“An increase number of listings on the Malta Stock Exchange…”

The past eight years have seen the Malta Stock Exchange grow at a rapid pace, with the number of listings increasing by over 90 per cent, at a time when the number of listings globally is on the decline giving an increase in private equity activity.

Joseph Portelli, who has been leading the Malta Stock Exchange since 2015, and is now the longest-sitting chair in the Stock Exchange’s three-decade history, shares his pride in the significant growth of the MSE, which today has over 110 corporate entities listed on the exchange, considerably more than other much larger European economies. 

“Our operating income has increased by over 100 per cent since 2015. We have also paid the government over €35 million in dividends and corporate income tax, which ultimately accrues to the tax payer. These are metrics we are very proud of,” he explains.

Over the years, it has become evident that many more local businesses are appreciating the benefits of listing on the stock market, which provides access to a vast pool of capital from investors, allowing businesses to raise funds for expansion, research, development and other strategic initiatives.

Despite this success, the MSE is continuously looking ahead, and two projects in the pipeline concern the shipping and the digital spheres. With regards to the first, the MSE is keen to maximise the potential offered by Malta’s large and growing maritime industry and one of the world’s largest shipping registers. 

Portelli explains that “it makes sense to create a niche “blue-market” capital markets industry. This could also complement our international listing and digital asset strategy. We are also studying the prospects of setting up a blockchain-enabled fish market. But I want caution; we are still in the embryonic phase and studying the feasibility of such a novel project”.

When it comes to plans for a digital exchange, Portelli takes a more guarded approach. “It is our mission to enable the Maltese capital markets with every opportunity to raise capital efficiently and cost-effectively. If that means that digital assets traded on a block chain platform will add value, then we will pursue that strategy,” he explains.

The Stock Exchange has already created a digital asset-focused company called MSX but the way ahead is a long and challenging one. Firstly, it has not yet identified a technology partner which offers a cost-effective trading platform.  Secondly, demand for a blockchain-enabled trading platform from local issuers has been negligible. “Until that demand surfaces, an MSE blockchain-enabled platform will remain on the back burner,” he concedes.

Asked about his plans for further growth, Portelli said that the Exchange is very keen on raising its international profile and attracting international listings to the stock exchange. While appreciating that other exchanges, such as Ireland and Luxembourg and other non-EU jurisdictions are currently ahead in this field, his commitment persists. 

“The MSE will continue to do what it takes to raise awareness internationally that Malta could be a cost-effective solution for an international listing,” concluded Portelli.

 

BOV sells chunk of non-performing loans for €26 million

Bank of Valletta has entered into an assignment agreement to sell a portfolio of non-performing loans for a consideration of €26 million.

The bank announced the agreement in a press release.

Without giving a name, the bank said the acquirer of the loans is a Maltese public limited liability company established as a securitisation cell company. The company was selected after a formal offer was received as part of a bidding process conducted by the bank.

The portfolio consists of 707 non-performing loans across 245 borrowers. The majority of these were granted commercial loans to finance business activities across a number of different industries.

There are also personal loans, credit card loans, home loans, encroached savings and current accounts in the portfolio.

“The portfolio is significantly biased towards loans and facilities that have been in default for a long period of time, with 90% of the portfolio comprised of loans and facilities that have been in default for five years or longer, with 90% of the portfolio comprised of loans and facilities that have been in default for five years or longer” the bank said.

The bank said it is selling this portfolio to generate income from non-performing loans that may have been written off completely or been provided for, in large part, in previous years.

“The current net book value of the Portfolio reported in the Bank’s balance sheet is in the region of €5 million. In this regard, the Transaction is expected to have a positive impact of approximately €18 million on the Bank’s profitability for financial year 2023, representing the difference between the accumulated expected credit loss (provisions) and the actual realised loss following the Transaction.”

 

Malta Company Announcements: 

Maltapost p.l.c

The Directors recommended a final net dividend of €0.02 per share to all shareholders as at close of trading on Monday 8 January 2024. The dividend will be paid on 8 March 2024 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 9 February 2024. The Directors are giving shareholders the option to receive the dividend either in cash or by the issue of new shares at the attribution price of €0.44 per share.

Loqus p.l.c

The forthcoming Annual General Meeting (“AGM”) of the Company shall be held on the 31st January 2024 at 10.00hrs, at Sir Agostino Portelli Hall, The Malta Chamber of Commerce, The Exchange Buildings, Republic Street, Valletta. Shareholders shall be asked to consider the following ordinary resolutions:

1. Approval of audited financial statements for the year ended 30 June 2023;
2. Appointment of Auditors;
3. Appointment of Directors;
4. Approval of Remuneration Report.

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