Shareholders of Bank of Valletta approved the dividend and bonus share issue proposed by the directors during the bank's annual general meeting today.

The Board of Directors had recommended a final gross dividend of €0.215 per share which, taken together with the interim dividend of €0.035 per share paid on 28^th May 2009, makes for a total gross dividend of €0.25 per share. This dividend will be 1.9 times covered by the post tax profits for the year.

The Board also recommended a bonus issue of one share for every four shares held, effective 15^th January 2010 (funded by a capitalisation of reserves amounting to €40 million). The bonus issue will serve to further increase the permanent capital base of the Bank from €160 million to €200 million and will also serve to enhance the affordability and liquidity of the bank's shares.

BOV Chairman Roderick Chalmers gave an overview of the past year, outlining the background against which the BOV Group operated and the crises that prevailed in international markets between September 2008 and March 2009.

Mr Chalmers stated that Malta's economy was not immune to the global recession; however the impact has been more gradual and relatively mild. Notwithstanding, experience showed that Malta was often late in and out of recessionary trends, and the situation was expected to remain challenging in the short to medium term.

Within this challenging environment the Bank of Valletta Group reported profits before taxation of €81.8 million for the year ended 30^th September 2009.

Mr Chalmers restated the Bank's policy to relate dividends to results to the extent possible, with a third of profits paid in taxation, a third distributed to shareholders as dividends and a third retained in the business. This prudent model ensures shareholders receive a fair dividend distribution, while at the same time enabling the Bank's capital base to grow.