BOV makes a €54m profit in three months, down 19.5% from 2025

Bank of Valletta said on Wednesday it made a pre-tax profit of €54 million in the first quarter of this year, a decrease of 19.5% over the same period in 2025.

"Solid business activity sustained core income, with net interest income benefiting from continued lending growth and disciplined treasury management, underpinned by a stable, high-quality funding base," it said in  a statement.

Net Fee and Commission Income remained stable, reflecting strong customer activity and reinforcing the Group’s income diversification strategy.

The bottom line profitability was shaped by specific, non‑recurring factors, including heightened geopolitical tensions that led to increased financial‑market volatility, it added.

"While not impacting the group’s core operating activities, customer behaviour or portfolio performance, this resulted in an unrealised valuation impact on the equity investment portfolio. Consequently, a net trading loss of €3.6 million was recorded when compared with a gain of €5.5 million in 2025. This was not material and did not affect the Group’s capital strength or liquidity position."

Profitability was also influenced by higher impairment charges, reflecting specific and identifiable credit developments rather than a deterioration in the broader credit environment. 

Performance Highlights

• · Profit Before Tax amounted to €54 million, down from €67.1 million.
• · Net Interest Income stood at €100.2 million, up from €92.5 million.
• · Net Fee and Commission Income increased from €20 million to €20.2 million.
• · Operating costs totalled €61.7 million, up from €52.8 million.
• · Cost-to-income ratio increased to 51.8% from 44.7%.
• · Return on Average Equity (pre-tax) decreased to 14.2% from 17.9%.
• · Deposits increased by €351.9 million, surpassing the €14.1 billion mark.
• · Total assets stood at €17 billion, up from €16.5 billion in December 2025.
• · The credit portfolio reached €8.3 billion, up from €8 billion in December 2025.
• · Net Asset Value per share stood at €2.4, up from €2.3 in December 2025.
• · Capital ratios remained strong and above regulatory requirements.

The group said total assets stood at €17 billion in March 2026, up by approximately half a billion when compared with 2025. This represented a new high for the group, with growth reflecting sustained balance-sheet expansion, consistent with the strategic focus on supporting domestic economic activity while maintaining strong liquidity and funding discipline.

The Treasury portfolio reached €7 billion in Q1 2026, an increase of €119.3 million, reflecting the group’s deployment of excess liquidity into high-quality debt securities.

The credit portfolio continued to grow, with the balance reaching €8.3 billion in the first quarter, reflecting strong momentum in customer lending. As a result, the gross loan-to-deposits ratio increased from 59% in December 2025 to 59.5% during the quarter.

Group chairperson Dr Cordinasaid BOV delivered a strong start to the year, reflecting resilience, a disciplined approach and solid fundamentals. "This performance was achieved in a stable economic environment, alongside the expected normalisation of earnings, interest rate stability and a renewed period of geopolitical uncertainty."

The group said it continues to monitor the evolving geopolitical environment and its potential impact on the Maltese economy and the financial system.

"The assessment remains that Malta entered the current period of heightened geopolitical uncertainty from a position of relative strength, supported by resilient economic growth, low unemployment, moderating inflation and sound public finances," it said.  

Looking ahead, the group said it remains well positioned to deliver a profit before tax for the year in the range of €210 million to €250 million, in line with previous guidance. It said it remained committed to rewarding its shareholders and intends to maintain its policy of distributing up to 50% of after‑tax profits, subject to prevailing market conditions.