Bank of Valletta has announced an interim cash dividend of €0.0462 gross per share (€0.03 net of tax), subject to regulatory approval.

The payout is the largest interim dividend since 2013 (€0.06). It is also only the second dividend to be paid out since 2018, when it issued a final dividend of €0.08 for the 2017 financial year.

In January 2022, the bank issued a relatively small dividend of €0.0264 per share, marking the only time BOV shareholders received dividends between 2018 and today.

Over that period, the bank, Malta’s largest, was beset with problems, from a negative report by the European Central Bank to the country’s greylisting to the €182 million settlement of the Deiulemar.

However, rising interest rates and years of reforms resulted in a windfall for BOV, which registered €105.1 million in profit before tax for the first six months of 2023, as compared to a €72.1 million (restated) loss during the corresponding period of 2022.

The interim dividend, which amounts to a gross payout of €26.9 million, is the result of this positive financial performance of BOV Group.

BOV Chairman Gordon Cordina expressed his satisfaction at this announcement. He explained that this dividend is the result of an in-depth analysis carried out by the bank on forward-looking data. He said that the bank’s decision regarding the distribution of a dividend to its shareholders meets important risk and other regulatory criteria, which focus on the strength and viability of the bank’s future business.

“This is essential to safeguard the best interest and expectations of shareholders and other stakeholders.”

Corroborating Dr Cordina’s comments, BOV CEO Kenneth Farrugia stated that this dividend is evidence that the bank is on the right track and is delivering solid financial performance.

He added that the bank is committed to continue strengthening its position as a leading financial institution in Malta, focused on customer-centricity, excellence and innovation, in an ever-evolving industry landscape.

Subject to regulatory approval, the dividend is planned to be paid on Wednesday 6th December 2023 to those members appearing on the bank’s Register of Members, as maintained at the Central Securities Depository at the Malta Stock Exchange, as at the close of business of Tuesday 21st November 2023.