BNF Bank announces solid financial performance for 2021

BNF Bank announced a strong financial performance for 2021, recording a pre-tax profit of 9.1 million euros, compared to 5.3 million euros in 2020.

Net operating income increased by €3 million from €24.2 million in 2020 to €27.2 million in 2021 and was a key driver of the improved profitability. A comparatively lower increase of EUR 1 million in operating expenses resulted in an improvement in the cost/income ratio to 62.9% (2020: 66.5%).

The bank also maintained its prudent provisioning policy and further increased credit provisions by €1.1 million in 2021.

BNF Bank’s total assets increased by 11.5% in 2021, reaching 1,004.7 million euros. The growth in total assets of 103.5 million euros was mainly financed by an increase in debts to customers of 82.2 million euros, an increase in debts to banks and other institutions of 15.9 million euros and an increase in retained earnings of 5.4 million euros.

The largest and most productive asset portfolio in 2021 remained loans and advances to customers, which accounted for 79% of total assets. Loans and advances to customers include net loans to companies of €300.3 million (2020: €276.6 million) and net loans to individuals of €492.8 million (2020: 411 .8 million euros).

BNF Bank’s liquidity position remained strong throughout 2021 and the bank continued to tap into diversified funding sources.

The bank’s main source of funding remained retail and commercial deposits from the Maltese market, although the bank also continued to strengthen its partnership with online deposit platforms to raise funds in euros and sterling from German and UK retail depositors.

The bank’s capital adequacy ratio as of December 31, 2021 was 17.5% and the Common Equity Tier 1 capital ratio was 15.6%, both well above overall capital requirements and capital requirements. Pillar 2 orientation cushions.

Chief Financial Officer Mark Micallef said the key to the bank’s performance was asset growth coupled with prudent provisioning and capital planning.

“Our continued focus on serving our customers has resulted in another year of profitable growth for BNF Bank. In the background, to ensure our growth is financially sustainable, regular financial planning exercises are carried out to anticipate and weather any challenges we may face,” Micallef said.

Michael Collis, the bank’s CEO and Managing Director, said he was pleased with the bank’s performance, saying that despite the challenging environment, the team delivered on the bank’s strategic objectives for the year and delivered a positive financial result.

“We continued to work tirelessly to achieve our goals, guided by our long-term vision to take the bank to the next level. Our intention is to continue working on the key pillars of our Vision 2023 strategy of financially sustainable growth, internationalization and technological transformation. Our primary goal remains to keep our customers at the center of everything we do, while providing a competitive suite of products delivered through an omnichannel approach.

BNF Bank’s financial statements for 2021 are included in its annual report which can be viewed on the bank’s website.

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