Fitch upgrades BOV to stable

Bank of Valletta yesterday received what it said was a strong vote of confidence when international rating agency Fitch upgraded its outlook for the bank from negative to stable.

Fitch has also affirmed all the bank's ratings, namely, Long Term A-, Short Term F2, Individual C.

Fitch stated that the rating action reflects "BOV's position as the largest bank within the Maltese financial system, its improving profitability and sound capitalisation".

Fitch acknowledged the improvement of BOV's asset quality indicators up to March 2005.

The ratings were based on BOV's performance during the financial year ended September 30, 2004 as well as the half yearly figures as at March 2005.

Fitch also highlighted BOV's positive performance during the period under review resulting in a combination of improved net interest margins and net fee and commission income.

While noting the challenges ahead, Fitch acknowledged the improvement of BOV's asset quality over the past years.

Commenting on this international rating report, BOV's chief executive officer, Tonio Depasquale said: "This upgrade in BOV's outlook is a vote of confidence as well as an international acknowledgement of the all-round improvement BOV has been sustaining.

"The bank continues to focus on being supportive to its customers and to be responsive to the increasing sophistication of the markets in which it operates."