The Bank of Valletta, has reported that it has achieved a profit before tax of €63.7 million for the first three months of 2024, a 36.8% increase over the same period in 2023.

These results reflect the Group’s thrusts to grow its commercial and retail loan portfolios, as well as deploy excess liquidity in high quality treasury assets. the Bank said.

This positive performance was influenced by the improvement in the Group’s operating income, reflecting a growth of 22.9% to €117.4 million when compared with the same period in 2023. This was driven by increased returns both from an interest and non-interest income perspective.

Net Interest Income stood at €98.3 million, an increase of €24.8 million when compared with the first quarter of 2023. This reflected additional expansion in both the customer lending and proprietary investment portfolios over the last 12 months, as well as improved rates on cash balances. Net fee and commission income was up by 11%, mainly influenced by higher amounts being achieved on credit-related business.

Operating costs including strategy amounted to €49.1 million, equivalent to a 6.8% increase on previous year results, as the Bank sustained its efforts to enhance talent, improve compensation and benefits, invest in technology, and comply with regulations. The Cost to Income Ratio continued trending downwards, standing at 41.8% in the first quarter. These developments were reflected in a 20.4% pre-tax Return on Average Equity, which is a 4.4% improvement over that recorded in the first quarter of 2023.

The Bank’s balance sheet optimisation strategy related to the deployment of cash reserves into medium-to-longer-term interest-bearing assets continued, with the main shifts registered from balances with central bank to the credit and investments portfolios.

With a gross loan-to-deposit ratio of 53.4% and strong sanctioning levels of business and retail loans, the Group is well positioned for further growth and to deliver its 2024 targets. The €47 million reduction in the deposit base equivalent to a 0.4% drop on FY23 end results aligns with expectations; nevertheless, the Group retained high levels of liquidity.

BOV said that these results allow the Group to continue operating a robust capital position with the Common Equity Tier 1 (CET1) closing at 21.5%, which is well above regulatory thresholds. The net asset value per share at the end of the first quarter of 2024 stood at €2.2 per share.

“These results show that we are steering the Bank from good to great, aiming to meet our customers’ expectations and deliver sustainable growth in the process” – BOV CEO Kenneth Farrugia.

Photo: BOV

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