2023
MeDirect Bank (Malta) plc
Annual Report and
Financial Statements
2Annual Report and Financial Statements 2023
Table of contents
Directors’ Report .....................................................................................................................................................................................
MeDirect at a Glance and MeDirect Business Transformation ............................................................................
Who We Are ................................................................................................................................................................................................
Group History ............................................................................................................................................................................................
Group Board ..............................................................................................................................................................................................
Statement of Compliance with the Principles of Good Corporate Governance ......................................
Remuneration Report ..........................................................................................................................................................................
Financial Statements ...........................................................................................................................................................................
Statements of Financial Position ...................................................................................................................................
Statements of Profit or Loss .............................................................................................................................................
Statements of Comprehensive Income ....................................................................................................................
Statements of Changes in Equity .................................................................................................................................
Statements of Cash Flows ..................................................................................................................................................
Notes to the Financial Statements ...............................................................................................................................
Five-Year Comparison .........................................................................................................................................................................
Company Information .........................................................................................................................................................................
Independent Auditor’s Report ......................................................................................................................................................
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255
3Annual Report and Financial Statements 2023
Directors’ Report
We hereby present the annual report of MeDirect Bank (Malta) plc (the “Bank”) and of the Bank and its subsidiaries
(“MeDirect”or “the Group”) forthe yearended 31 December 2023.
1
These results reflect the consolidated position of
the Bank and its principal subsidiaries.
2
Chair and CEO introduction
2023 was a year of consolidation and continued profitability for MeDirect.The Group consolidated the gains delivered
through the successful execution of its business transformation, which enabled it to return to profitability following the
extreme disruptions caused by the COVID-19 pandemic.
MeDirect recorded profit after tax of €11.9 million in 2023,by focusing on delivering sustainable growth and taking
advantage of a synergistic model which combines diversified retail lending, a highly attractive digital wealth platform,
cutting-edge proprietary technology and careful risk management.
MeDirect furtherstrengthened its position in its core Belgian and Maltese markets as a profitable pan-European digital
bank with a highly scalable platform and infrastructure designed to enable it to deliver increased profitability.
Delivering structural profitability organically
Notwithstanding the large COVID-19-related credit impairments incurred in 2020, MeDirect was able to grow its
operating income at a 20% constant annual growth rate from 2020 to 2023, while successfully reshaping its
operating model, investing selectively in technology to create scalability and returning to structural profitability.
1 This report is prepared in terms of the Maltese Companies Act (Cap. 386) and complies with the disclosure requirements of the Sixth Schedule to the same Act.
2 Consisting of MeDirect Bank SA (“MeDirect Belgium”), MeDirect Tech Limited (formerly Medifin Leasing Limited), and all entities where MeDirect Malta and
MeDirect Belgium retained all the underlying risks and rewards consisting of Grand Harbour I B.V. (currently in liquidation), Bastion 2020-1 NHG B.V., Bastion 2021-1
NHG B.V. and Bastion 2022-1 NHG B.V., controlled special purpose entities established in the Netherlands that were set up as part of the Group’s funding strategy,
and Medifin Estates, a property leasing partnership.
Michael Bussey
Chair
Arnaud Denis
Group CEO
4Annual Report and Financial Statements 2023
MeDirect’s Tier 1 Capital Ratio was also strengthened from 14.8% in 2020 to 16.7% in 2023 without additional external
capital (refer to the MeDirect Business Transformation 2020-2023 section in this chapter).
Thanks to the careful implementation of its strategic roadmap, MeDirect doubled its profit before impairment and tax
to €15.3 million in 2023, compared with €7.1 million for 2022.
MeDirect continued to grow its balance sheet at a controlled pace during 2023 (an increase of 7% to €5.0 billion), while
continuing to de-risk, with the International Corporate Lending (“ICL”) portfolio reduced to €328.5 million at 31 Decem-
ber 2023. The ICL portfolio now represents less than 7% of the Group’s total assets and 12% of its lending book.
During the same period, MeDirect’s mortgageportfolio increased by a healthy 22% at Group level, from €2.0 billion to
almost €2.5 billion, leveraging on diversified origination engines: Dutch government guaranteed (NHG) mortgages,
Dutch professional buy-to-let mortgages, Belgian mortgages and Maltese mortgages.
MeDirect Malta also developed its domestic corporate services and lending platform, that has supported the Maltese
economy, with a loan book reaching €140 million and an average loan-to-value of 54% as at December2023.Forall
categories of lending, MeDirect applies a robust risk selection process which has resulted in high-quality portfolios with
low arrears and defaults.
