MeDirect Group published its financial results for the first six months of 2024. Net operating profit of €5.4 million was recorded, an increase of by 7% from the equivalent figure for the first half of 2023. This growth in net operating profit was underpinned by an increase of 8.6% in operating income, to €44.7 million, driven largely by higher net interest income from mortgages and Maltese corporate portfolios. Over the past year, MeDirect has grown its customer base to 143,000, an increase of 25% over the past 12 months. These clients hold €5.4 billion in financial assets with the Group as at 30 June 2024, an 18 per cent increase since 30 June 2023. Over the same 12-month period, assets under custody grew by 17% to €1.9 billion.
The growth of MeDirect’s customer base in Malta, Belgium and the Netherlands is underpinned by MeDirect’s continued focus on its mission of building a best-in-class digital platform which enables clients to manage their wealth with confidence and autonomy. During the first half of 2024, MeDirect added functionality to its WealthTech platform, deployed artificial intelligence to increase the efficiency of all aspects of the Group’s operations and services and offered offered market leading interest rates on savings products, including a 3.6% per annum rate on six-month fixed-term deposits in Malta. Other new functionalities added to the platform include a new corporate e-banking service which enables users to manage all aspects of their corporate banking relationship with MeDirect through a single application or web session.
During the first six months of 2024, MeDirect also continued to de-risk its balance sheet by continuing to reduce the size of its International Corporate Lending (“ICL”) portfolio, which now stands at €300 million (net of provisions), a reduction of 9% since the end of 2023. During the same period, MeDirect grew its aggregate gross mortgage portfolio by 5%, to €2.6 billion. This included growth in MeDirect’s Dutch-government guaranteed NHG mortgage activity, in partnership with HollandWoont, which now comprises 40% of the Group’s total balance sheet. MeDirect’s Dutch buy-to-let mortgage portfolio, established in October 2022 in partnership with Build Finance, reached almost €130 million as at 30 June 2024. MeDirect also further expanded its Belgian and Maltese mortgage lending businesses, both of which registered double-digit growth in the first half of 2024. The corporate lending portfolio in Malta grew by 6% during the period, reflecting continued support to local businesses through fully collateralised facilities.
Net expected credit losses (“ECLs”) for the six-month period ended 30 June 2024 amounted to a €6.0 million net charge (1H 2023: €5.5 million net release), predominantly driven by adverse changes within the ICL portfolio. The net ECL charge resulted from a deterioration in two specific exposures and losses realised because of the divestment of one additional exposure. These impacts reflected the Group’s reduced risk appetite for ICL lending. During the comparable period of 2023, the Group recorded a substantial recovery of Stage 3 exposures and benefited from releases of provisions based on ECL model calculations. With net operating profit of €5.4 million offset by unfavourable ECL impact of €6.0 million, the Group’s net result for the first half of 2024 was a loss before tax of €0.6 million.
MeDirect’s capital and liquidity positions remained adequate, supporting its business transformation strategy and further growth. As at 30 June 2024, MeDirect’s Tier 1 capital ratio stood at 16.6%, with a total capital ratio of 20.1%, both well above regulatory requirements. As at 30 June 2024, the Group’s Liquidity Coverage Ratio stood at 221% (minimum requirement of 100%), and its Net Stable Funding Ratio stood at 132% (minimum requirement of 100%).
Arnaud Denis, Group Chief Executive Officer at MeDirect, said, “The first half of 2024 has seen our business in Malta, Belgium and the Netherlands continue to grow. The fact that an ever increasing number of customers are trusting us with more of their wealth is the best evidence possible that our determined hard work, coupled with an open, innovation-focused culture, is delivering high levels of customer satisfaction, as evidenced by our NPS score of close to 50.”
Innovation at MeDirect is not only restricted to technology but extends to all aspects of how the Group operates. Enhancing brand awareness in the Group’s core markets in a key priority and 2024 has seen the launch of a new marketing strategy focused on MeDirect’s Maltese roots and reflecting the company’s commitment to supporting Maltese talent. Key pillars of this new approach include supporting the first ever edition of MasterChef Malta as well as the use of new channels, particularly in the digital and outdoor space, to reach a broader audience across Malta and Gozo. The new strategy also involved the establishment of new partnerships with key Maltese corporate clients.
As a systemically important bank in Malta and an innovator in the financial services industry across Europe, MeDirect remains committed to its environmental, social and governance responsibilities with the aim of achieving the goals of its ESG Strategy. During the first half of the year, MeDirect completed a project to measure its own and financed scope emissions with the aim of reaching net zero emissions by 2050. Together with the support of its employees, the Group continued to support charitable organisations such as Hospice Malta, Puttinu Cares and the Inspire Foundation in Malta. The Group also supported cancer research in Belgium through participation in the Brussels half-marathon in partnership with Think Pink organisation.
