Bank of Valletta delivered a robust performance in the first nine months of 2025, achieving a profit before tax of €192.1 million and surpassing the €16 billion mark in terms of total assets. This period was marked by continued balance sheet expansion, enhanced asset quality, year-on-year growth in income from core operations and the successful launch of strategic initiatives, including a regulated share buy-back programme and entry in the insurance intermediary market.

The Group remains on track to deliver a profit before tax for 2025 in the range of €215 million to €250 million, in line with previous guidance. Reflecting the Bank’s ongoing commitment to shareholder value, it intends to retain its policy of distributing up to 50% of after-tax profits, subject to prevailing market conditions.

Financial Performance

The Group registered a profit before tax of €192.1 million for the first nine months, underpinned by strong operating income. While profitability was 14.2% lower than the previous year, this result reflects the Bank’s strategic investment in its transformation journey, driving higher levels of process automation, data-driven decision-making, and digitalisation. The Group’s operating profit amounted to €185 million, which was achieved through higher operating income of €365.1 million, with positive results registered both on Net Interest Income and Net Fee & Commission Income. Expenses increased by 15.6%, reflecting the Bank’s investment in talent and technology.

Total assets grew by nearly €1 billion during the nine months, surpassing the €16 billion mark by September 2025. Lending activity remained strong, the loan book showing consistent expansion across all key segments with commercial and retail balances increasing by 8.7% and 13.2% respectively. Customer deposits maintained an upward trend, with sustained inflows from both personal and corporate customers, reflecting strong market confidence.

The Group’s Treasury portfolio has seen significant growth during 2025, ensuring that while the Bank maintains the necessary level of liquid assets, it deploys its funds to optimise returns and generate income in the most optimised manner. The Group’s asset quality continued to strengthen during the period, underpinned by disciplined risk management and proactive credit portfolio oversight. Notably, the non-performing loans (NPL) ratio declined to 1.9% as at September 2025, marking its lowest level in many years and reflecting the effectiveness of ongoing initiatives to enhance credit quality and recover non-performing exposures. The Group’s capital ratios remained strong and above regulatory requirements.

“Resilience in navigating a dynamic economic landscape” - Chairperson Dr Gordon Cordina

Chairperson Dr Gordon Cordina commented on the Bank’s performance to date, stating, “I am pleased to see the BOV Group sustain its performance over the first nine months of the year, a testament to our commitment to sustained growth, prudent risk management, capital optimisation, and value creation for our shareholders. We continue to navigate through the various challenges posed by an uncertain geopolitical landscape, interest rate movements by the European Central Bank, and international economic developments. Despite these challenges, our performance remains strong. Our results reflect the disciplined execution of our strategy, with targeted investment in technology, talent, and product diversification.

The BOV Group continues to live up to its commitment to diversify, innovate and support the market through a number of strategic initiatives. In August, BOV became the first credit institution in Malta to launch a regulated share buy-back programme designed to enhance market liquidity, provide an orderly liquidity mechanism for shareholders, and reinforce long-term shareholder value.

In addition, during the third quarter, we launched a comprehensive range of general insurance products in close collaboration with Mapfre Middlesea. The Bank also received regulatory approval from the MFSA for an Unsecured Euro Medium Term Bond Programme of up to €325m, an initiative aimed at further strengthening the Bank’s MREL position, optimising its capital structure, and ensuring preparedness to support sustainable growth and regulatory resilience. As we look forward, we remain focused on delivering sustainable value to our shareholders, supporting our retail and business customers and contributing to Malta’s economic growth.”

“A strong and sustained performance” – CEO Kenneth Farrugia

CEO Kenneth Farrugia echoed Dr Cordina’s comments, noting how Bank of Valletta continues to deliver strong performance in line with the expectations set out at the beginning of the year. “I am pleased to note the strength of our core business, the expansion of our balance sheet, an enhanced asset quality and robust capital and liquidity positions.

Our customers continue to place their trust in the Bank. Strong deposits by both personal and corporate customers reflect market confidence and the Bank’s ability to attract and retain liquidity, while our credit portfolio continues to grow across all key sectors. We continue to strengthen our investment activity, with our strategic redeployment of liquidity into longer-term interest-bearing assets continuing throughout this period. Our efforts to diversify, as highlighted by the Chairperson, are helping the Group maintain resilient income flows, even amid a declining interest rate environment.

Our increases in costs reflect our strategic drive, with investment in talent acquisition and retention, as well as technological enhancements aimed at driving innovation, operational efficiency and improved customer experience. The Bank continued to deliver on its 2024–2026 strategy with stable momentum. Throughout Q3 2025 we maintained strong focus on execution management, focusing on the completion of initiatives that drive efficiency. As part of our strategic plan, we are actively advancing our digital transformation program to deliver enhanced convenience and financial agility for both personal and business customers. As strong advocates for long-term financial well-being, we remain committed to playing a leading role in the pensions market and grow our market share in Second and Third Pillar Pension Schemes.

In Q3 2025, the Bank continued to strengthen its ESG strategy, reinforcing its role in Malta’s sustainable economic transition. We revised our green financing targets, expanded support for retail and commercial sustainability projects, and progressed our Climate Transition Plan in line with CSRD requirements.

The Bank also continues to support local communities through its CSR Programme and initiatives spearheaded by the BOV Foundation. I am pleased to see the Bank honoured by the World Savings and Retail Banking Institute (WSBI) and the European Savings and Retail Banking Group (ESBG) for its leadership in sustainable finance, its role in promoting financial inclusion and community-led initiatives. This award underscores BOV’s growing influence in shaping responsible banking practices in Malta and beyond.

Looking ahead, Bank of Valletta will strive to sustain its performance and growth, while leading by example, integrating sustainability across its operations and reaffirming its role as the Bank of Choice in Malta.”