Fitch confirm BOV ratings

Fitch Ratings has today affirmed Bank of Valletta's ratings at long-term Issuer Default 'A-' (A minus) with stable outlook, Short-term 'F2', Individual 'C' and Support '2'.

Fitch said that the ratings reflect "BOV's position as the largest bank in Malta, its consistently sound profitability, satisfactory capitalisation and liquidity, and reducing impaired loans.

" Fitch noted that BOV's performance benefited from the continuing recovery of the Maltese economy, and profitability continued to improve in 2007. The bank's operating profit rose 18% in 2007 on the back of a dynamic loan growth and a favourable interest-rate environment, which resulted in growing net interest revenue. Operating costs were controlled and impairment charges minimal.

Fitch commented further that BOV's liquidity is sound, as the bank benefits from a large and stable retail deposit base. "BOV is adequately capitalised in relation to its risks. BOV is the largest bank in Malta, with market shares of about 46% and 41% in deposits and loans, respectively," it said.

Commenting on the re-affirmation of the credit ratings, BOV's CEO, Tonio Depasquale said, "These ratings reflect BOV's strong business fundamentals and market position. The solid foundations that underpin our business enable us to look ahead with confidence". Mr. Depasquale said that for the coming period, the BOV Group will continue to deliver on its brand promise, built on an unconditional commitment to a consistent and excellent customer experience based on the principles of supportiveness and mutuality. 

He said that as a key player in the local financial sector, the Group is well-positioned to participate in, and contribute to, the ongoing development of Malta as an international financial centre.