MeDirect’s charitable initiatives were matched with similar commitments to Malta’s sporting and cultural life, which touched numerous fields from water polo to music and dance. In Belgium, MeDirect supports educational initiatives for the community through the creation of an educational webpage, amongst other initiatives. These efforts and accomplishments were recognised in June when MeDirect was awarded a prestigious EcoVadis Platinum Medal, placing MeDirect in the top 1 per cent of the 130,000 companies assessed globally by EcoVadis over the past 12 months.
Looking ahead, there are numerous developments in the technology and product pipeline. These include new developments in MeDirect’s card services which were launched in Belgium this year, following a successful introduction in Malta during 2023. In the coming weeks, instant payments and digital wallets will be launched. This means that customers will soon be able to make purchases using Apple Pay and Google Pay. A major revamp of the investment platform, an easier process for clients to make monthly contributions to savings and investment programmes, and the introduction of new model portfolio services are also on the horizon.
Mr Denis concluded by noting that “In a macro environment which remains challenging and unpredictable, MeDirect is focused on executing its strategic plan and developing further its digital banking platform to deliver seamless customer experience and innovative financial solutions. The Bank is continuing to identify ways to facilitate shareholder transition, which would enable it to accelerate growth and efficiently scale its platform.”
More information is available at https://www.medirect.com.mt/about-us/investor-relations/.
MeDirect Bank (Malta) plc, company registration number C34125, is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371) and investment services under the Investment Services Act (Cap. 370). MeDirect Bank (Malta) plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994.
It-teknoloġija u l-innovazzjoni jkomplu jiddominaw il-progress ta’ MeDirect Bank fl-ewwel nofs tal-2024
MeDirect Group ippubblika r-riżultati finanzjarji tiegħu għall-ewwel sitt xhur tal-2024. Ġie rreġistrat profitt operattiv nett ta’ €5.4 miljun, żieda ta’ 7% miċ-ċifra ekwivalenti għall-ewwel nofs tal-2023. Dan it-tkabbir fil-profitt operattiv nett kien sostnut minn żieda ta’ 8.6% fid-dħul operattiv, għal €44.7 miljun, xprunat l-aktar minn dħul nett ogħla mill-imgħax fuq self u mill-portafolli korporattivi. Matul l-aħħar sena, MeDirect kabbar il-bażi tal-klijenti tiegħu għal 143,000, żieda ta’ 25% matul l-aħħar 12-il xahar. Dawn il-klijenti għandhom €5.4 biljun f’assi finanzjarji mal-Grupp sat-30 ta’ Ġunju 2024, żieda ta’ 18% mit-30 ta’ Ġunju 2023. Matul l-istess perjodu ta’ 12-il xahar, l-assi taħt kustodju kibru bi 17% għal €1.9 biljun.
It-tkabbir tan-numru ta’ klijenti ta’ MeDirect f’Malta, il-Belġju u l-Olanda huwa sostnut mill-fokus kontinwu ta’ MeDirect fuq il-missjoni tiegħu li jibni pjattaforma diġitali tal-ogħla klassi li tippermetti lill-klijenti jimmaniġġjaw il-ġid tagħhom b’kunfidenza u awtonomija. Matul l-ewwel nofs tal-2024, MeDirect żied il-funzjonalità tal-pjattaforma WealthTech tiegħu, daħħal l-intelliġenza artifiċjali (AI) biex iżid l-effiċjenza fl-aspetti kollha tal-operazzjonijiet u tas-servizzi tal-Grupp u offra rati kompetittivi ħafna tal-imgħax fuq prodotti ta’ tfaddil, inkluża r-rata ta’ 3.6% fis-sena fuq kont fiss ta’ sitt xhur f’Malta. Funzjonalitajiet ġodda jinkludu servizz korporattiv ġdid ta’ e-banking li jippermetti lill-klijenti jimmaniġġjaw l-aspetti kollha tar-relazzjoni bankarja korporattiva tagħhom ma’ MeDirect permezz ta’ applikazzjoni waħda jew sessjoni waħda fuq il-web.
