Bank of Valletta announced a strong profit before tax of €67.1 million for the first quarter of 2025, an increase of 5.3% over the same period in 2024. These results for the BOV Group were the outcome of a positive performance on both the revenue side and operational costs. It reflects the Bank’s focus on strengthening income from its key lines of business, increasing net fee and commission income, its strategic push to reallocate funds from liquid cash assets to the Bank’s investment portfolio, as well as the strategic balance sheet repositioning effected by the Bank since 2022.
During this period the Bank continued its efforts on increasing shareholder value, enhancing its capital structure and market position through the initiatives announced earlier this year, including a proposed bonus issue, a share buyback, and a bond issuance planned for the coming months. The Group remains on track to sustain its performance and deliver a profit before tax for 2025 in a range between €200 million and €250 million.
Financial PerformanceBank of Valletta registered a total operating income of €118.0 million for this period, which is marginally higher than that of 2024 (€117.4 million). Total costs for the first quarter amounted to €52.8 million, which was 7.5% above the same period in 2024, with personnel costs remaining the primary cost driver, followed by higher regulatory costs due to increases in the Bank’s deposit base and continued investment in technology-related expenses supporting the Bank’s drive for
digitalisation.
The Group's commitment to enhance the credit quality of its loan portfolio has led to a reduction in the non-performing loans ratio, closing at 2.5% at the end of the first quarter of 2025 compared to 2.7% at the end of December 2024.
The key highlights of the Group’s performance are shown below:
| Performance Metric | Q1 2025 | Q1 2024 |
| Profit Before Tax | €67.1 m | €63.7 m |
| Net Interest Income | €92.5 m | €98.3 m |
| Net Fee & Commission Income | €20 m | €18.7 m |
| Cost to Income Ratio | 44.7% | 41.8% |
| ROAE Ratio (pre-tax) | 18.8% | 19.8% |
| Earnings Per Share | €0.076 | €0.072 |
| Net Asset Value per Share | €2.49 | €2.41 |
| Gross Loan-to-Deposits Ratio | 56.7% | 54.5% (Dec 2024) |
| Profit from Insurance Associates | €2.0 m | €1.9 m |
The Group’s total assets increased by €549.2 million from year end 2024 to €15.6 billion as at end March 2025. Deposits experienced a slight increase of €2.9 million and the Bank’s Treasury Portfolio has seen significant growth, with a 9.5% uplift in investments during the period under review to reach €6.9 billion. The Group’s total equity closed at €1.5 billion, with capital ratios remaining strong and above regulatory requirements.
Strengthening Balance Sheet and operational systems to provide secure, reliable and innovative banking services – Chairman Dr Gordon Cordina
BOV Chairman Dr Gordon Cordina, stated that “The results obtained during the first quarter of 2025, both from an operational and financial perspective, indicate that the Bank is well-positioned to meet the targets for this financial year. Our focus on technological innovation, strategic balance sheet management and enhanced income diversification positions us favourably for sustained growth going forward. These results affirm our resilience and preparedness to capitalise on emerging opportunities whilst mitigating potential risks.
Our primary objective remains to provide shareholders with sustained and stable returns. We continue to maintain high capital and liquidity buffers, while adopting a proactive balance sheet management approach to optimise income and profitability levels. This strategy will be reinforced by additional long-term debt issuances in the coming months to support our growth strategy and the resultant need for increased risk-weighted assets.
Bank of Valletta has the necessary means and resources to continue to support the stable and sustained growth of the Maltese economy going into the future. In a situation of turbulence in the international scenario, with potential effects on national economic activity, as well as in the context of fundamental changes in the banking sector in Malta, Bank of Valletta will continue to remain strongly capitalized and active in servicing existing and new business and personal clients through a variety of products and channels. The Bank is making significant investments in the strength and quality of its balance sheet, as well as in its operational systems, to provide secure, reliable and innovative banking and financial services to its growing customer base.
I would like to thank our various stakeholders, including our loyal shareholders for their unwavering trust and support, as well as our employees for their continued drive and commitment.”
BOV sustains momentum with notable improvements in its core lines of business – CEO Kenneth Farrugia
Echoing Dr Cordina’s remarks CEO Kenneth Farrugia stated, “I am extremely pleased with the Bank’s performance for the first quarter of 2025, as we continue sustaining the momentum gained at the end of 2024. The Bank registered growth across its core lines of business, with notable improvements in credit-related activity including business, home and personal loans, increases in card-related fee income and also a significant growth in investments business.
We are now entering the second year of our current strategy, with a commitment to sustaining these results while transforming our business and operations to enhance the experience for both our personal and business customers, as well as our employees. To sustain this, we have launched a number of new initiatives covering customer engagement, business process re-engineering, IT and Cyber Security, as well as regulatory compliance.
It gives me great pleasure to see the Bank’s efforts recognised internationally, especially with Fitch Ratings announcing an upgrade of BOV’s Long-Term Issuer Default Rating and Viability Rating. This positive development follows the recent credit rating upgrade by Standard and Poor’s at the end of last year. I take this opportunity to thank our leadership team and employees for their dedication in pursuit of excellence, which augurs well for the continued success and growth of the Bank in the coming months.”
Embedding the values of sustainability in decision-making
During this period under review the Bank continued to make progress in its sustainability journey, building on its foundation for long-term sustainability and financial resilience by embarking on various initiatives aimed at the reduction of carbon emissions. The Bank has set ambitious scope 1 and scope 2 emission reduction targets, with the ultimate aim of leaving a positive impact on the environment and on society at large.
In addition to the internal operational initiatives, the Bank is actively promoting green financing and investment products. The CEO went on to say that “over the last few years we have launched several initiatives aimed at encouraging sustainable practices among our clients, including offering preferential loan rates for environmentally-friendly projects and investments in renewable energy. By embedding the values of sustainability in our decision-making processes, the Bank is not only supporting the green economy but also ensuring that our growth strategy aligns with global efforts to combat climate change. These initiatives reflect Bank of Valletta's commitment to drive positive environmental impact while fostering long-term economic stability and growth”.
