announces pre-tax profit exceeding €100m for third consecutive year first appeared on The Malta Business Weekly.

“Our priority remains clear, supporting our customers, strengthening relationships, and delivering value in a sustainable and responsible way,” said Muriel Rutland, Head of International Wealth and Premier Banking at HSBC Bank Malta. “This campaign is a testament to our commitment to doing that in ways that are both practical and meaningful for our customers.”

Wealth Investments Offer

A headline initiative is the 0% initial fee offer on all mutual fund investments, available through HSBC’s Accredited Financial Advisors and Premier Relationship Managers. The offer which is valid until 30 April 2026 is designed to give investors a cost-effective entry into professionally managed funds, with no exit fees and access to personalised financial planning support.

The campaign is being supported by an advertising rollout featuring HSBC’s team of Wealth advisors, as well as targeted activity online.

Four tailored email campaigns will also promote specific wealth solutions including pensions, regular premium products and Key 5 Critical Illness Protection.

Discounted Personal Lending Rates

Customers can benefit from discounted interest rates across all personal loan products. Rates are discounted by up to 1.75% depending on the loan purpose and customer segment, with the most competitive options starting at 3.25%* for loans related to energy efficiency and electric vehicles.

Our best mortgage offer in years with fast turnaround times and expert assistance, reinforcing the bank’s support to customers to invest in property.

Cashback on Home Loan Buildings Insurance

To complement its mortgage offering, HSBC Malta is also providing a cashback incentive on new Home Loan Buildings Insurance policies issued until the end of April, whereby customers will benefit from this one time-offer in receiving back 15% of the first annual premium. This offer is aimed at providing added value while supporting customers’ protection needs.

A Focus on Relationship-Led Banking

Beyond the campaign’s headline offers and the standard point of sale messages, HSBC is continuing its year-round customer engagement activities, ensuring customer relationships are nurtured with relevant, timely and tailored communication. The approach is designed to engage customers throughout the relationship lifecycle and includes educational content such as fraud avoidance tips and personalised needs-based messaging.

The post HSBC Malta launches 2026 start of year campaign to support customers with wealth, lending and insurance offers first appeared on The Malta Business Weekly.

The APS Ethical Adventurous Fund* delivered a return of 16.31%, reflecting its higher allocation to global equities and growth-oriented assets, supported by selective exposure to companies aligned with sustainable business practices and strong governance standards.

The APS Ethical Balanced Fund* achieved a return of 7.62%, benefiting from diversified exposure across equities and fixed income instruments, while the APS Ethical Cautious Fund* recorded a gain of 4.88%, consistent with its focus on capital preservation and lower volatility.

Within fixed income, the APS Diversified Bond Fund* posted a positive return of 0.77%, reflecting prudent interest rate and credit risk management. The APS Income Fund*, structured as a prescribed fund, delivered a return of 1.46%, supported by income from Maltese bonds and dividend-paying local equities.

Josef Portelli, Head of Investment Management at APS Bank and Managing Director of ReAPS Asset Management Limited, commented: “These results reflect our continued commitment to responsible investing, diversification and robust risk management. Across ethical, bond and income strategies, the Funds delivered their objectives while navigating differing market conditions.”

*The quoted performance figures relate to Accumulator Share classes and refer to period between 1 January and 31 December 2025. 

The post APS Funds record positive performance across all strategies in 2025 first appeared on The Malta Business Weekly.