APS Bank Limited (Malta) 11 th April 2007

1. APS Bank Limited (Malta) 11th April 2007

2. Contents • Introduction • About Malta and its Banking Sector • The Bank’s Origins and its Historical Development • The various initiatives of the Church in Malta • APS Bank – how it fulfils its mission • Can we strengthen our links?

3. Introduction • It is a privilege and a pleasure to have been given the opportunity to participate in this conference • We wish to start by giving you a better idea about Malta • Our mission is to support the initiatives of the Church in Malta • As one would expect the Bank also derives inspiration from the parable of talents

4. About Malta • Independent since 1964 • EU member since 2004

5. About Malta • Malta is made up of an archipelago of three islands, namely, Malta the largest, Gozo, and Comino. • All these together have a total area of 316 square kilometers • The total population is of about 400,000 of which 380,000 live on Malta and the rest in Gozo • 98% of the population is Roman Catholic

6. About Malta • The islands are rather dry, with temperatures ranging between 10oC in winter and 32oC in summer. • Average annual rainfall is of 600mm.

7. Demographic Statistics Total Males Females Maltese Population 401,000 198,495 202,505 Employed (in no.) 214,000 149,000 64,000 Employed (in %) 53.40% 75.10% 31.60% Age Bands: Under 30 169,000 86,000 83,000 30- 59 161,000 81,500 79,500 Over 60 71,000 31,000 40,000

8. 2000 2001 2002 2003 2004 Unemployment 5.0% 5.1% 5.2% 5.7% 5.6% Inflation Rate 2.4% 2.9% 2.2% 1.3% 2.8% Real GDP growth rates 6.4% -1.7% 2.2% -1.8% 1.5% Economic Indicators Main Economic Sectors: Tourism Public Administration Services Information Technology Construction

9. Maltese Banking Sector • In total 18 licensed Banks • 5 Retail Banks – HSBC, BOV, APS, Lombard, Volksbank • 13 other Banks – overseas oriented • Local Retail Banking dominated by two big banks • Global Bank (HSBC) and another Local Bank who between them service 90% of the market • Regulated by Malta Financial Services Authority

10. The Bank’s Origins • Appostolato della Preghiera • Set up in 1910 by Jesuit Fr. Michael Vella • Initiatives included: • A Savings Bank & s Mutual Benefit Scheme • A Printing Press • A Recreational Club • An Emigration Bureau • Evening school and classes for craftsmen • Various Schemes to help the poor

11. Historical Developments • 1991 – Commercial Banking started • 1990s – Opening of four new branches • 2000s – Opening of two other branches • Today the bank has Regional Presence in Malta and Gozo • Is investing heavily in alternative distribution channels • The Church in Malta increased its financial support to the Bank

12. Financial Performance As At 31 December 2005 Deposits – EUR 490.8m Loans & Advances to customers – EUR 212.8m Investments – EUR 280.9m Operating Income – EUR 15.9m Profit before tax – EUR 7.3m Number of Employees – 190 Number of Branches – 6

13. International Participation • Membership of European Banking Federation through its active involvement in the Malta Bankers’ Association • Linkages to specialised banks in the following areas • a) Sports, • b) Old people’s homes, and • c) Artisans and SMEs • Other correspondent banks in main international financial centres • FEBEA

14. Church’s Preaching Into Practice • Barred by its own statute not to participate in commercial activities that do not reflect the teaching of the Catholic Church • Create an institution that will enhance human welfare in the context of sustainable development • The licence to operate commercially implies an ability to bring about sectoral changes in the interest of the whole community

15. Church’s Preaching Into Practice Implementing its basic philosophy of supporting sectors considered a priority from a social aspect Sector 1 – Accommodation • Advantageous financial packages for the acquisition of homes Sector 2 – Agriculture & Fisheries • Facilitated Cash Flow Management • Specific financial product to stimulate investment in waste mgt. • Encourage discussion of basic issues in collaboration with government institutions and FAO • Setting up of an Advisory Arm

16. Church’s Preaching Into Practice Implementing its basic philosophy of supporting sectors considered a priority from a social aspect Sector 3 – Sports Acting as link between experts and developers to ensure that investment is sustainable Sector 4 – Crafts and SMEs Linking up to specialized banks in the field not only giving financial advice but also give advisory support

17. Church’s Preaching Into Practice Various initiatives taken during 2005: • Mortgage interest rate reduced to relieve families from financial pressures • Sponsored a number ofvoluntary organisations with social, environmental and a sports objective

18. Ongoing Initiatives • Organises an Annual Concert of Sacred Music • the latest one of Maltese 19th Century composers • 4th in the series • Organises a Conference on the Development of Agriculture and Fisheries in conjunction with FAO • 6th in the series • Supports publications of literary works written in Maltese

19. Providing Advice • Supporting the Church’s other institutions both financially as well as by making available expert advice in the different operations • Earning the financial resources it requires to keep on fulfilling its role

20. Can We Strengthen Our Links? • We certainly think so • We are banks that share a similar philosophy • However, we use different means to achieve our objectives • Possible Initiatives • Reciprocal support and exchange of experience an expertise • Staff member attachments / secondments / training • The undertaking of projects jointly • Collaboration in financing Church related initiatives • Pan-European association of Christian Banks

21. Conclusion