As a systemic bank in Malta, MeDirect is regulated by the European Central Bank as part of the Single Supervisory
Mechanism. Being part of the Single Supervisory Mechanism ensures that MeDirect is regulated at the standard of the
largest banks in Europe.MeDirect continues to operate with adequate capital ratios, even while growing its balance
sheet tobuild sustainable net interest income and investing in its wealth platform to generate further fee income.At
year-end, MeDirect’s Total Capital Ratio stood at 20.3%, and its Liquidity Coverage Ratio stood at 209%. Such ratios
exceed all regulatory requirements, recommendations and management buffers.
Growing the customer franchise steadily with an attractive value proposition
MeDirect increased its retail customer base by 23% at Group level in 2023, acquiring 27,000 new customers for a total
of 133,000 at year-end. Client acquisition was particularly strong in the larger Belgian market, where MeDirect Belgium
reached the 100,000 clients mark in December 2023. MeDirect Malta reached the 30,000 clients mark and opened a
new location for growth by establishing a Dutch cross-border presence, targeting retail customers in May 2023.
Retail clients continued to use MeDirect as a one-stop shop digital platform for everyday banking, savings and wealth
solutions,ranging from brokerage to model portfolios and discretionary management.Wealth product penetration of
the total retail customer base was 33%, increasing to close to 50% forcustomers who have been with MeDirect forthree
years or more.This platform – and in particular the MeDirect Wealth SuperApp – is designed to meet the needs of the
underserved affluent market segment for wealth services.
Customers who join MeDirect are extremely loyal – 94% of customers who opened an account five years ago remain
customers of the Group. The high quality of MeDirect service is reflected by strong levels of customer satisfaction – a
high Net Promoter Score (NPS) of 47 and call centre satisfaction of 87% by the end of 2023.
Group client financial assets (retail + corporate) increased by approximately 18% in 2023, reaching €5.0 billion at year
end, of which €1.7 billion were assets under custody with MeDirect, an increase of 18% from year-end 2022.
5Annual Report and Financial Statements 2023
Launching new services and transforming into a fully-fledged digital bank
MeDirect continued to broaden its retail product suite,
further establishing itself as a modern digital bank offering
clients an attractive alternative to incumbent banks, with
superior user experience, high quality of service and
competitive pricing.
In July 2023, MeDirect launched card services in Malta.This
new product enhanced MeDirect’s appeal in the retail sec-
tor, broadening significantly its pool of potential customers.
MeDirect has integrated both physical and virtual card ser-
vices into its platform and regularly rolls out additional fea-
tures to enhance the online card management experience.
This product was also launched in Belgium in January 2024.
MeManaged,MeDirect’s digital discretionary portfolio management service, originally launched in Malta in 2022, was
extended to Belgium and the Netherlands during 2023. The launch of MeManaged marked an important step in
democratising wealth management by providing discretionary management services previously limited to high-net-
worth individuals to a wider range of customers.
In Malta, MeDirect broadened its mortgage offering to add property investment loans as well as an 18-month interest
only feature.As a competitive advantage, MeDirect continued to reduce the time required to issue sanction letters and
to complete home loan contracts. MeDirect is working to provide a smooth, digital, client-focused and fast process for
all stages in the mortgage process.
Leveraging on a state-of-the art proprietary technology platform to support scalability
Overthe last fouryears,MeDirect successfully built a cutting-edge proprietary technology platform which is today at
the core its competitiveadvantage. This platform allows MeDirect to innovate continuously, scale at low marginal cost
and deliver highly reliable services across products and geographies, while reducing third-party vendor dependency.
MeDirect’s Technology team,with approximately 125 engineers based mostly in Malta,developed a high quality soft-
ware code repository (with over30 million lines of code, the intellectual property rights of which are owned by MeDirect)
and maintains a complex ecosystem deployed flexibly in multiple locations.
This platform has allowed MeDirect not only to operate with contained and stable technology costs since 2020 but
also to fuel agile product innovation, process efficiency improvement and robust control and risk management systems.
The Group’s cost-to-income ratio,which was very negatively affected by the loss of revenues resulting from the ICL
de-risking strategy, improved to 83% in 2023. This improvement in operational efficiency was achieved through
top-line revenue growth (20% operating income CAGR) but also with fixed OpEx held substantially flat during the
period 2020-2023.Appropriate technology investments,together with focus on cost control,have been majordrivers
behind such improvement.
