The Bank of Valletta group has just announced a profit before tax of €223.7 million, up by 36.9 per cent over the same period last year.

This is the result of the continuous expansion of loan portfolios, a drive to improve and diversify net fee and commission income, as well as the bank’s continued focus on its balance sheet optimisation strategy, said the bank in a statement.

The group’s operating income increased from €315.9 million to €359.2 million compared to the same period in 2023. This is reflected in a 14.5 per cent rise in Net Interest Income and a 5.4 per cent increase in Net Fee and Commission income over the same period in 2023.

The credit portfolio has also shown growth, resulting in a 9.1 per cent increase primarily due to sustained growth across all segments including business loans, home loans and personal loans.

The positive performance was also prevalent on the asset quality side, where the overall non-performing exposures ratio decreased to 2.8 per cent of total balances, as compared to 3.1 per cent in December 2023.

The bank added that the investments book maintained an upward trend and increased to €5.9 billion as a result of the purchase of high-quality paper instruments, generating interest income of €92 million over the nine-month period under review.

Most of these investments are measured at amortised costs, aligning with the bank business model to hold securities until maturity to collect interest revenues.

On the liabilities side, customer deposits increased by one per cent since the beginning of the year, with the increase coming from both personal and non-personal customers.

When excluding strategy related costs, operating costs registered an increase of four per cent compared to the same period in 2023.

In this vein, operational efficiency continues to attract a high level of focus, with the cost-to-income ratio standing at 42.1 per cent, which is four per cent lower than the 46.1 per cent achieved in the same period in 2023, driven by cost management and procurement excellence initiatives.

The group’s liquidity remains well above the minimum regulatory requirements, as do the group’s capital ratios. Pre-tax Return on Average Equity stands at 22.5 per cent, representing approximately an improvement of 3.8 per cent over the equivalent number recorded in the same period last year.

The net asset value per share at the end of the third quarter of 2024 stood at €2.4 per share as compared to €2.2 per share as at December 2023.

BOV Chairman Dr Cordina expressed satisfaction on the bank’s performance, saying "We have adopted strategies to ensure sustained growth in our core business areas, strengthening our balance sheet position, managing costs, improving operational efficiency, while focusing on customer centricity and sustainable growth."

CEO Kenneth Farrugia commented, “These results reflect the bank’s efforts towards sustained growth and progress. We have continued to invest in technology, business process reengineering and above all, the customer experience, as part of our medium-to-long term transformation strategy."