Bank of Valletta is undergoing a major process of change which will make it 'future proof,' its annual general meeting was told on Thursday.
The AGM was held remotely in line with current recommendations of the health authorities.
Addressing the shareholders, bank chairman Gordon Cordina said that besides the need to emerge from the COVID-19 pandemic in a position of strength, the bank had embarked on an ambitious programme that will transform the way it does its business to future-proof it for decades to come. ‘
"This will not be a superficial exercise, but a radical change from the inside out affecting all operations and interactions with internal and external stakeholders ensuring that the bank continues to be relevant to the Maltese economy, while delivering better returns to its shareholders," he said.
"The new strategy, dubbed BOV-2023 aims to lift the bank to a place among the best of its peers in Europe and its design and implementation are being supported by professionals with international-level track records in these processes,’ Cordina explained.
"This strategy will ultimately target the maximisation of shareholder value in the medium term, with a vision to restore the payment of dividends at levels that are adequate, stable and predictable.
BOV CEO Rick Hunkin gave an overview of the bank's performance for 2019. The BOV Group reported a profit before tax of €89.2m. Profit attributable to shareholders of €63.5m results in earnings per share of 10.9 cents, compared to 8.8 cents the previous year. Adjusting for an additional contingent liability provision of €25m and additional costs associated with the transformation programme of €23.9m, the underlying profit amounted to €138.1m
He also referred to the board of directors' decision to withdraw its original recommendation for the Annual General Meeting to approve the payment of a final dividend in respect of Financial Year 2019.
He said this was based on the ECB’s direct guidance on dividend distribution. Banks have been instructed to preserve all capital until such time when the final effects of the pandemic are known.
"We understand this is not welcome news for shareholders, but we hope you understand this is an unprecedented situation we are all facing,’ concluded Hunkin.