28 August, 2025
BNF Bank announced a robust financial performance for the year 2023, recording a profit before tax of €13.0 million – a 6.75% increase over 2022.
Higher profitability in 2023 was primarily due to increased net interest income of €32.5 million (2022: €25.8 million). In addition to net interest income, net fees and commission income and other ancillary income contributed to a net operating income for 2023 of €36.2 million (2022: €30.1 million). The Bank’s cost-to-income ratio reflects the technology investment the Bank is undergoing, which will be in the Bank’s long-term financial interest. The cost-to-income ratio stood at 65.1% for 2023 (2022: 61.7%). In 2023 the Bank wrote back expected credit losses (‘ECL’) of €0.4 million (2022: ECL write-back of €0.7 million).
Net lending to customers increased by 5.2% to €950.3 million, whilst the percentage of credit impaired lending was contained at 2.65% (2022: 2.63%). The Bank’s Capital Adequacy Ratio stood at 19.3% (2022: 19.6%) and the Common Equity Tier 1 Ratio stood at 14.6% (2022: 14.6%), both being well above overall capital requirements and supervisory pillar two guidance. The Liquidity Coverage Ratio (‘LCR’) as of 31 December 2023 was 335.3% (2022: 237.7%), and the Net Stable Funding Ratio (‘NSFR’) was 140.2% (2022: 139.8%).
Following the conclusion of the reporting period, the Board of Directors is proposing a net dividend of €0.045 per nominal share of €0.7552, totalling €4,489,300, to be distributed to shareholders subject to regulatory approval and will be presented for resolution at the AGM.
BNF’S Chief Financial Officer, Mark Micallef said that in 2023, BNF Bank successfully concluded its Vision 2023 Strategy, achieving targeted growth milestones, completing the licensing process for a UK third-country branch, and fulfilling its capital plan objectives. “The robust financial performance in 2023 is a reflection of the Bank’s customer focus and was sustained by steadfast adherence to focused and rigorous risk management practices.”
David Power, CEO of BNF Bank, commented, “In 2023, BNF Bank maintained its pivotal role as a cornerstone of the local economy and as a trusted financial ally for both individuals and businesses. This achievement is a testament to the unwavering dedication and perseverance of our team.”
He continued, “As we navigate the evolving financial landscape of 2024, I am confident that we will rise to the challenge with resilience, strategic planning, and ambition. Our Vision 2026 Strategy remains firmly on track, and we eagerly anticipate achieving our milestones in both business growth and digital transformation.”
BNF Bank’s Annual Financial Report for 2023 may be downloaded from www.bnf.bank/investor-relations
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