Bank of Valletta (BOV) posted a profit before tax of €192.1 million for the first nine months of 2025, reflecting strong operating income. While profitability was lower than the same period in 2024 (€223.7 million), the result aligns with expectations and follows the bank’s ongoing investment in technology, talent and operational transformation.
Operating income for the nine months amounted to €365.1 million, up 1.6 per cent from the same period in 2024, with an operating profit of €185 million, supported by positive contributions from both net interest income and net fee and commission income.
Operating expenses rose by 15.6 per cent to €174.9 million, primarily due to strategic investments in talent and technology, which increased the cost-to-income ratio to 47.9 per cent.
Despite a 1.4 per cent decline in net interest income, which fell to €286.4 million from €290.5 million in 3Q 2024 due to higher interest expenses linked to bond issuances in October 2024 and June 2025, the bank recorded a notable increase in net fee and commission income.
This rose to €61.9 million (3Q 2024: €56.6 million), supported by higher card and credit-related commissions as well as expanded investment activity.
The group’s total assets surpassed €16 billion during the period, representing nearly one billion euros in growth compared to the start of the year, “driven by strong lending activity, sustained inflow in customer deposits and strategic investments in high-quality financial instruments.”
The bank’s loan portfolio continued to grow across all major segments, with year-to-date increases of 8.7 per cent in commercial lending and 13.2 per cent in Retail. As a result, the group’s gross loan-to-deposit ratio rose from 54.5 per cent in December 2024 to 58 per cent by the end of September 2025.
Looking ahead, BOV remains cautiously optimistic, supported by the disciplined execution of its 2024–2026 strategy and a resilient business model.
The bank reaffirmed full-year profit before tax guidance of €215–250 million for FY2025, with a pre-tax return on average equity expected to stay above 15% per cent. This outlook is underpinned by stabilising net interest income, continued growth in fee and commission income, and ongoing expansion of its credit and investment portfolios.
Dividend distributions for 2025 will follow a policy targeting up to 50 per cent of profits, subject to market conditions, while planned long-term debt issuances will further strengthen the bank’s capital structure.
BOV said it remains committed to customer-focused innovation, digitalisation, ESG integration and dynamic balance sheet management, continuing to play a key role in Malta’s economic and sustainable development.
