Bank of Valletta registers 5% increase in profits to €115 million

Bank of Valletta has registered a pre-tax profit of €115.8 million in the financial year ending 30 September, up 5% over the previous year.

Core operating profit of €86.5 million excluded price movements on BOV's investment portfolio and returns from its associated companies, which showed a decrease of 14% from September 2012 (€100.3million)

The prolonged low interest rate scenario also had a negative impact on BOV's  interest margins, particularly on the returns of the bank's financial markets investments book.

"There was a steady improvement in our cost/income ratio of 38.7%, down from 40.7% in 2012. Return on equity registered this year is 21.1% (FY 2012: 22.3%), which compares favourably with international banks," BOV said.

The board of directors recommended a final gross dividend of €0.13 per share making for a final net dividend of €0.0845 per share which, if approved, would make for a total gross dividend for the year of €0.19 per share (total net dividend per share €0.1235).

The directors also recommended a bonus share issue of one share for every 10 shares held which will be allotted to shareholders, funded by a capitalisation of reserves amounting to €30 million.

Customer deposits stood at €6.2 billion, an increase of €410 million, or 7% over September 2012.