Bank of Valletta reported a profit before tax of €117.9 million, a 13 per cent increase over last year, as it presented its financial results for the year ended September 30.

The bank said the results were achieved in a period characterised by high levels of liquidity and persisting low interest rates, in the context of steady economic growth on the local scene, and a subdued euro area economic scenario.

The board of directors today recommended the payment of a final gross dividend of 8c5 per share making for a final net dividend of 5c525 per share.

If approved by the annual general meeting, this would make for a total gross dividend for the year of 12c4 per share (total net dividend per share 8c06).

The board also decided on a bonus share issue of one share for every 12 shares held which would be allotted to shareholders on the bank’s share register as at close of business on January 15.

The bonus issue will be funded by a capitalisation of reserves amounting to €30 million.

The final dividend, if approved at the annual general meeting, will be paid on December 18 to shareholders at the close of business on November 17.

Two of the eight people nominated as directors at Bank of Valletta were found to be unsuitable after the self-assessment test carried out by the bank.

One of those, George Portanier objected in court and won the case and BOV chairman John Cassar White said today the bank would respect the court judgement and the nominees would be referred to the second stage of the nomination process which is now being imposed by the Malta Financial Services Authority and the European Central Bank.

This recently imposed new procedure came into force this year since BOV joined the single supervisory mechanism last year and had to be applied to the board’s annual general meeting next December.