APS Bank yesterday announced it had made a record pre-tax profit of Lm3.2 million in the financial year 2005, an increase of 55.6 per cent over the previous year.
Presenting the financial statements of APS Bank, whose majority shareholder is the Maltese Catholic Church, bank chairman Lino Delia described last year as "very successful for the bank".
During the annual general meeting held at the Corinthia Palace Hotel, in Attard, shareholders approved a 7.48 per cent gross dividend, which amounts to a total Lm486,666.15.
Shareholders' funds reached Lm19.5 million, a growth of Lm5.5 million. This includes an injection of Lm0.5 million fresh capital. Shareholders' funds finance 8.3 per cent of the bank's balance sheet, an increase of 1.8 per cent when weighted against last year's figure. The bank recorded an earning of 9c3 per share.
Prof. Delia said the bank's performance was marked by a rise of Lm21.5 million in customer deposits. This sustained a growth in loans and advances to customers of Lm14.9 million and an increase in investments which have now reached Lm120.6 million.
Interest, which remains the bank's main source of revenue, rose by 8.3 per cent, reaching Lm5.6 million last year.
The chairman said shareholders had achieved their objective of increasing the paid-up share capital to Lm6.5 million, over a span of four years.
The bank's total assets increased by 11.2 per cent over the previous year amounting to Lm235.8 million. Prof. Delia said APS was operating in a continually evolving environment, with increased competition brought about by a revamped regulatory framework and the advent of the euro. The bank was therefore adopting a strategy of versatility to meet these challenges.
APS was driven by its corporate aims and unique social responsibility, Prof. Delia added, emphasising the importance that the bank remains an important player in the Maltese economy. He said the support that the bank offered to various deserving causes, and the diverse cultural, sports and social activities which it financed, proved this.
The bank had launched a concert cycle and launched five CD recordings of their performance. Besides encouraging a series of sacred music recitals, the bank had launched three new books under a fund supporting Maltese writers. APS had also supported a number of sports activities.
Prof. Delia said the bank was working on how it could contribute positively in other countries within the EU and even certain sectors in North African countries and the Middle East. APS was creating links with Catholic and even Protestant banks abroad, as well as other alternative and ethical financial institutions in the European Union.
APS Bank, he said, would act as a catalyst for discussion, offer specialised consultancy services and instigate tangible action in those sectors where it deems that solidarity and social cohesion could be achieved in the interest of sustainable development.
"This will be a prime responsibility of a subsidiary company that APS intends to set up," Prof. Delia said.