BoV board recommends one-for-one bonus issue

Bank Of Valletta's board of directors have recommended a one-for-one bonus issue of shares following the satisfactory results for the financial year ended September 30.

The bonus issue aims to increase and strengthen the bank's permanent paid-up share capital and increase the affordability and liquidity of the bank's shares.

The announcement was made by bank chairman Roderick Chalmers at a meeting with stockbrokers and financial intermediaries when he gave a detailed presentation on the bank's results and the underlying business fundamentals.

"The effective date of this bonus issue is January 18, 2006," Mr Chalmers said. "The shareholders will be asked to approve the recommendations of the board of directors on the bonus issue and to approve the proposed dividend during the annual general meeting, which is scheduled for December 16."

BoV Group pre-tax profits for the financial year under review amounted to Lm26.6 million, an increase of 35 per cent over the comparative results for the previous financial year. The gross dividend per share, at 22.5c is up by 40 per cent over last year.

Mr Chalmers said that the positive results were due to an improved interest margin, growth in profits from banking and other financial services, and a decrease in the net impairment charge.

"The cost-to-income ratio of Bank of Valletta currently stands at 44.5 per cent. This is the strongest performance we have ever registered in this regard and we are pleased to be ranking among the top European banks in terms of this key performance indicator," he said.

The meeting was also attended by the bank's chief executive officer Tonio Depasquale and members of the top management team.