BOV announces record financial performance
Shortly after the close of today's trading session, Bank of Valletta plc published its full-year results for the financial year ended September 30.
The bank registered a record pre-tax profit of €110 million representing a material improvement (+72 per cent) over the previous year's comparable figure.
The results under review were mainly boosted by growth in both net interest income and non-interest income with the later increase mainly relating to the €8.3 million in positive fair value movements on the bank's bond portfolio.
Non-Interest expenses also increased but at a slower rate.
The bank also incurred €4.6 million in compensation to the Property Fund investors and other clients compared to the €15 million incurred in the previous financial year.
Impairment allowances increased for the fifth consecutive year to €22.8 million reflecting the difficult economic environment.
On the other hand, the share of profits from associate insurance companies continued to improve to €6.3 million.
After accounting for a tax charge of €36.5 million, BOV's net profit amounted to just under €75 million which translates into an earnings per share of 27c78.
The directors recommended a final gross dividend of 13c per share to all shareholders as at the close of trading on November 14.
The board also recommended a one for nine bonus share issue to all shareholders as at close of trading on January 14 to be funded through the capitalisation of €30 million of reserves.
On the market, the shares of BOV edged one per cent higher to €2.32,5 prior to the results publication across nine trades totalling just over 18,700 shares.
Similarly, GO plc's share price moved one per cent higher to regain the €1 level for the first time since August 23 on volumes of 19,800 shares.
This morning, Forthnet issued an announcement to notify the market that it was still holding discussions with WIND Hellas Telecommunications SA on a potential consolidation of business activities and strategic alliance.
The only other active equity today was Malta International Airport plc which traded unchanged at the €1.75 level on a single deal of 5,000 shares.
On the bond market, the Rizzo Farrugia MGS Index edged 0.1 per cent higher to 995.442 points as Eurozone yields slipped back closer to the 1.5 per cent level as investors seek safe haven assets due to the disappointing corporate profits which are confirming the weak economic outlook.
Yesterday, the Treasury published the prices of the three new Malta Government Stocks as follows: 3.75 per cent MGS 2017 (IV) FI at 105 per cent(YTM: 2.633 per cent); 4.3 per cent MGS 2022 (II) FI at 102.50 per cent (YTM: 3.982 per cent); 4.8 per cent MGS 2028 (I) at 100.75 per cent (YTM: 4.732 per cent).
The total aggregate amount is of €100 million subject to an over-allotment option of up to a further €40 million. Subscriptions will open on Monday.