Bank of Valletta Group has registered record interim pre-tax profits of €64.6 million to March 31, an increase of 32 per cent over the same period in the previous year.
Although net operating profit declined by €4.2 million, the bank delivered its positive performance as a consequence of improvements in market sentiment and an increased share of profits from its insurance interest in Middlesea Insurance plc and MSV Life plc.
Fair valuation of financial instruments showed a significant gain of €13.2 million, up from just €0.5 million in the first six months of last year. The insurance associates contributed a share of profits of €8.6 million, €7 million more than the comparable period last year.
Significantly, customer deposits exceeded €6 billion for the first time ever after increasing by €328 million since last September.
Recently appointed chairman John Cassar White said this afternoon that Bank of Valletta will be among the systemically important banks which will be reviewed by the European Central Bank, which takes over responsibility for bank supervision next year.
This review by the ECB or an appointed agency will be over and above the routine stress tests of Malta’s largest financial services provider by local and international regulators and authorities.
He also sought to clear “any misunderstanding” surrounding the remit of his chairmanship.
“The role of chief executive officer of the bank continues to be as it was and my title is that of chairman,” he said. “I will make sure that there is very effective oversight on what the executive arm of the bank is doing.”
Mr Cassar White said it was important to ensure that the bank’s strategic and executive arms were in liaison to avoid situations where there is lack of communication.
The board is to declare a gross interim dividend of 6c per share, an increase of 11 per cent on last year’s interim dividend of 5c4 per share, meaning the interim dividend is back to 2008 levels.
The dividend will be paid on May 24 to shareholders on the bank’s register of members at close of business on May 9.