APS Bank plc has reported a pre-tax profit of €26.5 million at group level for the financial year ended 31 December 2025, up from €23.8 million in the previous year, according to its latest annual report and audited financial statements.

At bank level, profit before tax reached €26.9 million, compared with €22.5 million in 2024, supported by stronger revenues, lower funding costs and improved credit performance.

The bank’s core income growth was largely driven by a significant increase in net interest income, which rose 20.1% to €78.7 million, up from €65.5 million a year earlier.

The improvement was linked to growth in interest-earning assets and higher lending yields. At the same time, APS Bank managed to reduce its funding costs, with interest payable declining to €44.4 million following adjustments to its deposit mix and pricing strategy.

The bank said the average cost of funds fell to 111 basis points, down from 140 basis points in 2024, helping widen the net interest margin to 186 basis points.

Non-interest income also contributed to the improved results. Net fee and commission income increased to €9.3 million, reflecting higher transaction volumes across general banking services, investment products and card-related activity.

The performance comes at a time when Maltese banks continue to benefit from higher lending activity and improved margins following the shift in the interest rate environment over recent years.

APS Bank has steadily expanded its balance sheet and customer base in recent years while continuing to diversify revenue streams beyond traditional lending.