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MeDirect 2023 Interim Results

MeDirect’s tech-driven strategy delivers a €10.1 million profit after tax in the first half of 2023

MeDirect Bank announced a profit after tax of €10.1 million for the six months ended 30 June 2023.  Whilst achieving these results, MeDirect continued to launch new products, grew its customer franchise and further expanded its specialised lending platform. These accomplishments were facilitated through MeDirect’s investment in technology, which is producing tangible results for the Bank and its customers.

Expanding the range of products

During the first half of 2023, MeDirect launched a range of new products. In Belgium, MeDirect launched its MeManaged product, an online discretionary management service with portfolio management provided by MeDirect, using fund products managed by BlackRock, the world’s largest asset manager. In Malta, MeDirect began to offer its MeMax instant savings account as well as a new Property Loan product for clients purchasing real estate as an investment.  In June, MeDirect launched its online debit card service, enabling customers to use their MeDirect accounts for their daily banking needs. MeDirect’s technology also enabled it to streamline its mortgage application process and to continue to improve its payment hub platform.

Growing the MeDirect customer franchise

MeDirect’s retail franchise, focused on affluent customers, grew by 8% over the past twelve months to more than 114,000 retail clients, of whom 41,000 are wealth clients. The number of wealth clients increased by 12% over the past twelve months, and total client financial assets increased by 4.5% year over year, reaching €4.5 billion notwithstanding very challenging market and macroeconomic conditions.

In mid-May, MeDirect successfully launched its wealth platform in the Netherlands, introducing its Wealth SuperApp and dedicated Dutch language website and targeting customers in the Dutch market who are currently underserved by traditional banks and asset managers. 

This geographic expansion and continued growth of MeDirect’s retail franchise demonstrates its ongoing commitment to building a scalable pan-European platform, with a focus on digital wealth and banking solutions.

Specialised lending solutions

MeDirect continued to grow its specialised lending platform, focusing on mortgages in Belgium, the Netherlands and Malta. Over the past twelve months, MeDirect’s mortgage portfolio grew from €1.7 billion to €2.2 billion, an increase of more than 30%, with investment across a variety of mortgage asset classes.  Key portfolios include Dutch-government guaranteed NHG mortgages, Belgian mortgages offered in partnership with Allianz, Dutch buy-to-let mortgages and Maltese mortgages offered with high quality of service and a quick decision-making process.   

On the Maltese corporate lending side, MeDirect continues to extend carefully selected, well-collateralised loans to support the Maltese economy, with a portfolio of €128 million as at 30 June 2023. Finally, MeDirect further reduced its on-balance sheet exposure to international corporate loans over the past twelve months by 25%, to less than 10% of total assets (from €593 million to €446 million).

Delivering sustainable profitability

Profit after tax for the six months ended 30 June 2023 amounted to €10.1 million, compared to €0.5 million for the first six months of 2022. Net interest income increased by 36% compared with the same period last year, from €28.7 million to €39.1 million. The Group’s Non-Performing Loan ratio was reduced to 2.0% at 30 June 2023, from 4.6% at 30 June 2022.

At 30 June 2023, taking into consideration the interim profits, MeDirect’s Tier 1 capital ratio stood at 16.2%, with a total capital ratio of 19.8%.  At the same date, the Group’s Liquidity Coverage Ratio (LCR) stood at 215% and its Net Stable Funding Ratio (NSFR) at 116%.  All such ratios were well above regulatory requirements.

These financial results demonstrate the success of MeDirect’s model transformation, which was executed since 2019 in spite of volatile macroeconomic conditions resulting from the Covid pandemic, the Russia-Ukraine war and severe supply chain disruption.

Outlook

Arnaud Denis, MeDirect’s CEO, emphasised that “MeDirect’s success in executing its ambitious model transformation is reflected in improved financial results as well as continued development of its products, franchise and geographic footprint.  This was made possible by careful balance sheet management combined with continuous investment in technology and talent. We look forward to further scale up our platform and deliver sustainable profitability.”

