Banif Bank (Malta) plc registered a pre-tax profit of €1.4 million for the year ended December 31, 2014 – a fivefold increase on the previous year.
The bank continued to register growth in its lending and deposit portfolio and main income streams while total assets increased by €22.8 million, reaching €619 million.
Gross loans and advances to customers increased by €41 million, reaching €384 million. Deposits rose by €25.2 million, reaching €579.2 million. The bank managed to improve significantly its deposit into loan transformation ratio, with loans standing at 65.3 per cent of customer deposits.
The bank generated a total operating income of €13.9 million, a 15 per cent increase year on year. Net interest income amounted to €8.7 million (2013: €8.1m), the rise being mainly the result of an improved financial margin. Net fee and commission income amounted to €2.1 million (2013: €1.7m), mainly attributable to increases revenue from retail banking services.
Total operating expenses excluding impairment increased only slightly by 1.6 per cent, from €10.5 million in 2013 to €10.7m, a positive result considering the bank opened two new branches in 2014.
Total provision for impairment as a percentage of gross loans and advances to customers stood at 1.5 per cent (2013: 1.2 per cent).
Total capital adequacy ratio stood at 8.39 per cent while Core Equity Tier 1 Capital ratio stood at 6.68 per cent. The bank has in place a capital plan that envisages increases in the level of ‘own funds’, predominantly through Core Equity Tier 1 capital, with a view to ensure sound capital adequacy levels in terms of the new Capital Requirements Directive and Regulations.
“The upward trend in registering increased profits will continue,” Banif CEO Joaquim Silva Pinto said.
It is expected a new shareholder will get involved in the bank later this year as its Portuguese majority shareholder has to divest its overseas assets by 2017, as one of the conditions of its bailout.