BOV posts positive interim results

Last week, the MSE Equity Total Return Index rose 0.35 per cent to close at 8,948.564 points. Turn­over amounted to €4.9m  spread across 19 equities, of which 10 fell, six rose and three closed unchanged.

Last Monday, Bank of Valletta’s board of directors announced the interim results for the six months ended June 30. The group made a pre-tax profit of €68m, equating to a return on equity (ROE) of 18 per cent. This is €5m (eight per cent) more than the same period last year after adjusting for the €22m gain from the disposal of the bank’s interest in Visa Europe. The profit rise was mainly due to improved profitability in the Personal Banking & Wealth Management division (+26 per cent) and Corporate Banking division (+11.1 per cent).

Last week there were 147 deals of 374,897 BOV shares, which closed 0.8 per cent down at €2.061, after recovering from a weekly low of €1.99. The bank’s share price has fallen for five consecutive weeks.

HSBC Bank Malta plc shares fell by a further €0.045 (2.3 per cent) as 26,035 shares were traded in 11 deals to close at €1.955, having traded at a low of €1.91 and a high of €2.01. Lombard Bank Malta plc shares slipped by 1.3 per cent as two deals of 2,130 shares were struck, closing €0.03 lower at €2.36.

Fimbank plc shares were the only positive performers in the financial sector, rallying by a significant 12.5 per cent as 10 deals of 340,000 shares were struck, to close $0.089 higher at $0.799.

The group made a pre-tax profit of $4.23m for the six months ended June 30, compared to $2.15m in 2016. Operating income was $25.69m, a 17.4 per cent rise from 2016. Earnings per share rose to $1.32 from the $0.38 in 2016. The directors do not recommend the payment of an interim dividend.

Mapfre Middlesea plc shares sagged by €0.045 (2.4 per cent) after six deals of 3,572 shares, to close at €1.855.

Santumas Shareholdings plc shares rose €0.051 (2.4 per cent) after four deals of 14,000 shares, closing at €2.20. The company’s board will meet on August 18 to consider and approve the company’s audited financial statements for the year ended April 30.

Medserv plc shares oscillated between a high of €1.399 and a low of €1.20 to close 7.4 per cent higher at €1.343. The equity was traded in 26 deals of 241,634 shares.

Malta International Airport plc shares slipped 0.6 per cent as 11 deals of 39,195 shares were struck, closing at €4.20. The number of passengers passing through the airport in July rose by over 90,000,  a 15.5 per cent rise over the same month last year. July’s 675,111 passenger movements beat the previous passenger traffic record, in August 2016, by 12 per cent.

PG plc shares rose 0.1 per cent after 14 deals of 33,288 shares, to close at an all-time high of €1.40.

PG announced a pre-tax profit of €10.8m for the year ended April 30, compared to €6.7m in the same period in 2016. This surge in annual pre-tax profit was due to material changes in the group’s composition. The group increased its shareholding in Pavi Supermarket from 50 to 100 per cent on August 31, 2015. Pama Shopping Village opened in October 2015, and the financial year ended April 30, 2016, only includes six months’ operation of the supermarket and retail outlets, while the latest results reflect a full trading year. Revenue for the period amounted to €91.7m, a 65.8 per cent rise from 2016. Earnings per share (EPS) rose to €0.35 from €0.25. In line with the company’s policy, the first dividends payable will be for the current financial year ending April 30, 2018.

RS2 Software plc shares fell by a minimal 0.1 per cent after eight deals of 37,996 shares, closing at €1.788. Loqus Holdings plc shares closed unchanged at €0.175 as two deals of 1,100 shares were executed.

International Hotel Investments plc shares rose by three per cent after three deals of 15,894 shares, to close at €0.618. Maltapost plc shares fell by one per cent after three deals of 8,226 shares, closing at €1.98. GO plc shares were active in six deals of 2,200 shares, to close unchanged at €3.60.

Malita Investments plc rose 2.6 per cent after four deals of 168,500 shares, to close at €0.759.  It made a pre-tax profit of €9.7m for the six months ended June 30, compared to €4.9m in 2016. Revenue amounted to €3.53m, a 1.8 per cent rise from 2016. EPS fell to €1.13 from the €2.66 in 2016.

The company directors approved  a gross interim dividend of €0.0132 per share equating to an interim net dividend of €0.00858 per share. It will be paid on September 7 to registered shareholders at close of business on August 18.

Malta Properties Company plc shares fell 2.9 per cent after 24 deals of 205,970 shares, closing at €0.50. The group made a pre-tax profit of €727,774 for the six-month period ended June 30, compared to €928,358 in the same period in 2016. Revenue from leasing of property amounted to €1.54m, a drop of 7.5 per cent from 2016.

Tigné Mall plc shares stumbled by €0.04 (4.1 per cent) after the week’s highest turnover of 3,144,250 shares in five deals, to close at €0.93. The group made a pre-tax profit of €1.56m for the six months ended June 30, compared to €1.42m in 2016. Revenue amount­ed to €2.93m, a 3.5 per cent rise from 2016. EPS rose to €0.019 from €0.014 in 2016. The directors declared an interim net dividend payment of €726,150 (2016: €705,000) equivalent to €0.0128 per share. The interim dividend will be paid on August 31 to registered shareholders as at August 17.

Midi plc shares closed the week unchanged at €0.31 as two deals of 27,000 shares were struck. Plaza Centres plc shares fell €0.049 (4.3 per cent) after two deals of 45,000 shares, closing at €1.10.

In the corporate bond market, 30 issues were active, of which eight fell, 13 rose and nine were  unchanged as turnover amounted to €1.2m. In the sovereign bond market, turnover was €9.6m spread over 24 issues of which 14 rose, eight fell and two closed unchanged.

This article, which was compiled by Jesmond Mizzi Financial Advisors Led, does not intend to give investment advice and the contents therein should not be construed as such. The company is licensed to conduct investment services by the MFSA and is a member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Ltd at 67, Level 3, South Street, Valletta, or on Tel. 2122 4410, or e-mail [email protected].

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