APS Bank becomes plc as it prepares to strengthen capital base

The church bank has completed the necessary internal changes to become a public limited company as it prepares to ‘develop its capital base’

APS Bank is now a public limited company
APS Bank is now a public limited company

APS Bank has completed the process to convert from a limited liability company to a public limited company, the bank said in a statement.

The shift was approved in the 2018 annual general meeting, which adopted a new memorandum and articles of association.

The change has no material impact on banking operations and 1 April 2019 was selected as the date for the conversion.

APS CEO Marcel Cassar said the conversion would pave the way “for future development of our capital base”.

The bank gave no further detail but market analysts have told MaltaToday, APS could very well have taken the step to be able to issue a bond, which it would use to strengthen its capital base.

Banks have had to satisfy ever-more stringent regulatory requirements to have an adequate capital base. Any company issuing a bond has to be a plc.

APS Bank is a Maltese bank established in 1910, with majority shareholding held by the Archdiocese of Malta and Gozo.

The bank was incorporated into a private limited liability company in 1970 and granted a commercial banking licence in 1990. It employs more than 400 people and has 11 branches across Malta and Gozo.

The bank said that the change in designation will not affect its operations and does not change the authorisation status as a licensed credit institution, investment services provider and tied insurance intermediary.

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