Bank of Valletta (BOV) has kicked off 2025 on a robust note, posting a profit before tax of €67.1 million for the first quarter, a 5.3 per cent increase over the same period last year.

The group’s total operating income edged up to €118 million from €117.4 million in Q1 2024, while total costs rose by 7.5 per cent to €52.8 million. Personnel costs remained the largest expenditure, followed closely by technology investments and higher regulatory fees linked to a growing deposit base.

Despite a dip in net interest income to €92.5 million (from €98.3 million in Q1 2024), BOV saw a rise in net fee and commission income to €20 million, reflecting increased customer activity, especially in card usage and investment services.

“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,” said BOV Chairman Dr Gordon Cordina. “We continue to maintain high capital and liquidity buffers, while adopting a proactive balance sheet management approach.”

Dr Cordina also emphasised the Bank’s resilience amid a volatile international climate and fundamental changes in the Maltese banking landscape, adding that BOV is well capitalised to support both existing and new clients across the board.

CEO Kenneth Farrugia echoed this sentiment, expressing satisfaction with the continued momentum. “The Bank registered growth across its core lines of business, with notable improvements in credit-related activity including business, home and personal loans. This was complemented by a significant increase in investment services.”

Mr Farrugia also welcomed recent upgrades to BOV’s credit rating by Fitch Ratings and Standard & Poor’s, viewing them as recognition of the Bank’s financial health and strategic direction.

Among the other performance indicators, BOV’s cost-to-income ratio increased slightly to 44.7 per cent from 41.8 per cent a year earlier, while the Bank’s return on average equity (pre-tax) stood at 18.8 per cent. Earnings per share rose to €0.076, and the net asset value per share reached €2.49.

The Bank’s total assets climbed to €15.6 billion by the end of March 2025, marking a €549.2 million increase from year-end 2024. Its loan-to-deposit ratio improved to 56.7 per cent, and its Treasury investment portfolio expanded by 9.5 per cent to €6.9 billion.

BOV’s non-performing loan ratio continued to decline, closing the quarter at 2.5 per cent compared to 2.7 per cent at the end of 2024 – further evidence of its strengthened credit risk profile.

Looking ahead, the group remains committed to delivering a full-year profit before tax in the range of €200 million to €250 million. It also reaffirmed its focus on sustainable growth, including green financing initiatives and reduced carbon emissions, aligned with ESG best practices.

“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,” said Mr Farrugia.