Record pre-tax profit of €302 million for BOV in 2024

Bank of Valletta achieved a record profit before tax of €302.4 million in 2024, marking a 20.2% increase from the previous year.

The results were announced by BOV Chairperson Gordon Cordina, CEO Kenneth Farrugia, and CFO Kevin Cardona during a press conference on Wednesday.

The strong financial performance was driven by a 10.1% increase in operating revenue and controlled cost growth.

Total operating income rose to €485.8 million, supported by loan expansion, improved fee income, and strategic treasury investments. Net interest income grew by 9.6% to €385.9 million, benefiting from expanded lending and higher returns on deposits. Fee and commission income also saw a 4.3% increase, reaching €81.4 million.

The bank's cost base rose moderately by 2.8% to €216.7 million, mainly due to personnel and technology investments. Meanwhile, Expected Credit Losses (ECL) recorded a net release of €23.8 million, reflecting improved asset quality. The non-performing loans ratio dropped to 2.68% from 3.06% in December 2023.

BOV's balance sheet expanded to €15 billion, with credit growing by €700 million. Customer deposits increased by €651.7 million to €12.8 billion, which was deployed into long-term interest-bearing assets. Net loans and advances rose by 11.6% to €6.9 billion, driven by business, home, and personal loans. The gross loan-to-deposit ratio increased to 54.5%, while liquidity remained above regulatory requirements.

The Board of Directors is recommending a final gross dividend of €0.1314 per share, bringing the total for 2024 to €0.2238 per share, an increase of 92.5%. This equates to a total gross dividend distribution of €130.7 million. Additionally, the Board has proposed a bonus share issue of one share for every 10 held and a share buyback initiative to enhance market liquidity, both subject to regulatory approval.

It is also considering a €250 million bond issuance under the Euro Medium-Term Bond programme.