Bank of Valletta today reported a profit before tax of €145.9 million for the financial year ended September 30, which includes a one-off gain.

These results include the gain arising on the disposal of BOV’s interest in Visa Europe, which was acquired by Visa Inc.

This transaction resulted in a receipt of an up-front cash consideration, preference shares and a deferred cash payment. The total income on this transaction amounts to €27.5 million.

Profit for the year before the Visa gain of €118.4 million, is marginally higher than the comparative period.

The directors also recommended a bonus share issue of one share for every 13 held to be allotted to shareholders on the bank's share register on January 17. 

These results were achieved during a period where high levels of liquidity continued to be experienced coupled with persisting low interest rates and within a context of steady economic growth on the local scene which contrasted
with a more subdued economic scenario in the euro area.

Operating results comprised both core and non-core items. Gains attributed to external non-core factors, namely fair value gains and share of profit from the insurance business, amounted to €17.1 million, or €9.4 million less than those recognised last year.

The decrease was attributable both to market movement, which was not as favourable as last year, as well as to lower share of income from insurance interests.

The improvement in net interest income and commissions were offset
by lower exchange earnings and a higher cost base. The prudent view towards impairment was retained.