Demand for credit remains subdued – BoV

“Very subdued” demand for new credit in the home loans and corporate sectors has persisted, limiting year-on-year credit growth but customer deposits growth has been sustained, Bank of Valletta said in its interim directors’ statement on the Malta Stock Exchange on Tuesday.

Net interest income has been satisfactory, but commission and trading income have remained subdued, with lower demand experienced for investment-related services, largely as a result of uncertain conditions which continue to prevail across the eurozone and global markets.

Cumulative operating profits for the year so far are satisfactory and in line with expectations. At the beginning of the fourth quarter, Malta and Europe are expected to see sluggish economic growth at best. Continuing uncertainty and volatility, which may in turn impact bond spreads and prices, are to be expected. The current ultra-low interest rate environment will prevail for some time to come, BoV said.