Bank of Valletta has declared a record net interim dividend of €35.7 million, translating to €0.0556 per share, in its half-yearly financial results for the period ending 30th June 2025.

Eligible shareholders, those on the register by 18th August 2025, will receive the dividend on 2nd September 2025, continuing a strong run of shareholder returns from Malta’s largest banking group.

The interim dividend was accompanied by the announcement of a share buy-back programme, with €7.8 million allocated for the repurchase of over three million shares. The initiative, subject to shareholder approval at the AGM, will run for up to 18 months and aims to enhance the liquidity and tradability of the bank’s equity on the local market.

BOV reported a profit before tax of €135.1 million for the first six months of 2025, a “solid performance.” While this represents a year-on-year dip compared to the €148.2 million registered in H1 2024, the result remains in line with internal forecasts and reflects the bank’s strategic focus amid a lower interest rate environment and increased investment in digital and human capital.

Net interest income increased to €188.7 million, while net fee and commission income rose to €39.9 million, an improvement of €3.2 million over the same period last year. Operating income reached €244 million, up 4.6 per cent year-on-year, as the bank benefited from favourable macroeconomic conditions and resilient business fundamentals.

Costs rose by 23 per cent, which BOV attributed to its ongoing investment in technology and workforce expansion, a key element of its 2024 to 2026 strategic plan. Despite cost pressures, total assets grew by 5.4 per cent, reaching €15.9 billion by end-June.

Looking ahead, BOV has reaffirmed its full-year 2025 guidance, projecting a profit before tax between €215 million and €250 million, up from an earlier floor of €200-€215 million. This outlook is supported by stable net interest income, continued growth in fee-based revenue and the ongoing expansion of its credit and investment portfolios.

Chairman Gordon Cordina said the board expects dividend distributions to remain strong going forward, as the bank balances shareholder returns with regulatory capital requirements and long-term growth investments.

BOV H1 2025 highlights:

• Net dividend: €35.7 million (€0.0556 per share)
• Profit before tax (H1): €135.1 million
• Net interest income: €188.7 million
• Fee and commission income: €39.9 million
• Operating income: €244 million
• Asset growth: +5.4 per cent to €15.9 billion
• Cost increase: +23 per cent, driven by tech and people investment
• 2025 H2 forecast: €215–€250 million
• Buy-back €7.8 million allocated for over 3 million shares

Last May, the bank announced a €150 million bond, which was fully subscribed within days of its launch, reflecting continued strong demand from both institutional and retail investors.