Matul l-ewwel sitt xhur tal-2024, MeDirect kompla wkoll inaqqas ir-riskju tal-balance sheet tiegħu billi kompla jnaqqas id-daqs tal-portafoll tiegħu ta’ Self Korporattiv Internazzjonali (“ICL”), li issa huwa ta’ €300 miljun (nett mill-provvedimenti), li jfisser tnaqqis ta’ 9% mill-aħħar tal-2023. Matul l-istess perjodu, il-Grupp MeDirect kabbar il-portafoll ta’ self fuq id-djar (mortgages) b’5%, għal €2.6 biljun. Dan kien jinkludi tkabbir fl-attività ta’ self fuq id-djar garantiti mill-gvern Olandiż, msejjħa National Mortgage Guarantee, fi sħubija ma’ HollandWoont, li issa jammonta għal 40% tal-balance sheet totali tal-Grupp. Il-portafoll Olandiż ta’ MeDirect, li jsellef lill-klijenti biex wara jikru l-proprjeta’, li kien stabbilit f’Ottubru 2022 bi sħubija ma’ Build Finance, laħaq kważi €130 miljun fit-30 ta’ Ġunju 2024. MeDirect kompla jespandi wkoll in-negozji tiegħu ta’ self fuq id-djar fil-Belġju u f’Malta fl-ewwel nofs tal-2024. Il-portafoll ta’ self korporattiv f’Malta ukoll kiber b’6% matul il-perjodu, li jirrifletti appoġġ kontinwu lin-negozji lokali permezz ta’ faċilitajiet kompletament kollateralizzati.
Telf ta’ kreditu nett (“ECLs”) għall-perjodu ta’ sitt xhur li ntemm fit-30 ta’ Ġunju 2024 jammonta għal ħlas nett ta’ €6.0 miljun (1H 2023: rilaxx nett ta’ €5.5 miljun), li huma ġejjin prinċipalment minn bidliet negattivi fil-portafoll tal-ICL. It-tariffa netta tal-ECL irriżultat minn deterjorament f’żewġ skoperturi speċifiċi u telf realizzat minħabba ċ-ċessjoni ta’ skopertura addizzjonali waħda. Dawn l-effetti jirriflettu għala l-Grupp għandu aptit baxx għas-self ICL. Matul il-perjodu komparabbli tal-2023, il-Grupp irreġistra rkupru sostanzjali tal-iskoperturi tal-Istadju 3 u bbenefika minn rilaxxi ta’ provvedimenti bbażati fuq kalkoli tal-mudell ECL. Bi profitt operattiv nett ta’ €5.4 miljun ikkumpensat minn impatt ECL mhux favorevoli ta’ €6.0 miljun, ir-riżultat nett tal-Grupp għall-ewwel nofs tal-2024 kien telf qabel it-taxxa ta’ €0.6 miljun.
Il-pożizzjonijiet ta’ kapital u likwidità ta’ MeDirect baqgħu adegwati, u appoġġaw l-istrateġija ta’ trasformazzjoni tan-negozju tiegħu u anke ta’ aktar tkabbir. Fit-30 ta’ Ġunju 2024, il-proporzjon tal-kapital Tier 1 ta’ MeDirect kien ta’ 16.6 %, bi proporzjon ta’ kapital totali ta’ 20.1 %, it-tnejn ferm ogħla mir-rekwiżiti regolatorji. Fit-30 ta’ Ġunju 2024, il-Proporzjon ta’ Kopertura tal-Likwidità (Liquidity Coverage Ratio) tal-Grupp kien ta’ 221 % (meta l-minimu rekwiżit huwa ta’ 100 %), u l-Proporzjon ta’ Finanzjament Nett Stabbli (Net Stable Funding Ratio) tiegħu kien ta’ 132 % (meta l-minimu rekwiżit huwa ta’ 100 %).
Arnaud Denis, il-Kap Eżekuttiv tal-Grupp ta’ MeDirect, qal, “L-ewwel nofs tal-2024 ra n-negozju tagħna f’Malta, fil-Belġju u fl-Olanda jkompli jikber. Il-fatt li numru dejjem jiżdied ta’ klijenti qed jafdawna b’aktar mill-ġid tagħhom huwa l-aqwa evidenza possibbli li x-xogħol iebes determinat tagħna, flimkien ma’ kultura miftuħa u ffukata fuq l-innovazzjoni, qed jagħti livelli għoljin ta’ sodisfazzjon lill-klijent, kif jidher mill-NPS (Net Promoter Score) qrib il-50, li huwa skor eċċezzjonali.”
L-innovazzjoni f’MeDirect mhix biss ristretta għat-teknoloġija iżda testendi għall-aspetti kollha ta’ kif jopera l-Grupp. It-tisħiħ tal-għarfien tad-ditta fis-swieq ewlenin fejn jopera l-Grupp hija prijorità ewlenija u l-2024 rat it-tnedija ta’ strateġija ta’ kummerċjalizzazzjoni ġdida ffukata fuq l-għeruq Maltin ta’ MeDirect u li tirrifletti l-impenn tal-kumpanija li tappoġġja t-talent Malti. Il-pilastri ewlenin ta’ dan l-isforz jinkludu l-appoġġ li l-Bank ta għall-ewwel edizzjoni ta’ MasterChef Malta kif ukoll l-użu ta’ metodi ġodda, partikolarment fl-ispazju diġitali u ta’ barra, biex tintlaħaq udjenza usa’ madwar Malta u Għawdex. L-istrateġija l-ġdida kienet tinvolvi wkoll it-twaqqif ta’ sħubijiet ġodda ma’ klijenti korporattivi ewlenin Maltin.
