The Bank of Valletta Group registered a profit before tax of €119.8 million for the period between January and June 2026, compared with €135.1 million for the corresponding period in 2025. The result reflects a resilient first-half performance, supported by continued growth across the Group’s core banking activities, further strengthening of the balance sheet, sustained strategic execution and the successful completion of a landmark international capital markets transaction.
Against a backdrop of evolving market conditions, geopolitical uncertainty and continued investment across strategic, regulatory and technology initiatives, the Group continued to deliver solid underlying performance. Core operating income increased to €251.3 million, while net interest income rose by €18.3 million to €207.0 million, supported by growth in lending and treasury activities and demonstrating the strength of the Group’s earnings profile.
While profit before tax was lower than the exceptionally strong comparative period in 2025, the prior year benefited from favourable market conditions and certain non-recurring income items. The Group’s underlying operating performance remained strong, with the year-on-year decrease in profit before tax primarily reflecting higher impairment charges, less favourable fair value movements and the absence of those one-off benefits.
The Group continued to strengthen its balance sheet during the period, with total assets increasing by €1.1 billion, to exceed €17.6 billion, compared with the €16.5 billion at the end of 2025. Customer lending reached approximately €8.6 billion, while customer deposits increased to approximately €14.5 billion. These developments reflect the continued confidence placed in the Bank by households and businesses, and reinforce its role in supporting customers and the wider Maltese economy.
Reflecting the Group’s strong financial performance, capital position and confidence in its outlook, the Board of Directors approved an interim gross cash dividend of €51.6 million, equivalent to €0.0805 gross per share. This represents a net dividend of €33.6 million and a payout ratio of 42.5% of profit after tax.
Financial Performance | Net Interest Income | Net fee & Commission income | Profit before tax | Cost to Income ratio | Return on Average Equity Ratio (pre-tax)* | Gross Loans to Deposit Ratio | CET 1 Ratio |
| € m | € m | € m | | | | |
1H2026 | 207.0 | 39.1 | 119.8 | 51.4% | 15.9% | 59.7% | 19.32%** |
1H2025 | 188.7 | 39.9 | 135.1 | 47.9% | | | |
Dec2025 | | | | | 17.9% | 59.0% | 20.88% |
Change in €m | +18.3 | -0.8 | -15.3 | | | | |
Change in % | 9.7% | -2.0% | -11.3% | +3.5pp | -2.0pp | +0.7pp | -1.56pp |
*ROAE is calculated as annualised Profit Before Tax divided by the interim average shareholders’ equity
** The CET1 Ratio percentage does not include the inclusion of H1 2026 profits.
The Group remains firmly on track to achieve its FY2026 Profit Before Tax guidance of between €210 million and €250 million. Based on its performance during the first half of the financial year, management is satisfied that the Group continues to progress in line with expectations, underpinned by resilient earnings, sustained balance sheet growth, strong capital and liquidity positions, and ongoing improvements in asset quality.
Building on Strong Foundations for the Next Phase – Dr Gordon Cordina, Chairperson“The first half of 2026 demonstrated the resilience of Bank of Valletta’s business model and the strength of the foundations built over recent years. Despite an operating environment characterised by heightened geopolitical uncertainty and evolving market conditions, the Group continued to generate strong results while maintaining the financial strength and flexibility required to support future opportunities.
During the period, we also achieved an important milestone through our second issuance in the international capital markets. The strong response from institutional investors reinforced confidence in the Bank’s financial standing, strategic direction and long-term prospects, while further strengthening our funding profile.
As we continue developing our strategy for the period 2027 to 2029, our focus remains firmly centred on sustainable growth, customer relevance, operational efficiency, risk discipline and long-term value creation. We remain committed to supporting the evolving needs of our customers and the Maltese economy, while delivering sustainable returns for shareholders and maintaining the resilience that has long characterised our organisation.”
Delivering Today, Investing for Tomorrow – Kenneth Farrugia, CEO“Customer expectations continue to evolve rapidly, and our objective is to ensure that Bank of Valletta evolves with them. Throughout the first half of the year, we continued investing in the capabilities that will define the next generation of banking, with a strong focus on personalisation, simpler customer journeys and deeper, more meaningful relationships.
The continued rollout of our Omnichannel Banking Platform, together with significant progress in our Customer Relationship Management programme, is enabling us to create a more connected banking experience across every customer touchpoint. These investments are helping us move beyond traditional banking models towards a more proactive, relationship-driven approach that better anticipates customer needs and delivers greater value.
At the same time, we remain focused on strengthening the foundations that support long-term success, including operational resilience, cybersecurity, data capabilities and the development of our people. These are critical enablers of the Bank we are building for tomorrow; a Bank that remains firmly rooted in the trust of its customers while continuing to innovate, adapt and grow in a changing environment.”
