‘We look forward to celebrating 25th anniversary in 2025 with stronger results’ – Sparkasse Bank CEO

Paul Mifsud, Managing Director (MD) and CEO at Sparkasse Bank Malta, is aiming to achieved continued improvement in financial performance ahead of the bank’s 25th anniversary operating in Malta in 2025.

Sparkasse Bank Malta is licensed by the Malta Financial Services Authority (MFSA) to provide services tied to banking, investment services, wealth management services, and depository and custody services.

Mr Mifsud’s comments came as Sparkasse Bank Malta published its Annual Report for the financial year ended 31st December 2023, with the results indicating a significant improvement in performance during the year. Net interest income rose sharply from €5.4 million in 2022 to €20.2 million, while net fee and commission income dropped by 10 per cent to €8.2 million in 2023 (2022: €9.1 million). This prompted a record operating income of €29.9 million in 2023, an upturn in performance from the €15.7 million that was registered in 2022. Employee compensation and benefits increased to €6.9 million, while operating costs amounted to €3.6 million. As a result, pre-tax profit for the year totalled €18.1 million, a 242.1 per cent increase over 2022 figures (2022: €5.3 million).

Total assets as at the end of 2023 stood at €937.5 million, a considerable expansion from the €899.3 million reported in the previous financial year.

In his review of the results, Mr Mifsud stated that the bank is “proud” of its performance during 2023.

“We have increased our operating income to a record level and while interest rates have helped tremendously, the core business lines of the bank have remained robust and sustainable with custody and depositary services at €8.8 billion, while total assets are standing within the €1 billion mark,” he remarked.

“The success of our business is attributable to the dedication of our team of professionals and our unique business model,” he added.

Mr Mifsud acknowledged that Sparkasse Bank has been operating in the local market for 24 years and is thus seeking to celebrate its 25th anniversary in 2025 with “stronger results.”

When asked about the current year, Mr Mifsud commented that the outlook for 2024 is “positive,” with first quarter figures on track and in line with budgets, indicating another record year. He added that the pipeline of new work from both Malta and Ireland is encouraging.

“We are confident that 2024 will be another good year for us with both Malta and Ireland showing good prospects for the bank. This positive outlook has encouraged our shareholders to invest further in the bank by increasing its share capital from the profits generated in 2023,” he continued.