Bank of Valletta today announced its performance for Financial Year ending 31st December 2023, registering a profit before tax of €251.6 million. These positive results are underpinned by strong income growth and high profitability levels achieved across all main business lines. This continued to strengthen the Bank’s balance sheet position, with liquidity and capital positions remaining well above regulatory requirements.

The BOV Group experienced a significant increase in operating income primarily due to the enhancement in net interest income for the year 2023. Total operating income amounted to €441.0 million (increase of €147.6m over prior year). Net Interest Income remained the primary driver of operating income, totalling €352.0 million (up by €150.1m), with Net Fee and Commission income increasing by €1.4 million. Total costs amounted to €210.9 million (increase of 10% over prior year). The Group’s share of profit from insurance associates amounted to €11.0 million.

Key performance indicators were satisfactory with pre-tax return on equity at a level of 21.1% and cost to income ratio at 47.8%. Earnings per share amounted to €28.8 cents (€5.4 cents restated in the comparative year).

The Group’s Total Assets remained on the same levels of the previous year at €14.5 billion. Gross loans and advances reached €6.3 billion, an increase of nearly 9% compared with the €5.8 billion of December 2022. Group’s gross loans to deposits ratio increased from 46.0% in December 2022 to 51.7% by end 2023. Capital ratios remained strong and above regulatory requirements, with the CET 1 and total capital ratios as at 31 December 2023 of 22.7% and 25.9% respectively.

Further to the gross interim dividend of €0.0462 per share paid on 6th December 2023 amounting to €27.0 million (net ordinary dividend of €0.0300 per share amounting to €17.5 million), the Board of Directors will, at the forthcoming Annual General Meeting, be recommending a final gross dividend of €0.0700 per share amounting to €40.9 million (net dividend of €0.0455 per share amounting to €26.6 million). This would make for a total gross dividend for the year of €0.1162 per share, equivalent to a total gross dividend payable of €67.9 million. The payment of the final dividend is still subject to regulatory approval.