6Annual Report and Financial Statements 2023
ESG and Social responsibility
MeDirect has continued to integrate Environmental,
Social and Governance (“ESG”) principles into its
business and to raise ESG awareness throughout
the organisation.During 2023,MeDirect increased
its offering of green funds and green bonds, more
than doubled the number of eco-friendly mortgage
loans since 2022 and initiated a project to reduce
its carbon footprint by 5% between 2022 and 2026
and to become carbon neutral by 2032.MeDirect
continued to improve its EcoVadis rating, retaining
its silver medal status in 2023 and placing MeDirect
in the top 7% of corporates evaluated by EcoVadis.
In 2023, MeDirect had employees from over 30 nationalities,with 61% of the workforce being male and 39% female.
MeDirect Malta was re-certified in June 2023 and granted again the Equality Mark by the National Commission for the
Promotion of Equality. MeDirect prides itself on developing its employees and promoting from within. MeDirect contrib-
utes to the local communities in which it operates by supporting charitable organisations as well as talented individuals
in areas such as sports and culture through sponsorships, donations and the voluntary actions of its employees.
Conclusion
In 2023,MeDirect consolidated the gains made overthe previous three years as it continued to executeits business
transformation and delivered stable profitability. Notwithstanding the scalability of the platform,careful consideration
was given to balancing the speed of growth with selective investments, prudent risk management and organic capital
creation goals, in an environment that remains extremely volatile.
Both management and the Board remain committed to continue growing MeDirect profitably, with the ambition of dis-
rupting the markets in which it operates, while delivering on its brand promise of “helping consumers grow their wealth
with confidence and autonomy”.
MeDirect is committed to exploring further ways to reinforce its capital base and facilitate shareholder transition, which
would enable MeDirect to accelerate the growth of its platform.
7Annual Report and Financial Statements 2023
Board of Directors
The Bank’s Articles of Association do not require any Directors to retire.
The Directors of the Bank who held office during the year were:
Mr. Michael Bussey – Chair – appointed on 20 February 2017
Mr. Arnaud Denis – Chief Executive Officer – appointed on 15 October 2019
Mr. Philip English – appointed on 21 August 2023
Mrs. Lisa Fergus – appointed on 19 December 2023
Mr. Jamal Ismayilov - resigned on 2 November 2023
Mr. Radoslaw Ksiezopolski – appointed on 4 October 2019
Mrs. Dina Quraishi – appointed on 6 July 2023
Mr. John Zarb – appointed on 17 July 2017
Focus on financial key performance indicators
The evaluation of management’s implementation of MeDirect’s corporate and financial strategy is based on the use of
key performance indicators (“KPIs”). KPIs arethe tools by which MeDirect’s businesses and operations are managed,
monitored and directed and indicate when the Group needs to undertake corrective measures. KPIs (and associated
risk appetite and risk tolerance metrics) ensure that key risk metrics are constantly monitored. KPIs also play an essen-
tial role in MeDirect’s performance management process.
MeDirect focuses particularly on quantitative KPIs that are actively monitored on a regular basis through dashboards
and monthly management reports. In addition,the Group’s management and Board evaluate non-financial metrics such
as customer satisfaction, employee engagement and sustainability.
The principal financial KPIs of the Group are presented in the following table:
Key performance indicators 2023 2022
Business performance management
Annualised return on equity 4.7% 3.7%
Overall net interest margin 1.8% 1.4%
Capital management
Common Equity Tier 1 (“CET 1”) Ratio 16.7% 15.2%
Leverage Ratio 4.4% 4.7%
Solvency management
Liquidity Coverage Ratio (“LCR”) 209% 221%
Net Stable Funding Ratio (“NSFR”) 126% 119%
Credit management
Non-Performing Loans Ratio 2.5% 2.2%
8Annual Report and Financial Statements 2023
Dividends and reserves
The accumulated losses of the Group amounted to €10.3 million (2022: €25.5 million) and of the Bank amounted to
€12.0 million (2022: €25.3 million).After consideration of the financial results of the Group, the Directors of the Bank do
not recommend the payment of a final dividend. The Board has determined that the Group should conserve its capital
to maximise its ability to support its customers, to continue to strengthen its balance sheet and to invest selectively in
its Wealth platform.
Confirmation of MeDirect’s going concern assessment
MeDirect remains well positioned to achieve further business growth whilst remaining adequately capitalised,with the
Total Capital Ratio at 20.3% compared to the total SREP
1
capital requirement of 11% and soundly funded with access to
the required levels of liquidity with the Liquidity Coverage Ratio being more than two times the minimum requirement.
After due consideration of MeDirect’s business,profitability projections, funding and capital plans, robust riskand inter-
nal control processes and taking into account the broadermacroeconomic outlook, the Directors declare that MeDirect
is in a position to continue operating as a going concern for the foreseeable future.
