Bank of Valletta (BOV) declared a profit before tax of €54.0 million for the first quarter of 2026.

It described its first quarter of 2026 as a solid start to the financial year for the group, a quarter it said was characterised by “continued balance sheet growth, resilient core operating income and disciplined execution of strategic priorities.”

BOV said that performance in the quarter reflects a position where the core operating performance of the group remained highly resilient, underpinned by strong capital position and liquidity profile.

The group said that while operating income continued to grow, profitability for the quarter was impacted by a limited number of specific factors. These factors include higher operating expenses which it said are line with the cost trajectory outlined in the group’s FY2026 guidance, customer specific impairment charges, and lower trading performance.

The €54.0 million is a €13.1 million decrease compared to the profit before tax declared in the corresponding period in 2025.

“Results for the quarter were impacted by a limited number of one off factors, including a €3.8 million unrealised valuation loss on the Group’s equity portfolio arising from financial market volatility linked to geopolitical developments, and higher impairment charges of €5.6 million driven by specific credit developments. Excluding these effects, the Group’s underlying operating performance remained stable,” the group said.

Net Interest Income stood at €100.2 million, up from €92.5 million.

The group’s operating income in March 2026 increased to €119.06 million, up from the €118.00 million in the same month in 2025. This, the group said, was driven by customer lending and treasury activities, alongside stable net fee and commission income supported by continued customer activity across core business lines.

Operating costs as at end of March 2026 totalled €61.7 million, which BOV said is consistent with the average recorded in the previous financial year. This is an increase of €8.9 million or 17 per cent in operating costs when compared to FY2025 Q1 levels.

Commenting on the Group’s performance, Chairperson Dr Gordon Cordina stated: “The Group delivered a strong start to the year, reflecting resilience, a disciplined approach and solid fundamentals. This performance was achieved in a stable economic environment, alongside the expected normalisation of earnings, interest rate stability and a renewed period of geopolitical uncertainty.”

The bank said that this increase was driven primarily by higher personnel costs, reflecting higher number of personnel and targeted initiatives to attract and retain key talent. It said that higher IT costs were also incurred to support systems reliability, cybersecurity resilience and operational stability. Depreciation charges also increased following the capitalisation of ongoing strategic projects as they transition into use.
The group’s cost-to-income ratio increased to 51.8 per cent, up from 44.7 per cent in Q1 2025.

Total assets stood at €17.0 billion in March 2026 (December 2025: €16.5 billion) representing a new peak level for the Group, up by approximately half a billion or 3 per cent over the three month period.

The increase, the group said, was driven primarily by growth in the loan book and higher holdings of debt securities alongside a rise in balances held with the Central Bank of Malta during the period, which it said was supported by strong inflows in customer deposits.
Deposits increased by €351.9 million, surpassing the €14.1 billion mark.

The bank said that its Earnings Per Share will be €0.056 for Q1 this year. This is slightly lower than the €0.069 for the same period in 2025. The bank said that this decrease reflects a lower profit before tax as well as the ongoing share buyback programme, which partially mitigated the year-on-year decline. As at the end of March 2026, 737,770 shares had been repurchased in total since the programme initiation, which are now held as Treasury Shares, the bank added.

Dr Cordina said that, looking ahead, the group remains well positioned to deliver a profit before tax for the year in the range of €210 million to €250 million, in line with previous guidance. “We also remain committed to rewarding our shareholders and intend to maintain our policy of distributing up to 50% of after‑tax profits, subject to prevailing market conditions.”

BOV CEO Kenneth Farrugia said, “These results reflect strong fundamentals and continued customer trust. With the largest network of customer touchpoints in Malta, and a resilience underpinned by strong investment grade credit ratings, the group is uniquely positioned to deliver stability and consistency while remaining deeply embedded in Malta’s economy. As we enter the final year of our strategic cycle, our focus remains on disciplined execution, responsible banking and the creation of long term value for all our stakeholders.”