BOV reports €189.6 million in profit before tax

Bank of Valletta reported a profit before tax of €189.6 million for the period ending September 2026, broadly in line with the €192.1 million recorded in the corresponding period of 2025.

The bank revised its full-year pre-tax profit guidance to between €230 million and €250 million, up from the previously projected lower threshold of €210 million.

Total operating income expanded by 6.0% year-on-year to €387.1 million. The performance was principally driven by a 10.6% increase in net interest income to €316.8 million, reflecting growth across customer lending and investment portfolios. Net fee and commission income remained steady at €60.0 million.

Management attributed the year-on-year reduction in pre-tax profit to the non-recurrence of specific income items recognised in 2025 alongside ongoing strategic investments, while pre-tax return on average equity remained robust at 16.7%.

The group recorded broad-based balance sheet growth across its primary lending segments. Total assets grew by 7.4% to €17.8 billion, while customer deposits rose by 6.5% to €14.6 billion.

Gross loans and advances increased by 9.9% to reach €8.9 billion, supported by an 11.8% expansion in home loans, an 8.0% increase in business lending, and an 8.6% rise in personal lending. Consequently, the group’s gross loans-to-deposits ratio expanded from 59.0% to 60.9%.

Shareholder indicators also increased, with the bank's share price rising 27% since the beginning of the year to €2.40. This movement lifted total market capitalisation above €1.54 billion. Trading volume grew by over 21% year-on-year to exceed €19 million, while shareholders received €33.6 million in net dividends in respect of the first half of 2026.

In capital structure management, BOV confirmed it has obtained regulatory approvals to proceed with the early redemption of its Senior Non-Preferred notes in December 2026. Preparatory authorization has also been established for a potential Senior Note issuance of up to €350 million, subject to market conditions and regulatory clearances.

Commenting on the results, Chairperson Gordon Cordina stated that the financial outcome shows the resilience of the bank's business model and its capacity to support economic development in Malta.

CEO Kenneth Farrugia noted that momentum across lending sectors and ongoing investments in operational infrastructure provide a solid foundation for the remainder of 2026.