REPORT

Statements

2025

TABLE OF CONTENTS

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Annual Report & Financial Statements 2025

The past year has marked a pivotal chapter in our Bank’s

journey, defined by growth and decisive actions that

have positioned us to navigate an evolving financial

landscape. As Chairman, it is my privilege to address our

the Bank achieve expansion across its core operations,

driven by a strategic focus on sustainable growth and

prudent risk management. This momentum is reflected in

our continued progress across our service lines and the

successful issuance of our latest bond. The subordinated

bond strengthens our regulatory capital base and provides

additional flexibility to pursue opportunities with discipline.

CHAIRMAN’S

MESSAGE

Annual Report & Financial Statements 2025  

while Financing has supported diverse

corporate clients in their ambitions

through tailored lending and working

capital products. These offerings

reflect our commitment to supporting

real economic activity and providing

reliable, responsive financial services.

This growth has been pursued within

our risk appetite framework and with

Investment in technology remains central

to our vision, with a particular emphasis

on new technologies. Rather than

at improving resilience, service quality

and scalable efficiency, while elevating

the client experience. This approach is

solving real business challenges and

anticipating client needs in a digital era.

Looking ahead, our ambitions are clear.

Achieving further growth will require

continued diligence, innovation, and

collaboration across the Bank. We

recognise the effort required to realise

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Annual Report & Financial Statements 2025

MESSAGE

Annual Report & Financial Statements 2025  

For the year ended 31 December 2025, profit

before tax increased to €3.7 million (2024:

€3.2 million), supported by higher business

risk management. Excluding the one off

provision of €1.5 million recognised on the

legacy agricultural lending portfolio, profit

before tax for the year would have amounted

to €5.2 million, equating to a 20% ROE.

Our financing service line continued to

expand. The factoring book reached €105

million (2024: €68 million), and we financed

€466 million in new factored receivables

during the year (2024: €279 million). Loans

to customers grew to €58 million (2024: €34

2025 (2024: €187 million) and total payment

volumes of €4 billion throughout 2025

(2024: €1.5 billion). These results reinforce

its role as a core and recurring service

in client balances and payment activity.

Overall, these results reflect the continued

execution of our strategy to build a

sustainable, diversified and scalable business

model anchored in financing and cash

management services. Growth was achieved

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Annual Report & Financial Statements 2025

Growth was matched with prudent balance

sheet and liquidity management. Total

assets increased to €391 million (2024:

reflecting continued progress in building

scalable and diversified funding base while

preserving balance sheet resilience.

above regulatory thresholds, with Liquidity

Coverage Ratio of 188% (2024: 340%)

and Net Stable Funding Ratio of 200%

(2024: 352%). We also strengthened our

capital base by way of retained earnings

and bond financing. During 2025, the

plans while maintaining a conservative

capital structure aligned with regulatory

and stakeholder expectations. At year

end, the Bank reported a Total Capital

Ratio of 21.6% (2024: 22.5%), and a Tier 1

Capital Ratio of 17.8% (2024: 22.5%), both

well in excess of regulatory thresholds.

Responsible growth requires clarity of risk

appetite, strong governance, and continuous

enhancement of controls. During the

year, we continued to strengthen our risk

management framework, supported by

balance sheet expanded, with provisioning

grounded in the IFRS 9 expected credit loss

methodology and active oversight of portfolio

performance and concentrations, including

the early identification of emerging risks.

We continued to invest in the second line of

and Financial Crime Compliance. This

reflects our view that growth must

be matched with strong independent

a strong tone from the top in respect of

risk management and internal controls.

Technology remains a strategic enabler.

During 2025, we continued investing in

systems and capabilities that enhance

automation, improve operational throughput,

strengthen cyber and ICT controls, and deliver

and information available to clients while

maintaining strong governance and controls.

framework, with oversight anchored through

Board and Risk Committee structures,

and integration into risk management

a manner proportionate to the Bank’s

size, complexity and risk profile.

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Annual Report & Financial Statements 2025

the financial reporting process. The Bank

maintains an internal control framework

designed to ensure the accuracy, reliability,

and integrity of financial reporting and

standards and regulatory requirements.