More information, including the Interim Financial Statements are 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.


MeDirect Bank jirrapporta profitt ta’ €10.1 miljun wara t-taxxa fis-sitt xhur li ntemmu fit-30 ta’ Ġunju 2023 waqt li jkompli jimplimenta l-istrateġija tiegħu li tiffoka fuq it-teknoloġija.

MeDirect Bank ħabbar profitt wara t-taxxa ta’ €10.1 miljun għas-sitt xhur li ntemmu fit-30 ta’ Ġunju 2023. Filwaqt li kiseb dawn ir-riżultati, MeDirect kompla jniedi prodotti ġodda, ikabbar l-għarfien dwar il-Bank fost il–klijenti u kompla jespandi l-pjattaforma tiegħu ta’ self speċjalizzat. Dawn il-kisbiet ġew iffaċilitati permezz ta’ l-investiment ta’ MeDirect fit-teknoloġija, li qed tipproduċi riżultati tanġibbli għall-Bank u l-klijenti tiegħu.

Espansjoni fil-firxa ta’ prodotti

Matul l-ewwel nofs ta’ l-2023, MeDirect nieda firxa ta’ prodotti ġodda. Fil-Belġju, MeDirect introduċa l-prodott MeManaged, servizz ta’ Discretionary Portfolio Management online ipprovdut minn MeDirect, bl-użu ta’ mutual funds ġestiti minn BlackRock, l-akbar asset manager fid-dinja. F’Malta, MeDirect beda joffri l-kont ta’ tfaddil innovattiv MeMax kif ukoll prodott ġdid ta’ self għal proprjetà għall-klijenti li jixtru proprjetà immobbli bħala investiment għalihom. F’Ġunju, MeDirect nieda s-servizz ta’ debit cards, li jippermetti lill-klijenti jużaw il-kontijiet li għandhom ma’ MeDirect għall-bżonnijiet bankarji ta’ kuljum. It-teknoloġija ta’ MeDirect ippermetiet ukoll li l-proċess ta’ applikazzjonijiet għall-Home Loans jiġi simplifikat iktar.

Żieda fin-numru ta’ klijenti

Il-mira ta’ MeDirect Bank li jattira klijenti affluwenti kompliet iġġib riżultati tajbin, tant li n-numru ta’ klijenti issa kiber għal aktar minn 114,000-il klijent. Il-Wealth Clients żdiedu bi 12% f’dawn l-aħħar tnax-il xahar. L-assi finanzjarji totali tal-klijenti żdiedu b’4.5% mis-sena l-oħra, u laħqu €4.5 biljun minkejja l-kundizzjonijiet makroekonomiċi u tas-swieq, li kienu ta’ sfida kbira.

F’nofs Mejju, MeDirect nieda b’suċċess il-pjattaforma tiegħhu fl-Olanda, billi introduċa l-Wealth SuperApp u website bil-lingwa Olandiża, immirata lejn klijenti fis-suq Olandiż li bħalissa mhumiex moqdija biżżejjed minn banek u asset managers tradizzjonali.

Soluzzjonijiet ta’ self speċjalizzat

MeDirect kompla jkabbar il-pjattaforma ta’ self speċjalizzat tiegħhu, b’enfasi fuq Home Loans fil-Belġju, fl-Olanda u f’Malta. Matul l-aħħar tnax-il xahar, il-portafoll ta’ Home Loans ta’ MeDirect kiber minn €1.7 biljun għal €2.2 biljun, żieda ta’ aktar minn 30%, b’investiment f’varjetà ta’ klassijiet ta’ assi. Portafolli ewlenin jinkludu l-Home Loans NHG garantiti mill-gvern Olandiż, Home Loans Belġjani offruti bi sħubija ma’ Allianz, Home Loans fl-Olanda buy-to-let u Home Loans f’Malta offruti bi kwalità għolja ta’ servizz personalizzat u teħid ta’ deċiżjonijiet fl-iqsar żmien possibli.

