A planning application submitted by Bank of Valletta to replace its Attard branch with a five-storey residential complex is simply a way for the bank to refurbish its branch and maximise its assets, a BOV spokesperson told Times of Malta.

In an unusual move, the application was submitted by the bank itself, leading to consternation over whether the bank is branching out into the property sector.

However, a spokesperson told Times of Malta that the bank has no intention of getting involved in the property sector and is legally precluded from doing so by its banking licence.

Instead, the spokesperson said, the bank is looking to maximise its existing assets and refurbish its branches to better meet the needs of its customers.

In the case of the Attard branch, following a request for proposals, the bank reached an agreement with the successful bidder who intends to purchase the property and develop the block, if a planning permit is issued. The development will also include a refurbished BOV branch at ground floor level.

Since the property is currently owned by BOV, the planning application was submitted directly by the bank, rather than by the developer who will be carrying out the development.

According to the spokesperson, it is common business practice for banks to sell assets and properties in a similar way. However, unlike most other properties sold, this particular site also incorporates the bank’s branch, leading the bank to reach this unorthodox arrangement.

The spokesperson said that the bank will not have any link to the residential properties and will not receive any income from their sale or rental by the developer.