Bħala bank ta’ importanza sistemika f’Malta u innovatur fl-industrija tas-servizzi finanzjarji madwar l-Ewropa, MeDirect jibqa’ impenjat għar-responsabbiltajiet ambjentali, soċjali u ta’ governanza tiegħu bil-għan li jilħaq l-għanijiet tal-Istrateġija ESG tiegħu. Matul l-ewwel nofs tas-sena, MeDirect lesta proġett biex ikejjel l-emissjonijiet tal-ambitu tiegħu stess bil-għan li jilħaq emissjonijiet netti ta’ żero sal-2050. Flimkien mal-appoġġ tal-impjegati tiegħu, il-Grupp kompla jgħin organizzazzjonijiet tal-karità bħal m’huma Hospice Malta, Puttinu Cares u l-Fondazzjoni Inspire f’Malta. Il-Grupp appoġġa wkoll ir-riċerka dwar il-kanċer fil-Belġju permezz tal-parteċipazzjoni fin-nofs maratona ta’ Brussell bi sħubija mal-organizzazzjoni Think Pink.
L-inizjattivi ta’ karità ta’ MeDirect kienu mqabbla ma’ impenji simili mal-isports u l-kultura f’Malta, li laqtu bosta oqsma, mill-waterpolo sal-mużika u ż-żfin. Fil-Belġju, MeDirect appoġġja inizjattivi edukattivi għall-komunità permezz tal-ħolqien ta’ paġna web edukattiva, fost inizjattivi oħra. Dawn l-isforzi u l-kisbiet ġew rikonoxxuti f’Ġunju meta MeDirect ingħata l-midalja prestiġjuża ta’ EcoVadis Platinum, li poġġiet lil MeDirect fl-aqwa 1% fost 130,000 kumpanija evalwati globalment minn EcoVadis matul l-aħħar 12-il xahar.
Meta wieħed iħares ‘l quddiem, hemm bosta żviluppi fit-teknoloġija u tal-prodotti li għadhom ġejjin. Dawn jinkludu żviluppi ġodda fis-servizzi tal-kards ta’ MeDirect li ġew ukoll imnedija fil-Belġju din is-sena, wara introduzzjoni b’suċċess f’Malta matul l-2023. Fil-ġimgħat li ġejjin se jiġu mnedija ħlasijiet instantanji u kartieri diġitali (digital wallets). Dan ifisser li l-klijenti dalwaqt se jkunu jistgħu jagħmlu xiri bl-użu ta’ Google Pay u Apple Pay. Qed isir ukoll tiġdid kbir tal-pjattaforma ta’ investiment, proċess eħfef għall-klijenti biex jagħmlu kontribuzzjonijiet ta’ kull xahar għal programmi ta’ tfaddil u investiment, u l-introduzzjoni ta’ model portfolios ġodda jinsabu wkoll fil-futur qarib.
Is-Sur Denis temm billi nnota li “f’ambjent mondjali li jibqa’ ta’ sfida u imprevedibbli, MeDirect jibqa’ iffukat fuq l-eżekuzzjoni tal-pjan strateġiku tiegħu u li jiżviluppa aktar il-pjattaforma bankarja diġitali tiegħu biex jagħti esperjenza bla xkiel lill-klijenti u soluzzjonijiet finanzjarji innovattivi. Il-Bank qed ikompli jidentifika modi kif jiffaċilita bidla tal-azzjonisti, li jippermettulu jaċċellera t-tkabbir u jkabbar il-pjattaforma tiegħu b’mod effiċjenti.”
Iktar informazzjoni tista’ tinstab hawn https://www.medirect.com.mt/about-us/investor-relations/.
MeDirect Bank, numru ta’ reġistrazzjoni tal-kumpanija C34125, huwa liċenzjat biex iwettaq in-negozju bankarju f’termini ta’ l-Att Bankarju (Kap. 371) u servizzi ta’ Investiment Taħt l-Att Dwar Is-Servizzi Ta’ Investiment (Kap. 370). MeDirect Bank (Malta) plc huwa regolat mill-Awtorità Maltija għas-Servizzi Finanzjarji bħala Istituzzjoni ta’ Kreditu taħt l-Att Bankarju tal-1994.
