Bank of Valletta shareholders yesterday approved the payment of a gross dividend of 11c per share, amounting to Lm12,191,617.02.
Calculated together with the gross interim dividend of 5c5 per share paid on May 8, this makes for a total gross dividend of 16c5 per share for this year, an increase of 47 per cent on the total gross dividend paid last year, BOV chairman Roderick Chalmers said.
The dividend will be processed for payment today and will be paid to all shareholders who appeared on the share register as at the close of business on November 8.
At the bank's 33rd annual general meeting yesterday, shareholders also approved the profit and loss account and balance sheet for the year ended September 30.
Mr Chalmers said results for the year demonstrated the benefits that could be obtained when an institution such as BOV was prepared to embrace change, accept challenges and seek out and seize opportunity.
The group's results, he said, were adversely impacted by a combination of stagnation in the bank's credit book and heavy impairment charges arising from non-performing loans. So opportunities were sought to grow the loan book with good-quality new business while dealing with the legacy issue of impaired accounts.
He said this year saw a net increase of Lm150 million, or 18 per cent, in loans and advances, with growth coming from both the business and home loans or mortgage sectors.
Addressing the issue of impaired loans, the chairman said these dropped from 9.7 per cent of the loan book at the end of September 2005 to 7.4 per cent.
The bank's return on shareholders equity increased to just over 25 per cent. Shareholders funds as at September 30 stood at close to Lm160 million, he said.
BOV chief executive officer Tonio Depasquale said the bank had met and surpassed the ambitious goals it had set for 2006.
Positive developments marking the year, he added, included the recent announcement by international credit rating agency Fitch reaffirming the bank's ratings and outlook following the upgrade granted last year.
During the year, BOV was named Bank of the Year in Malta by The Banker, the monthly banking publication of the Financial Times Group and was voted Best Bank in Malta by the international financial publication Global Finance.
Mr Depasquale said BOV's total income amounted to Lm74 million, up from Lm69 million last year. Interest margin, at Lm49.1 million, accounted for 66 per cent of total income.
Net commission income amounted to Lm13.3 million, increasing by 18 per cent over last year. Fund management, life assurance and stock broking were the main contributors in this regard.
Trading profits, at Lm6.9 million, came under pressure as a result of interest rate movements but exchange earnings on foreign currency transactions held firm in the face of severe competition.
Income from the group's associated companies in the insurance industry rose by 65 per cent to Lm4.1 million.
Concurrently, the group managed to contain costs that increased by just 1.3 per cent over last year.
For 2007, the bank will be seeking further business growth. It would also intensify preparations for the euro changeover.
Other wide-ranging initiatives, concerning pension funds, personal banking services and innovative financial solutions, were in the bank's plans for next year.
The government re-appointed Mr Chalmers as director and bank chairman for the coming year and James Grech as director.
The other board members are Joseph Borg, Roberto Cassata, Marlene Mizzi, George Portanier, Norman Rossignaud, James Vella and George Wells.
Seven nominations had been submitted for six posts but Paul Testaferrata Moroni Viani withdrew his nomination so an election was not required.