The local business of Volksbank Malta has registered an increase of 60 per cent and reported a profit after tax of €8.687 million, the bank’s financial results for 2008 show.

Although this profit represents a marginal decrease of 5.1 per cent when compared to the profit registered in 2007 of €9.151 million, last year’s profits included dividend income of €2.226 million. As a result earnings per share for the year ended December 31, 2008 dropped to €3.76 as against €3.96 registered in 2007.

Net interest income increased by 19 per cent to €12.376 million from €10.403 million registered in 2007. The main contributor to a higher interest margin was the increase in the local exposures entered into during the year. The bank also reported an increase in net fee and commission income of €38,000 or 45 per cent compared to the previous year.

In the year under review Volksbank Malta Limited continued on its strategy to grow the portfolio of local assets and to increase non-bank customer deposits, while retaining its international business.

The bank closed the year with total assets of €885 million on its books, which is slightly below the previous year’s volume.

In its outlook and strategy for 2009, the bank’s annual report says the global and Maltese economies are expected to experience negative economic growth in 2009.

The Board of Directors paid a net interim dividend of €3.08 per share amounting to €7.1 million. The directors did not propose the payment of a final dividend.

At balance sheet date the bank had retained earnings amounting to €11.649 million and a negative revaluation reserve amounting to €9.230 million.

At their AGM the shareholders of Volksbank Malta elected Joseph Bugelli as executive director of the bank.

Volksbank Malta is a wholly-owned subsidiary of Österreichische Volksbanken AG, which is the fourth largest banking group in Austria. It operates in 12 countries and has over 7,700 employees.