Stress tests confirm BOV's resilience
Bank of Valletta’s resilience has been confirmed following stress tests coordinated across the EU by the Committee of European Banking Supervisors (CEBS) in collaboration with the European Central Bank (ECB) and national authorities.
In a joint statement, the Central Bank and the Malta Financial Services Authority said the results confirmed the resilience of Bank of Valletta plc to the extreme, but plausible shocks assumed in this exercise.
“The resultant Tier 1 capital ratio of the bank remains healthy at 9.3%, well above the 6% threshold set for this specific exercise by CEBS and the ECB. The regulatory minimum is 4%.
“These results are to be interpreted as a “what if” scenario and do not in any way represent a forecast or a projection of the performance of Bank of Valletta plc.
“The results for Bank of Valletta plc may be accessed through the websites of the Central Bank of Malta and the Malta Financial Services Authority, respectively.
“According to the criteria set by CEBS and the ECB, HSBC Bank Malta plc was included in this exercise on a consolidated basis as part of the HSBC Holding plc, its parent institution. In this case, therefore, the stress test exercise has been conducted by the authorities in the United Kingdom.”
Further information on the EU-wide stress testing exercise and the results for the 91 European banks in the exercise is available on the websites of CEBS and the ECB.
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Leo Bartolo
Jul 24th 2010, 12:04
Congratulations BOV's management & staff. A bank which makes Malta proud. But then a certain RAYMOND FARRUGIA comes along and............makes everybody laugh or should I say cry. Whatever!
Charles.C.Brown
Jul 24th 2010, 11:53
Well done BOV. However lets not forget that BOV ,AIR MALTA plus many other big projects that made us all proud but unfortunitly they are no longer with us such as SEA MALTA, and a dockyard full of work and making profit under a maltese managment, the MALTA SHIPBUILDING and all industrial estates scattered all over malta and gozo, projects that made us the envy of europe were all set up during the good old days of the socialist government led by DOM MINTOFF, Despite the mud slinging and begruging remarks made by nationalist supporters against the socialist government and this great man , sent to the maltese by god to turn MALTA from a nation of beggars and shoeshine boys into the MALTA that is today, history will in time be kind to DOM MINTOFF, his name a kind of pseudonyn for MALTA.
J. Schembri
Jul 24th 2010, 12:52
Ahem Charles , the National Bank of Malta was grabbed by your idol , together with Bical, creating a stampede and leaving the bank without any liquidity. Barclay's saw the writing on the wall and gathered what they could before 'voluntarily' leaving Malta.
Air Malta is a feather in Mintoff's cap , but don't forget it had a monopoly and its traveling prices were exorbitant .
j.schembri
Jul 24th 2010, 10:11
F'artiklu iehor alan richard tal-HSBC qaghad jghid u jiftah bix-xoghol li sar fil-branch tal-Hamrun imma ma wiegiebx għal dak li kitbu l-klijenti. Lil dan is-CEO nghid il-poplu malti affarijiet sbieh bhal dawn tal-BOV irrid jisma u mhux hmerijiet ta propaganda.
S Agius
Jul 24th 2010, 09:31
The stress test has nothing to do with customer service. It tests the bank ability to withstand hard times. The people commenting below should be grateful that Malta has a Bank that can withstand it. I think they do not follow what happened abroad where the tax payer had to bailout Banks. In our case the Bank is a big contributor to the taxes of the country as it pays 35% of its profits.
John F, GALEA - San Gwann
Jul 24th 2010, 06:51
First and foremost I would like to congratulate the Chairman, the CEO and all at Bank of Valletta for the result obtained on the Bank's stress test. Also I regularly attend BOV San Gwann and the service given is second to none. The two customer care officers at reception desk are fully conversant with practically all aspects of the bank's transactions and both have given me excellent attention to all my banking needs. In fact only a couple of years ago my wife and I submitted a commendation on one of them.
Andrew Gatt
Jul 23rd 2010, 21:36
Look, aside from the niggling, frustrating daily operational complaints (which one finds in EVERY large organisation staffed by people) I personally congratulate BOV for this clean bill of health. Certainly an achievement and a source of confidence in 50% of our banking sector.