2
The Board believes that MeDirect
will have sufficient capital to meet not only its regulatory capital and liquidity requirements but also any internal risk
buffers and any buffers recommended by its regulators.
Enhancing risk governance
MeDirect understands the importance of adopting sound risk management principles. MeDirect’s core objective in the
management of risk is to protect its customers and counterparties and to ensure its ability to grow sustainably.
Managing risk effectively, efficiently and sustainably is an integral part of the Group’s business strategy. MeDirect’s
risk management approach focuses on ensuring continued financial soundness and safeguarding the interests of its
stakeholders while retaining the ability to pursue value-creating business opportunities in a fast-changing environment.
This is achieved through high standards of corporate governance and sound risk management principles.
MeDirect has a well-established risk governance structure,with an active and engaged Board of Directors supported
by an experienced senior management team and a centralised risk management function that is independent of the
business lines. Decision making is primarily conducted through the Board of Directors with oversight from a Board level
Risk Management Committee and delegated authority within Executive level Committees.The responsibilities of the
Group’s Risk Management Team are to protect and enable the Group to deliver sustainable income through facilitating
and monitoring the implementation of effectiverisk management practices and assisting risk owners in defining and
controlling risk exposures.
The Group has established a comprehensive and robust risk management framework which sets forth the steps neces-
sary to assess, manage,monitorand report current and emerging risks, whilst continually seeking to improve and evolve
its risk management practices to ensure that it can proactively manage its risk environment.
MeDirect has designed its risk management framework to support and enable its transformation strategy. This risk
management framework ensures that new and proposed business lines, areas of growth, changes in technology and
management decisions are well governed and sustainable.
1 Supervisory Review and Evaluation Process
2 Statement pursuant to MFSA Capital Market Rule 5.62.
9Annual Report and Financial Statements 2023
Risks are monitored through regular and timely risk reporting, enabling the proactive identification and management of
risks with the aim of reducing or avoiding undue exposure to various specific risktypes. Risk appetite limits established
by the Board set forth the amount and types of risk that MeDirect is prepared to accept or tolerate when delivering its
strategy. These risk appetite limits are embedded in policies, management authorities and limits across the Group. Fre-
quent and close monitoring of all risk appetite limits, combined with comprehensive reporting to management and the
Board of Directors ensures that risk is maintained within acceptable levels in accordance with the Group’s risk appetite.
In addition, all critical risk appetite limits are subjected to stress testing analysis at a risk type and portfolio level to en-
sure MeDirect remains financially healthy during and after severe risk events. Stress testing is an important part of the
Group’s risk management framework and addresses a range of idiosyncratic and market-wide scenarios. The results
from stress testing allow senior management to assess any potential vulnerability to exceptional but plausible adverse
events. Stress testing enables MeDirect to assess its capital adequacy and liquidity risks and to identify potentially
risky segments in its business model as well as inherent systematic risks. This enables the Group to develop appropri-
ate risk controls, contingency plans and mitigating actions to address relevant risks before adverse events occur.
MeDirect’s Board regularly discuss and monitor any threats or emerging risks which could potentially have an adverse
effect on the operations or financial condition of the Group,including maintaining an adequate and diversified funding
base; interest rate hedging aimed at protecting its balance sheet; continuing reduction of credit risk and diversification
of the balance sheet into lower-risk mortgage assets; and robust operational risk controls,particularly in view of the
Group’s increasing reliance on technology to improve the efficiency of its operations.
Related parties
During the yearended 31 December 2023, other than the transactions described under note 35 to the financial state-
ments,there were no material changes in related party transactions as compared with those detailed in the financial
statements forthe year ended 31 December 2022. In addition, no related party transactions materially affected the
financial position or liquidity of MeDirect.
MeDirect confirms that there were no material contracts to which it or any of its subsidiaries was a party or in which any
of its Directors was directly or indirectly interested.
1
Events after the reporting date
There were no events afterthe reporting date that would have a material effect on the financial statements of the
Bank or the Group.
Pillar 3 disclosures
MeDirect is required to publish Pillar3 quantitative and qualitative disclosure requirements.
2
The Group publishes its full
Pillar 3 disclosures on an annual basis as a separate document that is available on MeDirect’s website.
1 Statement pursuant to Capital Market Rule 5.70.1.
2 As governed by BR 07: Publication of Annual Report and Audited Financial Statements of Credit Institutions authorised under the Maltese Banking Act (Cap. 371),
issued by the MFSA, which follows the disclosure requirements of EU Regulation No 575/2013 (CRR) of the European Parliament and of the Council of 26 June 2013
and the Commission Implementing Regulation (EU) 2021/637 of 15 March 2021.
