“BOV announces profit before tax of €251.6 million for 2023…”

Bank of Valletta announced its performance for Financial Year ending 31 December 2023, registering a profit before tax of €251.6 million. These positive results are underpinned by strong income growth and high profitability levels achieved across all main business lines. This continued to strengthen the Bank’s balance sheet position, with liquidity and capital positions remaining well above regulatory requirements.

The BOV Group experienced a significant increase in operating income primarily due to the enhancement in net interest income for the year 2023. Total operating income amounted to €441.0 million (increase of €147.6m over prior year). Net Interest Income remained the primary driver of operating income, totalling €352.0 million (up by €150.1m), with Net Fee and Commission income increasing by €1.4 million. Total costs amounted to €210.9 million (increase of 10% over prior year). The Group’s share of profit from insurance associates amounted to €11.0 million.

Key performance indicators were satisfactory with pre-tax return on equity at a level of 21.1% and cost to income ratio at 47.8%. Earnings per share amounted to €28.8 cents (€5.4 cents restated in the comparative year).

The Group’s Total Assets remained on the same levels of the previous year at €14.5 billion. Gross loans and advances reached €6.3 billion, an increase of nearly 9% compared with the €5.8 billion of December 2022. Group’s gross loans to deposits ratio increased from 46.0% in December 2022 to 51.7% by end 2023. Capital ratios remained strong and above regulatory requirements, with the CET 1 and total capital ratios as at 31 December 2023 of 22.7% and 25.9% respectively.

Further to the gross interim dividend of €0.0462 per share paid on 6^th December 2023 amounting to €27.0 million (net ordinary dividend of €0.0300 per share amounting to €17.5 million), the Board of Directors will, at the forthcoming Annual General Meeting, be recommending a final gross dividend of €0.0700 per share amounting to €40.9 million (net dividend of €0.0455 per share amounting to €26.6 million). This would make for a total gross dividend for the year of €0.1162 per share, equivalent to a total gross dividend payable of €67.9 million. The payment of the final dividend is still subject to regulatory approval.

On the strength of the financial performance being registered, the Board of Directors is pleased to announce one of the highest dividend distributions paid in recent years, which duly rewards our loyal shareholders. This is being recommended after taking into consideration the Bank’s future capital requirements, underpinned by a fully articulated dividend policy which seeks to balance out dividends payout with future growth of the Bank’s equity base. It also takes into consideration the sustainability of further dividend payouts in the future.

Speaking about these results, BOV CEO Kenneth Farrugia stated that “Bank of Valletta’s financial performance over 2023 was undoubtedly one of the best experienced during its 50-year history, with strong income growth achieved across all core business lines. These positive results were achieved in a backdrop of a high interest rate environment influenced by geopolitical tensions, high inflation, and tightening monetary policies across the euro area. The increase in interest rates, strength of our balance sheet, our robust risk management framework, and organic growth in core business lines were all key enablers of the financial results registered during the year.

MeDirect announces more digital services and a profit after tax of €11.9 million for 2023

As a pan-European digital bank, MeDirect Group has announced a profit after tax of €11.9 million in 2023, up from €8.7 million in 2022. These results were achieved during a year in which the Group focused on building sustainable growth, supported by cutting-edge technology and model scalability. MeDirect’s total retail client base increased by 23% to reach 133,000. Customers’ financial assets grew by 18% to €5 billion, of which €1.7 billion were assets under custody with MeDirect. These achievements were underpinned by several significant developments.

Retail products available on MeDirect’s one-stop shop platform were expanded to offer a broader range of daily banking, deposits and wealth management solutions, with fast client onboarding and seamless user experience. In July 2023, MeDirect launched physical and virtual card services in Malta, with a range of card servicing functionalities available online. This development enhances MeDirect’s appeal as a primary bank offering seamless digital services.

Arnaud Denis, CEO at MeDirect Group, said, “2023 was a year during which we continued to deliver at a rapid pace and to consolidate our platform. We steadily scaled our businesses both on the wealth and lending side. We now have the ambition as Malta’s first digital bank to become our customer’s primary bank. While great technology and client centricity remain at our core, our sustainable growth strategy relies on investing selectively, cost control and effective risk management to improve the bank’s profitability in what remain uncertain global macroeconomic conditions.”

During 2023, MeDirect’s total mortgage portfolio increased by 22%, from €2 billion to almost €2.5 billion: Dutch government guaranteed (NHG) mortgages passed the €2 billion mark, Belgian mortgages exceeded €250 million and Dutch professional buy-to-let mortgages reached €85 million. In Malta, our mortgage book reached almost €100 million and the offering was broadened to add property investment loans, as well as an 18-month interest only feature. For all categories of lending, the Bank leverages on technology and on designing seamless processes to reduce the time required to issue sanction letters and complete home loan contracts. Across the board, MeDirect applies a robust risk selection process which has resulted in high-quality portfolios with low arrears and defaults.

On the corporate side, MeDirect continued to support the local Maltese economy by dynamically developing its franchise. The domestic corporate lending book grew to €140 million as at December 2023, with a conservative average loan-to-value ratio of 54%. MeDirect also provides high quality corporate services (account opening, payments, treasury, liquidity management, foreign exchange) to approximately 400 clients across various sectors. The bank further enhanced its e-banking platform to offer best-in-class digital services to its corporate clients.

Malta Company Announcements:

Exalco Finance p.l.c

The Board of Directors of Exalco Finance p.l.c. (the “Company”) is scheduled to meet on 9^th April, 2024, to consider and, if thought fit, approve, the Company’s audited financial statements for the financial year ended 31st December, 2023.

CC Finance Group

The Company announces that its Board of Directors shall be convening on the 16th, April 2024 in order to consider and, if deemed fit, approve the Company’s Annual Report and Audited Financial Statements for the financial year ended 31st December, 2023.

Plaza Centres plc

The Board of Directors of Plaza Centres plc is scheduled to meet on Wednesday 24 April 2024 to consider and if thought fit approve, the Group’s Financial Statements for the financial year ended 31 December 2023.

MerkantiHolding p.l.c

The Company announces that the Board of Directors is scheduled to meet on 30 April 2024 to consider and, if deemed appropriate, approve the Company’s annual financial report for the year ended 31 December 2023.

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