I repeat - certain operational matter have scope for improvemement for the benefit of bank and clients - and WELL DONE.
David Caruana
Jul 23rd 2010, 20:21
U ejja! Customer stress test?! Bad service?! There's always room for improvement, but I think it's rather exagerated to describe our local banks, especially BOV as "bad service". I've use banks outside of Malta, and have to say that in our local banks, most of the staff is ready to go out of his/her way to help you out. By the way Mr. Barrett, ATMs and Internet Banking work wonders at this time and age ;-)
c.pace
Jul 23rd 2010, 21:33
Cant agree more with you!!!!
Paul Barrett
Jul 23rd 2010, 21:45
Indeed ATM's and Internet Banking are valuable assets which I do use. However there are services which are not covered by either which is why I had to wait in line with other unbelievably docile customers for 24 minutes this morning whilst only one teller struggled to deal efficiently with a never ending queue. How he managed to keep so cheerful under pressure is absolutely amazing.
As for services in other Banks - my experiences of Banks in other EU Countries as well as UK unfortunately lead me to believe that although there are some friendly members of staff, the efficiency, organisation and general quality of service is pathetically poor.
I make these comments not to harm or run down BOV but in the hope that someone in the BOV setup will read them and make some effort to put things right.
Another interesting note is that my UK Bank does not charge for Internet Banking whilst of course BOV has an annual charge.
Raymond Farrugia
Jul 23rd 2010, 20:14
Stress? customer service is hopeless. Queuing time is ...queuing time! Ask the customers.
Robert Lewis
Jul 23rd 2010, 20:10
What about the Vilhena Diversified Multi Manager Income Fund. Has this Account been through the STRESS TEST, because if so this account has a big depression for sure. How come at the end of each Financial Year BOV state that it made so many millions profit when this account is now worth only 67% of the actual sum invested 3 years ago. The staff who had suggested to invest in this account had said that its a long term money making account. For every €1 invested after 3 years you get only €0.67c, and it seems its getting worst day by day. If BOV is making so much profit the Bank should at least pay back the same value invested without making the client loosing so much. I hope something will be done.
Ramon Mangion
Jul 23rd 2010, 20:24
I was recommended that product some months ago by a bov financial advisor and I did not trust the product, apparently I was right not to use it.
Robert Lewis
Jul 23rd 2010, 20:37
@ Ramon Mangion. At least if you were recommended to but this product recently you wouldn't have done so bad cause you would have only paid €0.65c per share, and I do hope it will not go down any further, fingers crossed. At least you found a financial advisor who was trying to sell you a share at a low price not like mine.
A Cassar
Jul 23rd 2010, 20:39
Multimanager funds are crap - if u want to invest in something decents just look for ETF s online there are thousands available online - cheaper and much less wrappers that will eat away your hard earned cash.
Then go to your advisor and tell him to buy it for you - period!
E.Ciantar
Jul 23rd 2010, 22:27
No one is authorised to give investment services advice unless authorised to do so by the MFSA. I suggest you refrain from making investment recommendations on this public blog.
Tony Caruana
Jul 23rd 2010, 19:24
Try getting served at BOV San Gwann for a real stress test.
Paul Barrett
Jul 23rd 2010, 19:01
What about the customers stress test. I believe we are being really tested by BOV St Paul's Bay who for the last two visits I have had to this bank are still unable to run more than one of the available two teller posts, irrespective of the amount of people kept waiting. This mornings visit resulted in waiting in a queue for 24 minutes.
The best the Manager could do on my previous visit (and not the first time I had commented to him about this repetitive bad service) was to just shrug his shoulders and hide back in his office.
The front line in a Bank is the teller staff - that above all else should be fully filled at all times. If the Management can't organise this they should do it themselves or resign.
MBorg
Jul 23rd 2010, 18:49
Well done to BOV.
Maybe we shall now have a better performance in its share price.
Joseph Mizzi
Jul 23rd 2010, 20:10
The share price "should" consequently go up. Since price is normally determined by demand and supply, it is safe to assume that this piece of good news will fuel demand, hence a share price hike is foreseeable. But in Malta, things rarely follow logical reasoning ...