10Annual Report and Financial Statements 2023
Standard licence conditions applicable under the Investment Services Act (Cap. 370)
Licence holders are required toinclude in the Directors’ Report breaches of standard licence conditions under the In-
vestment Services Act (Cap. 370). Accordingly, the Directors confirm that no breaches of standard licence conditions
and no otherbreach of regulatory requirements under the Investment Services Act (Cap. 370) that were subject to
administrative penalty or regulatory sanction were reported during the financial year.
1
Statement of Directors’ responsibilities for the financial statements
MeDirect is required by the Maltese Banking Act (Cap.371) and the Maltese Companies Act (Cap.386) to prepare fi-
nancial statements that give a true and fair view of the state of affairs of the Bank and the Group as at the end of each
reporting year and of the profit or loss for that year.
In preparing the financial statements, MeDirect is responsible for:
• ensuring that the financial statements have been drawn up in accordance with International Financial Reporting
Standards as adopted by the EU;
• selecting and applying appropriate accounting policies;
• making accounting estimates that are reasonable in the circumstances; and
• ensuring that the financial statements are prepared on the going concern basis unless it is inappropriate to
presume that the Bank and the Group will continue in business as a going concern.
MeDirect is also responsible for designing, implementing and maintaining internal controls designed to en-
able the preparation of financial statements that are free from material misstatement, whetherdue to fraud or er-
ror, and that comply with the Maltese Companies Act (Cap.386). MeDirect is also responsible forsafeguarding the
assets of the Bank and the Group and fortaking reasonable steps forthe prevention and detection of fraud and
other irregularities.
The financial statements of the Bank for the year ended 31 December 2023 are included in the Annual Report 2023,
which is published in hard-copy printed form and will be made available on the Group’s website. MeDirect is responsible
for the maintenance and integrity of the Annual Report on the website in view of its responsibility for the controls over
and the security of its website. Access to information published on the Group’s website is available in othercountries
and jurisdictions where legislation governing the preparation and dissemination of financial statements may differ from
requirements or practice in Malta.
Statement by the Directors pursuant to Capital Market Rule 5.68
The undersigned declare that to the best of their knowledge,the financial statements were prepared in accordancewith
the applicable accounting standards, give a true and fairview of the assets,liabilities, financial position and profit orloss
of the Bank and its subsidiaries included in the consolidated financial statements and that this report includes a fair
review of the performance of the business and the position of the Bank and its subsidiaries included in the consolidated
financial statements, together with a description of the principal risks and uncertainties that it faces.
Signed by Michael Bussey (Chair) and Arnaud Denis (Chief Executive Officer) on 27 March 2024.
1 Statement in accordance with SLC 7.60 of the Investment Services Rules for Investment Services providers regulated by the MFSA
11Annual Report and Financial Statements 2023
MeDirect Group at a glance in 2023
1. Client financial assets = deposits + assets under custody (assets held under nominee basis)
Positive business developments
New business initiatives that will contribute to further growth
» Launch of physical and virtual cards in Malta
» Online Discretionary Portfolio Management in partnership with Blackrock in
Belgium
» Entry into the Dutch retail wealth market
Capital and liquidity ratios well above minimum legal requirements
20.3%
Total Capital Ratio
>200%
Liquidity Coverage Ratio
126%
Net Stable Funding Ratio
Increase in operating revenues supported by business growth and impact of higher interest rates
€14.3m
Profit before tax representing
56% increase from prior year
+43%
Increase in net
interest income
2.5%
Non-performing
loans ratio
Dynamic Franchise Growth
133k
Retail clients -
23% increase from 2022
171%
Increase in new retail
clients compared to 2022
€5.0bn
Group retail and corporate
client financial assets
1
+€253m
18% increase in assets
held under custody
Mortgage lending portfolios expanding with an overall 30% increase in their carrying amount
€2.1bn
Dutch mortgage book -
a 16% increase in 2023
€255m
Belgian mortgage book -
almost doubled in 2023
€99m
Malta mortgage book -
a 46% increase in 2023
+49%
Increase in interest income
on mortgage lending
2nd
Best Investment
Bank award by
Spaargids.be
2nd
Best Savings Bank
award by Guide-
Epargne.be
3rd
Best Bank in
Belgium by Forbes
global survey
MeDirect Belgium market recognition
12Annual Report and Financial Statements 2023
MeDirect Business Transformation 2020-2023
MeDirect restored structural profitability ... ... by growing operating income ...
