Bank of Valletta announced a strong profit before tax of €67.1 million for the first quarter of 2025, an increase of 5.3% over the same period in 2024. These results for the BOV Group were the outcome of a positive performance on both the revenue side and operational costs. It reflects the Bank’s focus on strengthening income from its key lines of business, increasing net fee and commission income, its strategic push to reallocate funds from liquid cash assets to the Bank’s investment portfolio, as well as the strategic balance sheet repositioning effected by the Bank since 2022.

During this period the Bank continued its efforts on increasing shareholder value, enhancing its capital structure and market position through the initiatives announced earlier this year, including a proposed bonus issue, a share buyback, and a bond issuance planned for the coming months. The Group remains on track to sustain its performance and deliver a profit before tax for 2025 in a range between €200 million and €250 million.

Financial Performance

Bank of Valletta registered a total operating income of €118.0 million for this period, which is marginally higher than that of 2024 (€117.4 million). Total costs for the first quarter amounted to €52.8 million, which was 7.5% above the same period in 2024, with personnel costs remaining the primary cost driver, followed by higher regulatory costs due to increases in the Bank’s deposit base and continued investment in technology-related expenses supporting the Bank’s drive for digitalisation. 

The Group’s commitment to enhance the credit quality of its loan portfolio has led to a reduction in the non-performing loans ratio, closing at 2.5% at the end of the first quarter of 2025 compared to 2.7% at the end of December 2024. 

The key highlights of the Group’s performance are shown below:

The Group’s total assets increased by €549.2 million from year end 2024 to €15.6 billion as at end March 2025. Deposits experienced a slight increase of €2.9 million and the Bank’s Treasury Portfolio has seen significant growth, with a 9.5% uplift in investments during the period under review to reach €6.9 billion. The Group’s total equity closed at €1.5 billion, with capital ratios remaining strong and above regulatory requirements.

Strengthening Balance Sheet and operational systems to provide secure, reliable and innovative banking services – Chairman Dr Gordon Cordina

BOV Chairman Dr Gordon Cordina, stated that “The results obtained during the first quarter of 2025, both from an operational and financial perspective, indicate that the Bank is well-positioned to meet the targets for this financial year. Our focus on technological innovation, strategic balance sheet management and enhanced income diversification positions us favourably for sustained growth going forward. These results affirm our resilience and preparedness to capitalise on emerging opportunities whilst mitigating potential risks.”

BOV sustains momentum with notable improvements in its core lines of business – CEO Kenneth Farrugia

Echoing Dr Cordina’s remarks CEO Kenneth Farrugia stated, “I am extremely pleased with the Bank’s performance for the first quarter of 2025, as we continue sustaining the momentum gained at the end of 2024. The Bank registered growth across its core lines of business, with notable improvements in credit-related activity including business, home and personal loans, increases in card-related fee income and also a significant growth in investments business.

Embedding the values of sustainability in decision-making

During this period under review the Bank continued to make progress in its sustainability journey, building on its foundation for long-term sustainability and financial resilience by embarking on various initiatives aimed at the reduction of carbon emissions. The Bank has set ambitious scope 1 and scope 2 emission reduction targets, with the ultimate aim of leaving a positive impact on the environment and on society at large.  

In addition to the internal operational initiatives, the Bank is actively promoting green financing and investment products. The CEO went on to say that “over the last few years we have launched several initiatives aimed at encouraging sustainable practices among our clients, including offering preferential loan rates for environmentally-friendly projects and investments in renewable energy. By embedding the values of sustainability in our decision-making processes, the Bank is not only supporting the green economy but also ensuring that our growth strategy aligns with global efforts to combat climate change. These initiatives reflect Bank of Valletta’s commitment to drive positive environmental impact while fostering long-term economic stability and growth”.