Bank of Valletta (BOV) has reported a Profit Before Tax of €260.4 million for the financial year ended 31 December 2025, exceeding its forward-looking guidance of €250 million.

On the back of this performance, the board has recommended a final dividend payout of €75.5 million, comprising a €65.1 million gross cash dividend from second-half profits and a €10.4 million one-off special dividend.

The final cash dividend is equivalent to €0.1014 per share gross (€0.0659 net), while the special dividend amounts to €0.0162 per share gross (€0.0105 net).

The bank said the special distribution reflects the portion of profitability generated during the year that exceeded the upper bound of its Profit Before Tax guidance. In effect, the additional €10.4 million distributed corresponds to the amount by which the bank outperformed its projected €250 million target.

If approved at the upcoming Annual General Meeting, this will bring BOV’s total dividend payout for 2025 to €130.5 million gross (€84.8 million net), including the previously announced interim dividend.

Balance sheet growth and capital strength

BOV’s total assets increased by €1.4 billion to exceed €16.5 billion by the end of 2025, supported primarily by growth in customer deposits, which rose by €937 million. Net loans and advances to customers also expanded significantly, reaching €8 billion.

The bank maintained strong capital and liquidity positions, with a Common Equity Tier 1 (CET1) ratio of 20.9 per cent and a Total Capital Ratio of 29.3 per cent, both comfortably above regulatory requirements. Liquidity metrics also remained elevated, with a Liquidity Coverage Ratio of 384.4 per cent.

During the year, BOV also benefited from improved credit ratings, with Fitch upgrading its long-term issuer rating to ‘BBB’ with a stable outlook, following a similar upgrade by S&P Global Ratings in 2024.

Revenue diversification and cost pressures

Net interest income increased slightly to €387.4 million despite a normalising interest-rate environment, while net fee and commission income grew by 8.2 per cent to €88.1 million, reflecting a shift towards more diversified income streams.

At the same time, operating costs rose by 13.9 per cent to €246.8 million, driven by investments in technology, cybersecurity, and workforce expansion. The cost-to-income ratio increased to 49.7 per cent but remained below European banking averages.

Credit quality improved further, with the non-performing exposures ratio declining to 1.68 per cent, while the cost of risk remained low.

Share price and market performance

BOV’s share price rose from approximately €1.56 at the start of 2025 to €1.89 by year-end, representing a 21 per cent increase. This upward trend continued into early 2026, with the price reaching around €2.10.

Market capitalisation increased to approximately €1.35 billion in early 2026, reflecting sustained investor confidence and improved liquidity in the bank’s shares.

Outlook and funding plans

Looking ahead, BOV expects Profit Before Tax for 2026 to range between €210 million and €250 million, with loan growth projected at around 10 per cent.

The board has also approved plans to issue a €300 million senior preferred instrument in international capital markets, subject to regulatory approval, as part of its long-term funding strategy.

The bank stated that it remains focused on digital transformation, revenue diversification, and maintaining strong capital and liquidity buffers as it prepares its next strategic cycle for 2027–2029.