... maintaining cost discipline while
investing in platform and technology ...
... and achieving positive results
over the past two years
Operating incomeProfit before impairment and taxes
Note: All figures expressed as € millions
Operating expenses Profit after tax (PAT)
13Annual Report and Financial Statements 2023
RWAICL portfolio as a percentage of total assets NPL ratio
Diversifying asset portfolios ...
... de-risking the balance sheet and achieving lower NPL ratios ...
Note: Figures expressed as € millions
Note: Non-percentage figures expressed as € millions
... and improving capital ratios
14Annual Report and Financial Statements 2023
Market recognition and high client satisfaction ...
In 2023, MeDirect achieved 4.7% ROE and
83% cost income ratio and is
ready to be scaled
... support dynamic retail franchise growth
2nd best
Belgian platform for investments and savings
47
Group Net Promoter Score (NPS)
Note: Retail deposits and retail assets under nominee figures expressed as € millions. Retail Clients figures expressed in thousands.
As of Dec 2023Belgium market: 2023 Spaargids independent market
survey amongst consumers
15Annual Report and Financial Statements 2023
Who we are
Purpose, Mission and Core Values
Our purpose is exciting:
To empower people to manage their wealth with confidence and autonomy.
To achieve this goal,we have built our Wealth SuperApp, a one-stop shop that offers in a single app a broad and
growing portfolio of digital wealth and banking services. Our vision for our customers is embodied in our “My Money,
My Choices” branding, which speaks to the freedom and flexibility provided by our platform to customers in managing
their finances.
We target the underserved affluent customersegment; people who want to retain control of their finances but who
often want to be guided in their investment journeys. Oursolution addresses the needs of a large potential universe,
ranging from first time to active investors looking fora wide choice of investment products and a highly convenient
platform that enables them to achieve their financial goals.
Users of our platform may include:
• customers unsatisfied with the offline journey provided by their current bank or investment advisor;
• people who do not have the time nor the willingness to manage their money and want to delegate or be guided;
• tech-savvy investors who want to access a highly functional trading platform with real-time capabilities and
rich information; and
• customers who do not qualify for private banking, which typically caters only to customers with significant
investible wealth.
MeDirect aims to address these problems with cutting-edge technology and customer-centric solutions with the am-
bition of disrupting the retail digital investment space. To achieve this, we offer, on a single multi-channel platform with
open architecture, a broad range of online investment solutions combined with superior UX and attractive pricing. Our
app addresses in one place a wide range of investor needs including trading, advisory and discretionary management
services, coupled with daily banking facilitated by our physical and virtual card capabilities launched in 2023.
Technology is the backbone of our success. We developed internally most of the critical components of the value chain
which form part of our ecosystem, allowing us to deploy seamless service aggregation capabilities.Ourtechnology
architecture is state-of-the-art, with scalability and modularity at its core,built by a talented team recruited from ad-
vanced technology sectors including iGaming and Telecom.
Our strategic priorities reflect our core values:
Autonomy: We empower our customers to navigate the financial world and give them the choice of how to manage
their money, their way. We encourage our employees to take ownership of their work and grow their skills.
Innovation: We do not rest on our laurels. We are results driven and constantly review how we go about delivering on
our vision and improving our value proposition.
Transparency: The financial world isn’t simple, but the MeDirect app is. We communicate clearly with our clients and
our colleagues and offer clear and understandable reporting of customer portfolios.
Responsibility: We take seriously our responsibilities to all our stakeholders: customers, employees, regulators, share-
holders and our community.
16Annual Report and Financial Statements 2023
How our vision ties into our core strategy
Our core strategy is based on four main pillars:
1. Scaling up our innovative WealthTech platform
MeDirect focuses on the affluent customersegment (typically
with €30,000-€300,000 in wealth) that values convenience,
transparency and choice. MeDirect aims to provide a full range
of investment services from brokerage to investment advice to
3. MeDirect Tech Proprietary platform
MeDirect’s technology strategy is a testament to the power of modern software architecture in driving business
growth and maintaining a competitive edge. MeDirect’s cloud-agnostic approach allows for the seamless integra-
tion of services from various third-party providers, enhancing its digital offerings. This strategic selection of partners
contributes to a robust and flexible modular ecosystem, capable of supporting the platform’s scalability.
The transition from a monolithic setup to a containerized platform
is a pivotal move in MeDirect’s tech strategy. This shift not only fa-
cilitates scaling up to accommodate higher volumes and broader
geographies but also ensures cost-efficiency. The adoption of a
modularmicroservices architecture underlines MeDirect’s commit-
ment to continuous innovation and its ability to adapt to evolving
business and customer needs.
