The Bank of Valletta Board has announced strong dividend distribution including special dividend for the financial year 2025, with €260.4 million profit before tax.

The key highlights are:

Financial Performance: Profit Before Tax of €260.4 million, delivering a pre-tax ROAE of 17.9%, above forward-looking guidance.

Shareholder returns: The Board announced a strong dividend distribution, including a special dividend, complemented by the activation of a regulated share buyback programme.

Core operating performance: Operating income grew by 2.3% driven by core banking activity, credit growth and revenue diversification.

Financial Position: Total assets increased by €1.4 billion to over €16.5 billion, supported by strong deposit inflows and capital-markets activity.

Capital and funding: Successful Tier 2 issuances and preparations for a Senior Preferred Bond to support future growth and regulatory requirements.

Asset quality: Non-Performing Exposures ratio reduced to 1.68%, with coverage strengthened to 59.4%.

Outlook: Entering FY2026 from a position of strength, with strong capital buffers, and continued investment in digital transformation and customer experience.

The Bank of Valletta Group delivered a solid performance in 2025, generating a Profit Before Tax of €260.4 million and achieving a pre-tax Return on Average Equity of 17.9%.

The Bank said that this outcome ”reflects the strength of the Group’s underlying business model, the resilience of its core income streams, and the disciplined execution of its strategic priorities throughout the year.”

The Group continued to improve its balance sheet, enhance asset quality, diversify revenues and invest in its operational and digital capabilities. As a result, it enters 2026 with stronger financial foundations and clear momentum for the next phase of its strategic development.

BOV said that ”the strong financial performance enabled the Board to propose one of the most substantial dividend distributions in recent years, with a final gross cash dividend of €65.1 million (€42.3 million net) being recommended for approval from H2 profits, equivalent to €0.1014 per share gross (€0.0659 net).”

It added that ”over and above, the Board also proposed a special dividend of €10.4 million gross (€6.8 million net), equivalent to €0.0162 per share gross (€0.0105 net). This special distribution reflects the portion of profitability generated during the financial year that exceeded the upper bound of the Bank’s forward-looking PBT guidance which amounted to €250 million.”

This results in a total cash dividend for FY25 (including interim payment and special dividend) of €0.2032 gross (€0.1320 net) per share, and equivalent to a total gross dividend of €130.5 million (€84.8 million net) out of the year’s profits, with the payout being fully aligned with the Group’s Shareholder Distribution Policy. BOV added that the distribution underscores the Board’s commitment to delivering sustainable shareholder returns while preserving the capital strength and strategic flexibility needed to support future growth.

Complementing this cash dividend, the Bank said it has also allocated a €7.8 million reserve during the year to operate the regulated share buyback programme, activated during FY2025. ”This contributed to improved equity liquidity and more efficient capital management, showing the ever-increasing trust that markets, shareholders and the wider community have in BOV.”

During the year, BOV noted that the Group strengthening its long-term funding through targeted capital-markets activity, completing the issuance of €150 million in unsecured Tier 2 bonds, concluding the €250 million EMTN programme launched in prior year. The Bank subsequently obtained regulatory approval for a new €325 million programme, under which €125 million in unsecured subordinated (Tier 2) bonds were issued, further enhancing the capital structure and supporting future growth.

In parallel, the Group has commenced engagement with international markets in preparation for a €300 million Senior Preferred issuance, aimed at broadening and diversifying its wholesale funding sources while ensuring continued alignment with evolving MREL and strategic funding requirements. Further details will be issued during FY2026, with the issuance being subject to regulatory approval.

Despite normalising interest rates and sector-wide cost pressures, the Bank said that the Group delivered a solid financial performance, exceeding profitability targets and forward-looking expectations. While profitability declined when compared to FY2024, core operating performance remained resilient, with operating income increasing by 2.3% year-on-year, supported by disciplined balance sheet management, credit portfolio expansion, non-funded income diversification, and active cost and impairment management.

BOV said that the Group further strengthened its balance sheet, with total assets increasing by €1.4 billion, with year-end figures exceeding €16.5 billion. Expansion was driven by sustained growth in customer deposits, which increased by €937 million, together with a €277 million rise in long-term liabilities following the successful issuance of Tier 2 subordinated debt, supporting strong loan book performance and expansion of the investment portfolio beyond targets.

Photo: BOV

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