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Bank of Valletta plc – Quarterly Update

cyber

April 29, 2026

Market News
29 April, 2026
6 min read
Market News
29 April, 2026
6 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Financial Performance

On 29 April 2026, Bank of Valletta plc issued a quarterly update providing information about its performance in Q1 2026 when compared to the same period in 2025.

Net interest income grew by 8.3% to €100.2 million (Q1 2025: €92.5 million), driven by sustained growth in customer lending and treasury management, notwithstanding a higher interest expense arising from subordinated bond issuances completed after the first quarter of 2025.

Meanwhile, Net fee and commission income remained broadly stable, edging up 1.1% to €20.2 million. Moreover, there was a net trading loss of €3.6 million compared to a gain of €5.5 million in the corresponding period of the prior year.

In aggregate, BOV’s operating income increased marginally to €119.1 million (Q1 2025: €118.0 million).

BOV’s financial performance was impacted by a net impairment charge of €5.6 million, significantly higher than the €0.17 million recognised in the first quarter of 2025. Notwithstanding the higher charge, the non-performing loan ratio improved to 1.57% compared to 1.68% as at the end of 2025.

On the expenditure side, total operating costs increased by 17% to €61.7 million, driven by higher personnel costs, increased IT expenditure, higher depreciation charges and elevated regulatory-related costs including contributions to the Depositor Compensation Scheme. As a result, the cost-to-income ratio increased to 51.8% compared to 44.7% in Q1 2025, remaining consistent with the low-to-mid-50% range outlined in the Group’s forward guidance.

BOV’s share of results from associates increased by 8.5% to €2.2 million (Q1 2025: €2.0 million).

Overall, BOV recorded a profit before tax of €54.0 million, which is 19.5% lower than the €67.1 million in the first three months of 2025. The net profit for the period amounted to €35.8 million, which translates into an annualised return on average equity of 14.2% (Q1 2025: 17.9%).

In terms of financial position, when compared to 31 December 2025, total assets increased by 3.0% to €17.0 billion, driven by growth in customer loans (+€278 million to €8.3 billion), higher treasury investments (+€119 million to €7.0 billion), and a rise in cash and balances held with the Central Bank of Malta (+€92 million to €1.0 billion).

Total liabilities increased by 3.1% to €15.5 billion, supported by strong deposit inflows. Customer deposits surpassed the €14.1 billion mark, increasing by €352 million or 2.6% over the quarter. As a result, the gross loan-to-deposit ratio edged up to 59.5% compared to 59.0% as at the end of 2025.

Total equity increased to €1.53 billion, with the net asset value per share rising to €2.40 (December 2025: €2.30). Capital and liquidity positions remained above regulatory requirements, with the CET1 ratio at 20.18% (December 2025: 20.88%) and total capital ratio at 28.32% (December 2025: 29.32%).

International Bond Issuance

BOV also announced that preparatory work is underway for the issuance of a €300 million Senior Preferred Instrument, subject to regulatory approval. The proposed issuance forms part of the Group’s long-term funding strategy, with an investor roadshow having already taken place in London. Further details on structure, timing and key terms will be communicated no later than the end of FY2026.

Financial Outlook

BOV confirmed that it remains on track to deliver a profit before tax for FY2026 in the range of €210 million to €250 million, in line with guidance provided at the start of the year. The Bank intends to retain its policy of distributing up to 50% of after-tax profits, subject to prevailing market conditions. BOV also confirmed that base rates applicable to its credit portfolio will remain unchanged up to end-June 2026, when the next review will be held.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 29 April 2026, Bank of Valletta plc issued a quarterly update providing information about its performance in Q1 2026 when compared to the same period in 2025.

Net interest income grew by 8.3% to €100.2 million (Q1 2025: €92.5 million), driven by sustained growth in customer lending and treasury management, notwithstanding a higher interest expense arising from subordinated bond issuances completed after the first quarter of 2025.

Meanwhile, Net fee and commission income remained broadly stable, edging up 1.1% to €20.2 million. Moreover, there was a net trading loss of €3.6 million compared to a gain of €5.5 million in the corresponding period of the prior year.

In aggregate, BOV’s operating income increased marginally to €119.1 million (Q1 2025: €118.0 million).

BOV’s financial performance was impacted by a net impairment charge of €5.6 million, significantly higher than the €0.17 million recognised in the first quarter of 2025. Notwithstanding the higher charge, the non-performing loan ratio improved to 1.57% compared to 1.68% as at the end of 2025.

On the expenditure side, total operating costs increased by 17% to €61.7 million, driven by higher personnel costs, increased IT expenditure, higher depreciation charges and elevated regulatory-related costs including contributions to the Depositor Compensation Scheme. As a result, the cost-to-income ratio increased to 51.8% compared to 44.7% in Q1 2025, remaining consistent with the low-to-mid-50% range outlined in the Group’s forward guidance.

BOV’s share of results from associates increased by 8.5% to €2.2 million (Q1 2025: €2.0 million).

Overall, BOV recorded a profit before tax of €54.0 million, which is 19.5% lower than the €67.1 million in the first three months of 2025. The net profit for the period amounted to €35.8 million, which translates into an annualised return on average equity of 14.2% (Q1 2025: 17.9%).

In terms of financial position, when compared to 31 December 2025, total assets increased by 3.0% to €17.0 billion, driven by growth in customer loans (+€278 million to €8.3 billion), higher treasury investments (+€119 million to €7.0 billion), and a rise in cash and balances held with the Central Bank of Malta (+€92 million to €1.0 billion).

Total liabilities increased by 3.1% to €15.5 billion, supported by strong deposit inflows. Customer deposits surpassed the €14.1 billion mark, increasing by €352 million or 2.6% over the quarter. As a result, the gross loan-to-deposit ratio edged up to 59.5% compared to 59.0% as at the end of 2025.

Total equity increased to €1.53 billion, with the net asset value per share rising to €2.40 (December 2025: €2.30). Capital and liquidity positions remained above regulatory requirements, with the CET1 ratio at 20.18% (December 2025: 20.88%) and total capital ratio at 28.32% (December 2025: 29.32%).

International Bond Issuance

BOV also announced that preparatory work is underway for the issuance of a €300 million Senior Preferred Instrument, subject to regulatory approval. The proposed issuance forms part of the Group’s long-term funding strategy, with an investor roadshow having already taken place in London. Further details on structure, timing and key terms will be communicated no later than the end of FY2026.

Financial Outlook

BOV confirmed that it remains on track to deliver a profit before tax for FY2026 in the range of €210 million to €250 million, in line with guidance provided at the start of the year. The Bank intends to retain its policy of distributing up to 50% of after-tax profits, subject to prevailing market conditions. BOV also confirmed that base rates applicable to its credit portfolio will remain unchanged up to end-June 2026, when the next review will be held.