Furthermore, MeDirect platform’s design revolves around six
core elements that prioritize user experience and interfaces,
client experience management,order orchestration, payment execution, and transaction management.These elements
are underpinned by key design principles that ensure a seamless and efficient operation. MeDirect’s in-house software
development team, recognized for its excellence, plays a crucial role in the ongoing development and refinement of this
cutting-edge technology.
Overall, MeDirect’s tech architecture is a strategic asset that enables it to offer a comprehensive and
multi-channel customer experience while optimizing operational efficiency and scalability. This positions MeDirect well
to respond swiftly to market demands and to continue its trajectory of innovation and growth.
2. Growing a low risk and capital efficient mortgage lending platform
We have built from scratch mortgage offerings in the Netherlands,Belgium and Malta and have developed a lend-
ing platform that is both scalable and competitive. In Belgium and the Netherlands, MeDirect operates a B2B2C
approach,by working with top notch servicing and origination partners and focusing on niche market segments,while still
maintaining an appropriate risk-reward balance. Looking
forward, we aim to use this business line to complement
our disruptive wealth offering and to build a platform which
maximises the full range of synergies between the two business
lines, including cross-selling mortgages to wealth customers or
vice-versa.
discretionary portfolio management, combined with high-quality daily banking functions, including physical and virtual
cards.We bring to market innovative solutions combining our proprietary software with seamlessly aggregated services
from selected partners to create intuitive customer journeys.
Since 2018, we have invested
over €33 million in our
technology platform.
MeDirect proprietary
platform’s design revolves
around six core elements that
prioritize user experience and
interfaces, client experience
management, order orches-
tration, payment execution,
and transaction management.
The mortgage lending platform
leverages on top notch partners
and inhouse Technology and
Product capabilities to build a
best-in-class platform.
17Annual Report and Financial Statements 2023
4. Efficient operating model
MeDirect operates a high-quality service centre in Malta consisting of technology, digital channels, operations and
othersupport teams. These teams drive MeDirect’s vision to be simpler, betterand faster for our customers and work-
force.The role of these teams include:
• the development of software and applications to improve customer experience;
• the management of the IT infrastructure and support;
• the management of customer operations and change across MeDirect; and
• the provision of professional services in various areas such as finance, risk and treasury, amongst others.
Dedicated marketing and product teams,as well as control functions,are located in each of our banks.This interna-
tional set-up enables MeDirect to scale up efficiently while remaining flexible and close to local market customerand
regulatory requirements.
18Annual Report and Financial Statements 2023
Group History
2009-2018
Acquired by AnaCap Financial Partners II L.P.
Launch of online deposits and wealth in Malta
Established syndicated ICL portfolio
Belgian branch obtains banking licence, becomes subsidiary of Maltese bank in 2015
MDB Group regulated under the Single Supervisory Mechanism in 2016
Group Client Financial Assets above €3.0 billion as at December 2018
2019
New management team joined to transform MeDirect and develop the WealthTech franchise
Collateralised Loan Obligation transaction executed to de-risk ICL portfolio
Launch of Dutch NHG mortgage business line
2020
Milestone of 75,000 affluent retail clients reached
NHG mortgage book exceeds €1 billion
Launch of business transformation programme by new management team
Launch of retail mobile app
Ranked top 5 for mobile app, investment products and savings by spaargids.be
Successful completion of first Residential Mortgage-Backed Security (“RMBS”) transaction
Navigated through Covid crisis
2021
Milestone of 100,000 affluent retail clients with €4.5 billion financial assets reached
NHG mortgage book exceeds €1.6 billion
Launch of revamped online brokerage platform
Again ranked top 5 for mobile app, investment products and savings by spaargids.be
Awarded “Best Use of Technology in Business Transformation” by Tech.MT for MeDirect’s digital
onboarding platform
New mortgage platform launch in Malta and Belgium
Issuance of €11 million Tier 2 capital in international markets
Second RMBS transaction completed
2022
Operating as a software house: 28 million lines of quality code deployed
New MeDirect branding and logo and UX enhancements
Launch of Discretionary Portfolio Management offer with top asset manager in Malta
Launch of professional buy-to-let mortgage product in the Netherlands
Third RMBS transaction completed
New eco-friendly home loans introduced
Top 15% in Ecovadis Silver sustainability rating
Launch of physical and virtual cards in Malta contributing to growth in our customer base
Launch of Discretionary Portfolio Management offer with top asset manager in Belgium
Geographical expansion of digital wealth products and deposits into the Netherlands
Launch of property investment loans and 18-month interest only mortgage product in Malta
Launch of revamped e-banking platform for corporate customers
Milestone of 100,000 retail clients in Belgium reached
MeDirect Belgium awarded “2nd Best Investment Bank” and “2nd Best Savings Bank” by Spaargids.be and
Guide-epargne.be respectively
MeDirect Belgium rated 3rd best bank in Belgium by Forbes global survey
Retaining Ecovadis Silver sustainability rating (top 7% of all rated corporates)
MeDirect Malta participated in the Hope guarantee scheme in collaboration with the Government of Malta
2023
19Annual Report and Financial Statements 2023
Group Board
Michael Bussey
Independent Chair and Non-Executive Director
» Joined MeDirect Board on 20 February 2017
» 45 years of experience in banking, specialising in Private banking and Wealth management
Former key positions held:
» Joined HSBC in 1980 and held various senior positions in his more than 20 years with the company, most
recently as CEO of HSBC Private Banking EMEA
» CEO - Schroder & Co Ltd
» CEO - Private Banking and Trust at NM Rothschild & Sons Ltd
» CEO - Arbuthnot Latham & Co.
