“MeDirect Bank Posts €5 million Pre-Tax Loss in Transformational Year…”

MeDirect Bank’s 2024 financial results reflect a strategic shift away from international corporate lending (ICL), resulting in a €5 million pre-tax loss. This was primarily due to increased expected credit losses of €19.3 million, up significantly from €0.9 million in 2023, as a result of realised losses and deterioration within the ICL portfolio.

Despite the losses, MeDirect continued its de-risking strategy, reducing its ICL portfolio by 37%, following a similar reduction in 2023. This led to a 3.1% decrease in operating income to €85.8 million. However, excluding ICL, operating income grew by 15.7% (€9.6 million), driven by strong growth in mortgage and Maltese corporate lending, and a 40.4% increase in wealth management fees.

Balance Sheet Growth and Diversification

MeDirect’s balance sheet saw significant growth in customer deposits (17.2% to €3.9 billion) and financial assets (19% to €5.9 billion). Net loans and advances increased by 6.3% to €2.9 billion. The bank’s mortgage portfolio, particularly its Dutch NHG and buy-to-let segments, expanded significantly, alongside growth in Belgian and Maltese mortgage lending. Maltese corporate lending also increased by 7.5%. The investment portfolio grew by 2.8%, with improved returns on treasury investments.

Technological Advancements and Client Growth

MeDirect’s client base grew by 17% to 155,000, driven by growth in both retail and corporate clients. The bank launched its corporate banking platform with features like a salary payment module and rolled out Google Pay and Apple Pay services. MeDirect’s internally developed, scalable banking ecosystem, built on cutting-edge technologies, supports rapid innovation and improved user experience.

Strategic Changes and Future Outlook

Key personnel changes included Bart Bronselaer succeeding Mike Bussey as Chair and Jean-Claude Maher set to replace outgoing CEO Arnaud Denis in 2025. MeDirect’s controlling shareholder, AnaCap Financial Partners II LP, signed a share purchase agreement with Banka CREDITAS, a Czech financial institution, which plans to retain and invest in MeDirect to expand its European market presence.

MeDirect’s future plans include introducing SEPA Instant Payments and exploring open model portfolios for simplified wealth management. The bank remains focused on technological innovation and expanding its digital banking services.

Fitch Upgrades BOV to ‘BBB’ with Stable Outlook

Fitch Ratings has upgraded Bank of Valletta’s (BOV) Long-Term Issuer Default Rating (IDR) and Viability Rating (VR) to ‘BBB’ from ‘BBB-‘, with a Stable Outlook. Fitch also assigned BOV long-term and short-term deposit ratings of ‘BBB+’ and ‘F2’, respectively.

The upgrade, announced on March 25th, recognizes BOV’s strong domestic position, enabling it to capitalize on Malta’s favorable economic conditions while maintaining solid asset quality and capital levels.

BOV Chairman Dr. Gordon Cordina and CEO Kenneth Farrugia expressed their satisfaction with the upgrade. Dr. Cordina highlighted the bank’s successful transformation and commitment to sustained performance, while Mr. Farrugia emphasized the upgrade as a significant milestone, following a series of accolades received in 2024.

Fitch’s statement noted that BOV’s ratings reflect its leading domestic franchise and sound earnings, despite its small scale and concentrated operations. The agency also acknowledged BOV’s adherence to global lending and investment standards and its strengthened risk framework.

Trump Considers Tariff Talks After Wall Street’s Trillion-Dollar Losses

US President Donald Trump signaled a potential shift in his tariff policy on Thursday, expressing openness to negotiations after global stock markets, particularly Wall Street, experienced a dramatic downturn. The market slump, the worst since the 2020 pandemic, was triggered by Trump’s announcement of sweeping reciprocal tariffs targeting 180 nations, a move that sparked fears of a global trade war.

Trump, speaking to reporters on Air Force One, stated he would consider “phenomenal” offers from other countries in exchange for concessions. This contrasted with earlier assertions from White House officials that the newly announced tariffs were non-negotiable, further fueling market uncertainty. The “Liberation Day” tariff announcement resulted in approximately $2 trillion (€1.8 trillion) being wiped off the S&P 500.  

Investors are concerned that a full-blown trade war could lead to a global recession or even a repeat of the 1920s Great Depression. Despite the market chaos, Trump maintained that the economic impact would be temporary and predicted a market rebound.

Analysts, like Michael Brown of Pepperstone London, warn that policy uncertainty will likely persist, negatively impacting business and consumer confidence and making it difficult to assess market risks. ¹ They predict the instability will continue to weigh on the economic outlook

Malta Company Announcements:

Plaza Centres plc

The Board of Directors of Plaza Centres plc is scheduled to meet on Wednesday 23 April 2025 to consider and if thought fit approve, the Group’s Financial Statements for the financial year ended 31 December 2024.

Midi plc

The Board of Directors of MIDI is scheduled to meet on the 29 April 2025 to:  (i) consider and approve the audited financial statements for the year ended 31 December 2024;  and  (ii) consider the declaration of dividend, if any, to be recommended to the Annual General Meeting of shareholders.

‘Disclaimer: The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Similarly, any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Timberland Finance has not verified and consequently neither warrants the accuracy nor the veracity of any information, views, or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. All investments carry risks. Your investments may go up as they may go down, including the possible loss of capital. Past performance is not indicative of future results. Timberland Finance does not accept liability for losses suffered by persons as a result of information, views, or opinions appearing on this website. This website is owned and operated by Timberland Invest Ltd. Timberland Invest Ltd. is licensed to conduct investment services business under the Investments Services Act by the MFSA and is also registered as a Tied Insurance Intermediary under the Insurance Distribution Act. ’