Bank of Valletta will be announcing its financial results for the 2019 financial year tomorrow, 18th March.

In light of the COVID-19 pandemic, and the ensuing advice from authorities to remain indoors, BOV has decided to make the announcement via a press release, rather than the usual press conference.

During 2018, BOV generated €156.5 million in net interest income.

This is, on average, 7% higher than the amount generated between January and December 2017 as the bank managed to offset the negative impact on profitability emanating from the prevailing unfavourable interest rate scenario by increasing lending volumes.

While the banking environment has been challenging for some time, especially following the Panama Papers revelations shining a spotlight into the use of offshore trusts, 2019 was markedly challenging for the banking sector in Malta, not least of which BOV.

A massive de-risking exercise, imposed on it by local regulators such as the Malta Financial Services Authority (MFSA) and the Financial Intelligence Analysis Authority, and supranational regulators such as the European Banking Authority and the European Central Bank.

The risk-based approach was also rendered necessary after BOV’s last USD correspondent bank, ING, announced it would be cutting ties with it.

The de-risking exercise saw BOV close of numerous banking relationships with clients, both corporate and personal, deemed to be too high-risk for the bank’s appetite.

It has also spent months gathering gaps of information in its client-data records, due to compliance standards tightening over the years, and has completed a core-system IT upgrade.

Indeed, 2019 was a challenging and busy year for all local banks, especially Bank of Valletta.

Questions regarding tomorrow’s financial results announcement can be directed to [email protected].