Bank of Valletta plc - Interim Directors’ Statement

Thursday, August 1st, 2013

On 1 August, Bank of Valletta plc issued its Interim Directors’ Statement providing an update on its performance since 1 April to the end of July.

The Bank reported that this period was once again characterised by subdued demand for credit whilst deposits continued to grow at a modest rate. Higher levels of liquidity coupled with the prevailing low interest rate scenario and competition in the local market resulted in narrowing interest margins. Meanwhile, net commission income increased from the previous comparable period primarily driven by investment related activities, trade finance and card related business.

BOV reported that costs were in line with last year’s levels as the Group maintains its control on expenditure.

The announcement also noted that Bank retained its cautious approach towards loan provisioning in line with the call by both the local regulators and those at the EU level for banks to be more prudent and increase their provisions. On the other hand, the Bank’s investment book registered positive movements during the period under review.

The Directors concluded by stating that the Group will continue to ensure that is capital and liquidity buffers will be maintained in accordance with best international practice.

Print This Page Print This Page