During 2006, APS Bank managed to secure international membership status of the European Federation of Ethical and Alternative Banks (FEBEA) and is now able to participate in projects that are inspired by solidarity-based economic activity.
The primary objective of FEBEA is to promote the development of ethical and solidarity finance in the EU through the dissemination of information, exchange of experiences and the creation of the appropriate instruments necessary to fulfil this aim. FEBEA members are geared to offer their expertise and financing to entrepreneurs in the solidarity-based economy.
“We regard this affiliation,” said APS Bank chairman E.P. Delia – presenting the results to the media prior to the AGM last week – “as being of particular interest to both our customers and staff members.”
It would seem that APS is more tuned in to the FEBEA mentality than to setting up links and networks with the more overtly Catholic or Christian banks of Europe. Its closest link is to the Italian Banca Popolare Etica, also a FEBEA member.
Last year, the bank was involved in two loans to a French member of FEBEA and it is likely to be involved in the setting up of banks in Romania and Albania, also through FEBEA.
APS Bank has registered a profit before tax of Lm3.2 million for the year ended 31 December 2006.
Commenting on these results, Prof. Delia said: “APS Bank’s results, largely achieved following a considerable increase in lending activity, as well as sensible investment decisions, will, over the next three years, enable the bank to embark on many commercial projects and community initiatives. Indeed, projects will include the introduction of internet banking, collective investment schemes, portfolio management services, specialised advisory services, infrastructural and refurbishment work and an enhancement of the existing branch and ATM operational network.”
Prof. Delia also said that the bank has continued to serve as a financial catalyst to its major shareholder, enabling the latter to sustain some of its numerous operational activities.
The government now receives as taxes double the amount that the shareholder receives as dividend. The shareholder (the church) must realise that the bank could come up with initiatives to balance this situation, said Prof. Delia.
The chairman referred also to the positive impact made by its consulting arm, APS Consult Ltd, a firm that offers specialised advisory services to parties who are active in those areas of the economy that are undergoing substantial restructuring.
The bank has taken a decision to centralise all its offices in a location in Swatar, across the road from Mater Dei Hospital, where it will also open another branch. It is now awaiting Mepa clearance. Another Mepa permit is awaited regarding the rebuilding of the bank’s Gozo branch.
Replying to questions by this paper, Prof. Delia said that the representative of the diocese of Gozo on the board, Fr Carmel Curmi, had resigned from the board when he ceased to be the Administrative Secretary of the diocese. His successor as administrator has been now appointed, but no nomination has been forthcoming from the shareholder as yet.