» Non-Executive Chair - Credit Suisse (U.K.) Limited (2012-2020)
External appointments:
» Non-Executive Chair - DB UK Bank Limited
Dina Quraishi
Independent Non-Executive Director
» Joined MeDirect Board on 6 July 2023 and is the Chair of the Risk Committee
» 20+ years of experience in risk management covering various sectors including payments, FinTech, engineering
and financial services.
Former key positions held:
» Chief Risk Officer – SWIFT (Belgium)
» Global Head of Enterprise Risk Management – Sandvik (Sweden)
» Head of Operational Risk – Zurich Insurance
John Zarb
Independent Non-Executive Director
» Joined MeDirect Group’s Board on 17 July 2017 and is the Chair of the Audit Committee
» 40 years of experience with PwC in Malta, retiring from his role as Partner in 2014
Former key positions held:
» Formerly President of Malta Institute of Accountants and served as Malta’s representative on the EU
Accounting Regulatory Committee and on the Accountancy Board for several years
External appointments:
» Chair - PG plc
» Director - Foster Clark Products Ltd
» Board member and Chair of the Audit committee of Tumas Investments plc and board member and Chair of the
Remuneration Committee of its parent company, Tumas Group Company Limited
Philip English
Non-Executive Director
» Joined MDB Group’s Board on 21 August 2023
» 30+ years of experience focusing on portfolio management, security valuation, financial markets and institutions
and commercial banking.
Former key positions held:
» Served on the Board of Directors of the CFA Society Washington, DC
» Served on the Investment Management Committee for Raffa Wealth Management
External appointments:
» Research Associate Professor of Finance at the Fox School of Business, Temple University
» Executive Director of the Fischer-Shain Centre for Financial Services and executive member of its Board
20Annual Report and Financial Statements 2023
Arnaud Denis
Director and Group Chief Executive Officer
» Joined MDB Group as Group CEO in September 2019 and formally on MeDirect’s Board on 15 October 2019
» 25+ years of experience in banking, with track record of retail business transformation in the field of digital
Former key positions held:
» First Deputy CEO of ROSBANK Group - Société Générale’s Russian retail platform
» CEO - Eurobank SA - Polish subsidiary of Société Générale
» MD - Société Générale’s Fixed Income division based in New York
» Held various non-executive Directorships in banking
Radoslaw Ksiezopolski
Director and Group Chief Financial Officer
» Joined MDB Group as Group CFO in August 2019 and formally on MeDirect’s Board on 4 October 2019
» 20+ years of experience in banking, specialising in business transformation
Former key positions held:
» CFO - Eurobank SA - Polish subsidiary of Société Générale
» CFO - Credit Agricole Bank Poland
» Consultant - McKinsey & Co.
» Worked on the transformation of Polish subsidiary of UniCredit
Lisa Fergus
Director and Group Chief Risk Officer
» Joined MDB Group as Group CRO in December 2023 and formally on MeDirect’s Board on 19 December 2023
» Experienced banking professional with over 30 years in depth experience across enterprise risk management,
compliance, financial crime, internal audit and corporate governance
Former key positions held:
» CRO - Ashman Finance, UK
» CRO - Monzo, UK
» CRO - Clear Bank, UK
» CRO - Masthaven Bank, UK
» Leading an audit quality assurance and professional practices programme globally at Barclays Bank