"Bank of Valletta is extremely satisfied with rating agency FITCH's credit update on Bank of Valletta," BoV chairman Joseph F.X. Zahra said in a reaction to the rating agency's Fitch credit update of Bank of Valletta, published, earlier last week.

"The management of BoV is pleased to note that notwithstanding the international uncertainties and the adverse conditions prevailing in the banking sector worldwide, all of which impact directly or indirectly, the bank's principal sources of revenue, the bank managed to maintain last year's long term and short term rating namely A- and F2 respectively."

The agency's credit update on BoV was based on the bank's performance during the financial year ended September 2002.

BOV noted Fitch's favourable comments on the bank's stable retail deposit base and the strategy adopted to satisfy customer requirements, namely an overall restructuring of the bank, ranging from a streamlining of management structure to enhancements of IT systems and including radical restructuring of the branch network.

Furthermore, in November 2002, BoV became the first Maltese bank to launch a new Internet and telephone banking service, besides establishing a new call centre.

The BoV ratings reflect its market position within the Maltese financial system, satisfactory profitability and sound capitalisation with a Tier 1 capital ratio of 12%, well above the international standard. Last year's credit outlook has been maintained mostly as a result of strong competition, uncertainties over the outlook for the Maltese economy and the level of impaired lending.

BoV's management will be looking forward to the challenges and opportunities that lie ahead, particularly those resulting from Malta's membership in the EU, as well as those arising from Malta's proximity to and BoV's knowledge of the southern Mediterranean region.