MeDirect qed ikompli jibni n-negozju tiegħu ta’ self lill-kumpaniji Maltin permezz ta’ portafoll ta’ self magħżul bir-reqqa bi dħul attraenti pero fl-istess ħin huma assikurati. Dan qed iservi biex jappoġġja l-ekonomija Maltija, b’portafoll ta’ €128 miljun fit-30 ta’ Ġunju 2023. Fl-aħħar nett, MeDirect kompla jnaqqas ir-riskju tal-portafoll ta’ self korporattiv internazzjonali tiegħu matul l-aħħar tnax-il xahar b’25%, għal inqas minn 10% tal-assi totali tiegħu (minn €593 miljun għal €446 miljun).

Twassil ta’ profittabilità sostenibbli

Il-profitt wara t-taxxa għas-sitt xhur li ntemmu fit-30 ta’ Ġunju 2023 kien jammonta għal €10.1 miljun, meta mqabbel ma’ €0.5 miljun għall-ewwel sitt xhur tal-2022. Id-dħul nett mill-imgħax żdied b’36% meta mqabbel mal-istess perjodu tas-sena l-oħra. In-Non-Performing Loan ratio tal-Grupp tnaqqas għal 2.0% fit-30 ta’ Ġunju 2023, minn 4.6% fit-30 ta’ Ġunju 2022.

Fit-30 ta’ Ġunju 2023, b’kunsiderazzjoni tal-profitti interim, il-proporzjon ta’ saff 1 tal-kapital (Capital Tier 1 ratio) ta’ MeDirect kien ta’ 16.2 %, u l-Proporzjon tal-kapital total (Total Capital Ratio) kien ta’ 19.8 %. Il-Proporzjon tal-kopertura tal-likwidita’ (Liquidity Coverage Ratio – LCR) tal-Grupp kien ta’ 215% u l-Proporjzon ta’ finanzjament stabbli nett (Net Stable Funding Ratio – NSFR) kien ta’ 116%. Dawn il-proporzjonijiet kollha kienu ħafna iktar ogħla mir-rekwiżiti regolatorji.

Dawn ir-riżultati finanzjarji juru s-suċċess tat-trasformazzjoni tal-mudell ta’ MeDirect, li ġie eżegwit matul l-aħħar tliet snin minkejja l-kundizzjonijiet makroekonomiċi li rriżultaw mill-pandemija tal-Covid, il-gwerra bejn ir-Russja u l-Ukrajna u t-tfixkil qawwi fil-katina tal-provvista (supply chain).

Outlook

Arnaud Denis, il-Kap Eżekuttiv ta’ MeDirect, enfasizza li “Is-suċċess ta’ MeDirect fl-eżekuzzjoni tat-trasformazzjoni ambizzjuża tiegħu huwa rifless fir-riżultati li qed inħabbru issa, li juru titjib konsiderevoli u jirriflettu l-iżvilupp kontinwu tal-prodotti tagħna, il-franchise u t-tkabbir ġeografiku li qed nagħmlu.  Dan sar possibbli permezz ta’ strateġija differenti minn ta’ qabel li addotajna, flimkien mal-investiment kontinwu fit-teknoloġija u r-riżorsi umani tagħna. Nistennew bil-ħerqa li nkabbru aktar il-pjattaforma tagħna biex b’hekk nibqgħu inwasslu profittabbiltà sostenibbli.”

Għal aktar informazzjoni, inklużi d-dikjarazzjonijiet finanzjarji tista tmur fuq https://www.medirect.com.mt/about-us/investor-relations/

MeDirect Bank (Malta) plc, numru ta’ reġistrazzjoni tal-kumpanija C34125, huwa liċenzjat biex iwettaq in-negozju tal-banek skont l-Att Bankarju (Kap. 371) u servizzi ta’ investiment taħt l-Att dwar is-Servizzi tal-Investiment (Kap. 370). MeDirect Bank (Malta) plc huwa regolat mill-Awtorità għas-Servizzi Finanzjarji ta’ Malta bħala Istituzzjoni ta’ Kreditu taħt l-Att Bankarju tal-1994.

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We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.