This framework includes:

report, together with the audited financial

The following directors served on the Board

during the period 1 January 2025 to date:

The Directors are required by the

statements do not contain any

material misstatements, and

unless otherwise determined.

the preparation and publication of the

Annual Financial Report, including

the financial statements, as required

This final dividend is subject to approval

by shareholders at the Annual General

Meeting as well as regulatory non-objection

and has not been included as a liability in

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Annual Report & Financial Statements 2025

counterparties, solvency, liquidity and

other risks under close scrutiny by

operational risks, financial crime, cyber-

security, and business continuity risks.

and frameworks, underpinned by a clearly

identify, assess, and manage these risks.

The Risk Appetite Framework sets the

boundaries within which the Bank operates

by articulating the nature and extent of

risks it is willing to accept in pursuit of

its strategic objectives and defines clear

escalation and breach management

protocols to ensure that any deviations from

the approved risk appetite are promptly

identified, reported, and addressed. The

monitor risks and ensure compliance with

the approved risk appetite and set limits.

fails to meet its respective obligations

in accordance with, or perform

according to, the agreed terms.

activities and, as such, credit risk

management is key. The appetite and

tolerance levels for credit risk deemed

acceptable by the Bank are defined and

loss model for quantifying provisions

compliant with IFRS 9.

and Risk Committee.

of Key risk indicators (KRIs).

that the Bank may not have sufficient

capital to meet its long-term obligations or

financial distress, default, or insolvency if not

investors, and regulators, as it impacts the

undertaking prudent financial management

practices, and continuously monitoring its

financial health and performance metrics.

Capital management is reported and

discussed at the Asset-Liability Committee

(ALCO), Risk Committee and the Board.

The Board actively monitors capital levels

against both regulatory requirements

and internal capital targets to safeguard

to ensure sufficient capital is maintained

to support the Bank’s strategy under

both expected and stressed conditions.

forms an integral part of the ICAAP.

Several severe but plausible scenarios

Liquidity risk is the potential that the

Bank may be unable to meet its financial

commitments in the short term and

medium term, either partially or wholly, and

without incurring unacceptable losses.

Annual Report & Financial Statements 2025

from adverse movements in market prices.

The Bank’s exposure to market

the Bank’s earnings and capital resulting

from fluctuations in interest rates. This

risk arises from the maturity mismatch

between a Bank’s assets and liabilities,

as changes in interest rates can affect

the value of these financial instruments

differently. Interest rate risk in the banking

book includes repricing risk, which relates

to the timing of interest rate changes.

interest rate sensitive instruments over their

remaining lives resulting from interest rate

Rate Risk as part of its Internal Capital

and incorporates it into stress testing.

Interest rates are a focal point of discussion

during meetings of the ALCO. To further

appropriate risk management actions when

Foreign exchange risk refers to the risk

that the Bank’s financial performance and

position will be affected by fluctuations

which take place in the exchange rates

between different currencies. This risk can

take place when a financial transaction

financial crime and complying with all

its customers, and its employees against

instituted a Financial Crime Compliance

function and established a Financial

and sanctions compliance. Governance

is supported through the Financial Crime

Compliance Committee, which ensures that

emerging risks, regulatory expectations,

and operational controls are regularly

reviewed. The Board also monitors

ensuring the Bank responds proactively to

considered critical to protecting the Bank’s

harm or disruption to an organization’s

operations, assets, or data caused by cyber-

attacks, security breaches, or technological

vulnerabilities. This risk includes threats

such as malware, phishing attacks,

ransomware, and insider threats, and it

Annual Report & Financial Statements 2025

damage to a Bank’s reputation or brand

image resulting from negative perceptions,

the various risks mentioned above and other

or data breaches, and it may lead to a

manages its products and services,

and ensures consistent adherence to

ethical standards and corporate values.

ESG risks encompass the possibility of

detrimental financial consequences to

the institution arising from the current or

anticipated effects of ESG factors on the

expectations it is committed to addressing

ESG risks and factors, acknowledging its

responsibility as a licensed credit institution

to comply with regulations and adopt

good practices. It engages stakeholders to